Handling cases where one party is absent at the arbitration settlement meeting

Legal question: Hello, I am currently the legal representative of M Company, who is having a dispute over the sale of goods contract with Joint Stock Company L. We are resolving the dispute through commercial Arbitration. There is an upcoming dispute settlement meeting but I might be busy on a business trip. If I am absent, how would that meeting be held? In addition, what would happen in the case where the defendant - the legal representative of Joint Stock Company L does not attend the meeting?

Response:

Thank you for sending your question to FDVN Law Firm (FDVN). For your consulting requests, after studying the relevant legal regulations. FDVN would like to provide you with some information as follows:

According to Clause 1, Article 56 and Article 57 of the Law on Commercial Arbitration 2010:

“Article 56. Absence of the parties

1.    The plaintiff who has properly been summoned to attend a dispute settlement meeting but is absent without a plausible reason or leaves the meeting without the arbitration council's approval will be regarded as having withdrawn his/her petition. In this case, the arbitration council shall proceed with the dispute settlement if the plaintiff requests or files a counterclaim.

2.    In case the defendant who has properly been summoned to attend a dispute settlement meeting but is absent without a plausible reason or leaves the meeting without the arbitration council's approval, the arbitration council shall still proceed with the dispute settlement based on available documents and evidence.

“Article 57. Postponement of a dispute settlement meeting

When having a plausible reason, one party or all parties may request the arbitration council to postpone a dispute settlement meeting. Such a request must be made in writing clearly stating the reason and enclosed with evidence and shall be sent to the arbitration council at least 7 working days before a meeting starts. If the arbitration council receives no request within this time limit, the postponement requester shall bear all expenses, if any. The arbitration council shall consider and decide to accept or not to accept a meeting postponement request and promptly notify such to the parties.

The arbitration council shall decide on the postponement duration.”

According to the above regulations, it can be seen that:

1. If the plaintiff, who has been summoned, is absent without a legitimate reason or leaves the meeting without the approval of the Arbitration Council, it will be considered a withdrawal of the lawsuit petition, the case can only continue to be resolved when the Defendant requests or files a counterclaim.

But in case you are absent with a legitimate reason, the Arbitration Council will postpone the meeting. Therefore, if you want to postpone the meeting, you need to provide the Arbitration Council with documents showing that there is a legitimate reason for your absence.

2. For the defendant who does not attend the meeting without a plausible reason, according to Clause 2, Article 56 of the  Law Commercial Arbitration 2010 mentioned above, the Arbitration Council will continue to resolve the dispute based on available documents and evidence. Therefore, in this case, the Arbitration Council will continue to resolve the matter in the defendant's absence.

Above is FDVN's legal advice related to your consulting requests based on relevant legal regulations. Hopefully this information will be useful to you.

By Nguyen Thi Thu Thuy - FDVN Law Firm

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