Consolidation of Arbitration Without Parties’ Consent: A Threat to Party Autonomy?

Abstract

In the era of global economic development, international commercial transactions are more complex. Many disputes involving multiple parties and multiples contracts are witnessed in international commercial arbitration today. More frequently, trades such as maritime transactions and construction projects involve several inter-related parties and contracts. In order to solve the complexities that arise in related disputes, consolidation of arbitration was introduced. Consolidation is a procedural mechanism which unites several related disputes to avoid inconsistency and multiplicity of proceedings.

However, certain jurisdictions and arbitral rules discussed in the thesis promote compulsory or forcible consolidation. Compulsory consolidation is consolidation absent parties consent. Compulsory consolidation is forcible in nature and in essence infringes certain basic principles of international commercial arbitration. Thus, resulting in irreparable consequences such as annulment of arbitral awards or refusal in enforcement. Therefore, compulsory consolidation aims to improve efficiency at the cost of infringing party autonomy.

Keywords: compulsory consolidation, role of consent, party autonomy, efficiency, international commercial arbitration

JEL Classification: K00, K33, K40