A new version of the so-called “Vienna Rules” came into force on 1 July 2013. Due to practitioners’ broad acceptance of the Vienna Rules 2006, changes were made only with regard to specific matters. The major focus of the amendments lies on expediting the arbitration proceedings and addressing cost-related issues.
A group consisting of both academics and practitioners worked approximately one and a half years on revising the Vienna Rules 2006. To evaluate where a need for improvement existed, VIAC launched an international survey which established that both the flexibility and simplicity of the Vienna Rules use were highly appreciated in pra [...]
This morning, a colleague in Asia forwarded me an article with news of the latest efforts by Singapore to establish itself as a preferred location for international dispute resolution: an ambitious initiative by the country’s Law Ministry to make Singapore a regional destination for international commercial mediation, and plans to create a Singapore International Commercial Court.
Is this relevant for the future of international commercial arbitration?
Very much so.
As a fee-based service, arbitration already finds itself in highly competitive markets. The ICC competes with the ICDR to attract parties to adopt their rules, and they both compete against regional institutions like the Singapo [...]
With regard to multicontract arbitration, the CEPANI Arbitration Rules (“the Rules”) contain a specific provision (Article 10).
Article 10(1) allows the parties to pursue claims arising out of different contracts or in connection with more than one contract in one single arbitration.
This can occur for example when parties decide to conclude different contracts with a related subject matter (part of one single economic transaction) or when one contract is the result of another, etc. In case of dispute, problems can arise when not all the contracts contain an arbitration agreement or have conflicting clauses on jurisdiction, or when the arbitration agreements seem incompatible (different [...]
I. Power To Sanction
Courts generally enjoy power to enforce procedural rules and orders by various means, such as fines, adverse inferences, cost/fee awards, preclusion of evidence, and even default judgment. Surprisingly, when arbitrators employ such measures, they enter a legal frontier of unsettled law. Why? An arbitrator’s procedural power derives from private contract, not public law, and arbitration contracts almost never overtly address the arbitrator’s power to remedy party misbehavior. Even when such contracts adopt procedural rules issued by an arbitral institution, those rules may say little or nothing about sanctions. So, arbitrators must often explore the boundaries of thei [...]
A lot of positive commentary has been lavished out on the new Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC) Arbitration Rules, which entered into force with effect from 1st September 2013. It is, of course, difficult to deny that the new Rules are a huge improvement on the old ADCCAC Regulations, as they were called in their now outdated form. The new Rules read more like a modern set of international arbitration rules, giving proper consideration to now widely-adopted modern thinking on party representation, the sequence of procedural milestones in an arbitration, the notion of the severability of the arbitration agreement, the constitution of the tribunal and the indepe [...]
There has been a historical antipathy of banks towards arbitration. Banks (and other financial institutions) had no incentive or particular advantage to utilize private and quicker dispute resolution methods, such as mediation and arbitration. Well-run banks will normally be in possession of collateral security before money is made available to lenders or other customers and also the interest rates were appropriate and well above inflation so there was invariably no urgency in resolving disputes quickly, let alone out of court. As a result, all major banking law academics and practitioners would not consider arbitration clauses in banking or finance contract. When such clauses were introduce [...]