Meaning
A decision issued by an arbitral tribunal resolves some but not all of the claims or issues presented in a dispute. A non-final arbitral award may address liability while leaving the calculation of damages for a later stage of the proceedings. This step allows the parties to understand their legal position before investing time and money in quantifying losses.
Partial Resolution
Tribunals often use these interim or partial rulings to manage complex multi-party disputes and streamline the remaining phases of the case. This approach can encourage settlement once the core legal liabilities are established. In some cases, a non-final arbitral award might resolve a preliminary issue such as the tribunal’s own jurisdiction or the applicable law.
Judicial Challenge
Most arbitration statutes and treaties only permit parties to seek court review or enforcement of awards that are final and complete. This rule prevents parties from interrupting the arbitration process with piecemeal court appeals. Consequently, a non-final arbitral award is generally not subject to vacatur or confirmation until the tribunal issues its final decision on all submitted matters.
This delay protects the efficiency of the proceedings by keeping the dispute within the tribunal’s control until every claim is fully adjudicated.
Practical Use
These decisions can still be used to establish security for costs or to preserve the status quo during the ongoing dispute. This utility ensures that the tribunal can protect the integrity of the proceeding even before a final resolution is reached. This flexibility represents one of the primary advantages of the arbitration process over traditional court litigation.
