{"id":39522,"date":"2025-12-04T09:00:09","date_gmt":"2025-12-04T09:00:09","guid":{"rendered":"https:\/\/www.cdr-news.com\/?p=39522"},"modified":"2025-12-09T10:54:46","modified_gmt":"2025-12-09T10:54:46","slug":"law2025-arbitration-slammed-for-losing-its-way","status":"publish","type":"post","link":"https:\/\/www.cdr-news.com\/categories\/arbitration-adr\/law2025-arbitration-slammed-for-losing-its-way\/","title":{"rendered":"LAW2025: Arbitration slammed for losing its way"},"content":{"rendered":"\n

A no-holds-barred panel at LAW2025 blasted the arbitration profession for holding back the sector\u2019s evolution and eschewing much-needed ADR mechanisms \u2013 with one prominent arbitrator telling his peers they need to \u2018grow up\u2019.<\/strong><\/p>\n\n\n\n

A heated panel discussion at this year\u2019s inaugural London Arbitration Week (LAW) saw leading industry figures warn that arbitration has become a cumbersome process that is failing disputing parties. While litigation has increasingly integrated alternative dispute resolution (ADR) mechanisms, the panel members questioned why arbitration has failed to do the same, with one participant suggesting the arbitral community may be reluctant to \u201cupset the meal ticket\u201d.<\/p>\n\n\n\n

The panel, held on Tuesday (2 December) and chaired by London-based COMMediate mediator Mike Henley, argued that hybrid ADR could be the key to reinventing arbitration.<\/p>\n\n\n\n

Profession to blame<\/strong><\/h3>\n\n\n\n

Kicking off the discussion, Henley said arbitration has forgotten what it was designed to be: fast, flexible and focused. \u201cIt is our hypothesis that arbitration has lost its way. It has become litigation by another name, with rising costs and longer processes. We believe the people who matter and who rely on arbitration are being let down. Arbitration should integrate ADR techniques and approaches, so it can again become what it was meant to be,\u201d Henley asserted, adding that \u201ca lot of what is holding it back is the profession\u201d.<\/p>\n\n\n\n

Paul Sills, a leading arbitrator and mediator from Arbitra International in London, pointed out that litigation has clear ADR processes embedded in the court system, where parties are increasingly being expected to engage in some sort of ADR process such as mediation<\/a>. \u201cHowever, we don\u2019t have any dialogue in the arbitration community about bringing in the same mechanisms.\u201d<\/p>\n\n\n\n

Henley agreed, noting that litigation has \u201caccelerated [in this area] in the last year\u201d.<\/p>\n\n\n\n

\u201cWe don\u2019t talk about the hard reality of why [arbitration] is not delivering,\u201d Sills continued. While he acknowledged that arbitration works well in some areas, he stressed that it has become disconnected from the interests of the clients who \u201cdeplore uncertainty, time wasting and cost\u201d, adding: \u201cBut we\u2019ve allowed these three things to come into the system.\u201d<\/p>\n\n\n\n

The tools are there<\/strong><\/h3>\n\n\n\n

Emphasising his frustration, Sills said the tools are already available to improve the system. \u201cWe don\u2019t need something new. I\u2019m a big supporter of getting in more early [during the dispute process] and using ADR. We have the hybrid ADR mechanisms, which bring in a lot more expansiveness and flexibility. We\u2019re viewing these tools as isolated silos. Bring them into a basket and say, they\u2019re available when we need to use them.\u201d<\/p>\n\n\n\n

\u2018Just need to grow up\u2019<\/strong><\/h3>\n\n\n\n

Responding to an audience member who suggested that mandatory mediation or negotiation might be the solution, with arbitrators having the power to throw out the case if parties refuse, Sills said: \u201cArbitrators are caught up in the thinking that every time they say no, it\u2019s going to be challenged or appealed. Institutions must do more, and arbitrators just need to grow up.\u201d<\/p>\n\n\n\n

He continued: \u201cEveryone is convinced their way is best, and that\u2019s nonsense. We are just providing a service. And the service you need today might be different from what you need in six months\u2019 time.\u201d<\/p>\n\n\n\n

Sills added that bringing in mandatory ADR was a \u201cmisguided conversation\u201d. \u201cIt\u2019s not about requiring parties to have without-prejudice mediation with a mediator. Mediation is all about timing. Where you have a reasonably sized case, the timing is pretty good in litigation.\u201d<\/p>\n\n\n\n

The big question<\/strong><\/h3>\n\n\n\n

Midlands-based Martino Giaquinto, partner and head of Mills & Reeve\u2019s construction, engineering and energy disputes practice who has been involved in hundreds of mediations, said he has not witnessed one mediation where it was mandatory. \u201cI am an advocate of mediation because I\u2019ve seen how successful it can be. Also, the vast majority of adjudications are resolved quickly. The big question is, why is it not happening in arbitration?\u201d<\/p>\n\n\n\n

Giaquinto added there was a \u201creal need for arbitration to step up\u201d, and concurred that timing is key when it comes to ADR. \u201cThe majority of businesses are pragmatic. Even those that say it\u2019s a matter of principle [not to negotiate or mediate], that is tempered over time when risk has been injected. If you get the timing right, it\u2019s almost a no-brainer to look at the needs and interests of the parties. Most want a resolution they can deal with and need lawyers that have the skills to take a measured and calm approach and help them solve the problem.\u201d<\/p>\n\n\n\n

Six arbitrators and four deaths<\/strong><\/h3>\n\n\n\n

Philip Jeffcock, managing parter at real estate investment management company Cew Capital, which was recently involved in a major ICC International Court of Arbitration case, said the process was neither quick, efficient or cheap.<\/p>\n\n\n\n

Criticising the process further, he stated: \u201cDuring our case, we had six arbitrators. There were only supposed to be three. The three that left had to be replaced. It took seven years to get to the hearing, and eight years to get the award. There were four deaths \u2013 one was an arbitrator, three were the shareholders in the claim. At the end, it felt like we were everyone\u2019s meal ticket. Maybe that\u2019s why arbitration doesn\u2019t want ADR, as it might upset this meal ticket.\u201d<\/p>\n\n\n\n

Despite its numerous advantages, Henley recognised that mediation has to evolve too. \u201cWe have to be more creative about how we think about mediation if it is to deal with more complex disputes. There is scope for it to be more expansive.\u201d<\/p>\n\n\n\n

When it comes to multi-tiered dispute resolution mechanisms<\/a>, Giaquinto said he was not an advocate, arguing that it builds on mandatory processes that might not be needed.<\/p>\n\n\n\n

Most effective approach I\u2019ve witnessed<\/strong><\/h3>\n\n\n\n

The most effective process Giaquinto said he had witnessed used a more novel approach. In that case, the parties had a muti-tiered resolution mechanism but at the first procedural hearing of the arbitration they binned the overly complex process.<\/p>\n\n\n\n

\u201cInstead, the parties agreed for the tribunal to set a timetable, not for a hearing, but for completed written statements,\u201d Giaquinto relayed. \u201cThe tribunal then suggested early neutral evaluation and paused the proceedings. This allowed the parties to review the case on the merits. The process then pivoted into a facilitated approach where we got an independent review of the merits. Both parties shared this evaluation with the early neutral mediator, who was able to say \u2018look, the power to resolve this is in this room\u2019. The arbitrator set in motion a plan of action, a route forward. Yes, there were issues. But it was a really powerful, hybrid approach.\u201d<\/p>\n\n\n\n

London Arbitration Week:<\/em><\/p>\n\n\n\n

Belt & Road presents divergent legal, cultural and practical norms<\/em><\/a><\/p>\n\n\n\n

Call to refresh arbitration and protect rule of law<\/em><\/a><\/p>\n\n\n\n

Arbitration slammed for losing its way<\/em><\/a><\/p>\n\n\n\n

Construction spats lacking right legal teams and direction<\/em><\/a><\/p>\n\n\n\n

Construction challenges; Ciarb changeover<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

A no-holds-barred panel at LAW2025 blasted the arbitration profession for holding back the sector\u2019s evolution and eschewing much-needed ADR mechanisms \u2013 with one prominent arbitrator telling his peers they need to \u2018grow up\u2019.<\/p>\n","protected":false},"author":16,"featured_media":39523,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[30],"tags":[1023,12160,12159,7795,11379,11380,174,7650],"class_list":["post-39522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arbitration-adr","tag-arbitra-international","tag-cew-capital","tag-commediate","tag-hybrid-alternative-dispute-resolution","tag-london-arbitration-week","tag-london-arbitration-week-2025","tag-mediation","tag-mills-reeve"],"yoast_head":"\nLAW2025: Arbitration slammed for losing its way - CDR News<\/title>\n<meta name=\"description\" content=\"A no-holds-barred panel at LAW2025 blasted the arbitration profession for holding back the sector\u2019s evolution and eschewing much-needed ADR mechanisms \u2013 with one prominent arbitrator telling his peers they need to \u2018grow up\u2019.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cdr-news.com\/categories\/arbitration-adr\/law2025-arbitration-slammed-for-losing-its-way\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LAW2025: Arbitration slammed for losing its way - 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