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SCHEDULE 1Scottish Arbitration Rules

Part 1Commencement and constitution of tribunal etc.

Rule 7 Failure of appointment procedure M

7(1)This rule applies where a tribunal (or any arbitrator who is to form part of a tribunal) is not, or cannot be, appointed in accordance with—

(a)any appointment procedure set out in the arbitration agreement (or otherwise agreed between the parties), or

(b)rule 6.

(2)Unless the parties otherwise agree, either party may refer the matter to an arbitral appointments referee.

(3)The referring party must give notice of the reference to the other party.

(4)That other party may object to the reference within 7 days of notice of reference being given by making an objection to—

(a)the referring party, and

(b)the arbitral appointments referee.

(5)If—

(a)no such objection is made within that 7 day period, or

(b)the other party waives the right to object before the end of that period,

the arbitral appointments referee may make the necessary appointment.

(6)Where—

(a)a party objects to the arbitral appointments referee making an appointment,

(b)an arbitral appointments referee fails to make an appointment within 21 days of the matter being referred, or

(c)the parties agree not to refer the matter to an arbitral appointments referee,

the court may, on an application by any party, make the necessary appointment.

(7)The court’s decision on whom to appoint is final.

(8)Before making an appointment under this rule, the arbitral appointments referee or, as the case may be, the court must have regard to—

(a)the nature and subject-matter of the dispute,

(b)the terms of the arbitration agreement (including, in particular, any terms relating to appointment of arbitrators), and

(c)the skills, qualifications, knowledge and experience which would make an individual suitable to determine the dispute.

(9)Where an arbitral appointments referee or the court makes an appointment under this rule, the arbitration agreement has effect as if it required that appointment.