Damages for Breach of an Arbitration Agreement

Abstract

The arbitration agreement is the very beginning of all arbitration and one of its fundamental pillars. Nevertheless, every now and then one of the parties violates this agreement and tries to circumvent arbitration by starting proceedings in a national court, often hoping to be better off in his home jurisdiction or in a country, which is favourable to him. In order to uphold the essential value of the agreement to arbitrate in international arbitration it is necessary to provide effective ways of its enforcement. In this context, the question whether damages should be available for breach of an arbitration agreement is taken up every few years. However, due to a long-standing lack of case law several important issues are still unsolved. This paper will examine significant themes associated with a claim for damages for breach of an arbitration agreement to determine whether damages constitute an appropriate remedy.