ARBITRAŽNI SPORAZUM

Initiation of Arbitration in the Context of Multi-tiered Clauses Leading

Marko Mećar, LL.M.

This paper analyzes the issue of initiation of arbitration in the context of multi-tiered clauses leading to arbitration. Initiation of arbitration in the context of multi-tiered clauses leading to arbitration is especially relevant in situation when a party submits its claim directly to arbitration without employing all the pre-arbitration tiers stipulated in the multi-tiered clause – in breach of the multi-tiered clause. In such situation, the arbitral tribunal may decide to hear the dispute even though arbitration was initiated prematurely, or it may decide to dismiss the claim. This paper will analyze the definition of the multi-tiered clauses leading to arbitration. Furthermore, this paper will analyze the international commercial arbitration practice and scholarly work, and identify situations in which the parties must use pre-arbitration tiers stipulated in the multi-tiered clause leading to arbitration before they can submit the dispute to arbitration. After that, this paper will examine the repercussions of premature claim submitted to arbitration. Finally, this paper will analyze who has the jurisdiction to decide on the effects of the premature initiation of arbitration.