Key Takeaway

If you have received a Request for LCIA Arbitration, understanding the processes and procedures you must comply with is crucial.

As the Response to the Request requires a summary of the Respondent’s defence, it is important to act quickly and, if desired, seek legal advice without delay to ensure your response complies with the requirements of the chosen forum, addresses any jurisdictional challenges and is aligned with the broader commercial dispute resolution strategy.

What is an LCIA Request for Arbitration?

The Request for Arbitration represents the formal commencement of arbitration proceedings by the Claimant (or Claimants), against the Respondent (or Respondents), identified in the Request.

If you have been served with an LCIA arbitration request, it means the London Court of International Arbitration (LCIA) has been selected as the forum for the dispute, either by the Claimant or by prior agreement of the parties for example, within the arbitration agreement, or other agreement giving rise to the dispute.

The arbitration will be governed by the LCIA Rules (currently the 2020 Rules), which set out the procedures to be followed in the progression of the dispute, and is deemed to have commenced on the date the Request was filed with the LCIA (the ‘Commencement Date’).

LCIA Requirements of the Request for Arbitration

Article 1 of the LCIA Rules outlines the requirements of a Request. These include:

·      The identity and contact details of the Claimant(s);

·      A summary of the facts, circumstance and amount in dispute; and

·      Any procedural matter which the Claimant proposes and/or deems has already been agreed.

The Request for Arbitration should include a copy of the Arbitration Agreement or identify and include a copy of the contractual documentation and dispute resolution clauses relied upon in commencing the arbitration.

Handling Seemingly Incomplete or Invalid Arbitration Requests

It is important not to disregard a seemingly invalid or incomplete request, as this fact alone does not mean that the proceedings will automatically cease.

Conversely, while the request may be valid, other factors may give rise to challenge, under the LCIA rules or otherwise.

These may relate to the nature and validity of the agreement between the parties, the circumstances and/or the timeframe of the dispute (such as limitation periods), whether the claimant has named the correct respondent(s), and whether the arbitration has been commenced under the correct institutional rules.

What is the timeframe for responding to a Request for Arbitration?

The timeframe for responding to a Request for Arbitration depends on the rules of the chosen arbitration forum and the agreement between the parties.

Under the LCIA Rules (Article 2.1) and unless otherwise agreed or provided, the Respondent has 28 days from the Commencement Date to submit their formal Response to the LCIA.

As failure to submit the response by the LCIA arbitration response deadline can result in consequences that impact your chances of successfully defending the claims, it is important to respond within the timeframe.

If you intend to seek legal advice, ensure to select and consult a London arbitration lawyer without delay.

What should the LCIA Response to Arbitration Request Include?

Article 2 ‘Response’ of the LCIA Rules outlines requirements of the Response to the Request for Arbitration, which include:

·      The respondent’s identity and contact details (Article 2.1 (i));

·      Confirmation or denial of all or parts of the claim made in the Request (Article 2.1 (ii)); and

If the claim is denied in part or in full, a statement summarising:

o   the Respondent’s view of the nature and circumstances of the claim;

o   the estimated monetary amount or value of the claim;

o   the Respondent’s defence;

o   any counterclaims against the Claimant(s) or any cross-claims against any other Respondent(s); and

o   the transaction(s) to which the dispute relates (Article 2.1 (iii)).

Articles 2.1 (iv) to (vi) also set out various procedural requirements which must be addressed and/or adhered to. These concern the choice of seat or location, language for the proceedings, nomination and qualifications of presiding arbitrators, and delivery of the Response to all relevant parties.

The nature of the response to many of these points depends on the arbitration agreement or relevant clause(s) in the contract(s) between the parties.

Strategic Considerations and Pitfalls in Responding to an LCIA Arbitration Request

Formulating your Response

When formulating your response to an LCIA arbitration request, consider:

·      Striking a balance between providing sufficient information to demonstrate your defence without prematurely sharing your entire legal strategy

·      Identifying, locating and preserving key documents and evidence (including determining whether any evidence is held by a third party)

·      Assessing the potential for other parallel alternative dispute resolution methods, such as negotiation or mediation

Common Pitfalls to Avoid

It is important to be aware of pitfalls which may harm your position:

·      Ignoring the deadline for the response, or ignoring the request entirely

·      Submitting an incomplete or poorly drafted response that locks you into an unsuitable defensive position

·      Failing to challenge jurisdiction early (our recent article discusses the importance of timely jurisdictional objections in arbitration proceedings).

Whilst the speed of arbitration is often seen as a benefit in the timely resolution of disputes, it also means the time between receiving a request and the deadline for your response is crucial, and thorough preparation is key.

Barnes Law has a proven track record in successfully representing clients in LCIA proceedings. If you have been served with a request for arbitration, contact Yulia Barnes and the Barnes Law team for strategic advice on how to protect your interests.

This article is not a substitute for formal legal advice, which will vary according to your specific circumstances.