The London Court of International Arbitration (LCIA) has revised its arbitration rules to make the arbitration process more efficient using requirements that include timetables, guidelines, emergency procedures and consolidation processes. These changes to the LCIA arbitration rules are in effect from 1 October 2014 and track the similar amendments to the UNCITRAL and the ICC rules introduced in 2010 and 2012.
Changes
Significant changes to the LCIA rules include:
- an obligation on the tribunal to establish a timetable for the arbitration which can result in adverse cost orders for a transgressing party;
- shorter time limits for raising challenges against arbitrators;
- the arbitrators’ duty to conduct the arbitration in an efficient and expeditious manner;
- an obligation on legal counsel to comply with guidelines contained in the annex to the LCIA rules;
- the introduction of an emergency arbitration procedure (before the tribunal is constituted);
- the power of the LCIA Court to consolidate several arbitrations to deal with matters more quickly.
Consequences of the revision of the LCIA Arbitration Rules
The revised arbitration rules will make these institutional arbitrations speedier and more cost effective, in response to the alarming rise in arbitration costs. Parties concluding an arbitration agreement should evaluate the revised rules and select those that reflect their intention and will give effect to the expectations of the parties.