Schafer /Verbist/Imhoos ICC Arbitration TecCONTENTS FOREWORD PREFACE THE AUTHORS ABBREVIATIONS CHAPTER 1. INTRODUCTION A. Arbitration as a Private Method of Settling Disputes 1, Arbitration as an Alternative to Court Proceedings 2. Arbitration as an Alternative to Court Proceedings in International Legal Relations 3. Relation between Arbitration and Other Methods of Settling Private Disputes Out of Court B. Links between Arbitration and State Courts C. Arbitration Procedure 1. Initiation of the Arbitration and Constitution of the Arbitral Tribunal 2. Conduct of Arbitration Proceedings D. Institutional Arbitration E. ICC Arbitration CHAPTER 2. THE INTERNATIONAL CHAMBER OF COMMERCE AND ITS COURT OF ARBITRATION 4. The International Chamber of Commerce as an Institution B. The International Court of Arbitration and its Secretariat as an Independent Body within ICC C. The Historical Background of the Rules of Arbitration D. The ICC International Court of Arbitration and its Secretariat + The Structure of the ICC International Court of Arbitration 2, The Role of the ICC International Court of Arbitration 4, How the JCC International Court of Arbitration Works 4, The Settlement of Conflicts of Interest 5, The Composition of the Secretariat 6, The Vuk of the Secretariat 4) ‘The Secreturint'n Decision-Making Powers by ‘The Secretariat's Focal Role in the Arbitration Proceedings 7, Now the Secreturlut Works xvii Xxi Xxiii 13 BB 13 13 14 14 15 15 16 17 18 18 19 19 viiration in Practice schdifer! Verbist/Imhoos — ICC Arbitrati( ULES OF GS UNDER THE ICC R CHAPTER 3. ARBITRAL PROCEEDIN' ARBITRATION OF 1998 ‘A. General Provisions » 1. Definitions (Art. | tones 2, Written Notifications or Communications; General Remarks 7 » The Number of Copies to be ee 3) The Delivery of Documents (Art. 3 ( 3 ‘The Date of Delivery and Time Limits (Art. 3 3-4) B, Commencing the Proceedings 1. The Request for Arbitration (Art. 4) a) General Remarks b) The Request for Arbitration (1) Submission of the request for arbitration (Art. 4 (1)) (2) Commencement of proceedings (Art. 4 (2)) (3) Information to be included in the Request for Arbitration (Art. 4 3) (a) Full details of the parties (Art. 4 (3) (a)) (b) A description of the nature and circumstances of the dispute © eving rise to the claim(s) (Art. 4 (3) (b)) (c) The relief sought # @ The relevant ogre ane any eit claimed (Art. 4 (3) (c)) agreement (Art 4 (3) (d)) , in particular, the arbitration (©) Relevant particulars q arbitrators (Art, 4 oo the number and choice of () Tie number of arbitators oH) le nominati : (f) Comments as the eas 5 of law and the language of the abitation eae sae Zules Gp Bie lcs of arbitration tion (Art. 4 (3) (f) spol Gi) The lengua es Of law Time Limits (Art. 3) (S) Notificati (©) Joinder (or ote 3 ne amet to the Request and Cc Remarks or the Request t ») The Conte nts of th () Fi F le An: @ Repl of the Panga the Request (Ar, 5 (1) ofthe Dias Position as to the wD ®) iat " (An. 5 (1} (ty 2d the Claims Submmesn Cireumstanc ) and (c)) submitted by the cree emisContents (3) Comments concerning the Number and Choice of Arbitrators, the Place of Arbitration, the Applicable Rules of Law and the Language of the Arbitration (Art. 5 (1) (d) and (e)) c) The Time Limit for Filing the Answer to the Request for Arbitration (Art. 5 (1) and (2)) d) Counterclaims (Art. 5 (5)) e) Replies to Counterclaims (Art. 5 (6)) f) The Number of Copies to be Filed (Art. 5 (3)) g) Notification (Art. 5 (4)) 3. The Effect of the Arbitration Agreement (Art. 6) a) Referral to ICC Arbitration (Art. 6 (1)) 'b) Decision Regarding the Continuation of the Proceedings in the Event of an Objection to ICC Arbitration (Art. 6 (2)) c) The Autonomy or Separability of the Arbitration Agreement (Art. 6 (4) C. The Arbitral Tribunal 1. General Provisions (Art. 7) a) The Arbitrator’s Independence b) The Arbitrator’s Duty to Act Correctly c) Party Autonomy in Relation to the Constitution of the Arbitral Tribunal 2. The Number of Arbitrators (Art. 8) a) General Remarks b) No Agreement Between the Parties on the Number of Arbitrators c) The Parties Agree on a Sole Arbitrator d) The Parties Agree on a Three-Member Tribunal e) The Time Limits for Appointing Arbitrators (1) Sole arbitrators (2) Three-member arbitral tribunal 3. Appointment and Confirmation of Arbitrators (Art. 9) a) General Remarks b) Circumstances to be Considered when Choosing Arbitrators c) Confirmation of Arbitrators d) Proposals by National Committees ) The Procedure for Selecting Arbitrators through National Committees 4. Multiple Parties (Art. 10) a) Context b) The Regulations Presently Applicable to the Constitution of an Axbitral Tribunal in Multi-Party Cases c) Partial Regulations 5. Challenge of Arbitrators (Art. 11) a) The Powers of the ICC International Court of Arbitration b) The Possible Grounds for a Challenge 38 39 40 41 41 4 41 42 43 45 48 49 49 50 50 50 51 51 51 52 53 53 54 54 59 60 61 61 62 62itration ys — ICC Arbitral ‘senafer/Verbist/Tmhoo 64 dure ‘The Challenge Proce Challenge 65 2 TR Courts Decision 0 CO ing a Challenge = e) The Resignation 0 an ‘Ast. 12) 66 6. Replacement of Arbitrators 7 an 67 a) The Reasons for Replacement |, 6 (1) Replacement following a a jitrator 2 bah a ae esig : . {@) Removal from office by the parties | 67 (5) Replacement on the Court’s own initiative a by The Replacement Procedure . 3 ‘The Consequences of a Decision to Replace an Arbitrator 68 (1) Continuation of the proceedings before the arbitral tribunal whose composition has changed pe 70 (2) The special case of an incomplete or ‘truncated’ arbitral tribunal 70 D. The Arbitral Proceedings 1 1. Transmission of the File to the Arbitral Tribunal (Art. 13) 1 a) First Condition: Formation of the Arbitral Tribunal 1 b) Second Condition: Payment of the Advance Requested at this Stage of the Proceedings 1 2. Place of the Arbitration (Art. 14) n a) Choice of the Place of Arbitration ia (1) The will of the parties : (2) Fixed by the ICC International Court teat : b) The Place of the Hearings of-Arbitration 74 ©) The Place of the Deliberations 74 3. an Governing the Proceedings (Art. 15) 74 » The Paes Peed ne Procedural Rules 5 liom is . , recede © Determine the Applicable Rules of ¢) Determination of the Ri 5 4) pal ules of Procedure by the Arbitral visions of the Rules from whi 6 e) P m which the Parti 7 1) The Abed peemens Against the Arbited ney Rot Derogate 16 4. Language ofthe Arby Conduct ibunal’s Will 1 2) The Nomination sen (At. 16) 11 b) The Language ooo Said ue Language of -rrespondence wi 80 2 Translation a Sut Pleadings ith the Secretariat and the I) The Hearin issions and 8 of Wi Docum 81 @) Te Language oft a ents Produced as Evidence —&8i © Linguistic Skills of Mea Rules of Law 81 arties’ Lawyerg 82 Q75. Applicable Rules of Law (Art. 17) a) Choice of the Applicable Rules of Law by the Parties (i) Choice of the ‘rules of law’ by the parties Gi) Trade usages b) Determination of the Applicable Rules of Law by the Arbitral Tribunal (i) Use of a given system of conflict-of-laws rules (ii) Application of the rules of conflict of more than one country connected with the dispute subject to arbitration i) Use of the general principles of private international law (iv) The ‘voie directe’ or direct method (v) Applications of rules other than those of a national law to the merits of the dispute a. Trade usages b. ‘Lex mercatoria’ and ‘general principles of law’ (vi) Practical conclusions c) Mandatory Rules d) Decisions Based on Amiable Composition and Equity Terms of Reference and Procedural Timetable (Art. 18) a) Introduction b) Drawing up the Terms of Reference (Art. 18 (1)-(3)) (1) The usual procedure (2) A party refuses to sign the Terms of Reference (3) The time allowed for signing the Terms of Reference and submitting them to the ICC International Court of Arbitration c) The Procedural Timetable (Art. 18 (4)) 4) The Contents of the Terms of Reference (Art. 18 (1) (@)-(g)) (1) The full names and descriptions of the parties (Art. 18 (1) (a)) (2) The addresses for notifications (Art. 18 (1) (b)) (3) The summary of the parties’ respective claims and of the relief sought by each party (Art. 18 (1) ©) (4) The list of issues (Art. 18 (1) (d)) (5) The full names, descriptions and addresses of the arbitrators (Art. 18 (1) (€)) (6) The place of the arbitration (Art. 18 (1) (f)) (7) The applicable procedural rules (Art. 18 (1) (g)) 7. New Claims (Art. 19) a) The Conditions for Bringing New Claims after the Terms of Reference have been Drawn Up (1) Admissibility of new claims by virtue of an explicit agreement between the parties (2) Authorization of new claims by the arbitral tribunal b) Increased Flexibility as Compared with the Former Rules Contents 82. 83 83 83 84 84 85, 85 85 85 86 86 86 87 88 89 90 90 90 91 92 93 93 93 94, 94 94 95 95 95 96 96 96 97 98itration 18 © schaferlVerbist/Imons cc Arb g, Establishing the Facts of the Case (ATE 20) a) Gener? yarks 98 p) Establishing the Facts by All Appropriate Means (Art. 20 (1) 99 ©) Preparal Submissions (Art 20 2) 99 4) i witon, Onl Di vssions or ee of Evidence im ent sion with the P jes’ consent 1 (1) Hearing of witnesses, te and other rons Cat of Sates 100 (2) ers (A @) -20@)) 102 ee a experts ; 105 tS er ce is £) Protection of Trad ribunal-appointed expert 105 on (art 20 (1) ade Secrets and Confidential Information 106 ). Hearings (Art. 21) a) Due Summonin, 107 by the Arbitral Tri by A Party's Failure a jes Arbitral Tribunal (Art. 21 (1) and 108 ©) Party Representatio .ppear Despite Due Summonin; @ 108 @) The Conduct of tion (Oe @) (Art. 21(2)) 109 (1) The proceedings ig 110 (2) The record of the heari Wl (3) An assistant to th earing @ Witnesses arbitral tribunal (‘admi it (5) Due proces (‘administrative secretary” il 10. Closing of the Proveedi retary’) wl a) The Significance of the (Art. 22) 112 b) The Date ce of the Closin; 1 11. Cor on which the g of the P: . 12 mservat« e Award i: roceedins mau Avard Espeted ob Re 112 Mew Jutiihetion to Oe (Art. 23) Rendered 113 b) The Form of to Order Conservato us ©) Ao Application Arbitral Tribunal’ ry and Interim a E. Arbit ‘Attitttion Anne Judicial 's Interim Deci: jitral Awards Agreement Authority d Decision 114 1. Time Limit f ‘es not Infringe 115 2) Sik Mange te Award (Art ge the 2 b) Extension for Rendering th 24) ' . Awards (Are agit Time ig the Award 16 a) The Diff 25) Limit 117 b) Rules Aging Between 7 ©) Dissent, icable to the an Award 117 ) Wher ant Opinions Making op ond a Ord 118 3 and ig of . Awards Where ii an ICC er 1 by Consent a the Award Award 19 (Art. 26) 4 Deemed 119 to ha 120 ve bee sce? ia 121Scrutiny of Awards by the Court a) Scrutiny as to Form b) The Right to Raise Points of Substance without Affecting the Arbitral Tribunal’s Liberty of Decision c) How is the Draft Award Scrutinized? Notification, Deposit, Enforceability of Awards (Art. 27) a) Notification of the Award (Art. 28 (1)) b) Issuing of Copies Certified as True (Art. 28 (2) c) Deposit with ICC and Waiver of any Other Deposit (Art. 28 (3)—(4)) 4) Assistance in Complying with any Other Necessary Formalities (Art. 28 (5)) ¢) Compulsory Nature of the Award and Waiver of any Form of Recourse (Art. 28 (6)) Correction and Interpretation of Awards (Art. 29) a) General Remarks b) Formal Conditions c) Correction of the Award d) Interpretation of the Award ) Dismissal of an Application under Article 29 of the Rules * a F. Costs and Advances wr 1. Advance to Cover the Costs of the Arbitration (Art. 30) a) General Remarks b) Provisional Advance on Costs c) Advance on Costs (1) When is it fixed? (2) How is it fixed? (3) Reconsideration of the advance d) Obligation to Pay the Advance on Costs in Equal Shares e) Separate Advances f) Bank Guarantees g) Non-Payment of the Advance on Costs h) Consequences of Non-Payment of the Advances i) Claim for Set-Off j) Advances for Expertise Costs . Decision as to the Costs of the Arbitration (Art. 31) . Costs and Fees (Appendix III, Art. 2) a) Definition of the Arbitration Costs (1) The arbitrators’ fees (2) The arbitrators’ expenses (3) The administrative expenses (4) The fees and expenses of experts appointed by the arbitral tribunal (5) The costs incurred by the parties for the arbitration b) How the Costs of the Proceedings are Fixed c) The Division of the Costs Between the Parties 123 123 124 124 125 126 126 127 127 127 128 129 130 130 131 131 132 132 134 135 136 136 136 137 138 139 140 141 141 143 148 148 148 150 150 151 151 152 152 152 153 xiiiration in Practice Schéfer!’ ‘Verbist/Imhoos — icc Arbitration ax (VAT) ses and Fees on the a7 e Expen ¢) How to Calculate the Administra Basis of the Amount in Dispute ya be used? (1) Which version of the scales shot (2) The method of calculation a, ICC administrative expenses b, Arbitrators’ fees £) Costs for the Appointment G. Miscellaneous Provisions ified Time Limits (Art. 32) ‘ ene " athe Pats Decision to Shorten the Time Limits: “Fast- ‘Track pitration’ (Art. 32 (1)) ' i b) A of Time Limits with Respect to the Asbitral Tribunal 2, Waiver (Art. 33) 3, Exclusion of Liability (Art. 34) General Rule Aimed at Filling Gaps (Art. 35) tof Arbitrators in Non-ICC Arbitrations CHAPTER 4, THE STANDARD ICC ARBITRATION CLAUSE A. Arbitration Clauses in General B. Rules of Law Applicable to the Arbitration Agreement C. Questions Concerning Specific Supplementary Provisions in the Arbitration Agreement 1. The Requirement to Attempt Amicable Dispute Resolution First and Other Prior Conditions . Arbitral Tribunals Composed of Two or an Even Number of Members Nomination of Arbitrators by Third Parties . Possibility of Deviating from Certain Provision: . Items Worth Including in an Arbitration Naniedic erat vaAYD CHAPTER 5. OVERVIEW OF THE TIME LIMIT THE ICC RULES OF ARBITRATION u iota eee aioe CHAPTER 6. OTHER ICC RULES METHODS OF DISPUTE RESOLUTION UNDER A. General Remarks B. ICC ADR Rules 1. Amicable Dispute Resoluti esolutic : Sueeested ICC ADR Clauses . Commence: heer ment of ADR. Proceedings 5. Conduct of the s Termination . Confidentialit; 8. Costs ° ADR Procee: dings 154 155 155 155 155 155 158 158 158 158 159 159 161 161 163 163 164 165 165 166 166 167 167 169 175 175 176 176 178 179 179 180 180 181 182C. ICC Rules for Expertise 1. Proposal of Experts 2. Appointment of Experts 3. Administration of Expertise Proceedings 4. Suggested ICC Expertise Clauses D. ICC Rules for a Pre-Arbitral Referee Procedure 1, Suggested ICC Pre-Arbitral Referee Clause 2. Characteristics 3. Powers of the Referee 4. Costs E. ICC DOCDEX Rules 1, Conduct of DOCDEX Proceedings 2. DOCDEX Decision F. ICC Rules for Dispute Boards CHAPTER 7. STATISTICAL INFORMATION ON ICC ARBITRATION Table 1. Generalities Table 2. Geographical origins of parties by region Table 3. Amounts in dispute Table 4. Geographical origins of parties Table 5. Geographical origins of arbitrators Table 6. Place of arbitration CHAPTER 8. BIBLIOGRAPHY ON ICC ARBITRATION A. IC Arbitral Awards B. Books on ICC Arbitration C. Selected Articles D. Web Sites Containing Material and Information on International Arbitration APPENDIX 1. ICC RULES OF ARBITRATION APPENDIX 2. MODEL CURRICULUM VITAE FOR ICC ARBITRATORS APPENDIX 3. ICC NOTICE ON PERSONAL AND ARBITRAL TRIBUNAL EXPENSES APPENDIX 4. ICC NOTE ON CORRECTION AND INTERPRETATION OF ARBITRAL AWARDS APPENDIX 5. SMALL CLAIMS GUIDELINES APPENDIX 6. RULES OF ICC AS APPOINTING AUTHORITY Contents 182 183 184 184 186 187 187 187 188 189 189 190 191 191 193 193 194 194 195 202 206 209 209 210 210 211 215 243 247 251 255 261 xv‘aration in Practice schifer! VerbistlImhoos — ICC Arbitration in BFEREE APPENDIX 7. ICC RULES FOR A PRE-ARBITRAL REI PROCEDURE IX 8. ICC ADR RULES AN! RULES FOR EXPERTISE RULES APPENDIX 11. UNITED NATIONS CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS (New York, 10 June 1958) APPENDIX 12. COMPARATIVE CHART OF REFERENCES TO NATIONAL ARBITRATION LAWS PEND! 1D GUIDE TO ICC ADR AP! APPENDIX 9. ICC APPENDIX 10. ICC DOCDEX APPENDIX 13. ICC DISPUTE BOARD RULES INDEXES AND TABLES A. Alphabetical Index Table of References to Articles of the ICC Rules of Arbitration and B. other ICC Dispute Resolution Rules C. Table of References to Provisions of National Laws and International Legal Instruments D. Table of Figures 267 215 293 307 347 367 375 379