Basic requirements in regard to a Notice of Arbitration under the Arbitration Act 1996

Basic requirements in regard to a Notice of Arbitration

An arbitration agreement is “an agreement by the parties to submit to arbitration present and future disputes. The Arbitration Act 1996, under Section 5 (1) requires that the Arbitration Agreement be in writing, or by incorporation - Section 6(2)

?In essence, for a party to issue a Notice of Arbitration, the following criteria shall be satisfied:

1. An Agreement, in writing or by incorporation, between the parties to refer any present or future dispute to Arbitration.
2. Existence of a dispute and/or difference between the parties. Of course, without a dispute, there will be no need to go to Arbitration.

?Once a dispute arises, under the Act, a party can by way of notice notify the other party(ies) of his intention to refer such dispute to Arbitration.

?The basic requirements of a Notice of Arbitration, as referred to under S14 of the Act is that the notice shall be in writing and shall be addressed to the other party to the dispute with clear reference that the Arbitration Agreement is being invoked and that the parties shall act accordingly.

The Notice (by one of the parties) shall also require the other party to:

1. submit the dispute to the Arbitrator(s) – S14(3); or
2. appoint an arbitrator or to agree to the appointment of an arbitrator– S14(4); or

Where the arbitrator(s) are to be appointed by a person other than a party to the proceedings, the Notice shall be addressed, in writing, to that person requesting him to make the appointment in respect of that matter- S14(5).

In conclusion, the person giving the notice, and, the content of such notice, shall make it objectively clear that the claimant is intending to refer the dispute to arbitration.

Further, Section 76 of the Act provides that the parties are free to agree on a manner of service of any notice or other document. In the absence of agreement, "a notice or other document may be served by any effective means" – S.76(4).

Although, there is no specific scheme for the notice, it might be appropriate that the following be incorporated:

1. Demand from one party (the Claimant) that the dispute be referred to arbitration
2. Names and addresses of the parties.
3. Reference to the arbitration clause or the separate arbitration agreement that is invoked.
4. Reference to the contract out of or in relation to which the dispute has arisen.
5. The general nature of the claim and an indication of the amount involved (if any).
6. Relief sought.
7. Proposal as to the number of arbitrators (i.e. one or three).
8. The notification of the appointment of an arbitrator.

Disclaimer

This article sets out a variety of materials relating to the law to be used for educational and non-commercial purposes only; the author(s) of this blog do not intend the blog to be a source of legal advice. Please retain and seek the advice of a lawyer and use your own good judgement before choosing to act on any information included in the article. If you choose to rely on the materials, you do so entirely at your own risk