Research On Third Party System Of International Commercial Arbitration

Arbitration has taken on an increasingly important role in international commercial transactions and has become the preferred dispute resolution mechanism in many types of transaction contracts. As international transaction become more complex, certain procedural problems are becoming more common. One of the most troubling issues in this area of law concerns the intervention of third parties into an existing arbitration.The institution of the third party derives from the system of civil litigation, the core content of which is that it is necessary to add a party that is out of the case but relating to the case into the litigation as to resolve the disputes along with all the others. However, whether the institution of the third party should exist and how the institution of the third party operates in the system of international commercial arbitration, has been the hotspot of theoretical study on international commercial arbitration and the stubborn difficulty of the practice for a long time. The author of this article wants to prove that the institution of the third party operates in the system of international commercial arbitration is reasonable, necessary and possible under present legal system.The structure of this article as follows:Beginning with the introduction of the institution of the third party in the system of civil litigation, Part 1 defines that the third party in international commercial arbitration is someone outside the parties'agreement, but has legal relationship with the dispute, or substantially related to the results of the arbitration. We also elaborate the characteristics of this concept in this part.In part 2,the author indicates the necessity of the institution of third party of arbitration by showing three typical cases in the international commercial practice.In part 3, we discuss arbitration's contractual roots and analyze the character of arbitration. Besides, this part also analyzes the privity of the arbitration agreement and the expansibility of the effect of arbitration agreement. Also we discuss the procedural value of the arbitration, and some other theories that may help us to persuade people the rationality of third party system in arbitration. Thereby obtaining the theoretical bases of constructing third parties system in arbitration proceeding.In part 4, we provide variety of national laws and rules presented by international arbitration court, to show the existence of this system in present legislation practice and prove that the power of intervening of third parties could be granted in some countries.In part 5,we want to provide a access to perfect the third party system in our country. We point out that our present law takes opposite opinion on this issue, but there are practical needs for this system. Then we try to give some positive suggestions on the construction of third party system in international commercial arbitration.Anyhow, we want to make our conclusion that the rationality of the institution of third party of arbitration satisfies the needs of society's healthy, orderly, and efficiently operations.