INTERNATIONAL DISPUTE SETTLEMENT 2003-2004

 

THE ARBITRAL PROCESS:  3  ESTABLISHMENT OF TRIBUNAL

 

 

See generally: Redfern & Hunter, 3rd ed., ch. 4.

Fouchard, Gaillard, Goldman on International Commercial Arbitration (1999), Part III

And see the Arbitration materials on http://www.bodley.ox.ac.uk/oxlip/index.html (under ‘Law’)

 

Time limits

 

1.         The time limits in arbitration may be much shorter than those in courts. See ICC, UNCITRAL &c Rules, passim; National courts may have power to extend time limits, applying the lex arbitri: see e.g., UK Arbitration Act 1996, ss. 12-14, published at http://www.hmso.gov.uk/acts/acts1996/1996023.htm ; Thomas, [1981] LMCLQ 529; Comdel Commodities Ltd v. Siporex Trade SA (No. 2) [1991] 1 AC 148; Kalmneft JSC v Glencore International AG [2002] 1 AH II ER 76Note relevance of prescription: Ambatielos claim, (1956) 23 ILR 306 at 314

           

 

Appointment of Arbitrators

 

2.         Arbitration rules stipulate how arbitrators are to be appointed: e.g., 1998 ICC Rules art. 8, http://www.iccwbo.org/court/english/arbitration/introduction.asp ; UNCITRAL Rules art.5; UNCITRAL Model Law art. 10(2). Published at http://www.uncitral.org/en-index.htm UK Arbitration Act 1996, ss. 15-16, 17. (Note: the lex arbitri may require certain qualifications of arbitrators).

 

 

Appointing authority

 

3.         Arbitration rules often provide a default procedure for appointments where the parties fail to make them. The power of the Appointing Authority under default procedures is important, and can facilitate the resolution of procedural difficulties in the arbitral process: cf., the role of the ICC Court; UNCITRAL Rules arts. 6,7; Abu Dhabi Gas Liquefaction Co. Ltd. v. Eastern Bechtel Corp. (ADGAS), 21 ILM 1057 (1982); [1982] 2 Lloyds' Rep. 425 (UK Arbitration Act 1950 s.10); Turriff Ltd. v. Sudan (1966), 2 Ned. Tid. Int. R. 202 (1970). And note the default procedure under UK Arbitration Act 1996, ss. 17, 18, 19.

 

Multiparty Arbitrations

 

4.         Particular problems arise in the case of multiparty arbitrations, where it may be difficult to secure the acceptable ‘representation’ or ‘equality of arms’ of parties on the tribunal. See  Dutco (Siemens AG and BKMI Industrienlagen GmbH v. Dutco Consortium Construction Co.) French Cour de Cassation, 1992) See J-L DJlvolvJ, ‘Multipartism: The Dutco Decision of the French Cour de cassation’ 9 Arbitration International 197 (1993). And see s. 35, UK Arbitration Act 1996. See further, International Law Association, Sixty-Sixth-Report, (1994), 689-714. [For reference: Isaak Dore, Theory and Practice of Multiparty Commercial Arbitration (1990). See also notes on Intervention in the ICJ, etc.]

 

Challenge and Replacement

 

5.         Arbitrators may be challenged for prejudice, misconduct or lack of qualifications. Challenges are made initially to the (rest of the) tribunal or to the appointing authority, then to a court of competent jurisdiction administering the lex arbitri. Tupman, ‘Challenge and Disqualification of Arbitrators in International Commercial Arbitration’, 38 ICLQ 26 (1989); A. Alvarez, ‘The challenge of arbitrators’, (1990) 6 Arbitration International 203; M. Bedjaoui, ‘Challenge of arbitrators’, in A. J. Van Den Berg (ed.), International Arbitration in a Changing World: International Council for Commercial Arbitration Congress series no.6 (Deventer, 1994), 85. UNCITRAL Rules art. 10; 1998 ICC Rules, art 11; ICSID Rules, Rule 9, http://www.worldbank.org/icsid/basicdoc/basicdoc.htm . UK Arbitration Act 1996, ss. 23-27. Holiday Inns/Occidental v. Morocco, 38 ICLQ 44 (1989); Amco Asia Corp. v. Indonesia, 38 ICLQ 44-45 (1989); Buraimi Oasis, Wetter, The International Arbitral Process, III, 357, Schwebel, International Arbitration: Three Salient Problems (1987), 235. Compania de Aguas del Aconquija v Argentina (Decision on Challenge, 3 October 2001), www.worldbank.org/icsid/cases.

 

 

Organization

 

6.         The organization of the tribunal and its work may be set out in the compromis, or by the adoption of, e.g., ICC rules, or left for the tribunal to determine.

 

 

Powers and Duties of Arbitrators

 

7.         Arbitrators’ powers are generally understood to be conferred (i) by agreement of the parties, either directly or by the choice of e.g. UNCITRAL rules, or (ii) by operation of the lex arbitri. See, e.g., UK Arbitration Act 1996, ss. 33-46.  Jarvin, ‘The sources and limits of the arbitrator's powers’, in Lew (ed), Contemporary Problems in International Arbitration (1986), 50. There are also certain inherent powers: see, e.g., E-Systems, Inc. v. The Islamic Republic of Iran, “an inherent power to issue such orders as may be necessary to conserve the respective rights of the Parties and to ensure that [its] jurisdiction and authority are made fully effective” [71 ILR 631 at 639]. See further below; and note the crucial role of courts applying the lex arbitri. See also notes on interim measures.

 

 

The Authority of Truncated Tribunals

 

8.         If a minority of the arbitrators are unable or unwilling to co-operate with the work of the tribunal, the general view is the majority (a ‘truncated tribunal’) may proceed to render a binding award. This is necessary if commitments to arbitrate disputes are to be effective. Schwebel, International Arbitration: Three Salient Problems, (1987), ch. 3. Jay Treaty tribunals: Schwebel, p. 180. Lena Goldfields, 36 Cornell L. Q. 42 (1950), and V V Veeder 47 ICLQ 747 (1998). 1988 ICC art. 25, UNCITRAL Rules art. 31. ILC, 1952 Report, p. 3 (UN GA OR, Supp. no. 9, A/2163). Interpretation of Peace Treaties, [1950] ICJ Rep. 229. French-Mexican Claims Commission, V RIAA 313, Annual Digest of Int'l Law Cases 1929-30, 424; Schwebel, 251-281; 1 Iran-US CTR 415-417, 424-441. CME v Czech Republic (2001) (on Faculty Subject web page), and cf., the Svea Court of Appeals decision (2003), 42 ILM 915 (2003).

 

 

Challenges to Jurisdiction

 

9.         The jurisdiction of the tribunal is conferred and delimited by the agreement of the parties (though the lex arbitri might in theory confer, e.g., jurisdiction over counter-claims). The tribunal’s jurisdiction may be challenged by the parties (see also The Arbitral Process: 2  Submission). Challenges are made initially to the tribunal [compétence de la compétence], then to a court of competent jurisdiction administering the lex arbitri. New York Convention, art. V(1); UNCITRAL Rules, art. 21; 1998 ICC Rules, art. 6;  UNCITRAL Model Law, art. 16; UK Arbitration Act 1996, ss. 30-32, 67, 73. For recent examples see CME v Czech Republic (2001 (above); Wena Hotels v Egypt, 41 ILM 881 (2002); LG Caltex Gas Co. v China National Petroleum Corp. [2001] 4 AII ER 875; Salini v. Morocco (Jurisdiction) (2001), 42 ILM 609 (2003) ;CMS Gas Transmission Co. v. Argentina (Jurisdiction) (2003), 42 ILM 788 (2003);