Agreements not to Challenge Remote Arbitration Awards

Due to unprecedented health and safety risks, more clients and attorneys are turning to online dispute resolution (“ODR”) to resolve their disputes. The rapid shift toward remote proceedings creates uncertainty, as new legal issues will arise out of the unique circumstances. Potential uncertainty does not need to put disputes on hold, however, as there are ways to mitigate and avoid risk that allow disputes to confidently move forward.

For remote arbitration proceedings, it is recommended the parties sign a joint agreement not to challenge the remote arbitration award on the basis of using a virtual hearing. Hogan Lovells released a guidance document for remote arbitration that recommends parties agree to the following:

• [V]ideoconferencing constitutes an acceptable means of communication permitted by the applicable rules, including those at the juridical seat of the arbitration;

• [T]he parties have agreed to the use of videoconferencing as the means for conducting the arbitral hearing; and

• [N]o party will seek to vacate any resultant arbitral award on the basis that the arbitral hearing was not held in person.

Agreements not to challenge a remote arbitration award on these bases will help to mitigate any potential risk of vacatur due to a virtual hearing.

For more information on remote arbitration best practices, please see the following Disputing blog posts:

Remote Arbitration Best Practices: Technology

Remote Arbitration Best Practices: Security and Confidentiality

Remote Arbitration Best Practices: Witness Examination

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