NewVision University Logo
Georgian Law Review Logo

Georgian Law Review - Volume 23. 2023

ArticleExtension of Arbitration Agreement to Non-Signatories, Based on the Group of Companies Doctrine
Author(s)Salome Makhatelashvili
Pages123-156

Extension of Arbitration Agreement to Non-Signatories, Based on the Group of Companies Doctrine

Keywords
Extension of arbitration clause to third parties
arbitration
contract law
Abstract

Along with the growing role of arbitration as a means of alternative dispute resolution, it is relevant to determine the circle of persons who may be involved in arbitration proceedings. Using analytical and comparative methods, the paper initially discusses the essence of the arbitration agreement and the prerequisites for its validity, as well as the possibility of involving non-signatories in the arbitration proceedings, based on the group of companies doctrine. The purpose of the study is to outline the main criteria, using the mentioned theory, the existence of which provides the basis for extending the arbitration agreement to nonsignatory third parties. Moreover, the paper pays attention to whether the theory of the group of companies corresponds to such an important principle applicable in arbitration law as the mandatory form of the arbitration clause. In addition, the conclusion indicates several important issues, due to which, in practice, it may be necessary to expand the circle of persons to be involved in the arbitration.

References

1. Atabegashvili, D., Validity Criteria of Arbitration Agreement, Justice and Law No. 4, 2016;
2. Titberidze, G., Commentary on the Law of Georgia on Arbitration, second edition, Tbilisi, 2020;
3. Injia, B., Peculiarities of the Veil Piercing Doctrine in Arbitration, Journal of the Association of Law Firms of Georgia No. 1, 2016;
4. Kazhashvili, G., Extension of Legal Consequences of the Arbitration Agreement to Third Parties, Georgian Business Law Review, 2013,
https://ewmiruleoflawgeo.org/uploads/files/5072Georgian_Commercial_Law_Review_II_Issue_GEO.pdf.pdf.pdf;
5. Kekenadze, G., Tkemaladze, S., Guide to Arbitration for City (Regional) Court Judges, Tkemaladze, S. Ed., Arbitration Initiative - Georgia, 2017;
6. Tsertsvadze, G., Prerequisites for International Arbitration (comparative analysis), dissertation defended at Tbilisi State University, 2008;
7. Bernard, H., Complex Arbitrations, MultiParty, MultiContract, MultiIssue and Class Actions, International law library, Kluwer law international, The Hague, 2005;
8. Bharucha, MP, Jaisingh, Sneha Gupta, S., The Extension of Arbitration Agreements to Non-Signatories – A Global Perspective Indian Journal of Arbitration Law, Vol. 5, Issue 1, 2016;
9. Born, G., International Commercial Arbitration, 3rd Edition, Kluwer Law International, 2021;
10.Boza, R., Caveat Arbiter: The U.S.-Peru Trade Promotion Agreement, Peruvian Arbitration Law, and the Extension of the Arbitration Agreement to Non-Signatories. Has Peru Gone Too Far? Currents International Trade Law Journal, Vol. 17 No. 2, 2009;
11.Brekoulakis, S., Third Parties in International Commercial Arbitration Oxford International Arbitration Series, 2010, [5.15];
12.Brinsmead, S., Extending the application of an arbitration clause to third-party non-signatories: which law should apply, 2007, https://ssrn.com/abstract=980483 or http://dx.doi.org/10.2139/ssrn.980483;
13.Chen, T. F., The Outsider's Identity in International Commercial Arbitration - from the Group of Companies Doctrine and IBA Guidelines on Conflict of Interest to Adverse Costs Awards against Third-Party Funders, Contemporary Asia Arbitration Journal, Vol. 12, No. 1, 2019;
14.Chhura, T., The Need to Re-Think the Group of Companies Doctrine in International Commercial Arbitration, NUJS Law Review, Vol. 15, No. 1, 2022;
15.Fouchard Gaillard Goldman on International Commercial Arbitration, Gaillard, E., Savage, J. eds, Kluwer Law International 1999;
16.Gravel, S., Peterson, P., French Law and Arbitration Clauses - Distinguishing Scope from Validity: Comment on ICC Case No. 6519 Final Award, McGill Law Journal, Vol. 37:2, 1992;
17.Halla, S., Non-Signatories in International Commercial Arbitration: Contesting the Myth of Consent, International Comparative Law Review, Vol. 18, No. 2, 2018;
18.Jere, M. F., Timnea, A. A., Relevance of the Group of Companies Doctrine in International Arbitration and Contracting, Revista Romana de Arbitraj, Vol. 16, No. 2, 2022;
19.Kasap, G. H., Etching the Borders of Arbitration Agreement: The Group of Companies Doctrine in International Commercial Arbitration under the U.S. and Turkish Law, University of Bologna Law Review, 89, 2017;
20.Kiriak, A., Arbitral Jurisdiction Over Non-Signatories: The “Group of Companies” Doctrine, Central European University, 2015;
21.Kyrylchuk, I., Non-Signatories in Arbitration: from “Juristic Chemistry” to Concept of Dispute, International Hellenic University Thessaloniki, Greece, 2016;
22.Loban, K., Extension of the Arbitration Agreement to the Third Parties, Central European University, 2009;
23.Maxson, J., Binding Non-Signatories to Arbitration Agreements, Master’s Thesis, Götengorgs Universitet, 2013;
24.Meyniel, A., That which Must Not Be Named: Rationalizing the Denial of U.S. Courts with Respect to the Group of Companies Doctrine, 2013;
25.Ming, E. H., Methods to Extend the Scope of an Arbitration Agreement to Third Party Non-Signatories, LW4635 Research Paper;
26.Misra, A., Ronald, B., The Group of Companies Doctrine: A Comparative Study between India, U.S.A. and U.K., Indian Journal of Law and Legal Research, Vol. 4, Issue 4, 2022;
27.Park, W. W., Non-Signatories and the New York Convention, Dispute Resolution International, Vol. 2, No. 1, 2008;
28.Pongracz, I. A., The “Group of Companies” Doctrine - Between Myth and Reality, Revista Romana de Arbitraj 5, No. 2, 2011;
29.Brekoulakis, S., Rethinking the Concept of Consent in International Commercial Arbitration: A General Theory for Non-Signatories, Journal of International Dispute Settlement, Vol. 8, Issue 4, 2017;
30.Rodler, I. A., When are Non-Signatories Bound by the Arbitration Agreement in International Commercial Arbitration? Master Thesis, Universidad de Chile, 2012;
31.Samal, A., Extending Arbitration Agreements to Non-Signatories: A Defence of the Group of Companies Doctrine, The King’s Student Law Review, Vol. 11, Issue I, 2020;
32.Surpuriya, D., Group of Companies Doctrine: Caveats to Consider before Its Application, Indian Review of International Arbitration, Vol. 2, Issue 1, 2022;
33.Wilskie, S., Shore, L., Ahrens, J. M., The Group of Companies Doctrine. Where is it Heading? American Review of International Arbitration, Vol. 17, 2006;
34.Zhang, Y. J., A Glance at the Legal Status of Non-Signatories in International Commercial Arbitration, Open Journal of Social Sciences, Vol. 9, No. 4, 2021;
35.ICCA’s Guide to the 1958 New York Convention, International Council for Commercial Arbitration, 2013;
36.No. AS-1022-957-2012 Judgement of 2013;
37. Decision of 2011 of the Tbilisi Court of Appeal in the case No. 2B/3055-11;
38.Chloro Controls India Pvt Ltd v. Severn Trent Water Purification Inc and Or, 2013, 1 SCC 641 (India);
39.Dallah Real Estate and Tourism Holding Co v. Ministry of Religious Affairs, Government of Pakistan UKSC 46, 2010;
40.Reckitt Benckiser v. Reynders Label Printing, Supreme Court of India, 1 July, 2019;
41.Dow Chemical France v. Isover Saint Gobain, 9 Y.B. Comm. Arb. 1984 at 131, (ICC Int'l Ct. Arb.).
42.ICC Case No. 11160/2002 partially published in 16ICC Bulletin, 2005;
43.ICC Case No. 7155, Decided in 1993, Journal of Dispute Resolution International, 1996;
44.Partial Award No. 10818, [2001], (ICC);
45.Partial Award No. 13774, [2006] (ICC);
46.Peterson Farms Inc. v. C & M Farming Ltd, England and Wales High Court, 2004;
47.Sponsor AB v. Lestrade Pau, 26 November 1986 [1988] Rev arb 153;
48.Swiss Federal Supreme Court Case No. 4A_450/2013, 2014;
49.Swiss Federal Supreme Court Cases No. 4P330 and No. 332/1994, 1996, ASA Bulletin, Vol. 14, Issue 4, 1996;
50.https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/new-york-convention-e.pdf;
51.https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/06-54671_ebook.pdf;
52.https://www.newyorkconvention.org/english;
53.https://matsne.gov.ge/ka/document/view/89284?publication=8;
54.https://matsne.gov.ge/ka/document/view/30346?publication=36.