Types of arbitration

Internal arbitration:

In domestic arbitration, the subject matter of the arbitration parties is unique to one country. The nationality of the parties has no role in determining the internal nature of an arbitration. Therefore, even an arbitration between a foreign government and a domestic citizen may have an internal aspect.

International Arbitration:

International arbitration is arbitration between natural persons or companies of different nationalities and the contract between them mentions the condition of arbitration. There are some international bodies that handle international arbitration. The United Nations Arbitration Center and the International Court of Arbitration are among the international arbitration bodies. International arbitration litigation is usually between governments, multinational corporations and businesses.

Case arbitration:

Case arbitration is specific when the parties introduce a person as their chosen arbitrator to the other party, and these arbitrators choose the chief arbitrator from among themselves and proceed to hear the case and issue a verdict. In this type of arbitration, the parties must specify all the details of the arbitration, including the number of arbitrators, the law governing arbitration, how to appoint arbitrators, etc. Reducing administrative costs and speeding up proceedings are the reasons why people welcome case arbitration. An agreement to refer to arbitration can be made before or after the dispute, but the parties must agree on the details of the arbitration. However, sometimes the parties can’t agree on issues such as the place of arbitration or the law, in which case the dispute will be resolved either through the courts or through a third party.

Organizational arbitration:

In organizational arbitration, a specialized institution in the field of arbitration is responsible for implementing the arbitration process. Organizational arbitration saves the parties from writing agreements and contracts for the arbitrator. After selecting the institute as the organizational arbitrator, the parties can use the drafts of the institutes and even the list of arbitrators of the institute. There are approximately 1,200 institutions around the world that provide arbitration services, some of which deal with a particular business or industry.

Sometimes the appointment of a qualified arbitrator can lead the parties to agree to use a specialized arbitral tribunal as the arbitrator. In addition, the parties may decide to change their approach from case arbitration to organizational arbitration at any time.

If you have any questions about types of arbitration and related legal provisions, or if you need guidance in preparing and enforcing the provisions of types of arbitration, our experienced consultants and attorneys at the Asian Bar Association will answer your questions.