Georgian International Arbitration Centre
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- Barbara Matilda Merritt
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1 was founded with the initiative of the Georgian Chamber of Commerce and Industry (GCCI). The GCCI as the organization protecting the interests of business entities in Georgia, considering the significance of the establishment of independent and reliable alternative dispute resolution mechanisms in the country, took into account an imminent necessity of modernization of already existing old-fashioned and inefficient arbitration court at the Chamber. The GCCI relying on the international practice, according to which the Chamber of Commerce worldwide creates the arbitration institutions, founded (GIAC) in December One year of active cooperation of the GCCI and its partner organizations proceeded the establishment of the GIAC. The GIAC is incorporated in a legal form of a non-profit organization and it is not profit oriented. This factor is particularly important given the fact that the GIAC is the only not profit oriented arbitration institution in Georgia. Therefore, the GIAC is arbitration institution founded at the GCCI and it has replaced previously existing Arbitration Court at the Georgian Chamber of Commerce and Industry LLC, operation of which was suspended in The central objective of the GIAC is to establish neutral, efficient and flexible alternative dispute resolution mechanisms. With the consideration that there was no international arbitration institution in the region, formation of the GIAC was an event of a huge significance. Formation of GIAC - The formation of GIAC was one of the most significant GCCI projects. Considering the complex and comprehensive character of the project, it was decided to involve various interested organizations in its implementation for achievement of a successful execution of the project. With the initiative of the GCCI, the GIAC Formation Working Group was created for determination of the main actions, directions and structural formation issues of the establishment of an arbitration institution at the Chamber. The Working Group was composed of the
2 representatives of the Ministries of Justice, Finance and Economy and Sustainable Development of Georgia, also representatives of the Supreme Court, NGOs EWMI (JILEP Project), Transparency International Georgia, Georgian Young Lawyers Association, and as well as representatives of the private sector. The working group mainly worked on institutional matters such as the legal form and corporate structure of the prospective arbitration institution. From the outset, the target was to implement the international practice and experience, at the same time taking into consideration the Georgian reality. The Structure of GIAC is be a guarantee of the independence and impartiality of the Arbitration Centre, as well as of the resolution of the disputes efficiently and professionally. GIAC is structurally independent from its founder GCCI, it is a self-governing organization and such corporate structure is a guarantor of the Arbitration Centre s independence and neutrality. For this purpose, the corporate structure of the Center is determined in the following manner: The Board responsible for corporate matters and strategic development of the GIAC; 1 the Secretariat responsible for daily operation of the GIAC and administering of the disputes; the Arbitration Council body taking decisions related to specific matters strictly determined by the GIAC Arbitration Rules and GIAC Charter. 2 The GIAC Arbitration Rules - Several members of the Formation Working Group also worked on the first version of the Arbitration Rules of GIAC. While preparing the first draft of GIAC Arbitration Rules, the following arbitration institutions and their arbitration rules were taken in to consideration: ICC International Court of Arbitration, Arbitration Institution of the Stockholm Chamber of Commerce, Netherlands Arbitration Institute, Vienna International Arbitration Centre, and Singapore International Arbitration Centre. The Commission for Final Revision of the GIAC Arbitration Rules was created by the recommendation of the experts involved in the formation process of the Georgian International Arbitration Centre and its final composition was approved on 25 April The members of this Commission were internationally renowned and recognized arbitration experts and practitioners. 1 The members of the GIAC Board: Kakha Biandurashvili (Chairman); Eka Gigauri, Zviad Kordzadze (Deputy Chairman), Jemal Inaishvili, Eprem Urumashvili and the Honorary member of the GIAC Board Dr. Yas Banifatemi. 2 The Members of the GIAC Arbitration Council Irakli Kordzakhia (Chairman), Nicola Mariani (Deputy Chairman), Tea Megeneishvili (Deputy Chairperson), Eva Kalnina, Maria Kostytska, Sophie Tkemaladze, Pierre Tercier
3 This ensures that the GIAC Arbitration Rules are drafted based on the modern standards and best arbitration practices, and signals its reliability and recognition. The working version of the Arbitration Rules organized several working sessions during the summer of 2014 and prepared the final draft of the revised GIAC Arbitration Rules. The GIAC Arbitration Rules were adopted by the GIAC Board in September ADVANTAGES OF GIAC The main function of GIAC is to administer the arbitration proceedings. Additionally, it aims to develop and popularize the alternative dispute resolution mechanisms in Georgia and in entire region as Georgia has a great potential to become the suitable arbitration forum in the whole region: Georgian legal system is modern and arbitration-friendly with its Law on Arbitration based on the UNCITRAL Model Law on International Commercial Arbitration; Georgia is the member of the 1958 New York Convention on Recognition and Enforcement of the Foreign Arbitral Awards; Georgian legislation permits parties freedom of choice of counsel and arbitrators; Georgia has open economy, low level of corruption and pro-business environment; Georgia is best located in the region on the crossroads of Europe and Asia; Georgian legislation permits foreign residents to carry out arbitration without work permits or additional formal requirements; Georgia is a low cost environment, hotels and restaurants prices are, on an average, substantially lower than in other European countries; The Arbitration Rules of GIAC has no analogue in Georgia. GIAC Rules combine recent developments and well-tried provisions in order to create a modern set of rules reflecting the needs of the parties. In addition to the flexible arbitration rules, GIAC provides the necessary facilities for dispute settlement, such as meeting rooms for arbitration hearings, party negotiations, arbitrators deliberations, mediation proceedings, etc. and assistance with further logistical organization, e.g. identifying and obtaining court reporters, administrative secretaries or interpreters
4 GIAC arbitration Rules are tailor made the parties needs - The GIAC Rules were drafted with the help of the international experts and arbitration practitioners. The international involvement in the drafting process guarantee that the rules meet all international criteria and represent the modern accepted standards. The GIAC Arbitration Rules allow full scale party autonomy within permissible legal framework. The conduct of proceedings may be determined by the parties and the tribunal. The parties can choose the language of the proceedings, the seat of arbitration and the applicable substantive law. All arbitrators, appointed by the Parties or by the GIAC Arbitration Council, are required to submit a statement of independence ( disclosure ) to the parties, to their counsels, and GIAC Secretariat. A full respect of arbitrators independence is the very first step to grant a correct conduct of the proceedings. In this respect, the GIAC is committed to constantly monitor the independence and impartiality of the arbitrators. GIAC will appoint arbitrators if no agreement can be reached by the parties, thus ensuring that the time efficiency of the proceedings. The GIAC Rules allow for the joinder of third parties and consolidation of proceedings in a flexible manner, which is novelty in Georgia. In order to enhance the enforceability of the award, the GIAC Arbitral Council scrutinizes the award and approves it. GIAC arbitration is cost effective - Costs for arbitrators and administrative services are significantly lower in comparison to other arbitration institutions, as well as litigation. Additionally, The GIAC fee schedule allows for a predictable cost calculation. It should be mentioned, that GIAC facilities for dispute settlement are free for the parties, which also serves to reduce the costs associated with the dispute resolution. Close cooperation with leading international organizations and experts - Many internationally renowned experts participated in the GIAC formation process. GIAC continues to cooperate with the internationally recognized experts, arbitration institutions and law firms. Additionally, GIAC runs the arbitration list, which is constantly updated. Currently, GIAC arbitration list includes Arbitrators from leading international law firms of London, Paris, Vienna, Geneva, Dubai, Warsaw, Moscow, Budapest, Belgrade etc. In addition, negotiations are underway for the addition of the new arbitrators on the list. The parties may choose the arbitrator from the list, who will be maximally adapted to the specific of their dispute. Partner organizations and law firms: Transparency International Georgia;
5 Georgian Association of Arbitrators; Permanent Court of Arbitration in the Hague; Georgian Law Firms Association; Arbitration Initiative Georgia; White & Case; Dechert LLP; E&A Law Limited; Shearman & Sterling LLP; Lévy Kaufmann- Kohler. It should be also mentioned, that GIAC will be featured in Guide to Regional Arbitration Global Arbitration Review (GAR) is nowadays recognized as the leading resource on international arbitration news and community intelligence
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