Emergency arbitration provisions allow a party to seek urgent relief from an arbitrator before the full arbitration tribunal is constituted or before a complete hearing can be scheduled. This might include temporary restraining orders, preliminary injunctions, or other time-sensitive remedies needed to prevent irreparable harm—such as stopping a competitor from using confidential information or preventing asset dissipation. The clause typically outlines expedited procedures for appointing an emergency arbitrator and the scope of powers they can exercise.
Emergency arbitration is critical in situations where waiting for normal arbitration procedures would be too slow and cause serious damage. For example, if a former employee is about to launch a competing business using your trade secrets, you need immediate relief, not a decision six months from now. However, emergency arbitration clauses can be problematic if they're too broad, allowing parties to bypass normal procedural safeguards or if they don't clearly define what constitutes a genuine "emergency." The clause's effectiveness also depends on whether emergency arbitrators' decisions are enforceable and whether they can be reviewed or modified later.
Ensure the clause clearly defines what qualifies as an "emergency" (imminent irreparable harm, not mere inconvenience) and sets a high threshold to prevent abuse. Verify that the emergency arbitrator has clear authority limits—for instance, they might grant temporary relief but not make final decisions on the merits. Confirm that the clause specifies a realistic timeline for the emergency arbitrator to be appointed and to issue a decision (typically 7-14 days). Also check whether emergency relief decisions can be reviewed by the full tribunal later and whether they're enforceable in court if the other party ignores them. Consider whether your jurisdiction's courts can still grant emergency relief if arbitration fails.
Frequently Asked Questions
What does this clause mean in simple terms?
Emergency arbitration provisions allow a party to seek urgent relief from an arbitrator before the full arbitration tribunal is constituted or before a complete hearing can be scheduled.
Why should I care about this clause?
This might include temporary restraining orders, preliminary injunctions, or other time-sensitive remedies needed to prevent irreparable harm—such as stopping a competitor from using confidential information or preventing asset dissipation.
What are my options?
The clause typically outlines expedited procedures for appointing an emergency arbitrator and the scope of powers they can exercise.
How does this affect small businesses?
Emergency arbitration is critical in situations where waiting for normal arbitration procedures would be too slow and cause serious damage.