Arbitration Provisions in M&A Transaction Documents

Transcription

1 Arbitration Provisions in M&A Transaction Documents September 22, 2015

2 Today s Speakers Joseph Tirado Co-Chair, International Arbitration Practice London +44 (0) jtirado@winston.com Alejandro I. Garcia International Arbitration Associate London +44 (0) aigarcia@winston.com 2

3 Overview To Litigate or Arbitrate? Types of Arbitration Applicable Law Creating an Enforceable Arbitration Agreement Drafting the Arbitration Clause Key Elements of the Arbitration Clause Specific Elements of an Agreement for Non-Administered/Ad hoc Arbitration 3

4 Overview What is a Bilateral Investment Treaty (BIT)? The types of protection under a BIT Multilateral Investment Treaties (MITs) Convention for the International Settlement of Investment Disputes (ICSID) Dispute Resolution Fora Practical Considerations 4

5 To Litigate or Arbitrate? Many factors Party identity Location of assets Nature of dispute Alternative jurisdictions Arbitration may be appropriate Neutral forum Lengthy and expensive court procedures Expertise Final binding decision Confidentiality Enforcement 5

6 Enforcement - Parties to the New York Convention Source: UNCITRAL website 6

7

8 Arbitration may be neither appropriate nor possible when: Non-arbitrable disputes No capacity Coercive action Good local courts Obstructive party Advantageous court procedures Multiple parties Right of appeal 8

9 Types of of International Arbitration Arbitration Administered/Institutional Non-administered/Ad hoc 9

10 International Arbitration Institutions International Court of Arbitration of the International Chamber of Commerce (ICC) LCIA (formerly known as the London Court of International of International Arbitration) International Centre for Dispute Resolution ( ICDR ), formerly international arm of American Arbitration Association (AAA) Commercial Arbitration and Mediation Centre for the Americas Commission (CAMCA) 10

11 International Arbitration Institutions (cont.) Inter-American Commercial Arbitration and Mediation Commission (IACAC) Stockholm Chamber of Commerce Arbitration Institute (SCC) International Centre for the Settlement of Investment Disputes (ICSID) China International Economic and Trade Association Commission (CIETAC) 11

12 Administered/Institutional Arbitration Benefits Efficiency Impartiality Support Disadvantages Cost Delay Level of service 12

13 Selecting an Institution Longevity Rules 13

14 Non-Administered/Ad-hoc Arbitrations Benefits Efficiency Impartiality Support Disadvantages Cost Delay Level of service 14

15 Applicable Law Capacity to arbitrate Arbitration agreement Arbitration proceedings Substantive issues Place of enforcement 15

16 Creating an Enforceable Arbitration Agreement Capacity Arbitrability Authority Clear and comprehensive wording Properly incorporated clause Written agreement 16

17 Checklist for for the the Arbitration Arbitration Clause Clause The agreement should provide for the Appointment of the tribunal Scope of jurisdiction Procedure Venue The agreement of the parties might also include Applicable rules Law of the place (or seat) of the arbitration 17

18 Considerations for Drafting the Arbitration Agreement Requires understanding of The interaction of relevant foreign laws The local court system Implications for enforcement of an award Conduct of proceedings 18

19 Key Elements of an of Arbitration an Arbitration Clause Clause Place of the arbitration Legal importance Enforcement of agreement Attitude of the local courts Enforcement of award Practical importance Arbitrators Number Qualifications/Nationality Independence and Impartiality Manner of appointment 19

20 Key Elements of an Arbitration Clause (cont.) Powers Powers conferred upon the tribunal Powers of the court Language Choice of law Substance of the dispute Arbitration agreement Formalities Capacity Arbitrability 20

21 Key Elements of an Arbitration Clause (cont.) Miscellaneous provisions Alternative dispute resolution (ADR) Appeals on the merits Security for costs Punitive damages Amiable composition Confidentiality Time limit for making awards IBA Rules of the taking of evidence Provisions for technical expertise Waiver of State immunity 21

22 Key Elements of an Arbitration Clause (cont.) Specific elements of an agreement for non-administered/ad hoc arbitration Appointing body Other considerations 22

23 Investment Treaty Arbitration What is a Bilateral Investment Treaty (BIT)? Types of protection under a BIT Scope of Protection core provisions: Fair and equitable treatment (including denial of justice) Expropriation Procedural (or substantive) bonuses: Most-Favoured Nation Provisions (MFN) Umbrella clauses Other Incorporated Procedures 23

24 Investment Treaty Arbitration Multilateral Investment Treaties (MITs) North America Free Trade Association (NAFTA) Energy Charter Treaty (ECT) Convention for the International Settlement of Investment Disputes (ICSID) Dispute Resolution Fora ICSID ICC/SCC UNCITRAL Practical Considerations 24

25 2014 Winston & Strawn LLP Questions?

26 Questions? Joseph Tirado Co-Chair, International Arbitration Practice London +44 (0) Alejandro I. Garcia International Arbitration Associate London +44 (0)

27 Thank You