Consolidation of arbitral proceedings

Abstract

The construction industry typically involves a number of parties, such as main contractor, sub-contractor, developer, employer and consultants. Each of these parties may be linked to one or more of the other parties but rarely to all of them by contracts providing for dispute resolution by arbitration. Arbitration is an alternative to litigation as a method of conflict resolution. In section 40(1) of Arbitration Act 2005. provides that is no special procedure is provided for such a consensual consolidation. So, the objective of this research is to find out in what condition that arbitrator granted and not granted the consolidation. The scope of this research is related to construction arbitration cases which had been brought to the Court Reference is also made to cases in Malaysia and other countries. Basically, this research process consisted of four major stages, which involved initial study, data collection, data analysis, and completion The methodology used in this research is document analysis where the cases selected from Lexis Nexis which related to consolidation in arbitration. From seven cases selected, only two of them are granted to consolidate and the others are not granted. After analyzing the cases, it can be conclude that the arbitrator granted to consolidate in condition of arises of the same transaction while the arbitrator not granted the consolidation when the third party is not the party to arbitration and in circumstance when the substantial right of one of the parties is not prejudiced.