Number of Arbitrators and the Party-Driven Appointment Rule
Arbitrator selection is one of the most practical parts of drafting an arbitration clause, because the entire architecture of the dispute starts here. Article 10 of the Georgian Law on Arbitration sets the framework: an arbitral tribunal consists of one or several arbitrators. The number of arbitrators and the procedure for their appointment are determined by the parties, and the parties appoint an equal number of arbitrators unless otherwise agreed by the parties. This gives the drafters full freedom to write precisely who appoints whom and how.
If the arbitration agreement defines 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 agree otherwise. And if the number of arbitrators is not determined by the parties' agreement, the tribunal must be composed of three arbitrators. This default rule frequently surprises parties whose clause is silent on numbers: silence means a three-member panel.
Appointment Procedure and the Court's Backstop Role
Article 11 opens with a fundamental rule: appointing a person as an arbitrator without their consent is impermissible, and consent to act as an arbitrator must be declared in writing. The procedure for appointing the arbitrator or arbitrators and the presiding arbitrator is established by the parties' agreement. Where there is no agreement, or the agreed procedure proves impossible to implement, a default mechanism applies. In a tribunal of three arbitrators, each party appoints one arbitrator, and the two arbitrators appointed in this manner appoint the presiding arbitrator. If one of the parties fails to appoint an arbitrator within 30 days of receiving the other party's request, or if the two arbitrators fail to agree on the appointment of a third arbitrator within 30 days of their appointment, then at the request of one of the parties the court appoints the arbitrator within 30 days of accepting the application. In a sole-arbitrator tribunal, if the parties cannot agree, the court appoints the arbitrator on the same terms. The court's decision on this matter is final and not subject to appeal.
The same article regulates the candidate's transparency and statutory exclusions. A person who is to be appointed as an arbitrator is obliged, before starting to perform the duties, at the request of the parties or the tribunal, to submit written information about their education and experience as an arbitrator, where such exists. A court or other institution appointing an arbitrator must take into account the qualification requirements agreed by the parties in order to ensure the appointment of an independent and impartial arbitrator. It is impermissible to prohibit a person from being appointed as an arbitrator except where that person is a person with limited legal capacity or a recipient of support, unless a court decision provides otherwise; a civil servant, a person holding a state-political or political position, or a public servant; a person convicted of a crime whose conviction has not been expunged or extinguished; or a person who acted as a mediator in the same case or another case materially connected with it.
Challenge: Grounds, Deadlines and Procedure
Article 12 defines the grounds for challenging an arbitrator. A party has the right to request the challenge if the arbitrator does not meet the qualifications agreed by the parties, or circumstances exist that may give rise to justified doubts as to the arbitrator's independence or impartiality. A party may request the challenge of an arbitrator appointed by itself only on grounds that became known to it after the appointment. A candidate or appointed arbitrator is obliged, throughout the entire arbitration, to immediately notify the parties and the tribunal of any circumstances that cast doubt on their independence and impartiality.
Article 13 sets out the procedure and the deadlines. The parties may agree on a challenge procedure. Absent an agreement, a party intending to challenge an arbitrator must submit a written challenge to the tribunal within 15 days of the day it learned of the appointment or of a ground for challenge; the challenge must state the grounds and motives. If the arbitrator does not recuse and the other party does not consent to the challenge within 30 days of submission, the tribunal decides the issue within 30 days of the expiry of that period. If the tribunal rejects the challenge, the challenging party may apply to the court within 30 days of delivery of the decision. In a sole-arbitrator tribunal the party applies directly to the court within 30 days of the appointment or of learning of the ground. The court must decide within 14 days of accepting the application, and its decision is final and not appealable. Until the court's decision, the tribunal may continue the proceedings with the participation of the challenged arbitrator and render an award. Where a ground for challenge exists, the arbitrator is obliged to recuse themselves.
Frequently Asked Questions
How many arbitrators sit if the clause is silent?
Three. If the parties do not determine the number, the tribunal must be composed of three arbitrators; and where an even number was agreed, the appointed arbitrators must appoint one more within 10 days.
Can someone be appointed arbitrator without consent?
No. Consent to act as arbitrator must be declared in writing; appointment without written consent is impermissible.
When does the court step in?
When a party fails to appoint within 30 days of a request, the two arbitrators cannot agree on the chair within 30 days, or, in a sole-arbitrator tribunal, the parties cannot agree at all. The court then appoints within 30 days of accepting the application, and its decision is final.
What is the deadline to challenge an arbitrator?
A written challenge to the tribunal within 15 days of learning of the appointment or the ground; if rejected, an application to court within 30 days, decided by the court within 14 days.
Who cannot be an arbitrator?
The statutory exclusions cover persons with limited capacity or recipients of support, state and public servants and political officeholders, convicted persons whose record is unextinguished, and former mediators in the same or a materially connected case.
How We Help on Legal.ge
Lawyers on Legal.ge help parties draft the arbitration clause — the number of arbitrators, the appointment mechanism and qualification requirements. We screen candidates for statutory exclusions and conflicts of interest, prepare challenge submissions within the deadlines, and represent parties before the court on appointment and challenge matters. Contact us to build an arbitral structure that fits your dispute.