Contents of Arbitration Awards: A Comprehensive Overview

When an arbitral tribunal prepares an award, one of its most crucial tasks is to ensure that the award is enforceable. This responsibility demands a deep understanding of the various requirements that an enforceable award must meet. While certain standards are universally recognized, it is essential to note that specific jurisdictions may impose additional conditions. This article explores the fundamental components and considerations involved in drafting an enforceable arbitration award.

Written and Signed Award

Unlike a court judgment, it is generally expected in modern practice that an arbitration award will be in writing. This ensures clarity and provides a permanent record of the tribunal's decision. Each member of the tribunal typically signs the award, further emphasizing its authenticity and the collective agreement of the tribunal. The award is also dated, marking the formal conclusion of the arbitration process. These formalities are not merely procedural but serve as the foundation for the award's legitimacy and enforceability.

Identification of Parties and Representatives

An arbitration award usually begins by recording the names and addresses of the parties involved in the dispute. This includes the claimant(s) and respondent(s) and their legal representatives. In the context of construction arbitration, these representatives are often legal professionals specializing in construction law. Including this information is crucial, as it clearly identifies the stakeholders affected by the award and the legal entities responsible for their representation.

Authority of the Tribunal

The award must record the matters conferring authority upon the tribunal, typically encapsulated in the arbitration agreement. This section may also include the particulars of the appointment of the tribunal members. By documenting these details, the award reaffirms the tribunal's jurisdiction and authority to adjudicate the dispute, thereby preempting any challenges to its legitimacy.

Procedural History

An award generally includes a summary of the principal procedural stages of the arbitration. This may involve the timeline of submissions, hearings, and other significant events that occurred during the arbitration process. Recording the procedural history is vital as it provides context and demonstrates that the arbitration was conducted fairly and in accordance with agreed-upon rules and procedures.

Issues for Decision

One of the key functions of the award is to clearly articulate the issues that the tribunal is called upon to decide. This serves multiple purposes: it assures the parties that the tribunal has properly understood the matters in dispute, and it protects the award from later challenges based on claims that the tribunal misunderstood or failed to resolve the issues before it. By explicitly identifying the issues, the tribunal demonstrates that it has fully engaged with the case's complexities and has rendered a decision that addresses all pertinent points.

Reasoning Behind the Decision

An essential component of the award is the reasoning behind the tribunal's resolution of the issues. Unlike judgments in common law courts, arbitration awards typically do not delve into extensive findings of fact or legal analysis. However, the award should provide sufficient reasoning to justify the tribunal's conclusions. As noted by the late Lord Bingham, the reasons serve several important functions:

- They inform the parties why they have won or lost.

- They act as a safeguard against arbitrariness or irrational decision-making.

- They guide the parties in their future commercial interactions.

- They allow an appellate or supervisory court to effectively review the decision.

- They impose intellectual discipline on the tribunal, ensuring a well-considered decision.

The degree of detail in the reasoning may vary depending on the nature of the dispute and the jurisdiction involved. However, it is generally expected that the reasoning will be clear and sufficiently detailed to withstand scrutiny.

Remedies Granted

The award should explicitly state the remedies that the tribunal is granting, if any. This section should be clear and unambiguous, leaving no room for misinterpretation. Whether the remedies involve monetary compensation, specific performance, or other forms of relief, they should be articulated in a manner that ensures they can be effectively enforced.

Checklist for the Contents of an Award

To assist in the preparation of a comprehensive award, the following checklist, provided by a distinguished international arbitrator, can be invaluable:

- The Parties and Their Representatives: Clearly identify all parties involved and their legal counsel.

- The Contract and the Arbitration Agreement: Reference the underlying contract and the arbitration agreement that confers authority on the tribunal.

- Overview of the Dispute: Provide a brief summary of the dispute's background and the issues at stake.

- The Arbitral Tribunal: Include details about the tribunal members and their appointment.

- Procedural History: Summarize the procedural steps taken during the arbitration.

- Issues Raised: Identify and outline the issues that the tribunal is required to resolve.

- Relevant Contractual Provisions: Highlight the contractual terms relevant to the dispute.

- Relevant Background or Contextual Matters: Include any pertinent background information that informs the tribunal's decision.

- Summary of the Arguments of the Parties: Summarize the main arguments presented by each party.

- Evidence and Findings on Factual Issues: Provide a concise summary of the evidence and the tribunal's findings on key factual matters.

- Legal Issues: Address the legal principles and issues that the tribunal considered.

- Conclusions on Substantive Issues: Summarize the tribunal's conclusions on the substantive issues in dispute.

- Claims and Arguments on Relief: Discuss the claims made by the parties regarding the relief sought.

- Interest: Address any interest that may be awarded.

- Costs: Detail the allocation of arbitration costs between the parties.

- Disposition: Clearly state the final decision and the remedies awarded.

Drafting an arbitration award is a meticulous process that requires careful attention to detail and a thorough understanding of the applicable legal principles. The components outlined above are critical to ensuring that an award is both comprehensive and enforceable. By adhering to these guidelines, tribunals can produce awards that stand up to scrutiny and fulfill their role in resolving disputes efficiently and effectively.