Arbitration is designed to be a faster, confidential, and more cost-effective alternative to litigation. But what happens when the other party refuses to participate in arbitration? It is a situation that frustrates businesses, founders, investors, and corporate entities who expect efficiency and closure. The refusal to cooperate can feel like a tactical move — a delay strategy, a negotiation bluff, or a weapon to force settlement weakness.
This article explains exactly what to do if the other party refuses to participate in arbitration, what the law allows, how different jurisdictions enforce arbitral agreements, and how Dewey & LeBoeuf LLP supports clients globally to move forward even when the opposing side resists. Regardless of where you are based — Dubai, Singapore, United States, United Kingdom, or elsewhere — the game plan remains the same: do not freeze. Act strategically.
Why Parties Refuse Arbitration
Before jumping into the legal playbook, understand the motives. Arbitration refusal is rarely random. It is often a calculated attempt to pressure the claimant.
Common reasons:
- The other party believes ignoring arbitration will stall the process.
- They want to force renegotiation or settlement.
- They assume arbitration decisions are meaningless without their cooperation.
- They lack funds or resources to fight.
- They think litigation would favor them more.
Weak parties hide in delays. Strong parties use structure and law to force progress.
Step 1: Confirm the Arbitration Clause Is Clear and Binding
The first step in what to do if the other party refuses to participate in arbitration is verifying that the arbitration agreement is enforceable. If your contract contains:
- A written arbitration clause
- Reference to a recognized arbitration institution (ICC, LCIA, DIAC, SIAC, AAA)
- Clear rules for appointment and proceedings
Then you have a solid legal foundation. If the clause is vague, missing, or ambiguous, your leverage is weaker and you need legal strategy to tighten it before moving forward.
Dewey & LeBoeuf LLP regularly reviews and strengthens arbitration clauses for corporations to prevent loopholes that could be exploited later.
Step 2: Initiate the Arbitration Unilaterally
Most arbitration rules allow the claimant to start the process even if the other side ignores it. Under ICC, LCIA, SIAC, and most institutional rules, once the claimant files the request and pays initial fees, the arbitration begins — whether or not the respondent participates.
Key takeaway:
Their silence does not stop the framework. Arbitrators can be appointed without them.
Once they realize the train has left the station, many defendants panic and re-enter the process — often at a disadvantage.
Step 3: Request Default Award
If the respondent is ignoring the process entirely, you may request a default award. This means the arbitrator issues a decision based on your claims alone.
Default awards are a powerful tool because:
- They put pressure on the defendant.
- They can be enforced just like any arbitration decision.
- They cut years of delay out of the process.
But be smart: a sloppy claim can still lose, even uncontested. Build your evidence cleanly. Dewey & LeBoeuf LLP helps clients prepare airtight filings that survive challenge.
Step 4: Seek Court Assistance for Enforcement or Compulsion
If arbitration stalling continues, courts can enforce the arbitration clause.
Most global legal systems — including the UAE, UK, US, Singapore — allow parties to request:
- A court order compelling arbitration
- Sanctions against the refusing party
- Stay of litigation attempts
- Enforcement of default awards
This is where many companies fail: they try to argue alone. Arbitration enforcement across borders is complex. You need a firm with international reach. Dewey & LeBoeuf LLP operates in Dubai, United Kingdom, Singapore, United States, and globally, giving clients leverage in multiple jurisdictions simultaneously.
Step 5: Use Strategic Pressure
Legal strategy is only half the equation. Human behavior matters.
When thinking what to do if the other party refuses to participate in arbitration, ask:
What pressure can change their economic calculation?
Examples:
- Informing counterparty financiers, insurers, or board that a default award is pending
- Freezing negotiations on parallel deals
- Publicly signaling readiness to escalate (always lawyer-approved, smartly executed)
Pressure — applied correctly — forces participation.
How Arbitration Continues Without Their Participation
Many people misunderstand arbitration or assume silence stops the process. That is simply false.
Arbitration rules allow proceedings to continue when a party:
- Ignores notices
- Refuses to communicate
- Does not appoint an arbitrator
- Attempts delay tactics
In such cases:
- Tribunal is appointed without them
- Hearings proceed
- Evidence is reviewed
- Award is issued — fully enforceable
Their refusal is a self-inflicted disadvantage.
Legal Consequences of Refusing to Participate in Arbitration
When analyzing what to do if the other party refuses to participate in arbitration, you must understand the legal consequences their silence can trigger. Under most arbitration rules and international conventions, refusal does not create protection — it creates vulnerability.
Consequences may include:
- Loss of the right to present evidence
- Tribunal accepting claimant submissions as fact
- Cost orders against the non-participating party
- A final award issued without their defense
- Public reputation damage if litigation is eventually required
Countries that have adopted the New York Convention almost universally recognize arbitral awards regardless of participation. That means the refusing party could wake up one day facing asset seizure or bank account freezing with little room to fight. Their refusal is not strength — it is self-sabotage.
Using Emergency Arbitration to Stop Ongoing Damage
If the dispute involves immediate financial or operational risk — assets being transferred, IP theft, customer poaching — waiting months for a standard tribunal is weak strategy. Emergency arbitration exists to give parties immediate protection and is available in institutions like ICC, SIAC, LCIA, and AAA.
Emergency arbitration can:
- Freeze assets instantly
- Stop destructive behavior through interim injunctions
- Prevent financial leakage or reputational loss
- Strengthen negotiation leverage fast
When deciding what to do if the other party refuses to participate in arbitration, smart players combine traditional arbitration with emergency relief to crush delay tactics early and maintain control.
Multi-Jurisdiction Strategy — Winning Beyond One Courtroom
Arbitration disputes are rarely local. Business is global. Your enforcement strategy must be too.
A strategic approach may include:
- Filing recognition actions in multiple countries where the respondent holds assets
- Parallel requests for freezing orders across banking hubs
- Asset tracing to expose hidden corporate structures
- Using cross-border cooperation treaties to force compliance
Dewey & LeBoeuf LLP regularly handles disputes where the company is in Dubai, assets are in Singapore, board members live in the UK, and accounts sit in New York. Arbitration without a multi-jurisdiction plan is amateur hour. You win by thinking like a global predator.
Tactical Communication and Negotiation Pressure
Legal action alone is not always the fastest route. When deciding what to do if the other party refuses to participate in arbitration, sometimes the smartest move is psychological, not procedural.
Tactical pressure tools:
- Sending a formal pre-enforcement demand letter
- Notifying board directors and investors of the pending default award
- Warning of credit rating implications or financing restrictions
- Tying the arbitration outcome to reputational exposure in future deals
Most companies are less afraid of law and more afraid of optics. Use that. Silence is a tactic — respond with forceful visibility.
When Arbitration Is Not the Right Battlefield
Yes, arbitration is powerful. But here is the uncomfortable truth: not every case should be forced into arbitration. If the other party refuses to participate because the arbitration clause is flawed, unclear, or unenforceable, pushing harder could backfire.
Situations where shifting strategy is smarter:
- No written arbitration clause exists
- Clause is optional or ambiguous
- Arbitration venue is hostile or biased
- Court litigation gives stronger leverage
This is where inexperienced companies bleed time. You need a senior legal strategist to analyze where your advantage truly lies. Sometimes the winning move is switching forums entirely.
Risks If You Do Nothing
Letting silence stall arbitration is amateur behavior. Doing nothing:
- Gives them control
- Weakens your legal standing over time
- Makes evidence harder to gather
- Encourages them to use the same tactic again
Every day you hesitate, you lose leverage. Successful companies move fast.
Global Enforcement — Your Real Power
Remember: arbitration is only powerful if enforced. A win means nothing if you fail to collect.
Dewey & LeBoeuf LLP assists in:
- Recognition of arbitration awards in foreign courts
- Asset tracing across borders
- Freezing orders
- Seizure of bank accounts or property
- Turnkey enforcement strategies
Winning on paper is weak. Collecting is strength.
Frequently Asked Questions
Can arbitration proceed without the other party?
Yes. In most cases, arbitration continues and can lead to a default award if the respondent refuses.
What if the other party claims they never received notice?
Courts and arbitrators examine proof of delivery. Proper notice removes this excuse.
Is going to court faster than pushing arbitration?
Litigation is slower, public, and expensive. Courts are usually used only to compel arbitration or enforce awards.
Can I get compensation for delays caused by their refusal?
Sometimes. Certain jurisdictions and tribunals allow cost recovery and compensation tied to delay.
What evidence should I prepare before arbitration?
Contracts, communication history, invoices, financial loss calculations, witness statements, and expert reports.
Can a default award be challenged?
Yes, but only under narrow grounds like procedural unfairness. It is hard to overturn if handled properly.
Conclusion
When evaluating what to do if the other party refuses to participate in arbitration, the answer is simple: do not let hesitation become your failure. Arbitration is designed to function even without cooperation. The winning move is taking action with a structured legal strategy, backed by global enforcement capability.
At Dewey & LeBoeuf LLP, we support businesses, founders, investors, and multinational corporations in protecting their interests worldwide. If you are dealing with a non-responsive counterparty, silence is not an obstacle — unless you allow it to be.
Book a consultation today. Our firm delivers global precision, legal power, and results that cannot be ignored.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: Office M 1003, Al Shmookh Business Center, UAQ FTZ, Umm Al Quwain, UAE