Emergency Arbitrator Interim Relief

Provisional Emergency

When a commercial conflict erupts and immediate action is required to freeze assets or maintain the status quo, the injured party files an application for emergency arbitrator interim relief under the rules of the chosen arbitral institution. This application must demonstrate that the urgency is so great that it cannot await the normal formation of the tribunal, which often takes several weeks. The applicant must also show a reasonable probability of success on the merits of the dispute and that the balance of hardships favors the granting of the relief.

Upon receipt, the institution quickly appoints an emergency arbitrator, usually within two days, who must be entirely independent of the parties. This arbitrator conducts a rapid review, often holding virtual hearings, and must issue a decision within a very short timeframe, typically fifteen days from receiving the file.

Procedural Power

The power of an emergency arbitrator to grant emergency arbitrator interim relief is derived from the arbitration agreement itself and the rules of the institution that the parties have agreed to apply. This relief can take the form of an order or an award, depending on the rules of the institution and the jurisdiction where enforcement will be sought. The measures can include orders to preserve evidence, to maintain the operation of a joint venture, or to prevent the bank from paying out under a letter of credit.

While the decision is binding on the parties, its enforcement in national courts can sometimes be complex, as some jurisdictions do not fully recognize the status of an emergency arbitrator. However, most modern arbitration hubs have updated their laws to ensure that these temporary orders are enforceable in the same way as court injunctions.

Contractual Boundary

The temporary nature of emergency arbitrator interim relief is its defining characteristic, and it automatically expires if the main arbitration is not commenced within a specified period, or once the main tribunal is formed and takes over the case. The main tribunal has the full power to review the emergency arbitrator’s decision and can choose to confirm, alter or cancel it entirely. This ensures that the long-term resolution of the dispute remains in the hands of the parties’ chosen arbitrators, while still providing a vital escape valve for urgent situations.

It also protects the parties from the risk of permanent damage while the dispute resolution process is getting underway, thereby preserving the utility of the arbitration agreement itself.