By Dr. Kariuki Muigua, PhD (Leading Environmental Law Scholar, Policy Advisor, Natural Resources Lawyer and Dispute Resolution Expert from Kenya), Winner of Kenya’s ADR Practitioner of the Year 2021, ADR Publisher of the Year 2021 and CIArb (Kenya) Lifetime Achievement Award 2021.*
In order to guarantee success of the virtual arbitration process, the tribunal and the parties have to take into account several preliminary considerations. The Chartered Institute of Arbitrators (CIArb) Guidance Note on Remote Dispute Resolution Proceedings recommends parties to plan and agree on preliminary considerations such as technology, software, equipment and connection to be used and allocation of sufficient timelines to eliminate possible connection or technical failures once the hearing has commenced. It is also recommended for parties and the tribunal to agree on the virtual platform to be used at the hearing at least one month before the hearing to ensure that every participant has access to such platform.
Further, to avoid possible lapses during the hearing due to limited technical knowhow, the International Chamber of Commerce advises tribunals and parties to schedule a tutorial session or sessions before the merits hearing to enhance their technical capacity. This can be in the form of a pre-hearing virtual conference where all technological means to be used at the hearing stage should be thoroughly tested. Possible technological lapses should be addressed at this stage and back-ups organized where there is need to do so. Parties should also agree on the venue of the arbitration taking into account technological and connection services.
It is advisable that for each location from which participants are joining the virtual hearing, there should be a qualified technician to address any technical concerns that may arise at the hearing stage.30 While organizing the virtual hearing rooms on digital platforms through videoconferencing, it should be ensured that all participants are visible and audible. The assistance of IT experts can be sought towards this end. It is also recommended that breakout rooms be organised for matters such as the tribunal’s deliberations which should not be visible or audible to the parties.
Before the hearing stage, the tribunal should ensure that all necessary pleadings and documents including witness statements and exhibits have been exchanged between the parties to avoid disruptions. During witness examination, it is recommended that the video conferencing system at the location of the witness should ensure enough visibility to see the witness and to verify that no unauthorised person is present with them. This is in order to eliminate some of the concerns such as witness coaching and ensure credibility of the witness testimony. The tribunal should require the witness to identify all the persons present at the location from where he/she is testifying and affirm that he/she is not receiving assistance from a third party during the testimony.
The witness should then give their testimony in the form of examination-in-chief, cross-examination and re-examination under the tribunal’s directions. It is also important to address the privacy and confidentiality concerns that may arise during virtual arbitration proceedings. It should be ensured that access to all virtual hearing rooms and breakout rooms is strictly limited to the allocated participants. The tribunal can also request for affirmation of privacy from all participants at the commencement of the proceedings. Further, when exchanging sensitive data, the ICC recommends that parties should use encrypted emails which reduce the risk of hacking. Where all these steps have been complied with, it becomes possible to effectively conduct virtual arbitration proceedings with minimum setbacks.
Concerns Associated with Virtual Arbitration
One of the major concerns associated with virtual arbitration proceedings is the risk of technological failure. There is the danger of failure of video links or poor internet connectivity that may hinder the success of the process. It further becomes difficult to address such technical issues since participants would be in different locations. Virtual arbitration proceedings also create information security concerns. Privacy and confidentiality are essential characteristics of arbitration. However, in the conduct of virtual arbitration proceedings, external assistance required to operate technologies during the conduct of arbitration, including reporters and translators create confidentiality concerns.
Further, since virtual arbitration proceedings are normally followed by email communications in the form of witness statements, written submissions and arbitral awards there is potential risks of hacking. In case of hearings conducted by videoconferencing, the log- in details may be accessed by third parties who can gain unauthorised accesses to the proceedings thus raising security concerns. Further, where the tribunal renders an electronic award submitted to the parties via internet, it may be accessed by third parties against the principle of privacy that is central to arbitration.
Virtual arbitration hearings raise credibility concerns especially when it comes to examination of witnesses. There is a concern that the loss of in-person observation will impair the tribunal’s ability to assess the credibility and strength of the evidence especially on cross examination. One of the advantages of in person arbitration hearings is that the Tribunal is able to discern the credibility of a witness by observing his/her body language, facial expressions and tone. This element may be defeated in virtual arbitration proceedings. Further, there could be a possibility that the witness is being coached off- camera or even reading from a script not within the view of the tribunal.
The costs associated with technology necessary to facilitate virtual arbitration proceedings may result in some parties or advocates being locked away from the process. This would normally require strong internet connection and electronic gadgets such as laptops that may not be within the reach of everyone. Finally, in the scope of international commercial arbitration, logistical concerns arise especially where participants are from different time zones. Where parties are split across different continents e.g in Nairobi, Kenya and New York, USA, it becomes difficult to find a suitable time falling within the working hours of both participants. Consequently, one of the parties may be forced to sacrifice what would normally be their sleeping time to attend such proceedings.
How to Enhance the Efficacy of Virtual Arbitration
Due to the concerns created by the COVID-19 pandemic on the practice of arbitration, there is need for enhanced adoption of technologies such as virtual arbitration proceedings. Some of the measures that can be adopted to enhance virtual arbitration include.
Information Security Protection
Virtual arbitration creates information security concerns due to the unregulated nature of the internet. There is need to enhance information protection in order to retain the integrity of virtual arbitration. Arbitrators can seek the assistance of Information Technology (IT) experts in securing the proceedings and preventing unauthorised access by third parties. The International Chamber of Commerce (ICC) advises arbitral tribunals and the parties to consult and develop a cyber-protocol that lays out the manner in which the virtual hearing will be conducted. This ensures that the proceedings are safe from malicious attacks and data breaches.
Capacity Building
Arbitrators should continue to improve themselves and keep up with the latest technological developments. Technology is increasingly taking centre stage in almost all aspects of life and arbitrators who do not appreciate its impact may find themselves becoming obsolete. Arbitrators should take individual effort and familiarize themselves with technologies such as video/audio conferencing, electronic signatures and e-filing that are necessary for the success of virtual arbitration. Arbitral institutions can also step in and provide training on complex technologies that may not be within the knowledge of arbitration practitioners.
Flexibility of the Proceedings
The tribunal and the parties should be more flexible in the conduct of virtual arbitration in order to eliminate some of the concerns. Where possible, parties can agree on a documents-only arbitration in disputes involving simple issues of facts and opinion. This eliminates the need for oral testimony of witnesses through hearing thus limiting the security concerns and technological requirements involved in virtual arbitration. The tribunal should also consider different time zones of the participants and schedule the proceedings during flexible hours.
*This article is an extract from the Article “Virtual Arbitration Amidst Covid-19 : Efficacy and Checklist for Best Practices” by Dr. Kariuki Muigua, PhD, Kenya’s ADR Practitioner of the Year 2021 (Nairobi Legal Awards), ADR Publisher of the Year 2021 and ADR Lifetime Achievement Award 2021 (CIArb Kenya). Dr. Kariuki Muigua is a foremost Environmental Law and Natural Resources Lawyer and Scholar, Sustainable Development Advocate and Conflict Management Expert in Kenya. Dr. Kariuki Muigua is a Senior Lecturer of Environmental Law and Dispute resolution at the University of Nairobi School of Law and The Center for Advanced Studies in Environmental Law and Policy (CASELAP). He has published numerous books and articles on Environmental Law, Environmental Justice Conflict Management, Alternative Dispute Resolution and Sustainable Development. Dr. Muigua is also a Chartered Arbitrator, an Accredited Mediator, the Africa Trustee of the Chartered Institute of Arbitrators and the Managing Partner of Kariuki Muigua & Co. Advocates. Dr. Muigua is recognized among the top 5 leading lawyers and dispute resolution experts in Kenya by the Chambers Global Guide 2022.
References
Muigua, K., “Virtual Arbitration Amidst Covid-19: Efficacy and Checklist for Best Practices,” Available at: http://kmco.co.ke/wp-content/uploads/2020/05/Virtual-Arbitration-Proceedings-Amidst-COVID-19-Efficacy-and-Checklist-for-Best-Practices69523-Revised.pdf (accessed 22 April 2022).