This clause governs the arbitrator's power to grant interim (temporary) measures during the arbitration process—essentially the arbitrator's ability to issue orders that preserve the status quo or protect a party's interests while the dispute is being resolved. Common interim measures include orders to maintain assets, prevent asset transfer, preserve evidence, maintain business operations, or grant provisional payment. These measures are distinct from final decisions on the merits; they're designed to ensure that by the time arbitration concludes, there's still something meaningful to decide about.
Interim measures are essential because arbitration can take months or years, and without protective orders, a losing party might dissipate assets, destroy evidence, or cause irreparable harm before a final award is issued. However, interim measures also represent a significant intrusion into a party's business operations and can be weaponized by aggressive parties seeking to gain leverage rather than genuine protection. The clause should clearly specify which interim measures the arbitrator can grant, what standard must be met to obtain them (usually "balance of hardships" or "serious risk of harm"), and whether the arbitrator's interim orders are enforceable in court.
Review the clause to confirm it specifies which types of interim measures are available (asset preservation, evidence preservation, injunctive relief, etc.) and which are excluded. Ensure the clause establishes a clear legal standard for granting interim measures—typically requiring the requesting party to show a likelihood of success on the merits and that irreparable harm will occur without the measure. Verify that the clause addresses enforcement: can interim orders be enforced through court proceedings if the other party ignores them? Also check whether the clause allows the arbitrator to require a bond or security from the party requesting interim measures (to protect the other side if the measure later proves unjustified). Finally, confirm that interim measures can be modified or terminated if circumstances change.
Frequently Asked Questions
What does this clause mean in simple terms?
This clause governs the arbitrator's power to grant interim (temporary) measures during the arbitration process—essentially the arbitrator's ability to issue orders that preserve the status quo or protect a party's interests while the dispute is being resolved.
Why should I care about this clause?
Common interim measures include orders to maintain assets, prevent asset transfer, preserve evidence, maintain business operations, or grant provisional payment.
What are my options?
These measures are distinct from final decisions on the merits; they're designed to ensure that by the time arbitration concludes, there's still something meaningful to decide about.
How does this affect small businesses?
Interim measures are essential because arbitration can take months or years, and without protective orders, a losing party might dissipate assets, destroy evidence, or cause irreparable harm before a final award is issued.