In the field of international arbitration, lex arbitri is an essential concept to understand. It refers to the procedural or substantive law that governs an arbitration agreement or the arbitral proceedings themselves. The selection of the lex arbitri can significantly impact the outcome of the arbitration and parties’ expectations. This blog post will dive into the definition of lex arbitri, its significance in international arbitration, and how it is determined.
Lex Arbitri is Latin for “the law of the place of arbitration,” where lex means law or legal system, and arbitri means arbitration. It refers to the local law that governs the arbitration agreement, the conduct of the arbitration proceedings, and the enforcement of the arbitral award. In international arbitration, parties from different jurisdictions commonly agree to use lex arbitri of a particular country to govern their arbitration agreement.
The selection of lex arbitri is crucial, as it determines the legal framework that arbitrators must adhere to. It impacts the terms of the arbitration agreement, such as the language and composition of the arbitral tribunal, and the grounds for the award or its enforcement. If parties do not agree on the law of the place of arbitration, arbitrators may apply the law they consider appropriate to resolve the dispute. See LEX ARBITRI IN INTERNATIONAL ARBITRATION | VIA Mediation Centre
The determination of the law of the place of arbitration depends on various factors, including the nationality of parties, the place of arbitration, and the governing law of the arbitration agreement. It may also be determined by the arbitral institution’s rules selected by the parties. For instance, the International Chamber of Commerce (ICC) Arbitration Rules provide that the rules shall be that of the place of arbitration, except where parties agree otherwise.
When the parties have not agreed on the law of the place of arbitration, the arbitral tribunal may also determine it, taking into account the parties’ intent and the circumstances of the case. In such cases, the tribunal may have to conduct a conflict of law analysis to determine the most suitable lex arbitri to apply.
It’s worth noting that the determination of the law of the place of arbitration is not cast in stone and can evolve during the arbitration process, especially if there are changes to the parties’ agreement or arbitration venue. Arbitrators must ensure that they apply the correct lex arbitri and avoid applying local laws that do not conform to international arbitration standards or the parties’ agreement.
In conclusion, the concept of lex arbitri in international arbitration is essential to comprehend. The selection of the the law of the place of arbitration can significantly impact the outcome of the arbitration, and the determination of it is determined by various factors such as the nationality of parties and the governing law of the arbitration agreement. Arbitrators must ensure that they apply the correct the law of the place of arbitration and avoid applying local laws that do not conform to international arbitration standards or the parties’ agreement. For more information about conflict of laws involving the law of the place of arbitration, Contact Our Office – Transnational Matters