Third-parties in International Commercial Arbitration － Analysis on the Group of Companies Doctrine(I)

Third-parties in International Commercial Arbitration － Analysis on the Group of Companies Doctrine(I)

As arbitration continually play a vital role in international commerce, and as ways of commercial transaction continues to evolve, there comes the need to discuss third-parties, especially non-signatories 1 role in arbitration. In the past seven years, the number of cases with more than two parties was steadily up to approximately 33% of each year's caseload of the International Chamber of Commerce (ICC), some of which were joined by non-signatories. In the past, the pure idea of non-signatory's participation in arbitration draws the stereotype that it would breach the cornerstone of arbitration, for the original parties have consented to arbitrate with only the signatory parties. Not to mention the legality of compelling non-signatory third-party who have not consented to arbitrate goes against the fundamental contract characteristic of arbitration. However, nowadays following the constitution of transnational group of companies and innovative ways of transaction, tribunals and courts have gradually allowed non-signatory third-party to participate in arbitration, such as in situations of third-party beneficiary, agency, substantial role of the non-signatory and more.