There are processes to follow when it comes to the selection and appointment of arbitrators in disputes under the Grain and Feed Trade Association (Gafta) contracts. Arbitrators need to have the skills, expertise, and any issues that might come up in the global grain and feed trade.
That is why there are guidelines set in place to ensure the arbitration process is being carried out by the people who have what it takes to ensure fairness and transparency.
If disputes will be resolved efficiently and effectively, it has to be carried out by those who have a thorough understanding of how the contractual terms work and can settle even complex issues. Market expert Roman Zenon Dawidowicz delves into the guideline Gafta provided in the appointment of arbitrators.
Categories of Gafta Arbitrators Include
- Qualified Gafta Arbitrators under Rules numbers 125 and 126 can sit at the front of the first tribunals. Rule 125 is usually for more complex issues, is expensive and usually takes longer. Rule 126 is for faster issues, relatively small and less complex.
- Gafta Appeal Board Arbitrators qualified under Rules number 125 and are allowed to sit on second-tier Appeal Board tribunals
Both categories are crucial for ensuring that the arbitration process is conducted by knowledgeable and impartial individuals who can effectively resolve disputes in the grain and feed industry.
Disputes are normally heard by a panel of three arbitrators. Failure to appoint arbitrators or provide notice during the specified timeframe means the other party can ask Gafta to appoint.
Under What Circumstances Can Gafta Appoint
“Gafta will appoint an arbitrator under several circumstances, typically when the parties involved in a dispute cannot agree on an arbitrator or when the contract stipulates that Gafta should make the appointment.,” Roman Zenon Dawidowicz says. The specific circumstances include:
- Failure of Agreement by the Parties: If the disputing parties cannot agree on the appointment of an arbitrator within the timeframe specified in their contract, Gafta will step in to appoint an arbitrator to ensure the dispute resolution process can proceed.
- Contractual Requirement: Some Gafta contracts may include clauses that automatically delegate the appointment of arbitrators to Gafta, particularly in cases where the parties prefer an independent and neutral appointment process.
- Impartiality Concerns: If there are concerns about the impartiality of the arbitrator suggested by one party, the other party may request Gafta to appoint an arbitrator to ensure a fair and unbiased process.
- Multiple Arbitrators: In cases where a panel of arbitrators is required, and the parties cannot agree on the appointment of additional arbitrators or a chairman, Gafta may be called upon to appoint these arbitrators to complete the panel.
- To appoint an arbitrator on behalf of the Respondent under Rule 3 of the Gafta 125 Arbitration Rules. Roman Zenon Dawidowicz says this usually attracts a fee of £150.00 (ex. VAT)
These circumstances ensure that the arbitration process remains fair, impartial, and consistent with industry standards.
Two-Tier Arbitration System
Gafta operates a two-tier arbitration process and this includes:
First-Tier Arbitration
This is the initial stage of arbitration where the dispute is heard by a single arbitrator or a panel of arbitrators, depending on how complex and valuable the case is. The arbitrators review the evidence, hear the arguments from both parties and make a binding decision. This tier is designed to resolve disputes efficiently, with a focus on applying industry knowledge and gfta contract terms.
Second-Tier Arbitration (Appeal)
If either party is dissatisfied with the decision made in the first tier, they have the right to appeal the decision to a second-tier arbitration. This stage involves a new panel of arbitrators, typically more senior and experienced, who review the case afresh.
They re-examine the evidence and arguments, and they can either uphold, modify, or overturn the original decision. The second-tier arbitration provides an additional layer of scrutiny, ensuring that the outcome is both fair and accurate.
The Eligibility and Qualification Criteria for Gafta Arbitrator
The general eligibility and qualification criteria to be an arbitrator under Gafta include:
- Industry Knowledge and Expertise: Arbitrators must have a deep knowledge and at least 10 years of experience in the grain, feed, and trade industry. This includes understanding the specifics of Gafta contracts, trade practices, and how international trade of commodities is being carried out.
- Gafta Arbitration Training: Prospective arbitrators have to undergo training by Gafta. This includes courses and examinations on the arbitration process, rules and regulations, and other legal aspects of trade disputes.
- Professional Integrity: Arbitrators must be individuals of high ethical standards, demonstrating impartiality, integrity, and a commitment to fair decision-making. They should be free from any conflict of interest in the disputes they are appointed to resolve.
- Experience in Arbitration: Although not always mandatory, having prior experience in arbitration or legal proceedings, particularly within the context of trade disputes, is highly valued. This experience can come from acting as an arbitrator, legal representative, or in other related roles.
- Continuing Professional Development: To maintain their status as Gafta arbitrators, individuals must engage in ongoing professional development to stay current with changes in industry practices, arbitration laws, and Gafta regulations.
These criteria ensure that arbitrators are well-equipped to handle disputes and any other legal activities that might arise. Roman Zenon Dawidowicz says barristers, solicitors, and other legal representatives from private practice are not always allowed.
This is simply because they only want it to be strictly concerning trade and to prevent the process from being too legastic. The list of Gafta-qualified arbitrators is available on the official website for your perusal.
