The FAI Arbitration Process

START AN ARBITRATION 2 months
ARBITRATION PROCEEDINGS 9 months (or 3 months in expedited arbitration)
FINAL PAYMENT 1 month

> This process will take approximately 12 months (normal arbitration) or 6 months (expedited arbitration).

WHAT IS ARBITRATION?

Who is involved: PARTIES and LAWYERS

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Arbitration is an alternative dispute resolution method. It is the most common form of dispute resolution in commercial contracts. It is a favored option for those seeking:

  • Speed: Arbitration is faster than court litigation.
  • Flexibility: Arbitration gives parties the flexibility to choose their arbitral tribunal and tailor the arbitral proceedings to best suit their individual needs.
  • Expertise: Parties may select arbitrators with specific expertise relevant to their matter.
  • Confidentiality: Unlike court litigation, FAI arbitration is confidential.
  • Finality: The decision of the case is final.

The FAI administers domestic and international arbitrations governed by its Arbitration Rules and Expedited Arbitration Rules.

Before you can start arbitration, there must be an arbitration agreement between the parties.

MORE INFO:

If you do not have an arbitration agreement in place, you can agree to arbitration by making an arbitration agreement. You can view the FAI model arbitration clauses here.

Alternatively, you can consider other dispute resolution options such as mediation. You can view the FAI model mediation clause here.

More information on mediation can be found here.

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Use our calculator to estimate the total cost of the arbitration excluding the parties' legal costs (e.g. counsel, witnesses, experts).

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The FAI administers domestic and international arbitrations governed by its Arbitration Rules and Expedited Arbitration Rules.

Parties may agree that the FAI appoint the arbitral tribunal, even though the arbitration is not governed by the FAI Rules. In this case, the arbitration proceedings are referred to as ad hoc arbitration. More information can be found here.

HOW TO START AN ARBITRATION?

Who is involved: FAI, PARTIES & LAWYERS

To start an arbitration you (the Claimant) must submit a Request for Arbitration to the FAI.

PAYMENT:

A non-refundable Filing Fee applies when filing a Request for Arbitration.

Filing Fee information can be found here.
Payment is made to the FAI by bank transfer, the details of which can be found here.

MORE INFO:

If you wish, you may use the Request for Arbitration form, which can be found here. More info on how to initiate an arbitration can be found here.

If you receive a Request for Arbitration, you (the Respondent) should provide an Answer in response. In your Answer, you may contest jurisdiction and raise a counterclaim or set-off claim.

PAYMENT:

A non-refundable Filing Fee applies if you raise a counterclaim or set-off claim. Filing Fee information can be found here. Payment is made to the FAI by bank transfer, the details of which can be found here.

TIMEFRAME:

Provide an Answer, counterclaim or set-off claim within 21 days (15 days in Expedited Arbitration) of receipt of the Request for Arbitration.

MORE INFO:

If you wish, you may use the Answer form, which can be found here.

Parties may agree on the number of arbitrators. If Parties cannot agree, the FAI will decide on the number of arbitrators. Arbitrators nominated by the parties or the party-nominated arbitrators, or appointed by the FAI must be confirmed by the FAI.

MORE INFO:

Information on the nomination and appointment of arbitrators can be found here. Information on confirmation of arbitratos can be found here.

In some cases, you (the Claimant and the Respondent) will be ordered to pay an advance on costs to cover the estimated costs of the arbitration.

MORE INFO:

More info on the advance on costs can be found here.

The FAI sends the case file to the arbitral tribunal once the arbitrator(s) is/are confirmed and once the advance on costs is fully paid.

WHAT HAPPENS DURING THE ARBITRATION PROCEEDINGS?

Who is involved: ARBITRAL TRIBUNAL, PARTIES, LAWYERS, EXPERTS & WITNESSES

Important aspects of the arbitration proceedings, including the time schedule, are decided.

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More info on the preparatory conference can be found here.

If you are the Claimant, submit a Statement of Claim.

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More info on the Statement of Claim can be found here.

If you are the Respondent, submit a Statement of Defence. The Statement of Defence is your last opportunity to contest jurisdiction and, in general, to make a counterclaim or set-off claim.

MORE INFO:

More info on the Statement of Defence can be found here.

Submit any additional written statements and written witness statements (if so agreed with the arbitral tribunal).

MORE INFO:

More info on the additional written statements can be found here.

Arrange for witnesses and experts to give oral evidence. (In expedited arbitration, a hearing will be held only if requested by a party and if deemed necessary by the sole arbitrator.)

MORE INFO:

More info on the hearings can be found here.

The arbitration proceedings are closed. The arbitral tribunal considers all facts and evidence.

MORE INFO:

More info on the closing of proceedings can be found here.

The FAI determines the costs of the arbitration proceedings.

MORE INFO:

More info on determination of the costs of arbitration can be found here. Detailed info on fees and costs can be found here.

The arbitral tribunal issues the decision of the case (the so-called "Final Award"). The decision is final and binding on the parties.

TIMEFRAME:

In a normal arbitration, the final decision is made within 9 months from the date on which the arbitral tribunal received the case file from the FAI. In an expedited arbitration, the final decision is made within 3 months as from that same date.

WHAT HAPPENS AFTER THE FINAL DECISION?

Who is involved: FAI, ARBITRAL TRIBUNAL & PARTIES

In the final decision, the arbitral tribunal decides which party/parties must pay the costs of the arbitration.

PAYMENT:

When the parties have paid an advance on costs to the FAI, the FAI will pay the costs of the arbitration from the advance on costs.

If no advance on costs has been paid to the FAI:
a) the FAI will send an invoice regarding the FAI Administrative Fee to the party/parties, and
b) the arbitral tribunal will send an invoice regarding the arbitral tribunal’s fee(s) to the party/parties (or pay the invoice from the advance on costs, if fixed by the arbitral tribunal).

TIMEFRAME:

If fees are invoiced, 30 days from when the final decision is issued.

The final decision can be enforced through a court, if necessary.

Legends of the icons:

  • Timeframe
  • Payment information
  • More information

  • Filing documents
  • Participation needed