The Seat Of Arbitration: A Crucial Choice With Far-Reaching Implications

When parties decide to settle their disputes through arbitration, one of the first key decisions they face is choosing the "seat" of the arbitration. This seemingly innocuous choice carries significant weight, impacting the entire arbitration process and can potentially influence the outcome and even successful management of any dispute arising.¹

What is the Seat of Arbitration?

The "seat" of arbitration refers to the jurisdiction where the arbitration is legally considered to take place. It's the legal address of the arbitration, establishing its connection to a particular legal system.²

Typically, parties must agree on the seat which is confirmed in their arbitration agreement. If they fail to establish the seat, most arbitration rules will designate the arbitral institution or the appointed tribunal to determine the seat.