Arbitration is all about fairness, but what if you feel an arbitrator isn’t impartial? Or what if there’s a dispute about whether the arbitrator even has the authority to handle the case? Challenging arbitrators in UAE arbitration is governed by Federal Law No. (6) of 2018. This outlines specific rules on how to raise such challenges and how jurisdiction issues are handled. Let’s break it down.
When Can You Challenge an Arbitrator?
Challenging an arbitrator isn’t something you can do on a whim—it requires serious grounds. The UAE Arbitration Law outlines the situations where you can challenge an arbitrator:
- Impartiality or Independence: If there are serious doubts about the arbitrator’s impartiality or independence, you have the right to challenge them. This might be due to a conflict of interest or a previous relationship with one of the parties that could influence their decision.
- Not Meeting Agreed Conditions: If the arbitrator doesn’t meet the conditions that were agreed upon by the parties or set out by the law, you can also challenge their appointment.
But here’s the catch: if you were aware of these issues at the time of appointment and didn’t object, you can’t bring them up later. It’s crucial to be vigilant right from the start to avoid any complications down the line.
How to Challenge an Arbitrator: The Process
So, you’ve decided to challenge an arbitrator—what’s next? Article (15) lays out the steps:
- Notify the Arbitrator: You must notify the arbitrator in writing, explaining why you’re challenging them. You also need to send a copy of this notice to the other members of the Arbitral Tribunal and the opposing party. This has to be done within 15 days of either being notified of the arbitrator’s appointment or learning about the reasons for the challenge.
- What Happens Next: If the arbitrator doesn’t voluntarily step down or the other party doesn’t agree to the challenge within 15 days. You can escalate the matter to the relevant authority. This body will then make a decision within 10 days, and their decision is final—no appeals.
- Proceeding with Arbitration: Interestingly, even while this challenge is being considered, the arbitration doesn’t stop. The Arbitral Tribunal, including the challenged arbitrator, can continue the proceedings and even issue an award. This ensures that the process isn’t unduly delayed.
What If an Arbitrator Can’t Continue?
Sometimes, an arbitrator might not be able to continue due to illness, incapacity, or other reasons. Under the framework for challenging arbitrators in UAE arbitration. If an arbitrator is unable to fulfill their duties or causes unnecessary delays, their mandate can be terminated. This can be done either by mutual agreement of the parties or by a decision from the relevant authority, after hearing from the arbitrator.
If an arbitrator’s mandate is terminated, law states that a substitute will be appointed using the same process that was originally used to appoint the arbitrator. The new Arbitral Tribunal may decide whether to keep the previous procedures or start a new one, depending on what the parties agree upon or what the Tribunal deems appropriate.
Who Decides What?
One of the trickiest parts of arbitration can be determining who has the authority to decide on certain matters. Article (19) makes it clear that the Arbitral Tribunal has the power to rule on its own jurisdiction. Including any objections that the arbitration agreement is invalid or doesn’t cover the dispute in question.
Here’s how it works:
- Preliminary Decision: The Tribunal can make a preliminary decision on its jurisdiction. If one party disagrees with this decision, they have 15 days to request a court ruling on the matter. The court has 30 days to decide, and this decision is final.
- Continuing the Arbitration: Even if a court review is requested, the arbitration can continue unless the Tribunal decides to pause the proceedings. However, if the court eventually rules that the Tribunal doesn’t have jurisdiction. The party that insisted on continuing the arbitration may be responsible for the costs.
Conclusion
Challenging arbitrators in UAE arbitration or questioning the jurisdiction of the Arbitral Tribunal are serious actions that require careful consideration and timely action. If you find yourself in a situation where you need to challenge an arbitrator or address jurisdictional issues. It’s advisable to seek expert legal advice. A knowledgeable law firm in Dubai can guide you through these complex processes. Helping you protect your interests and navigate the arbitration smoothly.
For more detailed guidance on arbitration in the UAE. Consider consulting with a top legal expert who can provide tailored advice based on your specific situation.