Media

Reforms speed up arbitrator

The Australian Financial Review 15 June 2007
By Rachel Nickless

The Institute of Arbitrators and Mediators Australia has launched a new fast-tracked process to cut costs and delays and reverse the declining interest in arbitration. A new set of arbitration rules, which will be publicly released next week, allow parties to opt for a system that caps the amount of time an arbitration can take, and requires parties to provide their best case to the other side earlier.

IAMA president Laurie James said that like litigation, arbitration processes had become longer and more expensive, partly because disputes had grown more complex. "It used to be that the documents needed for an arbitration could be carried in a briefcase. Now it's difficult to do without a trolley or several trolleys of documents," Mr James said.

He said the institute had introduced the fast-track system after noting a declining demand for arbitrators over the past 10 years, and that "people were favouring other processes such as litigation and expert determinations".

It began reforming its rules last year and sought feedback from stakeholders before it approved the new rules on June 1.

Under the new option, arbitrations must be completed within 120 days and parties have the right to request limited extensions of up to 10 days each. The arbitrator must make an award within 150 days from the start of the process but can gain a 10-day extension. A claimant must provide a complete claim document and the evidence to back it within 20 days and the other side must furnish a detailed response 20 days later. Previously information and requests for further information were provided over a longer period. The new rules also have faster ways of dealing with the expert evidence. Matters are generally to be resolved on the written material.

Mr James said the new system could be used in any civil or commercial dispute not governed by specific dispute settlement laws. He expected most interest to come from those in time-critical infrastructure and construction projects.

Allens Arthur Robinson partner John Cooper said, "I'll be bringing the fast-track rules to my clients' attention because I think it's a credible alternative to litigation, and faster and cheaper than the standard rules for commercial arbitration."

We gratefully acknowledge the permission from Rachel Nickless at The Australian Financial Review to reprint this article.