Ingenieur Vol 71 ingenieur July 2017 | Page 80

INGENIEUR may be due to the arbitrator’s lack of experience, insufficient appreciation of the extent of his powers, or perceived lack of power. The third is the arbitrator’s unwillingness to take charge or control of the proceedings, and this may be due to internal politics, the arbitrator’s over-emphasis on party autonomy, and his trying to please both parties or counsel or reluctance to offend any of the parties or counsel in the proceedings. What are the Other Possible Responses to the Crisis? In their article “The Role of the Tribunal in Controlling Arbitral Costs”, David Rivkin and Samantha Rowe advocated the view that arbitrators must control the proceedings to avoid excessive costs and delay in the proceedings before them. The authors argued that: […] arbitrators who simply sit back and let the parties control the agenda are letting those same parties down. Moreover, they are letting the system down […]. In fact, it is clear that parties want active intervention. They want an arbitrator to save the parties from themselves, or sometimes from their external counsel. Michael Schneider, when mounting his criticism on the International Bar Association (IBA) Guidelines on Party Representation, argued that, instead of implementing various rules on counsel conduct, what we instead need are arbitrators willing to intervene as necessary to ensure efficiency of proceedings; he said “we need arbitrators with courage to discipline parties.” But is having pro-active arbitrators the solution to the crisis? I respectfully submit that it is not. Whilst the promotion of the ‘pro- activeness’ of arbitrators is laudable, it would unfortunately not be the solution to the crisis; for the ability of arbitrators to apply ‘pro-active’ measures effectively and efficiently in arbitration proceedings to bring about the benefits in terms of cost and time, would depend on the individual arbitrator’s experience, confidence, ability and willingness to control the proceedings, and it is an unfortunate fact that there are not many arbitrators who possess the qualities required to 6 78 VOL - SEPTEMBER 2017 VOL 71 55 JULY JUNE 2013 achieve the objective of a cost and time efficient arbitration. To build a sustainable future for arbitration and regain the confidence of the users, I submit that we shall not only rest our hope on the arbitrators, parties and counsel to do the right thing, but rather we must have a legal framework which provides a clear guidance as to what the arbitrato rs and the parties or their counsel, should do, which matches the current expectation of the users. . In recent years, we have seen a coherent effort by various leading arbitration institutions like the United Nations Commission on International Trade Law (UNCITRAL), the London Court of International Arbitration (LCIA), the International Centre for Dispute Resolution (ICDR), the Singapore International Arbitration Centre (SIAC) and the Hong Kong International Arbitration Centre (HKIAC), to amend their arbitration rules to allow more power to the arbitrator to control the proceedings to ensure a fair, expeditious, economical and final determination of the dispute, departing from the previous regime which focuses more on the parties’ consensus on the procedure or running of the proceedings. By examining the amendments, we see an enlargement of power of the arbitrator, and at the same time, a circumscribed parties’ autonomy. The intention of these institutions for making the amendments is clear. However, despite these amendments, the users’ discontent remains. We have in the past left the procedure for the running of the proceedings to the parties under the philosophy of party autonomy; it did not work. We have then shifted our emphasis to giving more power to arbitrators, and promoting creative methods and procedures in conducting arbitral proceedings but the problems of costs of and delays in arbitration persisted. Perhaps it is time for a major overhaul to our arbitral legal framework as well as the mind-set of the stakeholders, and let the rules and the legal framework dictate clearly how the arbitration proceedings should be properly run. We need an arbitral legal framework which would rejuvenate the confidence of users in arbitration; instil confidence in arbitrators in the management of arbitration proceedings; and ensure consistency in the efficiency of arbitration, both in terms