International Commercial Arbitration

1. International Commercial Arbitration Function and legal framework University of Oslo Giuditta Cordero-Moss, Ph.D., Dr.Juris Professor, Oslo University

2. Arbitration • Private settlement of disputes • Alternative to courts

3. Two main effects • It excludes national court’s jurisdiction • It results in an enforceable award

4. Contractual or judicial? • Based on will of the parties • Enjoys judicial recognition

5. Neutrality Expertise Confidentiality Finality Enforceability (New York Convention of 1958) Jurisdiction (New York Convention of 1958) Costs One party’s country General legal background Publicity Appeals Limited and not harmonised enforceability (Lugano Convention, Brussels I, Hague convention) Limited and not harmonised regulation of jurisdiction (Lugano Convention, Brussels I, Hague convention) Length Arbitration v. Courts

6. ”International” Arbitration • Character of the dispute (France) • Residence of the Parties (Swiss, Sweden, Belgium) • Character or residence (Italy) • Character, residence or choice (UNCITRAL) • No need to distinguish (Holland, Germany, Norway)

7. International v. domestic arbitration • Less formal requirements • Less interference by courts

8. Mostly voluntarily carried out Venue chosen out of practical convenience Parties want flexibility If not voluntarily carried out, courts must intervene Venue determines arbitration law (e.g. Arbitrators’ injunctive powers), arbitrability, validity of award Parties want predictability Is International Arbitration International? (”Delocalisation”)

9. Legal framework • Arbitration agreement (contractual nature) • Arbitration rules (contractual nature) • Domestic arbitration law (legislative nature, but few mandatory rules) • International conventions (legisltive nature, few rules mandatory for the parties) • Soft law (voluntary nature)

10. Arbitration agreement • Consent of the parties is the basis for the arbitral tribunal’s powers

11. Arbitration agreement • Type of arbitration • Scope • [Seat] • [Number of arbitrators] • [Language] • [Procedural rules]

12. Arbitration rules • Rules of the chosen institution • UNCITRAL Rules if chosen by the parties (in case of ad hoc arbitration) • Rules written by the parties in case of ad hoc arbitration • Rules determined by the arbitral tribunal in the absence of an agreement between the parties

13. Arbitration rules • Constitution of the arbitral tribunal • Seat • Powers of the arbitral tribunal • Procedural rules • Costs

14. Arbitration law • The arbitral procedure is regulated by arbitration law of the place of arbitration

15. Arbitration law • Part of domestic legal system in each state • To a large extent harmonised thanks to the UNCITRAL Model Law • Model Law is not binding • Even Model Law countries may have different regulation • Always check the local arbitration law!

16. UNCITRAL Model Law • http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/1985Model_arbitration.html • Adopted in nearly 70 countries: http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/1985Model_arbitration_status.html • Autonomous interpretation http://www.uncitral.org/uncitral/en/case_law.html

17. Arbitration law • Recognition of arbitration agreements • Arbitrability • Role of courts • Constitution of the arbitral tribunal • Seat • Powers of the arbitral tribunal • Procedural rules • Costs • Mandatory principles on due process • Validity of arbitral awards • Enforcement of arbitral awards

18. New York Convention • http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention.html • Ratified by 146 countries: http://www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention_status.html

19. Convention • Recognition of arbitration agreements • Enforcement of arbitral awards

20. Soft law • IBA Rules on taking of evidence http://www.ibanet.org/Document/Default.aspx?DocumentUid=68336C49-4106-46BF-A1C6-A8F0880444DC • IBA Rules on conflict of interest http://www.ibanet.org/Document/Default.aspx?DocumentUid=e2fe5e72-eb14-4bba-b10d-d33dafee8918

21. Soft law • Matters within the discretion of arbitral tribunal