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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