Introduction
Arbitration is widely recognized as a preferred mode of
resolving commercial disputes. It is regarded as an effective means
of mitigating issues associated with litigation. Not all disputes
are suitable for arbitration. The scope has been extended in some
jurisdictions to include class actions. Arbitration is usually
between very close group of parties. The basic requirement for
arbitration is an arbitration agreement. This invariably means that
only parties to an arbitration agreement can be parties to
arbitration.
However, some countries have expanded the scope to permit a
group or class members to commence arbitration proceedings. This is
usually by way of a class arbitration. Class arbitration is a form
of arbitration that enables one or a few parties to bring a claim
before an arbitral tribunal for and on behalf of others in a
similar position. As it has generally followed an analogous model
to class action litigation, the party initiating the
