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Procedural Background
In the context of an LCIA arbitration seated in London, the Tribunal addressed an application to stay the proceedings submitted by Mme Chantal Tadoral. Mme Tadoral had been appointed as the Provisional Administrator of Doraleh Container Terminal SA (DCT) pursuant to an order of the President of the Djibouti District Court, a decision subsequently challenged by the Respondents but reaffirmed by the local court. The Respondents, comprising DP World Djibouti FZCO and affiliated entities, disputed the validity of this appointment and opposed the stay. Following the application, the Tribunal invited and considered written submissions from the Respondents, the Provisional Administrator, and the State of Djibouti regarding the legal basis of the appointment under Djibouti law and the potential impact on the pending counterclaims.
Tribunal's Analysis
The Tribunal evaluated the application under its procedural mandate governed by Articles 14 and 23 of the LCIA Rules, as well as Sections 33 and 34 of the UK Arbitration Act 1996. The Tribunal acknowledged the existence of a substantial and ongoing dispute between the parties concerning the legitimacy of Mme Tadoral’s appointment as Provisional Administrator. However, the Tribunal determined it was unnecessary to resolve the substantive question of her appointment's validity to dispose of the stay application.
In its reasoning, the Tribunal emphasized the advanced procedural posture of the arbitration. Specifically, the proceedings had already progressed through the evidentiary hearing on the Respondents' counterclaims—a hearing from which the Claimants were absent despite receiving due notice. Because the evidentiary and submission phases were effectively closed, requiring no further active participation from either side, the Tribunal concluded that a stay was unwarranted. The sole remaining procedural step was the Tribunal's deliberation and the rendering of its final award.
Decision
Exercising its procedural discretion, the Tribunal rejected the application for a stay of the arbitration proceedings, directing that the matter proceed to the issuance of the award.
