The Number and Composition of Arbitrators
The Georgian Law on Arbitration defines the arbitration as a body of one or more arbitrators and leaves the number to the parties: the number of arbitrators and the manner of their appointment are determined by the parties. As a rule the parties appoint an equal number of arbitrators, unless they have agreed otherwise.
Two special rules. If the arbitration agreement fixes an even number of arbitrators, the arbitrators already appointed are obliged, within 10 days of their appointment, to appoint one more arbitrator, unless the parties have agreed otherwise. If the number of arbitrators is not determined by the parties’ agreement at all, the arbitration must be composed of three arbitrators. Fixing the number in the clause pre-shapes the structure of the process.
The Appointment Procedure: Written Consent and the Fallback Mechanism
A fundamental rule of the law: no one may be appointed arbitrator without consent, and consent must be declared in writing. The procedure for appointing the arbitrator(s) and the chair of the arbitration is established by agreement of the parties.
Where there is no agreement, or the agreed procedure cannot be carried out, the law’s fallback mechanism applies: for a three-member arbitration each party appoints one and the two appointed arbitrators appoint the chair. If one party fails to appoint within 30 days of the other party’s request, or the two arbitrators fail to agree on the third within 30 days of their appointment, the court appoints the arbitrator at a party’s request — within 30 days of acceptance of the application. For a sole-arbitrator arbitration where the parties cannot agree, the court likewise appoints. A court decision under this mechanism is final and not subject to appeal — so a begun dispute can never end up without an arbitrator.
Qualifications, Disclosure and Statutory Bars
The parties may agree qualification requirements for the arbitrator, and the court or other institution appointing an arbitrator must consider those agreed requirements in order to secure an independent and impartial arbitrator. In addition, before beginning the duties, a person to be appointed arbitrator must — at the request of the parties and the arbitration — provide written information on their education and experience as an arbitrator, if such exists.
The law also bars certain persons from being appointed arbitrators. A person may not be appointed unless they are: a person with limited legal capacity or under guardianship, unless a court decision provides otherwise; a civil servant, a holder of a state-political or political office, or a public servant; a person convicted of a crime whose conviction has not been expunged or extinguished; or a person who acted as mediator in the same case or a case materially related to it. These bars are a guarantee of independence and must be checked when selecting a candidate.