Third CIS Local Counsel Forum Panel: Commercial Dispute Resolution Tomasz Wardyński Adwokat, Founding Partner, Wardyński & Partners St. Petersburg, Russia 25 – 27 June 2008

2 International Commercial Arbitration International commercial arbitration is becoming increasingly popular throughout the world. This stems from the growing number of signatories to the New York Convention of 1958 which provides for common standards for recognition and enforcement of foreign arbitral awards. This presentation deals with important issues for this method of commercial dispute resolution.

3 International Commercial Arbitration Venue (choice of forum): The arbitration venue is agreed by the parties in the arbitration clause or indicated by applicable legal provisions. It does not have to be the place where the arbitral tribunal deliberates or conducts hearings. The arbitration venue determines the jurisdiction and the law governing arbitration. The law of the arbitration venue governs the validity of arbitration proceedings as well as the grounds and procedure for setting aside arbitral awards. In most countries laws governing arbitration are based on the UNCITRAL Model Law. In some countries, however, the Model Law has not been implemented. It is important to know the relevant national rules before finally deciding on the arbitration forum.

4 International Commercial Arbitration Choice of procedural rules governing the dispute: Ad Hoc arbitration In ad hoc arbitration the parties are free to draw up their own procedural rules of arbitration. Ad hoc arbitration allows for flexibility in this respect and enables tailoring the procedure so that it meets the nature of a particular case.

5 International Commercial Arbitration Choice of procedural rules governing the dispute: Institutional arbitration In institutional arbitration the proceedings are administered by a specialist institution usually with its own procedural rules which comprehensively regulate different problematic issues, like for example, a respondents failure to co-operate or to appoint an arbitrator. There are many arbitral institutions enjoying broad recognition of their awards authority. The ICC, LCIA, SCC, AAAs ICDR, VIAC are the most prominent.

6 International Commercial Arbitration Pros and cons of institutional and ad hoc arbitration: Ad hoc arbitration is more flexible and case specific. It may, however, be difficult and unpleasant to handle if the parties abuse their rights and act in bad faith. It may also be easily delayed by raising procedural issues. Careful drafting of a proper arbitration clause is extremely important in ad hoc arbitration. A defective clause may cause serious problems and delays. Institutional arbitration is more convenient. However it also tends to be more costly and bureaucratic. On the other hand it provides for more certainty and predictability. Some prominent arbitration institutions publish their jurisprudence which is informative for parties and encourages recognition of awards.

Aleje Ujazdowskie 10, Warsaw, Poland tel (0) , + 48 (0) , fax + 48 (0) , + 48 (0) Third CIS Local Counsel Forum Panel: Commercial Dispute Resolution Thank you for your attention Tomasz Wardyński