Meaning
Expedited dispute resolution process under the Singapore International Arbitration Centre rules allows for the appointment of an arbitrator to grant urgent interim relief before a tribunal. This mechanism provides a way for parties to protect their rights in cases where waiting for the full appointment of a three member panel would result in irreparable harm. It governs the application for relief, the power of the arbitrator to issue orders and the enforcement of those orders in various jurisdictions.
The procedure stops applying once the main tribunal is constituted and takes over the management of the case. This is a vital tool for companies involved in cross-border manufacturing or construction projects where a delay could lead to the loss of an asset or a site.
Interim Relief
Requests for immediate action often focus on preserving the status quo or preventing the dissipation of assets. When a party files for siac emergency arbitration, they are usually seeking an injunction to stop a bank guarantee from being called or to prevent a partner from terminating a critical contract. The arbitrator has the authority to order any measure they deem necessary to ensure that the final award of the tribunal can still be effective.
This can include orders to preserve evidence, maintain the operation of a joint venture or secure a sum of money in a neutral account. The goal is to provide a temporary solution that lasts only until the full case can be heard. The speed of the process is its most important feature, as an order can be issued in as little as two weeks.
Appointment Speed
Selection of the individual to hear the urgent application occurs within hours or days of the request being received by the registrar. Unlike the standard process which can take months, siac emergency arbitration requires the center to act immediately to find an available and impartial arbitrator. The parties have a very limited time to challenge the appointment to ensure the schedule is not delayed.
Once appointed, the emergency arbitrator sets a strict timetable for the submission of evidence and the holding of a hearing, which is often conducted by video link. The efficiency of this stage is critical because the harm being complained of is usually happening in real time. The ability of the institution to move quickly is why many international contracts specify these rules.
Award Enforcement
Legal standing of the decision issued by the emergency arbitrator is recognized in many jurisdictions through local arbitration laws. While it is technically an interim order, the decision in a siac emergency arbitration is binding on the parties and must be followed immediately. If a party fails to comply, the other side can take the order to a local court to have it enforced as if it were a court injunction.
The New York Convention provides a framework for the international recognition of these awards, although some countries still have specific rules about interim measures. The main tribunal has the power to modify or vacate the emergency order once they are in place. However, the initial order provides the immediate protection needed to keep the dispute from escalating and destroying the value of the underlying business.
