Knowing the Statement of Claim in Arbitration To Settle Disputes

In the event of disputes, parties may seek arbitration to avoid the intricacy of courts. This alternative dispute resolution method has been gaining popularity for settling conflicts internationally.

That being said, one important element to initiate this process is the statement of claim in arbitration. Understanding this document is essential for anyone involved in arbitration proceedings. This article will explore the statement of claim and defence in arbitration and the specifics required to draft it.

What is a Statement of Claim in Arbitration?

A statement of claim is a formal document that initiates a lawsuit in a court of law. Similarly, a statement of claim in arbitration is a document that starts the arbitration proceedings. The detail in this claim usually outlines the facts, arguments, and relief sought by the claimant (the party bringing the dispute).

Simply put, an arbitration statement of claim is comparable to a complaint that tells the story of the dispute from the plaintiff’s perspective.

Purpose of Statement of Claim in Arbitration

Even though businesses may already have included the arbitration clause within the contract, a statement of claim still serves as an important element of arbitration. Below are the purposes of this document.

1. It Starts the Arbitration Process

Filing a statement of claim in arbitration acts as a gesture to formally start the process. Additionally, the claim outlines the parties involved in the proceeding.

2. It Lays Out the Details of the Dispute

Arbitration statement of claim sets out the basis on which the plaintiff is taking legal action by providing details of the dispute. The details are given to the conflicting party on the details that are going to be discussed during the proceedings, as well as keeping the scope of the dispute confined. These details are also known as the “pleadings and particulars.”

3. It Specifies the Desired Outcome

One crucial function of the claim for the plaintiff is that it specifies the outcome or the “arbitration award” they are pleading for.

4. It Provides the Respondent an Opportunity to Respond

Apart from initiating the arbitration process, the statement also functions as a signal for the opposing party to prepare themselves for the proceeding. Moreover, the respondent typically has the opportunity to file a statement of defence in arbitration. This document allows them to address the allegations made in the statement of claim and present their own version of events.

What is The Statute of Limitations on Arbitration Claims

An important consideration when filing a statement of claim is the statute of limitations on arbitration claims. This refers to the time limit within which a claim must be brought forward.

The specific time frame can vary depending on the nature of the dispute, the jurisdiction governing the arbitration (especially for international arbitration), and the terms of the arbitration agreement.

As the statute of limitations for arbitration claims may differ from those applicable to court litigation, so it’s better to consult with expert lawyers or professional arbitrators.

Drafting A Statement of Claim in Arbitration

When drafting a statement of claim in arbitration, there are specific legal details that needs to be addressed. In many cases, the structure of the claim are outlined in a “storytelling” model, giving background, explaining the claims, requesting the relief, etc. So, let’s take a look the elements of arbitration statement of claim.

1. Introduction of Parties: First, clearly identify all parties involved in the dispute, including their names, addresses, and identifying information.

2. Background Information: Provide a background of the events leading to the dispute. This should explain how the legal relationship between the parties was formed and any significant events that contribute to understanding the conflict.

3. Alleged Wrong: Clearly articulate the specific actions or inactions that form the basis of the claim. You should include the details on how the respondent breached their obligations or caused harm.

4. Legal Basis: Identify the legal grounds for the claim, such as breach of contract, negligence, etc., connecting the facts to the relevant legal principles.

5. Damages or Grievances: Describe how you are affected by the alleged wrong. This may include financial losses, reputational damage, or other forms of harm.

6. Relief Sought: Clearly state the desired outcome of the arbitration. This could include monetary compensation, specific performance of a contract, or other forms of relief.

The above is but an arbitration statement of claim example. Details may vary depending on the jurisdiction or the requirement of the arbitration institution you seek assistance.

Statement of claim to The Thai Arbitration Institute (TAI)

If your contract agreement or clause requires parties to settle the dispute via arbitration through the Thai Arbitration Institute or TAI, there are certain details that need to be submitted. These are:

1. A request to have the disputes settled by arbitration

2. The name and address of the parties

3. Applicable arbitration clause or agreement

4. The contract or legal relationship which gives rise to the disputes

5. The facts which form the basis of the claims and the amount claimed

6. The relief or remedy sought

7. A proposal as to the number of arbitrator(s), if the parties have not previously agreed upon in the applicable arbitration clause or agreement

8. Signature of the Claimant or representative

In addition to the details provided, TAI also requires further documentation, such as identity documents (identity card, house registration), power of attorney, proxy (form Aor Tor 6), Letter of Appointment in nominating an arbitrator, and Letter of Consent from such person, as well as security money of 15,000 baht.

It’s essential for the claimant to provide these documents to initiate the arbitration process.

Understanding the statement of claim in arbitration is crucial for anyone involved in alternative dispute resolution. By crafting a clear, comprehensive, and well-structured statement of claim, you can effectively present the case and increase the chances of a favorable resolution.

However, the process of arbitration can be complex. So consider specialized assistance in alternative dispute resolution service from Thai Arbitration Center (THAC)—a leading institution in Thailand that provides expert arbitration and mediation services, helping parties resolve disputes efficiently and effectively.

Take the first step towards resolving your dispute efficiently and effectively.

Contact THAC: thac.or.th/contacts/

About THAC

As an international arbitration institution, THAC specializes in providing effective and impartial dispute resolution services. Our team of seasoned arbitrators and mediators brings a wealth of experience to the table, ensuring that your business disputes are handled with the utmost expertise and professionalism.

If you have questions about our arbitration services or any other legal services, please get in touch with us at:

Email: [email protected]

Call: +66 (0)2018 1615

THAC is looking forward to helping you.