1. INTERNATIONAL ARBITRATION: AN ENGLISH PERSPECTIVE a presentation by HEW R. DUNDAS Chartered Arbitrator DipICArb International Arbitrator & Mediator President CIArb to the Centro de Arbitraje de la Cámara de Comercio de Bogotá 13 th July 2007

2. OVERVIEW of PRESENTATION  Introduction  Dispute Resolution Clauses & Options  Domestic/International Disputes  International Commercial Arbitration  Arbitration in England  Conclusions

3. DISPUTE RESOLUTION OPTIONS  Litigation  Arbitration Domestic/International  Mediation/Conciliation/Other ADR  Application in Oil & Gas Industry  Advantages and Disadvantages

4. LITIGATION  Difficulties of Litigating  Local Laws – are they adequate ?  Courts – Good, Bad and Ugly  Litigation against States  Timescales - long and VERY long  Finality  Enforceability  Costs

5. INTERNATIONAL COMMERCIAL ARBITRATION (1) - OVERVIEW  What Is It ?  Profusion of Relevant/Applicable Laws  Institutions and Tribunals  Finality  Enforceability  Normalisation of Standards

6. INTL. COMM. ARBITRATION (2) PROFUSION of LAWS  Law of the Contract  Law of the Arbitration Agreement  Law of the Arbitration (Lex Arbitri)  Law governing Capacity of Parties  Law of Seat (Lex Curiae)  Law of Place of Enforcement  Other Potentially Applicable Laws

7. INTL. COMM. ARBITRATION (3) SOME KEY LEGAL ISSUES  Arbitrability  Capacity  Substantive vs Procedural Laws  Arbitrations against States/State Immunity  Enforceability  Public Policy Exception (NYC V(2)(b))  Protectionism

8. INTL. COMM. ARBITRATION (4) INSTITUTIONS  UNCITRAL  ICSID/NAFTA/ECT  ICC/LCIA  CIAM  Other Regional Institutions eg CIETAC/AAA  Chartered Institute of Arbitrators  Other

9. INTL. COMM. ARBITRATION (5) PROCEEDINGS (1)  Party Autonomy  Ad Hoc vs Institutional Arbitration  Choice of Lex Arbitri  Choice of Rules/Institution  Choice of Tribunal  Choice of Seat  Relevance to Security

10. INTL. COMM. ARBITRATION (6) PROCEEDINGS (2)  Choice of Language + Procedure  Common vs Civil Law Cultures  Communications  Disclosure  Ethics  Tribunal Issues  Relevance to Security

11. INTL. COMM. ARBITRATION (7) AWARD & ENFORCEMENT  Appeals Against Award  Jurisdiction  Procedural Failures  Issues of Law  Exequatur  Enforcement  New York Convention 1958

12. INTL. COMM. ARBITRATION (8) NEW YORK CONVENTION  Recognition of Arbitration Agreements  Enforcement via NYC58; Court may refuse  Art. V(1)  Capacity/Invalidity  Failure of Due Process/other Procedural Failure  Outwith Jurisdiction  Award Not Binding/Set Aside at seat  Art. V(2)  Dispute not Arbitrable  Award Contrary to Public Policy  Court MAY, not “shall”, refuse enforcement  Enforcement other than via NYC58

13. INVESTMENT ARBITRATION  Private Investor vs State/State Entity  Nature of Arbitration Agreement  BITs/MITs  Washington Convention/ICSID  NAFTA  Energy Charter Treaty  State Immunity

14. ARBITRATION in ENGLAND (1)  Historical Origins  Arbitration Acts 1889/1934/1950/1979  Arbitration Act 1996  Public Policy  London as The International Centre  LMAA/GAFTA etc  The Role of the Courts  Historically  The Present

15. ARBITRATION in ENGLAND (2): the ARBITRATION ACT 1996  Why a New Act ?  The Fundamental Principles  Impartial Tribunal  Avoid Unnecessary Delay or Expense  Party Autonomy  Minimal Interference by the Courts  Public Policy Safeguard  Act covers All Aspects of Proceedings  Is Self-Contained eg is Set of Rules

16. ARBITRATION in ENGLAND (3): APPEALS AGAINST AWARDS  Grounds for Appeal  Jurisdiction  Procedural Failures  Issues of Law  Key Decisions Made in High Court  Judicial Comment on Appeals  “Utterly Hopeless” or “No Merit” etc  Success Rate for Appeals  Ecuador v Occidental

17. CIArb CODE of CONDUCT (1)  CIArb is Self-Regulating Professional Institute  CIArb “Code of Professional And Ethical Conduct for Members” [January 2007]  Binding on All CIArb Members  Arbitrators/Mediators/Any Other  Breach of Code is Professional Misconduct  Full Disciplinary Process

18. CIArb CODE of CONDUCT (2)  Avoid Conduct Unbecoming  Uphold Integrity & Fairness of the Process  Disclosure of Potential Conflicts  Failure to Disclose may lead to disqualification.  Arbitrator to Accept Appointment Only If:  Suitable Experience and Ability  Available time to proceed with the arbitration  Can Publicise Qualifications Experience  No Advertising

19. CIArb CODE of CONDUCT (3)  Overriding obligation to act fairly and impartially as between the parties, at all stages of the proceedings  No Delegation of Responsibilities  Observe Trust and Confidentiality n No Private Communications Arbitrator/Party –Includes telephone  Integrity Regarding Fees/Expenses  Fees and Expenses must be Reasonable

20. CIArb GOOD PRACTICE GUIDELINES  “Good”, not necessarily “Best”, Practice  Assistance for Arbitrators  >1,000 Man-Years of Experience  Origins in English Arbitration Act 1996  Now Internationalised  Covers practical issues not covered by Statute  Quasi-Regulatory Effect

21. CURRENT ISSUES AFFECTING CONDUCT  Arbitrator Interviews  Non-Qualified Arbitrators  Non-Professional Arbitrators  Tribunal Dynamics  Cultural Differences  Arbitrators Appointed by States  “The Club”

22. ALTERNATIVE DISPUTE RESOLUTION (1) - OVERVIEW  What is ADR ?  Why ADR ?  Relationship with Courts  Compulsory or Voluntary ?  Court Support of:  The Process  The Outcome  Qualifications and Training

23. ADR (2) – FORMS of ADR  Executive Negotiation  Early Neutral Evaluation (ENE)  Private Mini-Trials  Adjudication, DABs DRBs  Mediation/Conciliation  Med-Arb, Arb-Med, MedExDet  Arbitrediation  Other/None of the Above

24. DISPUTE PREVENTION & DISPUTE MANAGEMENT  Prevention  Corporate Culture  Co-Operation – what do YOU Want  Conciliatory Approach  Local Customs/Culture/Mores  Management  Dedicated Task Force  Expertise – technical/litigator  Decision-making

25. CONCLUSIONS (1)  Arbitration and ADR are Fundamental  Respect for the Rule Of Law  Growth and Development of National & Regional Centres  Maximise Co-Operation  Increasing Normalisation of Standards  Role of Chambers/Colegios  Role of CIArb

26. CONCLUSIONS (2) Muchas Gracias for your ATTENTION this afternoon