INTERNATIONAL COMMERCIAL ARBITRATION
INHOUDSOPGAVE
1. INTRODUCTION ..................................................................................................................... 1
1.1. WHAT IS ARBITRATION? ......................................................................................................... 1
1.2. SOURCES OF LAW ................................................................................................................. 1
1.3. ADR(/ACR) ............................................................................................................................. 4
1.4. WHY ARBITRATE?................................................................................................................... 6
1.5. DIFFERENT TYPES OF ARBITRATION ....................................................................................... 7
2. THE ARBITRATION AGREEMENT............................................................................................... 8
2.1. TYPES OF ARBITRATION AGREEMENTS ................................................................................... 8
2.2. VALIDITY REQUIREMENTS ...................................................................................................... 9
2.2.1. FORM ............................................................................................................................ 9
2.2.2. RATIONE MATERIAE ........................................................................................................ 9
2.2.3. RATIONE PERSONAE .................................................................................................... 10
2.3. CONTENT OF AN ARBITRATION AGREEMENT ........................................................................ 11
2.3.1. ESSENTIAL ELEMENTS FOR SUBSTANTIVE VALIDITY ...................................................... 11
2.3.2. ESSENTIAL ELEMENTS FOR WORKABILITY..................................................................... 11
2.3.3. RECOMMENDED ELEMENTS......................................................................................... 11
2.3.4. UNUSUAL CLAUSES ..................................................................................................... 12
2.3.5. PATHOLOGICAL CLAUSES ............................................................................................ 13
3. THE ARBITRATION PROCEDURE ............................................................................................ 14
3.1. COMMENCEMENT ............................................................................................................... 14
3.1.1. SUPPLEMENTS, AMENDMENTS, JOINDER AND CROSS-CLAIMS ..................................... 16
3.2. ARBITRAL TRIBUNAL + SECRETARY ....................................................................................... 16
3.3. MANAGEMENT OF AN ARBITRATION ..................................................................................... 18
3.3.1. INTRODUCTION LETTER ............................................................................................... 18
3.3.2. TERMS OF REFERENCE ................................................................................................ 18
3.3.3. PROCEDURAL CALENDAR ............................................................................................ 19
3.3.4. MEETINGS AND HEARINGS .......................................................................................... 20
3.3.5. WRITTEN SUBMISSIONS ............................................................................................... 21
3.3.6. EVIDENCE GATHERING ................................................................................................ 22
3.4. COURTS IN ARBITRATION ..................................................................................................... 23
3.4.1. JURISDICTION.............................................................................................................. 23
3.4.2. SUPPORTIVE MEASURES .............................................................................................. 25
3.4.3. INTERIM AND CONSERVATORY MEASURES ................................................................... 25
3.4.4. COMPETENT COURT .................................................................................................... 25
3.4.5. EUROPEAN UNION ...................................................................................................... 25
3.5. APPLICABLE LAW ................................................................................................................ 26
3.5.1. ARBITRATION AGREEMENT ........................................................................................... 26
3.5.2. ARBITRATION PROCEEDINGS ....................................................................................... 26
3.5.3. MERITS OF THE CASE ................................................................................................... 26
3.6. DECISIONS ......................................................................................................................... 28
3.6.1. CLOSING THE PROCEEDINGS ...................................................................................... 28
3.6.2. FUNCTIONS OF AN ARBITRATOR................................................................................... 28
3.6.3. TYPES OF DECISIONS................................................................................................... 28
, 3.6.4. CONTENT .................................................................................................................... 29
3.6.5. FORM .......................................................................................................................... 29
3.6.6. TIME LIMITS ................................................................................................................. 29
3.6.7. CONSEQUENCES ........................................................................................................ 29
4. POST-AWARD ACTIONS ........................................................................................................ 30
4.1. ANNULMENT ....................................................................................................................... 30
4.2. RECOGNITION AND ENFORCEMENT .................................................................................... 33
4.3. EFFECT OF ANNULMENT ON RECOGNITION AND ENFORCEMENT ........................................ 33
5. ARBITRATION IN PRACTICE ................................................................................................... 33
6. BOOSTER SESSION .............................................................................................................. 34
6.1. EXAMPLE QUESTIONS ......................................................................................................... 34
,1. INTRODUCTION
1.1. WHAT IS ARBITRATION?
• agreement: party-autonomy, but there are a number side questions
o circumscribes authority of the arbitrators
o freedom to organize proceedings
• arbitrators, not judges
o appointed by parties
o in 95% they will decide as judges
o in 5% they will decide as ‘amiable compositeurs’ (infra)
• dispute about rights and obligations
o existing, future, arbitrable
o arbitrability: there are some topics reserved for exclusive jurisdiction of the courts
§ arbitration only works within national framework
§ balance party-autonomy with national law
o e.g. there is dispute about liability
§ parties agree to third party that helps to assess the amount of damage
§ if that third party does ONLY that, can it be done by arbitrator?
=> NO: there’s only arbitration when there’s an element of legal consequence
• final and binding decision (= arbitral award)
o remandication is possible in some circumstances
o appeals procedure: redoing the whole proceedings and making a new decision
§ doesn’t happen often at all
§ parties have to agree
§ happens in sector proceedings (fast procedures)
o awards can be enforced internationally, you have to go to court to do so
§ you can always ask the courts not to enforce
• not really an appeals procedure
§ courts can look at due process, procedures, substantive law..
• review on the merits usually isn’t possible
• very limited review! only fundamental structures of arbitration
§ = setting aside/annulment proceedings (not appeal!)
o arbitral award = award on the merits of the case
1.2. SOURCES OF LAW
!! deceptive simplicity vs. complex framework of laws
-> arbitration looks like a business meeting, looks simple or informal
-> is one of the appeals to the process but is deceptive!
-> last 10 years, arbitration has become more litigious
-> international instruments, national laws, arbitration rules (ICC Rules), arbitration agreement
=> national, international and contractual component
1
, international instruments
• treaties and conventions
o New York Convention 1958
§ provides a regime for enforcement
§ doesn’t apply to procedure!
§ rules for courts on grounds to refuse/recognize enforcement
§ basic mission: making sure that arbitration can be used in the world
• since arbitration agreements are rules by national law, they needed to
ensure that countries recognize other countries’ agreements
• = level playing field
§ signed by 172 countries
§ ‘foreign awards’: Convention applies (art. 1)
• however: reciprocity (art. ???)
o used to be the exception, but has become the rule
o European convention on International Commercial Arbitration 1961
§ applies primarily (not exclusively!) on European countries
§ doesn’t have much importance due to New York Convention
§ contains framework on annulment proceedings
• courts can set aside award because it isn’t motivated suWiciently
• award doesn’t exist in country of origin anymore
• if they go to another country to enforce the award
o according to New York Convention: you can’t enforce
o are they a member of EU convention..: looking at national law
& if motivation isn’t a ground to set aside enforcement in
national law, then enforcement is possible
o rule of thumb: the framework that favors enforcement takes
precedence
§ territorial scope of application is less broad than New York Convention
o Strasbourg Convention on a Uniform Law for Europe 1966
§ used to be of importance in BE as our law was based on it (not anymore!)
o Investment arbitration has its own rules
§ we’re talking about convertial arbitration
• soft law
o organizations deal with issues that come up in arbitration but don’t have a clear
framework (e.g. evidence gathering or AI)
o these instruments often come up when there’s a common law – civil law clash
o IBA, CEDR, CIArb, Institutional Guidelines, etc..
national laws
• lex arbitri: law of the seat of arbitration
o law that applies to arbitration procedure
o usually (but not always!) connected to the seat of the arbitration
o in this class we will use UNCITRAL Model Law
§ signed in 70 countries
§ some countries have taken on this model as their national law
o (1) high level framework, default rules
(2) detailed rules only applicable if parties haven’t deviated in the agreement
• law of the place of enforcement
o you want to make sure that the agreement is enforceable in the other country
• other laws: contract law, personal laws may have an eWect on validity of the agreement
o BUT first step is always lex arbitri
2
INHOUDSOPGAVE
1. INTRODUCTION ..................................................................................................................... 1
1.1. WHAT IS ARBITRATION? ......................................................................................................... 1
1.2. SOURCES OF LAW ................................................................................................................. 1
1.3. ADR(/ACR) ............................................................................................................................. 4
1.4. WHY ARBITRATE?................................................................................................................... 6
1.5. DIFFERENT TYPES OF ARBITRATION ....................................................................................... 7
2. THE ARBITRATION AGREEMENT............................................................................................... 8
2.1. TYPES OF ARBITRATION AGREEMENTS ................................................................................... 8
2.2. VALIDITY REQUIREMENTS ...................................................................................................... 9
2.2.1. FORM ............................................................................................................................ 9
2.2.2. RATIONE MATERIAE ........................................................................................................ 9
2.2.3. RATIONE PERSONAE .................................................................................................... 10
2.3. CONTENT OF AN ARBITRATION AGREEMENT ........................................................................ 11
2.3.1. ESSENTIAL ELEMENTS FOR SUBSTANTIVE VALIDITY ...................................................... 11
2.3.2. ESSENTIAL ELEMENTS FOR WORKABILITY..................................................................... 11
2.3.3. RECOMMENDED ELEMENTS......................................................................................... 11
2.3.4. UNUSUAL CLAUSES ..................................................................................................... 12
2.3.5. PATHOLOGICAL CLAUSES ............................................................................................ 13
3. THE ARBITRATION PROCEDURE ............................................................................................ 14
3.1. COMMENCEMENT ............................................................................................................... 14
3.1.1. SUPPLEMENTS, AMENDMENTS, JOINDER AND CROSS-CLAIMS ..................................... 16
3.2. ARBITRAL TRIBUNAL + SECRETARY ....................................................................................... 16
3.3. MANAGEMENT OF AN ARBITRATION ..................................................................................... 18
3.3.1. INTRODUCTION LETTER ............................................................................................... 18
3.3.2. TERMS OF REFERENCE ................................................................................................ 18
3.3.3. PROCEDURAL CALENDAR ............................................................................................ 19
3.3.4. MEETINGS AND HEARINGS .......................................................................................... 20
3.3.5. WRITTEN SUBMISSIONS ............................................................................................... 21
3.3.6. EVIDENCE GATHERING ................................................................................................ 22
3.4. COURTS IN ARBITRATION ..................................................................................................... 23
3.4.1. JURISDICTION.............................................................................................................. 23
3.4.2. SUPPORTIVE MEASURES .............................................................................................. 25
3.4.3. INTERIM AND CONSERVATORY MEASURES ................................................................... 25
3.4.4. COMPETENT COURT .................................................................................................... 25
3.4.5. EUROPEAN UNION ...................................................................................................... 25
3.5. APPLICABLE LAW ................................................................................................................ 26
3.5.1. ARBITRATION AGREEMENT ........................................................................................... 26
3.5.2. ARBITRATION PROCEEDINGS ....................................................................................... 26
3.5.3. MERITS OF THE CASE ................................................................................................... 26
3.6. DECISIONS ......................................................................................................................... 28
3.6.1. CLOSING THE PROCEEDINGS ...................................................................................... 28
3.6.2. FUNCTIONS OF AN ARBITRATOR................................................................................... 28
3.6.3. TYPES OF DECISIONS................................................................................................... 28
, 3.6.4. CONTENT .................................................................................................................... 29
3.6.5. FORM .......................................................................................................................... 29
3.6.6. TIME LIMITS ................................................................................................................. 29
3.6.7. CONSEQUENCES ........................................................................................................ 29
4. POST-AWARD ACTIONS ........................................................................................................ 30
4.1. ANNULMENT ....................................................................................................................... 30
4.2. RECOGNITION AND ENFORCEMENT .................................................................................... 33
4.3. EFFECT OF ANNULMENT ON RECOGNITION AND ENFORCEMENT ........................................ 33
5. ARBITRATION IN PRACTICE ................................................................................................... 33
6. BOOSTER SESSION .............................................................................................................. 34
6.1. EXAMPLE QUESTIONS ......................................................................................................... 34
,1. INTRODUCTION
1.1. WHAT IS ARBITRATION?
• agreement: party-autonomy, but there are a number side questions
o circumscribes authority of the arbitrators
o freedom to organize proceedings
• arbitrators, not judges
o appointed by parties
o in 95% they will decide as judges
o in 5% they will decide as ‘amiable compositeurs’ (infra)
• dispute about rights and obligations
o existing, future, arbitrable
o arbitrability: there are some topics reserved for exclusive jurisdiction of the courts
§ arbitration only works within national framework
§ balance party-autonomy with national law
o e.g. there is dispute about liability
§ parties agree to third party that helps to assess the amount of damage
§ if that third party does ONLY that, can it be done by arbitrator?
=> NO: there’s only arbitration when there’s an element of legal consequence
• final and binding decision (= arbitral award)
o remandication is possible in some circumstances
o appeals procedure: redoing the whole proceedings and making a new decision
§ doesn’t happen often at all
§ parties have to agree
§ happens in sector proceedings (fast procedures)
o awards can be enforced internationally, you have to go to court to do so
§ you can always ask the courts not to enforce
• not really an appeals procedure
§ courts can look at due process, procedures, substantive law..
• review on the merits usually isn’t possible
• very limited review! only fundamental structures of arbitration
§ = setting aside/annulment proceedings (not appeal!)
o arbitral award = award on the merits of the case
1.2. SOURCES OF LAW
!! deceptive simplicity vs. complex framework of laws
-> arbitration looks like a business meeting, looks simple or informal
-> is one of the appeals to the process but is deceptive!
-> last 10 years, arbitration has become more litigious
-> international instruments, national laws, arbitration rules (ICC Rules), arbitration agreement
=> national, international and contractual component
1
, international instruments
• treaties and conventions
o New York Convention 1958
§ provides a regime for enforcement
§ doesn’t apply to procedure!
§ rules for courts on grounds to refuse/recognize enforcement
§ basic mission: making sure that arbitration can be used in the world
• since arbitration agreements are rules by national law, they needed to
ensure that countries recognize other countries’ agreements
• = level playing field
§ signed by 172 countries
§ ‘foreign awards’: Convention applies (art. 1)
• however: reciprocity (art. ???)
o used to be the exception, but has become the rule
o European convention on International Commercial Arbitration 1961
§ applies primarily (not exclusively!) on European countries
§ doesn’t have much importance due to New York Convention
§ contains framework on annulment proceedings
• courts can set aside award because it isn’t motivated suWiciently
• award doesn’t exist in country of origin anymore
• if they go to another country to enforce the award
o according to New York Convention: you can’t enforce
o are they a member of EU convention..: looking at national law
& if motivation isn’t a ground to set aside enforcement in
national law, then enforcement is possible
o rule of thumb: the framework that favors enforcement takes
precedence
§ territorial scope of application is less broad than New York Convention
o Strasbourg Convention on a Uniform Law for Europe 1966
§ used to be of importance in BE as our law was based on it (not anymore!)
o Investment arbitration has its own rules
§ we’re talking about convertial arbitration
• soft law
o organizations deal with issues that come up in arbitration but don’t have a clear
framework (e.g. evidence gathering or AI)
o these instruments often come up when there’s a common law – civil law clash
o IBA, CEDR, CIArb, Institutional Guidelines, etc..
national laws
• lex arbitri: law of the seat of arbitration
o law that applies to arbitration procedure
o usually (but not always!) connected to the seat of the arbitration
o in this class we will use UNCITRAL Model Law
§ signed in 70 countries
§ some countries have taken on this model as their national law
o (1) high level framework, default rules
(2) detailed rules only applicable if parties haven’t deviated in the agreement
• law of the place of enforcement
o you want to make sure that the agreement is enforceable in the other country
• other laws: contract law, personal laws may have an eWect on validity of the agreement
o BUT first step is always lex arbitri
2
