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Confidentiality in Arbitration

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Att. Leyla Orak Celikboya

Introduction

Confidentiality is considered to be among the unequivocal features

of commercial arbitration. This feature is regarded as a crucial advan-

tage of arbitration, mentioned among one of the main reasons for par-

ties to resort to arbitration.

The mere fact that arbitration does not take place in public, before

national courts, renders arbitration proceedings private. Public author-

ities are not included in the proceedings. Participation in hearings is

subject to numerous regulations. As a consequence, confidentiality is

regarded as an inherent quality of arbitration.

Notwithstanding the above, the privacy of arbitration does not,

necessarily, always entail confidentiality. The duty of confidentiality

and its scope differ when different arbitration rules or national laws

come into play. Moreover, transparency and public interest in the dis-

closure of information must be weighed against the parties’ interest in

confidentiality. This Newsletter article discusses confidentiality in

international arbitration, briefly examining the confidentiality provi-

sions of certain arbitration rules in practice.

Clash of Interests: Confidentiality or Transparency?

While an implied duty of confidentiality in arbitration is referred

to, and accepted in certain national laws and jurisprudence

1

, the scope

194

NEWSLETTER 2015

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Article of April 2015

1

See English Court of Appeal decisions of

Hassneh Insurance Co of Israel v Mew

where the con-

fidentiality is not questioned,

Ali Shipping Corporation v “Shipyard Trogir”

where the court

expresses the need to determine the scope of such duty, and

John Froster Emmott v Michael

Wilson & Partners Limited,

where the parties’ duty of confidentiality is affirmed; citations of

which are provided in

Nick Blackby

and

Constatine Partasides

with

Alan Redfern

and

Martin Hunter

, Redfern and Hunter on International Arbitration, 5

th

Edition, Oxford

University Press (“Redfern and Hunter on International Arbitration”), para. 2.149 to para. 2.151.