Tibor Varady

Arbitration Despite the Parties

Arbitration is an institution which preceded courts; yet shortly after the appearance of the latter, arbitration assumed the position of the younger (and weaker) brother. In the course of history, this predicament has only been confirmed and aggravated. Courts of justice have become the representatives of the ‘normal’ settlement of disputes, their legitimacy has been beyond doubt Arbitration has been reduced to an exception, the limits and the functioning of which have been firmly been controlled by courts. There have been revolts against this plight, yet there is practically only one area in which such revolts have really been successful. This is in the domain of international trade. Today, it is an uncontested fact that arbitration is the dominant method of settling international trade disputes; and at the same time, international commercial arbitration has become an almost completely self-sufficient institution. While gaining ground and strength, international commercial arbitration has also gained self-confidence. It has been stressed with increasing frequency (and determination) that the self-reliance of international commercial arbitration is a virtue, and that it advances broader common causes. In the opening sentence of his article on court intervention in arbitral proceedings, Delaume stresses: ‘It is generally recognized that, in order to be fully effective, transnational arbitration must be freed from judicial interference.’