33 St. Louis U. L.J. 495 (1988-1989)
Compulsory Consolidation of Commercial Arbitration Disputes

handle is hein.journals/stlulj33 and id is 505 raw text is: COMMENT
COMPULSORY CONSOLIDATION OF COMMERCIAL
ARBITRATION DISPUTES
I. INTRODUCTION
Unlike traditional arbitration, multiparty arbitration involves more
than two parties.1 The parties involved in a multiparty arbitration pro-
ceeding are contractually related in one of two ways.' In the most sim-
ple arrangement, the parties are linked by a single multiparty con-
tract.3 The contract may embody the relevant arbitration agreement,'
or the parties may sign a multiparty arbitration agreement separate
from the main contract.5 Whatever the form chosen, the signatory par-
ties have expressly agreed to submit all disputes arising under the con-
tract to a multiparty arbitration proceeding.
In the second arrangement, a third party, not an original dispu-
tant, is brought into an arbitration proceeding on the basis of the third
party's privity of contract with one of the other two parties.6 For exam-
ple, an owner contracts with a contractor. The contractor in turn con-
tracts with a subcontractor. Both contracts include a clause stating that
all disputes under the contract will be resolved by arbitration. When a
1. Arbitration is a private process in which disputing parties voluntarily submit
their claims to one or more third parties for resolution. See M. DOMKE, DoMKE ON
COMMERCIAL ARBITRATION § 1.01 (G. Wilner rev. ed. 1984). Multiparty arbitration
occurs in a number of diverse commercial situations. Some examples are sales con-
tracts, investment contracts, and construction contracts. See Devitt, Multiparty Con-
troversies in International Construction Arbitrations, 17 INT'L LAW. 669, 669 (1983).
Multiparty arbitration is also common in ship charter arrangements. See Stipanowich,
Arbitration and the Multiparty Dispute: The Search for Workable Solutions, 72
IOWA L. REV. 473, 481 (1987).
2. See Hascher, Consolidation of Arbitration by American Courts: Fostering or
Hampering International Commercial Arbitration?, 1 J. INT'L ARB. 127, 127 (1984).
3. Id.
4. id.
5. See Bartels, Multiparty Arbitration Clauses, J. INT'L ARB., June 1985, at 61,
61.
6. Hascher, supra note 2, at 127.

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