Procedural Aspects of Activities of Institutional Arbitration Bodies

23.03.2010, Ivan S. Zykin
Procedural Aspects of Activities of Institutional Arbitration Bodies
when determining whether the composition of the arbitral tribunal was proper, whether proper notice of the appointment of an arbitrator or of the arbitral proceedings was given by the institutional body).
If parties refer to any arbitration rules in their arbitration clause these rules are incorporated in their agreement by reference. It may be recalled in this context that the ICAC Rules expressly provide that the ICAC carries out its functions in conformity with the Russian Law on International Commercial Arbitration (see above). One may argue then that, irrespective of the place of arbitration, issues connected with the administration of disputes by the ICAC are governed by the said Russian law by virtue of the parties’ agreement.
However, in view of the growing similarity of arbitration laws of many countries and, normally, a very limited number of relevant mandatory provisions on procedural matters contained therein, the practical effect of application of the laws of different countries to the respective procedural issues instead of those of the place of arbitration should not be overestimated.
The ICAC Rules and the 1993 Russian Law on International Commercial Arbitration mostly deal with arbitral proceedings before arbitral tribunals. The same is true for the SCC Rules, the ICC Rules, and the Swedish Arbitration Act of 1999. This circumstance quite rightly reflects the key role of arbitral tribunals in dispute settlement. As stated above, the role of institutional arbitration bodies, though being of importance, is to provide assistance and support in relation to the settlement of disputes.
There are legal requirements which are applicable both to institutional arbitral bodies and arbitral tribunals. One might refer to Art. 18 of the 1993 Russian Law on International Commercial Arbitration, which provides for equal treatment of the parties. Another example is Art. 3 of the said Law concerning receipt of written communications. 
According to the ICAC Rules, the ICAC shall apply provisions of the Rules to proceedings, taking into account the parties’ agreement unless it contravenes the mandatory rules of the applicable law on international commercial arbitration and the principles of the Rules. When dealing with issues that are not governed either by the Rules or the parties’ agreement, the ICAC shall, subject to provisions of the applicable law on international commercial arbitration, conduct the proceedings in such manner as it considers appropriate, ensuring that the parties are treated with equality and that each party is given a reasonable opportunity to protect its interests (§ 26, subpara 2). These provisions of the Rules are addressed to arbitral tribunals and to the institution as well.  Among other things, an attempt is made here to determine the interrelation between the Rules which legally speaking are incorporated in the arbitration agreement by reference and other terms of the agreement which deviate from the Rules.
When considering more closely the functions of institutional arbitral bodies with regard to the settlement of disputes, one may further identify two issues: decisions of such bodies and the procedure for taking them. Arbitral tribunals and institutional bodies carry out different functions. The procedure for taking decisions by an institutional body is a distinctive type of procedure as compared to the procedure before arbitral tribunals. Though some basic procedural requirements are the same (e.g., equal treatment of the parties), they are mostly governed by different provisions. There is no ground for automatically applying provisions addressed to arbitral tribunals to the decision-taking process of institutional bodies.
In line with such approach the ICAC presidium, when considering a challenge to an arbitrator, rejected the motion of a party to invite parties’ representatives and tribunal members to the presidium session and to hear them in addition to written statements previously submitted which were regarded by the presidium as sufficient. 
The scope of assistance factually rendered by the institution when administering a particular dispute does not remain the same throughout the proceedings. The institution is relatively more active in this regard prior to constitution of an arbitral tribunal.

VI. CONCLUSION

The functions of various institutional arbitration bodies administering disputes, notwithstanding certain differences, are to a large extent similar. The number and scope of provisions governing the exercise of the said functions should be kept, in our view, to a reasonable minimum in order not to overload the rules of a given institution and not to adversely affect the flexibility of arbitral proceedings.
The issues in question deserve closer attention by legal scholars and practitioners and should be more widely discussed at conferences and seminars in international commercial arbitration. The SCC Institute and the ICAC already have a very positive experience regarding discussion of such issues in the past.

 
TABLE OF CONTENTS

FOREWORD ...............................................................................................xi

When—If Ever—Should Failure to Challenge an
Award before the Courts of the Seat Amount to a
Waiver of New York Convention Defences?

Frédéric Bachand ..............................................................................1

The Role of the Institution in Taming Electronic Disclosure

С. Mark Baker and Kinan H. Romman ............................................19

Teaching International Arbitration in Law Faculties

Eric E. Bergsten ...............................................................................31

Some Reflections on Dispute Settlement in Air,
Space, and Telecommunication Law

Karl-Heinz Böckstiegel ....................................................................43

Without Delay: Arbitrating in Six Months —
the German Approach for Expedited Proceedings

Jens Bredow .....................................................................................51

The Power and Effectiveness of Pre-arbitral Provisional Relief:
The SCC Emergency Arbitrator in Investor-State Disputes

Charles N. Brower, Ariel Meyerstein and Stephan W. Schill ..........61

Do Arbitration Rules Give the Tribunals Too
Much Freedom to Conduct International Arbitration
As They Think Fit?

Peter Scott Caldwell ....................................................................... 77

Cross-Examination and International Arbitration

Bernardo M. Cremades and David J.A. Cairns ..............................91

ICSID, UNCITRAL and SCC As Investment Fora

Hans Danelius ................................................................................107

 
Towards a Unified Approach to the Law
Applicable to the Arbitration Agreement in
United States Courts

Donald Francis Donovan and David W. Rivkin ............................117

Institutional Commercial Arbitration from the Inside

Diana С. Droulers .........................................................................141

Arbitration in Arab Countries

Abdel Hamid El Ahdab ..................................................................149

Ulf Franke — Thirty-five Years and Afterwards

Johan Gernandt .............................................................................169

Voluntary Solutions to Procedural Problems

Lars Göthlin and Mattias Bexelius.............................................................175

Pre-Dispute Waivers of Investment Treaty Arbitration:
A Practical Approach

Jeffrey Hertzfeld and Barton Legum ..............................................183

Are Parties Entitled to Agree on the Application of
the UNCITRAL Model Law in a Contract Providing
for Arbitration in Sweden?

Lars Heuman ..................................................................................195

Taking Evidence Abroad in International Arbitration
in the 21st Century

Martin Hunter and Andrey Panov .................................................213

Determining the Parties' True Choice of the Seat
of Arbitration and Lex Arbitri

Michael Hwang and Darius Chan .................................................225

Is There a Code of Conduct for Party-appointed
Experts in International Arbitration?

Mark Kantor ..............................................................................................239
 
Les Anciens et les Modernes in International Arbitration:
Looking Back and Looking Forward

Pierre A. Karrer .........................................................................................253

Enforcement of SCC Arbitral Awards in CIS Countries:
Reflections on Arbitration History

Vladimir Khvalei ........................................................................................269

Remarks on the Development of International
Commercial Arbitration in Modern Russia

Alexander S. Komarov ...............................................................................297

Corruption in International Investment Arbitration:
Jurisdiction and the Unclean Hands Doctrine

Richard Kreindler ......................................................................................309

Discretion Pursuant to Article V of the New York Convention

Gustaf Möller..............................................................................................329

Ulf Franke, Stockholm Arbitration, and the Bridge to China

Michael J. Moser .......................................................................................343

Negative Inferences: An Arbitral Tribunal's Powers to
Draw Adverse Conclusions from a Party's Failure to
Comply with the Tribunal's Orders

Bo G.H. Nilsson .........................................................................................351

Reflection on What Is Special in an Arbitrator's Life

Piotr Nowaczyk ..........................................................................................365

Participation in the ICSID Convention

Antonio R. Parra ........................................................................................383

Security for Costs in Investment Arbitration

Jakob Ragnwaldh and Nils Eliasson .........................................................395


 
Challenging Arbitrators' Fees Determined by
Arbitration Institutions

Jan Romberg and Serge Lazareff ..............................................................417

Incorporation and Passivity: Entering into Arbitration
Agreements under Swedish Law

Anders Reldén and Mattias Nilsson ...........................................................429

Contractual Relations in Institutional Arbitration

Patrik Schöldström ....................................................................................451

The New SCC Emergency Arbitrator Rules

Patricia Shaughnessy .................................................................................459

International Arbitration in Ukraine:
Yesterday, Today... Forever

Tatyana Slipachuk .....................................................................................481

The Рarties' Contract with the Arbitration Institution

Christer Söderlund .....................................................................................487

Enforcement of SCC Arbitration Awards in China

Jingzhou Tao ..............................................................................................499

Arbitration Guidelines: Straitjacket or Compass?

Hans van Houtte ........................................................................................515

Users, Courts, Arbitral Institutions — And the Need for
Comparative Statistics

V.V. Veeder and Amy Sander .....................................................................529

Improvement of the Civil Code of the Russian
Federation and Its Impact on Arbitration Practice

Nina Vilkova ..............................................................................................551

 
Bringing Arbitration Closer to Company Management
and Boards: Can Arbitral Institutions Further
This Aspiration?

Carita Wallgren-Lindholm ........................................................................561

What Can You Expect? The Role of Legitimate
Expectations in Investment Protection Disputes

Fred Wennerholm ......................................................................................573

The Impact of Document Production on the Efficiency
of Arbitration

Claes Zettermarck and Rikard Wikström ..................................................587

Procedural Aspects of the Activities of Institutional
Arbitration Bodies

Ivan S. Zykin ..............................................................................................601


CONTRIBUTING AUTHORS ...............................................................611

ABOUT THE EDITORS .........................................................................619