The London Centre of International Arbitration (LCIA) is a global arbitration institution. The LCIA Rules 2020 govern the powers granted to an LCIA appointed tribunal and the supporting role of the courts through the Arbitration Act 1996 and the Arbitration Act 2025. The rules outline the LCIA’s operational procedures to the parties from the beginning and explain how courts can ensure a just outcome. This article will explore the powers granted to an LCIA appointed arbitrator.
General powers
LCIA arbitrators are given general powers to resolve disputes in a fair manner following rules that aim to ensure impartiality, fairness, autonomy, and finality.
LCIA arbitrators can determine their jurisdiction if a party challenges it before national courts intervene. This principle of Kompetenz – Kompetenz (or competence-competence) is a legal doctrine in arbitration allowing a tribunal to decide on its own jurisdiction, including the scope and validity of the arbitration agreement, before national courts intervene. It acts as a “rule of priority” to prevent parties from obstructing arbitration by raising premature court challenges. This principle is established in international arbitration and accepted in many national laws.
Under LCIA rules, arbitrators have case management powers to conclude procedural and substantive matters. This involves setting out a case timeline, issuing procedural orders, and ruling on the admissibility and weight of evidence. These procedures can be adapted by arbitrators according to the proceedings’ direction.
To ensure a fair resolution, parties may receive awards prior to a tribunal’s final decision. To cover potential costs, interim measures involve a security for costs order where a party deposits funds into escrow. Secondly, a party can be ordered to preserve, store, or sell any assets or money under the control of the opposing party which is related to the dispute. The purpose of these measures are to prevent claimants from making trivial claims however, interim powers of an arbitrator are limited. For example, they cannot grant an order against a third party. An applicant would have to apply to the court to enforce this with prior permission from the tribunal.
Once a final decision is made on the merits, the tribunal has the power to award costs and interest as part of the final award. This is absolute and can only be appealed in limited circumstances under the Arbitration Act 2025, which sets out strict timelines to preserve the principle of finality.
LCIA continues to be a leading international arbitration institution, recognised for its straightforward approach to resolving complex disputes.
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