Representation in Arbitration and Mediation: What the Law Provides
Mediation and arbitration are private, agreement-based forms of dispute resolution. Unlike proceedings before a state court, the process here runs under rules the parties have chosen, which directly affects who expresses a party’s position and how. The Georgian Law on Arbitration regulates the right of representation directly: a party has the right to be represented by an advocate or by another representative at any stage of the arbitral proceedings. This settles representation at the level of the statute, so a party is never forced to conduct the case alone.
In mediation, the representative’s role is more negotiational: a party often shapes its position together with a representative so that the terms of a settlement are legally sound. In arbitration, built on the exchange of a claim and evidence, the representative’s skill is decisive for getting each procedural step right. Below we discuss the rights and default rules the law lays down for representation.
Equality of the Parties as the Guarantee of Representation
Under the law, the parties to arbitral proceedings enjoy equal rights, and each party must be given a full opportunity to present its position. This provision works in the context of representation as well: if one party engages a professional representative, the other party has exactly the same possibility, and the hearing must leave neither side less protected than the other.
In practice, choosing a representative is a strategic decision: engaging an advocate or another representative assures a party that its position will be presented fully at every stage, while the other party’s identical right remains unrestricted. The equality principle, combined with the right of representation, makes the hearing rest on a real parity of strength between the parties rather than on who knows the procedural rules better.
Succession: What Happens When a Party Changes
In commercial relations parties change often: a claim is assigned to another person, a company is reorganised, a natural person dies. The law regulates these situations clearly: upon succession in a legal relationship, the successor also becomes a party to the arbitration agreement, unless the parties have agreed otherwise. The same applies to a party’s death or liquidation — it neither terminates the arbitration agreement nor requires the replacement of an already appointed arbitrator, unless agreed otherwise.
For representation this has a simple consequence: the process does not start over, and the representative’s work is not lost. The successor party retains the same procedural position, and its representative continues the hearing from that point. If your counterparty changed while the dispute was running, the arbitration agreement remains in force against it.
What the Representative Does: the Claim and the Statement of Defense
The representative’s practical work begins with the arbitral claim. Under the law, within the time limit agreed by the parties or determined by the arbitration, the claimant must submit the claim in writing, and the representative makes sure the claim contains everything the law requires:
- the names (denominations) and addresses (domiciles) of the parties;
- the demand;
- the circumstances and the evidence that confirm the demand;
- a list of the documents attached to the claim.
The respondent presents a statement of defense addressing the facts and circumstances indicated in the claim; absent a party agreement setting other requirements, the statutory rule applies. Form matters: where the claim is submitted without observing the form prescribed by the law, the arbitral proceedings will not commence. The absence of a statement of defense, by contrast, does not halt the process — the arbitration continues the examination of the case, and the failure to submit a defense cannot be treated as recognition of the claim.
The parties may submit with the claim or the statement of defense any document related to the case, or refer to documents and other evidence they will submit later. The claim is sent to the other party and to the chair of the arbitration and, if no chair has yet been elected, to all arbitrators, unless agreed otherwise. During the proceedings a party may amend the claims or the statement of defense and submit additional claims, unless the arbitration considers this a delay of the hearing. Getting these steps right determines how well protected your position is.
Frequently Asked Questions
Below we answer the questions parties most often raise when using representation in arbitration and mediation.
Who may act as a party’s representative in arbitration?
A party has the right to be represented by an advocate or by another representative at any stage of the arbitral proceedings. The representative shapes the position, prepares the documents, controls the deadlines and manages correspondence with the arbitration.
Can a representative be brought in while the proceedings are already running?
Yes. The right to representation applies at any stage of the hearing, from commencement to the rendering of the decision. The party itself decides when and in what form to arrange representation.
What must an arbitral claim contain?
The written claim must set out the parties’ names (denominations) and addresses (domiciles), the demand, the circumstances and evidence confirming it, and a list of attached documents. If the prescribed form is not observed, the proceedings will not commence.
What happens if the respondent submits no statement of defense?
The arbitration continues the examination of the case, and the absence of the statement of defense cannot be deemed recognition of the claim. It is therefore in the respondent’s own interest to present its position in due time.
How We Help on Legal.ge
The Legal.ge team helps parties arrange representation in both mediation and arbitration: we advise on the right moment to engage a representative, draft the arbitral claim with every element the law requires, guide the preparation of the statement of defense, and keep the deadlines and correspondence with the arbitration under control. If you want your position in the dispute to be professionally protected, contact us — we will review your case and propose a plan of action.