Multi-contract and multi-party arbitration

Multi-party and multi-contract arbitration

This Practice Note discusses how multiple party (multi-party) disputes and disputes concerning multiple contracts (multi-contract) are dealt with in arbitration proceedings (including international arbitration). Such arbitrations are sometimes referred to as complex arbitrations. The Practice Note includes tips on drafting arbitration agreements in these circumstances and also on conducting multi-party arbitration. The Practice Note discusses how an arbitral tribunal (arbitrator(s)) may be appointed in multi-party arbitration, including how AA 1996 (in England, Wales and Northern Ireland; under English law) and major institutional and ad-hoc arbitration rules (those of the International Chamber of Commerce (ICC), London Court of International Arbitration (LCIA), United Nations Commission on International Trade Law (UNCITRAL) and Hong Kong International Arbitration Centre (HKIAC)) deal with this issue. It also covers the issue of joinder of third parties and the consolidation of arbitration proceedings, and AA 1996 and institutional approaches to these mechanisms. For more detail, see Practice Note: Multi-party and multi-contract arbitration—an introduction.

A quick guide to the arbitration process

This Practice Note provides a quick guide to the main

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Stay of application for injunction in favour of Arbitration (Hunt v IPS Law LLP and Others)

Arbitration analysis: The claimant, Mr Hunt, invested £1.05m in January 2023 through IPS Law LLP (‘IPS Law’), the second defendant, which was meant to hold the funds for the first defendant, Oceania Capital Reserves Ltd (‘Oceania’). IPS Law later apparently transferred the funds, but the circumstances in which that occurred (and the instructions on which IPS Law and its principal, Mr Farnell, the third defendant, relied) were unclear. Mr Hunt applied for an injunction to preserve the funds in IPS Law’s account. The defendants, in return, applied for a stay of the proceedings, arguing that the Investment Agreement between Mr Hunt and Oceania (with IPS Law as the ‘Investment Escrow Party’) referred disputes to arbitration. The court held that IPS Law was not a party to the arbitration clause and could not rely upon it under the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999) (Mr Farnell accepted he was not a party). The court decided, however, that there was a serious issue to be tried in relation to the handling of Mr Hunt’s funds and accordingly granted a proprietary injunction. The case addresses issues over the court’s jurisdiction to order a stay under section 9 of the Arbitration Act 1996 (AA 1996) and its ability to order relief where funds held in a solicitors’ client account have been paid away apparently without instruction. Written by Oliver Browne, partner, at Paul Hastings (Europe) LLP.

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