How to Revive in Arbitration

Arbitration is often seen as a final and binding resolution between disputing parties. However, there are circumstances where a party may wish to revive or reopen an arbitration proceeding. This typically happens when new evidence emerges, a party was not given a fair opportunity to present their case, or procedural errors were made during the original arbitration. Reviving an arbitration is not a simple process and must adhere to specific legal procedures and timelines. Understanding how to revive an arbitration case requires familiarity with arbitral rules, national laws, and the specific circumstances that justify such action.

Understanding Arbitration and Its Finality

Nature of Arbitration

Arbitration is a form of alternative dispute resolution where parties agree to submit their disputes to a neutral third party, known as an arbitrator, instead of going to court. The arbitrator’s decision, called an award, is generally considered final and binding. One of the major reasons for choosing arbitration is its efficiency and finality.

When Final May Not Be Final

Despite arbitration’s emphasis on finality, certain legal mechanisms allow for revival or reconsideration. These are rare and must be based on justifiable grounds. Courts and arbitral institutions are usually reluctant to disturb finalized awards unless procedural justice has been clearly compromised.

Grounds for Reviving an Arbitration

Reviving arbitration proceedings typically depends on specific legal or procedural grounds. Below are the most common situations where revival may be considered:

• Newly discovered evidencethat could significantly alter the outcome.
• Fraud or corruptionin the arbitral process.
• Denial of a fair hearing, such as one party not receiving proper notice.
• Mistake or manifest disregardof the law by the arbitrator.
• Procedural irregularitiesthat had a material impact on the award.

Legal Avenues for Revival

1. Motion to Vacate or Set Aside the Award

This is often the first route taken. Under national arbitration laws such as Section 34 of the Indian Arbitration and Conciliation Act, or the Federal Arbitration Act in the U.S. parties can file an application to set aside the award within a limited time, typically 90 to 120 days after the award is issued. Courts will only entertain such applications based on specific statutory grounds.

2. Application for Reconsideration or Rehearing

Some arbitral rules allow parties to request a rehearing or clarification. For instance, under the rules of the International Chamber of Commerce (ICC), parties may apply for a correction or interpretation of the award within a defined period. However, a full rehearing is rarely granted unless substantial cause is shown.

3. Mutual Agreement to Reopen

In cases where both parties agree that the arbitration should be revived, they can jointly petition for a rehearing or even initiate a fresh arbitration proceeding based on the same dispute. This route is usually more flexible but requires cooperation between the parties.

Steps to Revive an Arbitration Case

Step 1: Review Arbitration Rules and Applicable Laws

Each arbitration proceeding is governed by a set of rules agreed upon by the parties, such as those from the LCIA, UNCITRAL, or SIAC. Review these rules to understand the procedures and timelines for filing a motion or request. In parallel, check the relevant national laws that apply to the arbitration.

Step 2: Gather Justifying Evidence

To justify revival, especially when alleging fraud, new evidence, or procedural error, ensure that the supporting documents are credible and substantial. Mere dissatisfaction with the result is not enough.

Step 3: Consult Legal Counsel

Legal advice is crucial. A lawyer familiar with arbitration law can assess the viability of revival and help in drafting a proper motion or petition.

Step 4: File the Appropriate Application

Submit your motion or application within the prescribed time limits. This could be a motion to set aside the award, a petition for reconsideration, or a request for reopening based on mutual agreement.

Step 5: Attend Hearings or Proceedings

If the court or arbitral tribunal accepts your request, there may be additional hearings. Be prepared to present your case convincingly, showing that the revival is necessary to ensure justice and fairness.

Challenges and Limitations

Time Restrictions

Revival is often time-barred if not pursued promptly. Missing the deadline typically extinguishes the right to contest the award.

High Threshold of Proof

Courts and tribunals are hesitant to disturb arbitral awards. Therefore, the burden of proof is high. Parties must show a serious flaw in the process or the emergence of critical new evidence.

Limited Scope of Review

Unlike appellate courts, arbitral revival mechanisms do not allow a full review of the case on merits. The focus is on procedural fairness, fraud, or specific legal grounds as permitted by law.

Preventing the Need for Revival

Ensure Due Diligence

One of the best ways to avoid needing to revive an arbitration is by being diligent during the original process. Prepare your case thoroughly, ensure all evidence is submitted on time, and follow all procedural rules closely.

Select Fair Arbitrators

Choosing arbitrators with experience and integrity reduces the chances of procedural errors and unfairness, minimizing the need for future revival efforts.

Keep Clear Records

Maintain accurate records of communications, submissions, and procedural steps taken. These records can be critical if revival becomes necessary.

Reviving an arbitration case is not impossible, but it is certainly challenging. It involves navigating legal complexities, tight deadlines, and high evidentiary standards. Nonetheless, when a party genuinely believes that justice was not served, the available mechanisms provide an opportunity to seek redress. Whether through a motion to vacate, mutual agreement, or application for reconsideration, knowing how to revive in arbitration is essential knowledge for anyone involved in serious dispute resolution. Ultimately, careful planning and diligent participation in the initial arbitration process are the best defenses against the need to revive a case at all.