"The co-operation of all involved in arbitration proceedings - arbitrators, counsel and the parties themselves - is needed to achieve Efficient, Fair, Prompt and Economical Resolution of Disputes. It is only through the co-operation of the key players in the arbitration process that the advantages of arbitration - confidentiality, expertise, cost-effectiveness, speed, flexibility and finality - can be maximised, stated Dr Fiona Galea Farrugia, Registrar of the Malta Arbitration Centre, at a Business Breakfast held at the Casino Maltese to commemorate 20 years since the Arbitration Act in February 1998 came into force.
Galea Farrugia explained that arbitration proceedings are suffering delays, which bring inefficiency and as a result, more costs. The Centre is committed not to let arbitration proceedings be burdened with 'litigation baggage'. This does not mean that the Centre has not dealt with complex cases which have been managed efficiently and decided in the shortest time possible but there are cases where proceedings progress very slowly.
Galea Farrugia spoke about the advantage of confidentiality in arbitration, which in her opinion tops the list of advantages arbitration offers. She explained that "in recent years, it has been a topic of international debate whether explicit rules of confidentially, as is the case in Malta, should be done away with so as to allow for arbitral awards to be published after a suitable delay. It is argued that the publication of arbitral awards will allow and lead to the development of arbitration law additional scrutiny on awards, thus creating greater confidence in the use of arbitration."
She also referred to the importance of selecting arbitrators not only on the basis of their expertise, but that due consideration should also be given to other attributes such as reputation for competence and the commitment and ability to conduct efficient and cost-effective arbitrations. Expertise is another advantage of arbitration as the parties agree between them to refer their differences to an independent and impartial third party who is well versed in the subject matter of their dispute.
"The Centre has, throughout the years, drawn up a number of panels of arbitrators for different sectors such as Insurance, Building Construction, Maritime, Banking, Finance, Accounting & Taxation and Traffic Collisions. We currently have seven Domestic Arbitration Panels and one International Panel of Arbitrators. In view of the fact that in recent years there has been an increase of cases filed with the Centre involving disputes in the fields of Information Technology and Gaming, the Centre plans to introduce panels on these matters and we will be inviting interested persons to submit an application to the Centre for membership to these panels."
In the coming months, training courses on arbitration will be offered by the Centre in conjunction with the Faculty of Laws to all those who are interested in arbitration.
In his welcoming address, Dr George Hyzler, chairman of the Centre's Board of Governors said: "This event is an opportunity to look at those areas of the Centre's operations that need improvement and to discuss with all stakeholders, proposed ways on how we can provide a better service to all those who use the Centre's services."
In a brief speech, Minister for Justice Owen Bonnici reiterated that the efficiency of the judicial system in Malta also depends on a strong and efficient Arbitration Centre.
"While acknowledging the fact that nine international cases were filed with the Centre last year shows the high reputation which the Centre is enjoying; it is paramount to ensure that the Malta Arbitration Centre achieves greater operational efficiencies. Today's event is an opportunity for all those involved in arbitration to look at the ways how arbitration can become a better and more efficient option of solving disputes," Bonnici said.
Dr Antoine Cremona, lawyer and arbitration practitioner delivered a presentation on the relationship that currently exists between arbitration and the Law Courts of Law.
Dr Cremona said: "Malta is a good case study on how arbitration has developed over the past years. Although we have had many cases where the courts have referred cases to arbitration and actively supported arbitration proceedings, many issues still exist that need to be addressed in order to stabilize the complex relationship between the Law Courts and arbitration.
"We practise in a jurisdiction which has consistently re-invented itself and which aspires to consolidate its role as an important jurisdiction across a number of commercial, financial and legal sectors as well as attracting new value and important players in the international markets. Beyond the short term, the viability of the jurisdiction in the long term is not only dependent on attractive fiscal regimes, groundbreaking legislation in new areas of regulation and public sector incentives or aid. In the longer term, one of the key ingredients for success is the robustness of the legal architecture and the effectiveness and availability of legal remedies. This includes the 'normalisation' and smoothening out of the relationship between the courts and arbitration which is undisputedly the world's preferred method of dispute resolution."
The Malta Arbitration Centre started operating in March 2000 with the specific functions of promoting Malta as a centre for arbitration both in Malta and abroad, to provide for the conduct of arbitration proceedings, and to recognize and enforce arbitral awards. Recently, in fact, the Malta Arbitration Centre has also seen an increase in the filing of international cases.