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In any dispute, parties are free to settle at any time. In order to avoid the time, cost and risk associated with pursuing or defending arbitration proceedings to their conclusion, it is generally in the best interests of both parties to achieve settlement.
But what role, if any, does a tribunal play in this process? The CMS arbitration team analysed the rules of 29 arbitral institutions to investigate this question and explored what impact the lack of mandatory “settlement facilitation” provisions in arbitral rules may have on the prospects of parties reaching settlement.
This article is the fifth and final article in a series of data sheets exploring arbitration topics as part of our Data Driven Disputes campaign. All five articles answer important questions being raised in the arbitration community, using data from a combination of desk research and qualitative interviews with leaders from global arbitration institutions. The hypotheses tested throughout this series include:
- The number of international arbitrations is decreasing
- The energy and construction sectors dominate in international arbitration
- The total sum in disputes spiked in 2020-2021 and settled down again in line with arbitration caseloads
- Tribunals generally have the power to make early determinations, but are reluctant to do so because of due process paranoia
- Most arbitration rules do not require tribunals to encourage or facilitate settlement
