When it comes to legal disputes, the terminology used to describe the laws governing the proceedings can be confusing. In this context, it is important to understand the meaning of four Latin terms: ‘lex fori’, ‘lex arbitri’, ‘lex loci arbitri’, and ‘lex causae’. “Lex fori” means ‘the law of the forum’. It refers to the law of the country or jurisdiction in which a legal dispute is being heard. For example, in a legal dispute between two parties in India, the ‘lex fori’ would be the law of India, rather than the law of a foreign country.
“Lex arbitri”, means ‘the law of the arbitrator’. It refers to the law chosen by the parties or the arbitrator to govern the arbitration proceedings and to the substantive law that will be used to resolve the dispute. This can be different from the ‘lex fori’. The parties can choose to apply the lex arbitri, also known as the ‘curial law’, to the arbitration proceedings and to the arbitral award, by agreement.
“Lex loci arbitri” means ‘the law of the place of arbitration’. It refers to the law of the country or jurisdiction where the arbitration is being held. This law can be different from the ‘lex fori’ or ‘lex arbitri’ chosen by the parties or the arbitrator. It is often used as default law when the parties have not chosen a specific law to govern the arbitration.
Lex causae, means ‘the law of the cause’. It refers to the law that governs the substantive rights and obligations of the parties in a legal dispute. This law can be different from the lex fori or the lex loci arbitri. The lex causae is often referred to as the ‘proper law’ as it is the law that is most closely connected to the facts of the case. The choice of lex causae is often made by the parties or the court or arbitrator based on the jurisdiction where the events giving rise to the dispute occurred or the jurisdiction where the parties are based or have the most significant connection.
In summary, ‘lex fori’ refers to the law of the country or jurisdiction in which a legal dispute is being heard, ‘lex arbitri ‘refers to the law chosen by the parties or the arbitrator to govern the arbitration proceedings, ‘lex loci arbitri’ refers to the law of the country or jurisdiction where the arbitration is being held, and ‘lex causae’ refers to the law that governs the substantive rights and obligations of the parties in a legal dispute. Understanding these terms can help to clarify the laws that apply to a particular legal dispute.
