PRACTITIONER S HANDBOOK ON INTERNATIONAL ARBITRATION AND MEDIATION THIRD EDITION DANIEL M. KOLKEY RICHARD CHERNICK BARBARA REEVES NEAL Editors JURIS
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TABLE OF CONTENTS [A detailed synopsis appears at the start of each chapter] Preface... xix About the Editors... xxi About the Contributors... xxiii PART ONE ARBITRATION Chapter I.1 INTRODUCTION: WHY ARBITRATE Andreas F. Lowenfeld 1.01 Overview... 3 1.02 Selecting a Forum... 5 1.03 Selecting the Arbitrators... 6 1.04 Selecting the Applicable Law... 8 1.05 Enforcing the Award... 10 1.06 Other Claimed Advantages... 11 1.07 Conclusion... 12 Chapter I.2 DRAFTING AN ENFORCEABLE ARBITRATION CLAUSE Daniel M. Kolkey Richard Chernick 2.01 Introduction... 14 2.02 The Scope of the Clause... 15 2.03 The Rules Governing the Arbitration... 21 2.04 The Number of Arbitrators... 28 2.05 The Method of Appointment of the Arbitrators... 30 2.06 The Place of the Arbitration... 36 2.07 The Language of the Proceedings... 39 iii
Practitioner s Handbook on International Arbitration and Mediation 2.08 Discovery... 40 2.09 Interim Relief... 42 2.10 Choice of Law... 45 2.11 Judicial Review... 46 2.12 Currency of the Award... 50 2.13 Attorney Fees... 51 2.14 Sovereign Immunity... 52 2.15 Conclusion... 53 Appendix of Arbitration Clauses... 53 Chapter I.3 HOW TO COMMENCE AN INTERNATIONAL ARBITRATION Stephen R. Bond Abby Cohen Smutny 3.01 Introduction... 59 3.02 General Considerations before Commencing Arbitration... 63 3.03 Procedures for Commencing an International Arbitration... 73 3.04 Selecting Arbitrators... 101 3.05 Enforcement of Arbitral Agreements... 105 3.06 Simultaneous Commencement of Arbitration and Litigation... 115 Chapter I.4 SELECTING THE SITE FOR ARBITRATION James H. Carter 4.01 Introduction: The Importance of the Site... 122 4.02 Factors to Weigh in Selecting a Site... 125 4.03 Sites to Consider and Their Legal Frameworks... 132 4.04 How Arbitral Institutions Can Help Select a Site... 140 iv
Table of Contents Chapter I.5 PROCEDURAL ISSUES TO CONSIDER David W. Rivkin 5.01 Introduction... 142 5.02 International Arbitration Rules... 142 5.03 Pre-hearing Conferences... 146 5.04 Discovery... 154 5.05 Pre-hearing Motions... 157 5.06 Choice-of-Law Considerations... 158 5.07 Interim Orders... 159 5.08 Witness Statements and Expert Reports... 161 Chapter I.6 PRACTICAL CONSIDERATIONS FOR CONDUCTING THE HEARING John Tackaberry 6.01 Introduction... 164 6.02 The Use of Institutional Rules at the Hearing... 168 6.03 The Preliminary Meeting... 173 6.04 Factual Evidence... 182 6.05 Expert Evidence... 191 6.06 Documents in the Witness Box... 195 6.07 Witness Annotations in Evidence... 196 6.08 Closing Submissions... 196 6.09 Time-Controlled Hearings... 197 Appendix 1 Sample Template for a Hearing... 200 Appendix 2 Chess Clock Arbitrations... 208 v
Practitioner s Handbook on International Arbitration and Mediation Chapter I.7 THE AWARD Jonathan Sutcliffe 7.01 In General... 221 7.02 Formal Requirements and Components of an Award... 232 7.03 Drafting the Award... 252 7.04 Deliberations of the Arbitrators... 259 7.05 Dissenting Opinions... 268 7.06 Awards of Costs... 271 7.07 Corrections, Interpretations, and Additional Awards... 275 7.08 Notification and Deposit of the Award... 278 7.09 Special Requirements... 280 Chapter I.8 ENFORCEMENT OF INTERNATIONAL ARBITRAL AWARDS UNDER THE NEW YORK CONVENTION Steven L. Smith 8.01 Introduction... 285 8.02 The Convention s Background... 286 8.03 How the Convention Encourages Enforcement of Awards... 288 8.04 Procedures and Prerequisites for Enforcement... 295 8.05 Defenses to Enforcement... 314 8.06 Practical Issues Regarding Enforcement... 349 vi
Table of Contents Chapter I.9 BECOMING AN INTERNATIONAL ARBITRATOR: QUALIFICATIONS, DISCLOSURES, CONDUCT, AND REMOVAL Richard M. Mosk Tom Ginsburg 9.01 In General... 367 9.02 Appointment Practices... 371 9.03 Qualifications of Arbitrators... 375 9.04 Independence and Impartiality... 380 9.05 Role of the Party-Appointed Arbitrator... 387 9.06 Disclosure Requirements... 390 9.07 Objections and Challenges... 395 9.08 Resignation, Removal and Replacement of Arbitrators... 402 9.09 Communications with Parties... 405 9.10 Relations with Other Arbitrators... 411 9.11 Arbitrator Liability... 415 9.12 Compensation and Financial Issues... 419 9.13 Conclusion... 423 Chapter I.10 RESEARCH IN INTERNATIONAL COMMERCIAL ARBITRATION: A WORLD OF DIFFERENCE S.I. Strong 10.01 Introduction... 426 10.02 The Central Importance of Research and Written Advocacy in International Commercial Arbitration... 429 10.03 How It s Done Research Sources and Strategies in International Commercial Arbitration... 439 10.04 Going Forward... 469 vii
Practitioner s Handbook on International Arbitration and Mediation PART TWO MEDIATION Chapter II.1 INTERNATIONAL MEDIATION BASICS Robert B. Davidson 1.01 Introduction... 477 1.02 What is Mediation?... 479 1.03 Advantages and Disadvantages of Mediation as a Settlement Process... 481 1.04 Distinctive Issues when Mediating International Business Disputes... 483 1.05 Arbitrators Settling Cases... 501 1.06 Mediators Acting as Arbitrators... 508 1.07 Working with an Interpreter... 509 1.08 Drafting an International Mediation Clause... 512 Chapter II.2 INITIATING AN INTERNATIONAL MEDIATION Robert B. Davidson 2.01 Introduction... 519 2.02 Note Regarding Conciliation versus Mediation in International Mediation... 521 2.03 How International Mediation is Initiated... 522 2.04 Institutional Organizations that Offer Mediation... 526 2.05 Case Value and Selection of the Administrator for the Mediation... 528 2.06 Maintaining the Mediator s Neutral Role through an Administrator... 529 2.07 Selecting the Mediation Rules... 530 2.08 Selecting the Mediator... 533 2.09 Rules of Confidentiality... 537 viii
Table of Contents 2.10 Selection of Language to Be Used in the Mediation... 540 2.11 Selection of Site of the Mediation... 541 2.12 Conclusion... 543 Chapter II.3 REPRESENTING CLIENTS IN MEDIATIONS Robert B. Davidson 3.01 Overview of Attorneys Roles in Mediations... 548 3.02 Advising the Client about the Mediation Option... 549 3.03 Negotiating Agreement to Mediate with the Other Attorney... 555 3.04 Preparing for the Mediation Sessions: Preparing the Case... 560 3.05 Preparing for the Mediation Sessions: Preparing the Client... 584 3.06 Representing the Client in the Mediation Sessions: Pre-mediation Conference... 589 3.07 Representing the Client in the Mediation Sessions: The Formal Mediation Sessions... 591 3.08 Representing the Client in the Mediation Sessions: Post Sessions... 597 CHAPTER II.4 MEDIATING DISPUTES IN CHINA Meg Utterback 4.01 Introduction... 602 4.02 History Rooted in Confucianism... 603 4.03 Nature of a Chinese Mediation... 604 4.04 What to Expect as a Foreign Party... 605 4.05 Recent Legalization of Mediation... 606 4.06 Types of Mediation in China... 606 4.07 Mediation Institutions... 610 4.08 Mediation in Hong Kong and Singapore... 612 4.09 Conclusion... 613 ix
Practitioner s Handbook on International Arbitration and Mediation PART THREE SELECTED COUNTRIES CHAPTER III.1 CANADA J. Brian Casey 1.01 Political and Legal Overview... 619 1.02 Legal Context for International Arbitration... 620 1.03 Summary of International Arbitration Laws Adopted by the Provinces and Territories... 622 1.04 Arbitral Institutions in Canada... 638 1.05 Arbitration Activities and Training... 641 1.06 Judicial Trends... 642 1.07 Practical Issues in Conducting an Arbitration in Canada... 647 Appendix A... 651 CHAPTER III.2 CHINA Brenda D. Horrigan Felix Hess 2.01 Introduction... 657 2.02 Features of Arbitration Law in China... 661 2.03 Requirement for Local Counsel... 666 2.04 Commencing an Arbitration... 666 2.05 Practical Considerations for Conducting the Arbitration... 673 2.06 Arbitration Awards... 678 2.07 Recognition and Enforcement and Setting Aside of Arbitral Awards... 680 x
Table of Contents CHAPTER III.3 HONG KONG Peter S. Caldwell 3.01 Introduction... 689 3.02 Arbitration Law in Hong Kong and Conventions... 692 3.03 Institutional Arbitration Institutions and Ad Hoc Arbitration in Hong Kong... 696 3.04 Counsel in Arbitration in Hong Kong... 699 3.05 Commencing an Arbitration... 700 3.06 Practical Considerations for Conducting the Hearing... 707 3.07 Conciliation and Mediation... 710 3.08 Costs... 712 3.09 Arbitration Awards... 713 3.10 Recourse against Awards... 716 3.11 Recognition and Enforcement of Awards... 717 CHAPTER III.4 ENGLAND Arthur L. Marriott 4.01 Introduction... 722 4.02 Arbitration and the Courts... 723 4.03 International Developments in the Harmonisation of Arbitration Law... 726 4.04 English Practice and Modern Arbitration Rules... 727 4.05 Some Words about Discovery... 728 4.06 Use of Counsel in Arbitrations... 729 4.07 Statutory Reform in England... 729 4.08 Details of the Statute... 732 4.09 Awards... 741 4.10 Enforcement of Awards... 746 4.11 Major Arbitral Institutions... 749 4.12 Conclusion... 750 xi
Practitioner s Handbook on International Arbitration and Mediation CHAPTER III.5 FRANCE Philippe Sarrailhé 5.01 Introduction and Definitions... 756 5.02 Sources of French International Arbitration Law... 757 5.03 Arbitral Institutions in France... 759 5.04 Need for Local Counsel... 760 5.05 Arbitration Agreement... 760 5.06 Arbitrators and Arbitral Tribunal... 768 5.07 Arbitral Proceedings... 770 5.08 Arbitral Award... 773 5.09 Review Procedures... 776 CHAPTER III.6 GERMANY Patricia Nacimiento 6.01 Introduction: Arbitration in Germany... 785 6.02 Arbitration Law in Germany... 786 6.03 Conciliation and Mediation... 789 6.04 Institutional and Ad Hoc Arbitration in Germany... 790 6.05 Commencing an Arbitration... 793 6.06 Applicable Law... 821 6.07 The Arbitration Proceedings... 822 6.08 Specific State Court Proceedings in Support of or in Relation to Arbitration... 831 6.09 The Award... 836 6.10 Recourse against an Award... 840 6.11 Recognition and Enforcement of Arbitral Awards... 848 xii
Table of Contents CHAPTER III.7 JAPAN Steven L. Smith Scott Nonaka 7.01 Introduction... 856 7.02 Arbitration Laws and Conventions... 857 7.03 Arbitral Institutions in Japan... 861 7.04 Judicial Involvement in the Arbitral Proceedings... 867 7.05 Practical Considerations Governing Selection of the Arbitrator... 874 7.06 Practical Considerations for Conducting the Hearing... 877 7.07 Formalities for the Award... 887 7.08 Review and Enforcement of Awards... 890 CHAPTER III.8 SWEDEN Kaj Hobér 8.01 Introduction... 900 8.02 Arbitration Laws and Conventions... 901 8.03 Arbitral Institutions in the Country... 904 8.04 Requirement of Local Counsel... 908 8.05 Judicial Involvement in the Arbitral Proceedings... 908 8.06 Practical Considerations Governing Selection of the Arbitrator... 923 8.07 Governing Law for Arbitrations in Sweden... 927 8.08 Practical Considerations for Conducting the Hearing... 935 8.09 Formalities for the Award... 939 8.10 Review of Awards... 941 xiii
Practitioner s Handbook on International Arbitration and Mediation CHAPTER III.9 SWITZERLAND Paolo Michele Patocchi 9.01 Sources of Swiss Arbitration Law Swiss Arbitral Institutions... 956 9.02 The Scope of Application of the Law on International Arbitration... 977 9.03 The Arbitration Agreement... 981 9.04 Requirements for Counsel Appearing in Arbitration Proceedings and Court Proceedings Related to Arbitration... 989 9.05 Commencing an Arbitration in Switzerland... 990 9.06 Conduct of Arbitrators and Challenge of an Arbitrator... 1001 9.07 Arbitral Procedure... 1013 9.08 The Award... 1034 9.09 Setting Aside Proceedings and Revocation Proceedings against an Arbitral Award Made in Switzerland... 1042 9.10 Enforcement of Foreign Arbitral Awards in Switzerland... 1050 CHAPTER III.10 UNITED STATES Jeffrey H. Dasteel 10.01 Introduction... 1102 10.02 The Law Governing International Arbitration in the United States... 1103 10.03 Determining Whether an Arbitration Agreement or Award is an International Arbitration under United States Law... 1105 10.04 Compelling an International Arbitration in the United States... 1109 10.05 Jurisdiction: Court or Arbitrator... 1110 xiv
Table of Contents 10.06 Competence-Competence in the United States... 1112 10.07 Concurrent Jurisdiction in the United States... 1114 10.08 Matters outside the Scope of International Arbitration in the United States... 1116 10.09 Selection of Arbitrators and Disqualification Rules/Procedures... 1117 10.10 Advocates Not Licensed to Practice at the Seat of the Arbitration... 1119 10.11 The Effect of U.S. Style Litigation on the Practice of International Arbitration in the United States... 1120 10.12 Differences in Hearing Procedures... 1124 10.13 Challenging and Enforcing International Arbitration Awards in the United States... 1125 10.14 Conclusion... 1129 Index... 1131 SOURCE MATERIAL ON CD ROM Code of Conduct American Arbitration Association (AAA) Code of Ethics for Arbitrators AAA/ABA Model Standards for Mediators CEDR Code of Conduct for Mediators The International Bar Association (IBA) Principles of Conduct for the Legal Profession (2011) The IBA Rules on Taking Evidence in International Commercial Arbitrations (2010) The IBA Rules on Conflicts of Interest in International Arbitration (2004) International Arbitration and Mediation Rules International Chamber of Commerce (ICC) Rules of Arbitration (2012) xv
Practitioner s Handbook on International Arbitration and Mediation The International Centre for Settlement of Investment Disputes (ICSID) Rules of Procedure for the Institution of Conciliation and Arbitration Proceedings (Institution Rules) JAMS International Arbitration Rules (2011) JAMS International Mediation Rules (2011) The London Court of International Arbitration (LCIA) Arbitration Rules (1998) UNICTRAL Arbitration Rules (2010) UNCITRAL Model Law on International Commercial Arbitration (2006) World Intellectual Property Organization (WIPO) Arbitration Rules (2009) National Arbitration Laws Canada British Columbia Commercial Arbitration Act, R.S.B.C 1996, c.55 British Columbia International Commercial Arbitration Act, R.S.B.C. 1996, c. 233 British Columbia Foreign Arbitral Awards Act, R.S.B.C. 1996, c. 154 Ontario Arbitration Act, 1991 Ontario International Commercial Arbitration Act, R.S.O. 1990, c. I.9 China Arbitration Law of the People s Republic of China England Arbitration Act 1996 (of England) France Code of Civil Procedure Book Four Arbitration (Decree 2011-48 of 13 January 2011) Germany German Arbitration Law of 1998 xvi
Table of Contents Book Ten of the Code of Civil Procedure Hong Kong Hong Kong Arbitration Ordinance Chapter 609 Japan Arbitration Law (Law No. 138 of 2003) Sweden The Swedish Arbitration Act of 1999 (SFS 1999:116) Switzerland Swiss Private International Law Act of December 18, 1987 Code of Civil Procedure, Part 3, Domestic Arbitration United States The United States Arbitration Act (9 U.S.C) National Arbitration and Mediation Rules Canada ADR Chambers Arbitration Rules ADR Chambers International Arbitration Rules ADR Institute of Canada, Inc. National Arbitration Rules BCICAC International Commercial Arbitration Rules of Procedure CCAC General Commercial Arbitration Rules and Model Clause CCAC International Arbitration Rules and Model Clause China Arbitration Rules of the Beijing Arbitration Commission (BAC) China International Economic and Trade Arbitration Commission (CIETAC) Arbitration Rules xvii
Practitioner s Handbook on International Arbitration and Mediation Germany DIS Arbitration Rules 1998 Hong Kong Hong Kong International Arbitration Centre (HKIAC) Administered Arbitration Rules (2008) Japan Japan Commercial Arbitration Association Commercial Arbitration (JCAA) Rules Sweden International Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) (2010) Switzerland Swiss Rules of International Arbitration (Swiss Rules)(2006) United States International Arbitration Rules of the International Center for Dispute Resolution/American Arbitration Association International Institute for Conflict Prevention and Resolution Rules for Non-Administered Arbitration JAMS International Mediation Rules International Treaties & Conventions Convention on the Settlement of Investment Disputes between States and Nationals of Other States Inter-American Convention on International Commercial Arbitration Convention on the Recognition and Enforcement of Foreign Arbitral Awards, New York, June 10, 1958 xviii