Sector-specific arbitration

What we do

In some sectors, arbitration has become the standard for settling disputes. Each sector has different focus areas, jargon, and standards. Thanks to our broad network of lawyers and legal experts, we typically possess highly sector-specific knowledge. We assist companies with arbitration cases in sectors including:

• Construction sector (Council of Arbitration for Construction Disputes)
• Transport & Maritime (ICC)
• Product-related arbitration (such as GAFTA & FOSFA)
• Healthcare
• Sports (including football and handball)
• Shareholder disputes
• Franchise disputes

We have the experience and expertise to assume various roles during an arbitration case: from advice to assistance. Contact us to discuss the possibilities.

What is sector-specific arbitration?

Sector-specific arbitration is arbitration in which the dispute is settled by arbitrators who know the relevant industry inside out. Unlike a state court, the case is not considered by a generalist judge, but by a tribunal with technical, commercial, or industry-specific expertise. Consequently, arbitration has become the standard method of dispute resolution in sectors such as construction, transport, international trade in goods, and sports. The legal basis lies in the arbitration law of Book 4 of the Code of Civil Procedure (Articles 1020 to 1077); a valid arbitration agreement removes the dispute from the ordinary courts.

At MKB Juristen, lawyers and in-house counsel collaborate in mixed teams. This enables us to assist both an international corporation and the baker around the corner in sector-specific arbitration cases, with legal acumen and an eye for the business interest.

Arbitration institutions by sector

Most sectors have their own institute, regulations, and practices. Choosing the right forum determines the course, time limits, and costs of the procedure. Common institutes are:

• Construction – the Council of Arbitration for Construction Disputes (RvA). The RvA is designated as arbitrator in many general terms and conditions (such as the UAV and Woningborg). The majority of the arbitrators have a background in construction, supplemented by legal experts.
• Transport & Maritime – UNUM (formerly TAMARA) for transport, shipping, and logistics disputes, and internationally the London Maritime Arbitrators Association (LMAA).
• International trade in goods – GAFTA (cereals) and FOSFA (oilseeds and oils) with their own, often very short (fatal) notification deadlines.
• General trade & international contracts – the Netherlands Arbitration Institute (NAI), the ICC International Court of Arbitration and the Stockholm Chamber of Commerce (SCC).
• Sport – the arbitration committee of the KNVB and internationally the Court of Arbitration for Sport (CAS/TAS) in Lausanne.

Why a specialized tribunal is of added value

The most important advantage of sector-specific arbitration is the expertise of the arbitrators. An arbitrator with a construction or commercial background often understands what actually went wrong better than a generalist judge. This leads to rulings that align better with the commercial and technical reality of the industry. In addition, arbitral awards offer the advantage that, pursuant to the New York Convention (1958), they can be recognized and enforced in approximately 170 countries – see also our page on the enforcement of an arbitral award. Finally, arbitration proceedings are generally confidential and the duration can be shorter than before a state court.

The arbitration clause and sector-specific pitfalls

A large proportion of problems in arbitration stem from a defective clause. Disputes regarding the scope and validity of the arbitration agreement can delay proceedings and make them costly. A good sector-specific clause specifies, at a minimum, the institution and rules, the number of arbitrators, the place of arbitration, the language, and the applicable law. Keep in mind the short, sometimes fatal, application deadlines in product arbitrations (GAFTA, FOSFA): those who are late lose their right to arbitration. We review and draft arbitration clauses – see also our work on arbitration clauses and the use of arbitrators.

What MKB Juristen does for you

Whether it concerns a construction dispute at the RvA, cargo damage arbitration, an international trade dispute at GAFTA or NAI, or a sports dispute at the KNVB or CAS: we assemble a team that suits your sector, language, and interests. We advise on strategy, conduct the proceedings, act as your representative, and, if necessary, oversee enforcement. From international corporations to small business owners: with us, you get lawyers and in-house counsel who speak the language of your industry.

Frequently asked questions about sector-specific arbitration

Is legal representation mandatory in sector-specific arbitration?
No, legal representation is generally not mandatory in arbitration. However, especially when significant interests are at stake, parties seek assistance from specialists because the procedural rules and sector practices can be complex.

Can I appeal against a sector-specific arbitral award?
That depends on the rules. Some institutions offer arbitral appeal, others do not (for example, no appeal is available at the KNVB Arbitration Commission). Additionally, in limited cases, there is the possibility of annulment by a state court pursuant to Article 1065 of the Dutch Code of Civil Procedure.

Which institution has jurisdiction over my dispute?
This usually follows from the arbitration clause in your contract or the applicable general terms and conditions. If there is no clear agreement, a dispute may still arise; we would be happy to assess which forum applies to your situation.