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.
Challenging an Arbitrator: Deadlines, Procedure and the Court’s Role
The parties may agree on a challenge procedure of their own. Absent an agreement, the statutory rule applies: a party intending to challenge an arbitrator must submit a written statement to the arbitration within 15 days of learning of the appointment or of any ground for challenge. The statement must indicate the ground and the motives for the challenge. If the arbitrator does not recuse and the other party does not consent to the challenge within 30 days of the submission, the arbitration decides the matter within 30 days of the expiry of that period.
If the arbitration rejects the challenge, the challenging party may apply to the court within 30 days of receiving the decision. In a sole-arbitrator arbitration the party may apply directly to the court within 30 days of the appointment or of learning of a ground. The court resolves these matters within 14 days of acceptance of the application, and its decision is final. Until the court’s decision, the arbitration may not continue the hearing with the challenged arbitrator or render an award; and where a ground for challenge exists, the arbitrator is obliged to recuse. The arbitrator may also recuse before the court has ruled.
Termination of Mandate and Appointment of a New Arbitrator
When an arbitrator’s mandate terminates — including through a challenge or other circumstances — a new arbitrator is appointed under the rules that were applied to the appointment of the previous arbitrator. This rule preserves continuity: re-appointment follows the same route as the original one.
Frequently Asked Questions
Answers to the most common questions on appointing and challenging arbitrators.
How many arbitrators should the arbitration have?
The parties determine the number. An even number obliges the appointed arbitrators to appoint one more within 10 days; if the number is not determined, the arbitration is composed of three arbitrators.
When does the court appoint the arbitrator?
Where there is no agreement of the parties or the agreed procedure cannot be carried out — for example, a party fails to appoint within 30 days, or two arbitrators fail to agree on the third within 30 days. The court appoints within 30 days of acceptance of the application, finally.
Within what deadlines can an arbitrator be challenged?
The written statement must be submitted within 15 days of learning of the appointment or the ground; the arbitration decides within 30 days of the expiry of the consent window; rejection may be taken to court within 30 days; the court decides within 14 days.
Within what deadlines can an arbitrator be challenged?
The written statement must be submitted within 15 days of learning of the appointment or the ground; rejection may be taken to court within 30 days; the court rules within 14 days.
How We Help on Legal.ge
The Legal.ge team helps parties draft a well-considered appointment procedure into the clause, verify candidates, including qualifications and statutory bars, and prepare challenge statements within the deadlines. If appointing or challenging an arbitrator is at issue in your dispute, contact us — we will review your situation and plan the next steps.