What type of disputes can be arbitrated by ACI?
ACI offers arbitration in all types of business and professional disputes. These may be disputes between businesses, professional people or firms. Equally the dispute may be between an individual and a business, professional person or firm.

What sort of arbitrators are on the ACI Panel?
ACI’s arbitrator’s are all senior lawyers. They have been chosen as experienced arbitrators in their own field of law and for their modern, forward-thinking approach to arbitration.

Will the arbitrator appointed be a specialist in the area of the dispute?
Yes. ACI believes that disputes are best and most efficiently (and therefore most cost effectively) arbitrated by specialists in the field of the dispute. This will enable the arbitrator to give the right directions for the prompt resolution of the dispute at the Preliminary Meeting and will avoid time-consuming explanations as to the background to the transaction at the hearing. ACI believes that this is a considerable advantage in the arbitration of many commercial disputes.

ACI has arbitrators who are specialists within the broad commercial field eg banking and financial services, commodities and international transport, employment, entertainment and media, computer technology (IT), insurance and reinsurance, copyright and intellectual property, partnership, pensions, professional negligence, sale of goods and services, shipping/marine and sports law. Whatever the nature of the dispute, ACI can provide a specialist within that field to arbitrate the dispute. Where ACI appoints the arbitrator, the aim will be to appoint an arbitrator who is a specialist in the field of the dispute.

Is there a limit on the value of the dispute which ACI will handle?
There is no imposed minimum value of dispute. However, as a general guide, disputes of a value of between £50,000 and upwards will all benefit from this fast, efficient and cost effective arbitration scheme. The more senior ACI arbitrators are frequently appointed to determine commercial disputes involving very substantial sums of money.

What are the advantages of an administered scheme?
An administered scheme provides a framework within which the arbitration can take place. The rules ensure that the arbitrator has the necessary power to see the dispute through to a speedy and satisfactory conclusion. That is important. Until recently arbitration has suffered from the fact that the arbitrator’s powers were limited and this resulted in both delay and expense. Since the Arbitration Act 1996 it is possible to vest the arbitrator with considerably increased powers. With a good set of rules, suited to commercial disputes, it is now possible to achieve a determination of a dispute both speedily and cost effectively. Further, because arbitration is more informal than court proceedings, often a dispute can be arbitrated speedily and more cost effectively than it can be litigated. ACI’s Rules have been carefully drafted to give appropriate powers to the arbitrators to enable them to meet ACI’s aim of speedy and cost effective justice in the context of commercial disputes.

What are the other advantages of arbitration with ACI?
Firstly, as indicated above, one of the biggest advantages of arbitration is the informality of the procedure. This can lead to speedy and cost effective arbitration where it is conducted under the right administrative framework. ACI believes that is has set up just such a framework for the resolution of commercial disputes.

Secondly, because the ACI Panel comprises specialist lawyers working actively in the commercial field, they are up-to-date with the latest commercial transactions being carried out and leading to disputes in their field. The arbitrator will be familiar with the background to the transaction and the modern instruments or usual documents in use in the field concerned and will be able to give directions for the smooth determination that are suitable for that particular dispute. It is this familiarity that will assist ACI arbitrators to meet the aim of speedy and cost effective arbitration.

Thirdly, arbitration is confidential and this is widely recognised as advantageous by commercial parties on both sides of many disputes.

Finally, one of the advantages of traditional arbitration was the resolution of the dispute by an expert or experts working in that particular field. Many types of commercial disputes are most suited to be determined by lawyers because of the complex law that arises in those fields. This is particularly so now that an appeal to the courts from an arbitrator has been severely limited.

Nevertheless, it is of considerable advantage in many large commercial disputes for the parties to be able to present their case to an expert working in the relevant field. ACI rules permit the introduction of an independent expert assessor to sit with the arbitrator, alternatively for the appointment of independent trade or expert arbitrators to sit with an ACI Panel Member as the legal chairman. This has a considerable advantage over the traditional system used by the courts whereby the parties each present expert evidence to the judge for him to decide which of the expert evidence he prefers.

ACI believes that the combination of a specialist lawyer in the field concerned sitting with experts with an expertise in the technical aspects is a good formula for sound decisions in substantial technical commercial cases.

Why arbitration rather than litigation in the courts?
Some people think that arbitration is more expensive than the court system because the arbitrator and the venue have to be paid for. ACI believes that arbitration, properly conducted under a good administered scheme, can be substantially cheaper than litigation. The court system is devised for all types of disputes. It involves a great deal of formality (often protracted) within its procedures – even under the Woolf reforms -  which must be carried out by a professional on behalf of each party. These account for the majority of the costs of resolving a dispute. Hence arbitration is often a cheaper solution for the parties, even though the cost of the Arbitrator and the venue have to be covered.

The ACI arbitrator is in a position to refine the process. The arbitration will be conducted with the minimum of steps necessary for the particular dispute and with the minimum of formality. The ACI rules provide that the arbitrator will hold an early Preliminary Meeting for the purpose of analysing the real issues in the case and taking control of the proceedings. ACI intends that the arbitrator will give directions to bring the dispute to a conclusion as quickly and cheaply as is consistent with justice. Since the arbitrator will be a lawyer specialising in the field of the dispute, he will be in a good position to do so.

ACI rules give power to the arbitrator to take any steps which may achieve the group’s aim of sound and affordable justice. This may include hearing a preliminary issue where the determination of that issue may assist in the resolution of the dispute. Likewise, keeping control of discovery is an important part of making a dispute resolution process affordable. ACI arbitrators will limit discovery to the documents that are necessary for the proper resolution of the dispute and they will be assisted in doing so by an early analysis of the real issues between the parties at the Preliminary Meeting. Formal pleadings may often be entirely unnecessary, particularly in the smaller or less complex commercial disputes. ACI rules provide for each party to briefly set out the nature of the dispute and for a list of issues to be drawn up (and agreed if possible) at the Preliminary Meeting. This less formal procedure will usually result in substantial cost savings.

What is the thinking behind the Fixed Fee Arbitration Scheme?
The Fixed Fee Scheme is a package of rules that are suitable for the smaller or less complex commercial disputes. The rules provide for the appointment of a sole arbitrator and for a tribunal appointed expert, where expert evidence is required.

Any dispute that is capable of being dealt with by means of one Preliminary Meeting and an oral hearing of up to two days is suitable for the Fixed Fee Scheme. It would be excellent, for example, for the prompt determination of a point of construction or law; equally it would be suitable for the determination of a dispute of fact within a reasonably confined compass. The Fixed Fee Scheme can also encompass a modest amount of expert evidence where necessary and may be used in suitable cases where no oral hearing is required by the parties. There is no financial limit under the Fixed Fee Scheme. It may be used by parties who are in dispute over substantial sums of money as long as the point of law, construction or fact is capable of being heard within the two day period.

Parties who opt for the Fixed Fee Scheme do not have to take on the burden of deciding at the outset whether their dispute is suitable for this scheme. Transfer between schemes is easy and normally without financial penalty. If you opt for a Fixed Fee Scheme, the arbitrator will confirm the dispute as suitable for the Scheme at the Preliminary Meeting alternatively order transfer to the Standard Scheme if he thinks that this is the right course, after discussing the matter with both the parties.

Because of the nature of the Scheme, parties should note that no legal costs are recoverable from the other side in the Fixed Fee Scheme. The Arbitrator will make an Award in respect of his own fees and any expenses which will normally be ordered to be paid by the successful party.

Typically, parties opt for the Fixed Fee Scheme because they are concerned about the costs of the arbitration and this scheme enables them to know the cost from the outset.

How does the Standard Arbitration Scheme differ?
The Standard Arbitration Rules allow for more flexibility in the arbitration process and the scheme is more suitable for the larger or more complex disputes. In particular, the parties may appoint a three-person tribunal under these rules, alternatively an assessor to sit with the arbitrator. Further, parties who prefer to appoint their own experts to present the technical part of the case may prefer this scheme. The arbitrator is paid at an hourly rate which will be confirmed before the commencement of the arbitration, but which will fall within the fee bands published from time to time on the Fee Sheet for Standard Arbitrations.

How does ACI deal with substantial technical or trade disputes?
The Standard Arbitration Rules provide for the appointment, in suitable cases, of an assessor to sit with the arbitrator, alternatively for two party-appointed trade arbitrators to be appointed with an ACI legal chairman. This enables the parties to have expertise, in a particular trade or other area, on the tribunal whilst retaining the lead of the legally qualified chairman and the direction of the ACI philosophy and rules.

What disputes are suitable for the Fast Track Arbitration Scheme?
The Fast Track Arbitration Scheme is intended for those disputes where the parties want a resolution within days or, perhaps, a week or two. The arbitrator will adopt a streamlined approach appropriate to the nature of the dispute, dispensing with preliminary formalities where possible and often conducting any preliminary meeting over the telephone.

Typically, parties may opt for Fast Track Arbitration where they are in a continuing contractual relationship and where the quick resolution of the dispute is necessary to enable the parties to progress with their business or trade. Alternatively, it may be appropriate where other litigation is affected by the dispute and the parties wish to know the full extent of their liabilities at an early stage.

Is it possible to change to arbitration if the dispute is already being litigated in court?
Yes, certainly, provided both parties agree. Where pleadings have already been served in the litigation, the parties often ask for the pleadings (or any particular pleading) to stand as submissions in the arbitration, and the arbitrator often directs this, where appropriate. This avoids the need to exchange further Claim Statements, Answering Statements and other submissions, so long as the issues between the parties remain the same. This avoids the duplication of work and results in a cost saving. ACI has handled disputes where the parties have moved from litigation to arbitration under the auspices of the ACI Rules to secure a quicker decision than the Courts are able to offer.

What happens at the Preliminary Meeting?
An early Preliminary Meeting forms the basis for the ACI Arbitration Schemes. This enables the arbitrator to take control of the dispute at an early stage. At or after the hearing, the arbitrator will define the issues with the assistance of the parties and give appropriate directions to lead to the hearing. ACI believes that this is the best way of providing speedy and cost effective dispute resolution.

How long should the average arbitration take under the ACI Schemes?
Assuming the co-operation of both parties, ACI arbitrators aim to make the Award available under the Fixed Fee Scheme within 4 months from the appointment of the arbitrator, perhaps a little longer if an expert is involved (since the proceedings may be dependant upon the availability of the expert). Standard Arbitrations will inevitably take longer but arbitrators will aim to dispose of these disputes as quickly as is consistent with justice in each case. In most cases Awards should be available within months rather than years. It is possible for Awards in suitable Fast Track Arbitrations to be made available within a matter of days of the hearing.

How does the winning party enforce the decision of the arbitrator?
Enforcement of an arbitration award is straight forward. In this jurisdiction there is a summary procedure for registering arbitration awards which may then by enforced in the same manner as a Judgment or Order of the Court under s66 of the Arbitration Act 1996. A very substantial number of countries are parties to the New York Convention 1958. That Convention provides for the enforcement of arbitration awards abroad by a summary or short procedure. It is often easier to enforce an arbitration award alone under the 1958 Convention than to enforce a Court judgment.

How much will the arbitration cost?
ACI publishes Fee Sheets from time to time for all its Schemes. Fee Sheets can be provided on request. If parties are unsure whether they have the most recent Fee Sheet, they should telephone the ACI Administrator. The Fixed Fee Scheme provides for a lump sum to cover the whole of the arbitration procedure, including ACI’s administrative charge. Arbitrators under the Standard Scheme are charged on an hourly basis under four fee bands. The precise hourly rate for any particular arbitrator will be confirmed at the time of appointment. Under the Standard Scheme there is an additional administration charge.

How is an arbitration set in motion?
Firstly, unless there is an ACI arbitration clause in the contract, it will be necessary to agree arbitration under ACI rules with the other party. ACI can sometimes help the parties to reach agreement as to how to proceed, where the parties find it difficult to communicate directly.

Having agreed arbitration under ACI rules, the next stage is to complete the appropriate Request Form. There is a separate Request Form for each arbitration scheme. The Request Form should be sent to ACI, together with the appropriate Initial Fee as set out on the Fee Sheet. Parties may ask ACI to appoint an arbitrator on whom they are agreed or they may ask ACI to appoint an arbitrator in a particular fee band. ACI will always seek to appoint an arbitrator with particular expertise in the field of the dispute.

What is the purpose of the Preliminary Discussion service?
Parties with questions as to any aspect of ACI’s schemes can contact ACI and the personnel there will seek to answer any questions. However, parties sometimes wish to discuss complex issues with an arbitrator within the scheme. In that event they can ask ACI for a Preliminary Discussion between the parties and a panel arbitrator which may last for up to one hour.

Parties who are unsure whether arbitration is appropriate for their dispute may chose this option, as may parties who are unsure which scheme to opt for. If the matter proceeds to arbitration, after the Preliminary Discussion, parties may appoint the same arbitrator (where both parties have attended the Preliminary Discussion) alternatively they may ask ACI to appoint another arbitrator in the usual way.

Where can I find out more about the various schemes operated by ACI?
At the front of the booklet containing the Rules there is a detailed description of each scheme and how it operates. Parties intending to arbitrate, or their professional advisers, will also find it helpful to read the Rules. Parties who have particular questions about the schemes and how they work can also contact ACI where the Administrator will be only too happy to assist.

3 Verulam Buildings
Gray's Inn
London WC1R 5NT

Telephone: +44 (0)20 7269 1169
Fax: +44 (0)20 7269 1186

E-mail: admin@aci-adr.com

Patron: Rt Hon The Lord Saville of Newdigate