SOUTH AFRICA Law and Practice Contributed by: Jonathan Ripley-Evans, Fiorella Noriega Del Valle, Veronica Connolly and Kyle Melville, Herbert Smith Freehills Kramer
(b) all the claims in the arbitrations are made un - der the same arbitration agreement; (c) the same arbitral tribunal has been constituted in each of the arbitrations; or (d) no arbitral tribunal has been constituted in other arbitrations. 13.5 Binding of Third Parties As a general principle, arbitration agreements bind only those parties who have agreed to them. Never - theless, third parties may become bound in certain cir - cumstances, including through agency, assignment, succession or subrogation. Where a third-party steps into the position of an original contracting party, it will ordinarily be subject to the arbitration agreement con - tained in that contract. Express consent by a third party to an arbitration agreement will similarly render it binding upon them. In group or multiparty arbitration, third parties may be bound where the arbitration agreement express - ly provides for this, or where all parties consent to consolidated proceedings. Institutional rules such as the AFSA International Rules may facilitate such arrangements, subject to clear consent from all par - ties involved.
South African courts generally lack jurisdiction to bind foreign third parties to an arbitration agreement or award unless those parties have a direct connec - tion to the agreement or the underlying contractual relationship. Exceptions may arise where reciprocity principles apply or where the conduct of the foreign third party brings it within the jurisdiction of the South African courts.
897 CHAMBERS.COM
Powered by FlippingBook