Extension of Arbitration Agreement to Nonsignatory Third Parties with Illustration in the International Construction Sector: The Arbitral Tribunal Needs to Respect the Law
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 4
Abstract
Extension of arbitration agreement to nonsignatory third parties in international arbitration is not a new issue and there exists currently multiple theories on the basic of that the arbitral tribunal comes to this extension. However, the practice shows that this extension is facing with a dilemma causing the increase of setting aside or refusing enforcement of the arbitral awards. This raises the question of what is the reason causing this trouble. Regarding the intervention of third party, in the construction sector, it is notorious that the tripartite relationship is very popular and notably that between the employer, contractor, and subcontractor particularly at international level where no single contractor is able to carry out on its own a large international construction project. Therefore, the possibility of extension of arbitration agreement to nonsignatory third parties is considerable. Thus, this paper focuses on exploring practice in international construction sector as example to understand the reason causing the trouble as regards extension of arbitration agreement to nonsignatory third parties to find out a solution adequate to resolve this situation.
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Data Availability Statement
No data, models, or code were generated or used during the study.
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Information & Authors
Information
Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15 • Issue 4 • November 2023
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Jan 26, 2023
Accepted: May 16, 2023
Published online: Jul 8, 2023
Published in print: Nov 1, 2023
Discussion open until: Dec 8, 2023
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