Introduction to International Commercial Arbitration

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Presentation transcript:

Introduction to International Commercial Arbitration Prof. Giorgio F. COLOMBO

What is International Commercial Arbitration? Lesson n.2

General Definition International Commercial Arbitration is a private form of adjudication by which entities involved in commercial activities decide to solve a business dispute of an international character

«International» International Arbitration vs. Domestic Arbitration Subjective Internationality: parties from different States. What does «from» mean? Objective Internationality: international nature of the obligation e.g. place of performance

«International» (2) The definition adopted in the most widespread model: An Arbitration is International if The parties [...] have their place of business in different States; One of the following places is situated outside the State in which the parties have their place of business: The place of arbitration [...] Any place where a substantial part of the obligations of the commercial relationship is to be performed [...] The parties have expressly agreed that the subject- matter of the arbitration agreement relates to more than one country.

«Commercial» Distinction in Civil Law countries between civil and commercial matters (Civil Code vs. Commercial Code) Wide interpretation of «Commercial» «Commercial» as opposed to «Consumer» or «Labour»

Key Elements of an International Arbitration According to Redfern and Hunter, the key elements of a (Commercial) International Arbitration are: The agreement to arbitrate A dispute The appointment of an arbitral tribunal The arbitral proceedings The decision (award) of the tribunal Enforcement of the award

Why arbitration? Main advantages of arbitration are: Neutrality of the forum Confidentiality Professionality Quickness (but is it really so?) Enforceable decision

Why not? Cost No appeal (exceptions) (Possible) need to cooperate with national courts Joinder

Arbitration ≠ Litigation Arbitration Agreement Private (and confidential) Many voluntary features (appointment of arbitrators, procedural rules, etc.)

Arbitration ≠ Conciliation Formal (even procedurally) Adjudicative

Is Arbitration ADR? Until some years ago, the acronym ADR was read as Alternative Dispute Resolution  it included everything that was not court litigation (arbitration, conciliation, med-arb, ODR) Now in many international documents (e.g. EU Directives, ICC Rules), the acronym is given the meaning of Amicable Dispute Resolution Being an adjudicative procedure, arbitration is excluded

Dispute resolution techniques Settlement Conciliation/Mediation Arbitration Litigation

Sources of International Commercial Arbitration International Sources Multilateral conventions Bilateral treaties (BITs) Regional treaties (E.g. Panama Convention, 1975) Sectorial treaties (E.g. Washington Convention, 1965) Model laws (E.g. UNCITRAL Model Law) National sources National legislations Private sources Arbitration rules Arbitration awards (?)