Meaning
Legal frameworks that govern the power of arbitral tribunals to grant interim measures provide the essential tools needed to preserve assets and evidence during international arbitration. This specific provision, UNCITRAL Model Law Article 17, authorizes tribunals to issue temporary orders to prevent harm or preserve assets. The power of the tribunal is bounded by the agreement of the parties and the procedural laws of the seat of arbitration.
This structure ensures that parties cannot bypass their chosen tribunal by seeking immediate relief in national courts without first showing why the tribunal cannot act.
Tribunal Power
The provision gives arbitrators the authority to act without needing to wait for a court to intervene. When a party requests relief under UNCITRAL Model Law Article 17, the tribunal can order the other party to stop actions that would frustrate the arbitration process. This authority strengthens the independence of the arbitral process.
Preservative Order
These orders can require a party to provide security for the costs of the proceedings or to preserve relevant evidence. The applicant must show that the harm they will suffer outweighs the harm to the other party if the order is granted. This test ensures that the measures are applied in a balanced and fair manner.
Enforcement Standard
Parties must comply with these interim measures, and national courts are expected to recognize and enforce them. The enforcement is subject to specific grounds for refusal similar to those used for final arbitral awards. This support from local courts ensures that the tribunal’s orders have real economic consequences.
