H. Stages of arbitration

H. Stages of arbitration 

The typical stages of an arbitration follow a chronological order, moving from the initial agreement to the final resolution and potential enforcement of an award. While procedures vary based on party agreement and chosen rules, the process generally includes the following phases: 

1. Commencement of arbitration 

The process officially begins when one party (the claimant) serves a Notice of Arbitration or a request for arbitration on the other party (the respondent). Under Hong Kong law, the arbitration is deemed to have commenced on the date the respondent receives this written request. This notice typically defines the matters referred to arbitration and is critical for meeting contractual or statutory time limits. 

2. Appointment of the arbitral tribunal 

Following the initial notice, the next major step is constituting the arbitral tribunal. Unlike permanent courts, tribunals are established case-by-case. The parties usually decide the number of arbitrators (typically one or three) and the method for their selection. If they cannot agree, default procedures involving an appointing authority such as the Hong Kong International Arbitration Centre may be triggered. 

3. Procedural meeting 

Early in the reference, the tribunal often convenes a preliminary or procedural meeting with the parties. The purposes are to confirm the tribunal’s jurisdiction and terms of appointment, establish terms of reference to lay down the procedural framework, and issue an Order for Directions, which sets a detailed timetable for the various stages of the case, such as pleadings and discovery. 

4. Pleadings and statements of case 

Parties set out their respective positions through the exchange of written pleadings or statements of case, including Statement of Claim (the claimant states the facts supporting the claim, the points at issue, and the relief sought), Statement of Defence and Counterclaim (the respondent replies to these particulars and may assert its own claims) and Reply (the claimant may provide a further response to the defence or counterclaim). 

5. Discovery and evidence 

The tribunal has broad discretion over the reception of evidence and is not bound by strict court rules. Parties may be ordered to exchange relevant documents and provide written witness statements or expert reports. 

6. The hearing 

Unless the parties agree to a “documents-only” procedure, an oral hearing is held for the presentation of evidence and arguments. Hearings generally follow a court-like structure: opening statements, examination and cross-examination of witnesses and experts, and closing submissions (which are often provided in writing). 

7. The award 

Once submissions are complete, the tribunal closes proceedings. The tribunal then deliberates and prepares a final award to determine all issues in the dispute, including liability, remedies, and costs. The award must be in writing, signed by the arbitrator(s), dated, and delivered to the parties, which must state the reasons for the decision. In some cases, the tribunal may issue interim or partial awards to decide specific issues (like jurisdiction or liability) before the final conclusion of the case. 

8. Enforcement or challenge 

Once the final award is published, the tribunal is generally functus officio, meaning its authority ends. The winning party may apply to the court to enforce the award as a judgment. The losing party has a limited time (typically 3 months) to apply to the court to set aside the award on very narrow procedural or jurisdictional grounds.