Arbitration and Mediation in the Southern Mediterranean Countries

288 Pages·2007·2.89 MB·English

Arbitration and Mediation
in the Southern Mediterranean Countries
Global Trends in Dispute Resolution

VOLUME 2
Series Editor:
Nadja Alexander

Gardens are tranquil spaces to think and reflect;
to plant seeds of ideas and watch them grow;
to discover different varieties
carried over from other landscapes;
to explore new paths; and
to harvest solutions.

Global Trends in Dispute Resolution offers readers a garden rich in ideas and
insights into contemporary dispute resolution principles, processes, and
practices. The series leads the way in first-class debate and analysis of dispute
resolution trends across our rapidly globalizing world. More particularly, it
analyzes dispute resolution developments in various geographical regions
around the world and in relation to diverse transnational practice areas. These
practice areas include not only well-established legal categories such as
intellectual property, construction, and resources law, but also emerging dispute
resolution developments ranging from dispute systems design to cross-border
mediation in private and public law.
Volume 1, Global Trends in Mediation (2006), planted the first seeds
for the series with its analysis of contemporary mediation developments in 14
primary ‘mediating’ jurisdictions across four continents. In addition to up-to-
date descriptions of mediation laws, initiatives, and practices in the respective
countries, it offered valuable insights into global patterns emerging in the world
of alternative dispute resolution (ADR). It also highlighted the extent to which
legal traditions and frameworks shape dispute resolution policy and practice –
essential knowledge for practitioners working across borders.
With a particular focus on new initiatives and ADR practices, the
Global Trends in Dispute Resolution series aims to provide practitioners,
scholars, policy-makers, and ‘pracademics’ (that elusive yet rapidly emerging
category of practical academics and academically-oriented practitioners – you
know who you are) with the resources both to cultivate the dispute resolution
gardens of the world and to explore new paths within and beyond them.
Arbitration and Mediation
in the Southern Mediterranean Countries

Edited by
Giuseppe De Palo and Mary B. Trevor

Series Editor
Nadja Alexander
A C.I.P. catalogue record for this book is available from the Library of Congress

ISBN 9789041126849

Published by:
Kluwer Law International
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Printed in the Netherlands on acid-free paper

© 2007 Kluwer Law International BV

All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted in any form or by any means, mechanical,
photocopying, recording or otherwise, without prior written permission of the
publishers.
Permission to use this content must be obtained from the copyright owner.
Please apply to Wolters Kluwer Legal, 76 Ninth Avenue, 7th Floor, New York,
NY 10011-5201. E-mail: [email protected]. Website:
www.kluwerlaw.com
The cover for this book was inspired by the logo of the inaugural Slovenian
Mediation Days 2007. We wish to thank and acknowledge Planet GV for
sharing their visual creativity with us. The circles on the cover represent the
different layers of mediation process and also the use of mediation in various
fields where disputes occur.
‘Knowledge is a treasure, but practice is the key to it’
Ibn Khaldun – Al Muqadimma

––––––––––––

To a splendid group of people from five continents,
and the very patient group of people we each have at
home, who made this book possible.

(GDP, MBT)

Table of Contents

FOREWORD .........................................................................................................vii

ACKNOWLEDGMENTS .........................................................................................xxi

INTRODUCTION ................................................................................................xxiii

ABOUT THE EDITORS......................................................................................xxxiii

ABOUT THE CONTRIBUTORS ...........................................................................xxxv

CHAPTER 1 ALGERIA....................................................................................1

1. Introduction .........................................................................................1
2. Commercial Disputes ..........................................................................2
2.1. Importance of Trade in Algeria, Gateway Between Europe
and Africa ................................................................................2
2.2. Commercial Dispute Evolution ................................................2
2.3. Legal Framework of Commercial Disputes .............................2
2.3.1. Field of Competence for Commercial Disputes ............3
2.3.2. Specific Commercial Disputes: Investments ................3
2.4. Commercial Dispute Resolution Mechanisms .........................3
2.4.1. Classic Judicial Means: Courts .....................................3
2.4.2. Private Means ...............................................................4
2.4.3. Differences ...................................................................4
3. Arbitration ...........................................................................................5
3.1. The Compromissory Clause .....................................................5
3.2. Institutional Arbitration vs. Ad Hoc Arbitration ......................5
3.2.1. Option in Favor of Ad Hoc Arbitration ........................5
3.2.2. Option in Favor of Institutional Arbitration ..................6
3.3. Arbitration Under Algerian law ...............................................6
3.3.1. Civil Procedure Code ....................................................6
3.3.1.1. The Civil Procedure Code in 1966 .................6
3.3.1.2. Modification of the Civil Procedure Code in
1993 ................................................................7
3.3.2. Other Codes Addressing Arbitration ............................8
3.4. International Conventions Related to Arbitration and Entry
of Algeria .................................................................................8
3.5. CIRDI Arbitration ....................................................................9
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Table of Contents
3.5.1. Investments in Algeria ..................................................9
3.5.2. Settlement of Disputes Between the Government and
Foreign Investors ..........................................................9
3.6. Arbitration Award ..................................................................10
3.6.1. Implementation of the Arbitration Award ..................10
3.6.1.1. Voluntary Enforcement ................................10
3.6.1.2. Enforcement of the Judgment by Exequatur.10
3.6.2. Appeals from the Arbitration Award Enforcement .....11
3.6.2.1. Appeal ..........................................................11
3.6.2.2. Motion for Annulment ..................................11
3.6.2.3. Permissible Bases for an Appeal or an
Application for Annulment ...........................11
3.7. Arbitrators ..............................................................................12
3.7.1. Constitution of the Arbitration Tribunal .....................12
3.7.2. Requirements for an Arbitrator ...................................12
3.7.3. Nomination Procedure ................................................13
3.7.3.1. Nomination of the Arbitrators for Ad Hoc
Arbitration ....................................................13
3.7.3.2. Nomination of Arbitrators in Institutional
Arbitration ....................................................13
3.8. Parties’ Choices .....................................................................13
3.8.1. Choice of the Applicable Proceedings Law ................13
3.8.1.1. Domestic Law ...............................................13
3.8.1.2. International Law ..........................................14
3.8.2. The Choice of the Law Applicable to the Dispute ......14
4. Mediation ..........................................................................................14
4.1. Definition ...............................................................................14
4.2. Needs for the Mediation .........................................................15
4.3. Mediation Center in Algeria ..................................................15
4.4. The Mediator ..........................................................................16
4.5. Decisions Resulting from the Mediation ................................16
4.6. Lack of Government Support .................................................16

CHAPTER 2 EGYPT .....................................................................................17

1. Introduction .......................................................................................17
2. Commercial Disputes ........................................................................18
2.1. Introduction ............................................................................18
2.2. Commercial Disputes .............................................................19
2.2.1. Introduction ................................................................19
2.2.2. Definition ....................................................................19
2.2.3. Impact on Trade and Business Activities ....................20
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Table of Contents
2.3. Investment Disputes ...............................................................22
2.3.1. Investment Treaties .....................................................22
2.3.2. Investment Law ..........................................................22
2.4. Dispute Resolution Techniques .............................................23
2.4.1. Commercial Courts .....................................................23
2.4.1.1. Description ...................................................24
2.4.1.2. Jurisdiction ...................................................24
2.4.2. Other Techniques ........................................................25
3. Arbitration .........................................................................................25
3.1. Overview ................................................................................25
3.2. Role of Arbitration .................................................................25
3.3. Arbitration under Islamic Shariaa’ ........................................26
3.4. Egyptian Arbitration Law ......................................................26
3.4.1. Pre-1994 .....................................................................26
3.4.2. The New Arbitration Law............................................27
3.4.2.1. Scope of Applicability ..................................27
3.4.2.2. Definition of Arbitration................................28
3.4.2.3. Definition of International ............................28
3.4.2.4. Definition of Commercial .............................29
3.4.2.5. Arbitration Clause ........................................30
3.4.2.6. Appointment of Arbitrators ..........................30
3.4.2.7. Nullity Provisions .........................................32
3.5. Ad Hoc vs. Institutional Arbitration in Egypt ........................33
3.5.1. Introduction ................................................................33
3.5.2. Active Institutions .......................................................34
3.5.3. The Cairo Regional Center for International
Commercial Arbitration (‘CRCICA’) .........................34
3.5.3.1. Establishment ...............................................34
3.5.3.2. Role ..............................................................34
3.5.3.3. Rules .............................................................34
3.5.3.4. Arbitration Proceedings ................................34
3.6. Role of Local Courts ..............................................................36
3.6.1. Witnesses ....................................................................36
3.6.2. Appointment of Arbitrators ........................................37
3.6.3. Extent of Interference .................................................37
3.7. Enforcement of Awards .........................................................38
3.7.1. Foreign Awards ..........................................................38
3.7.2. Domestic Awards .......................................................38
4. Mediation ..........................................................................................40
4.1. Introduction ............................................................................40
4.2. Mediation Service Providers in Egypt ...................................41
4.3. Mediation Among the Corporate Community in Egypt .........43
4.4. Raising Awareness and Promoting Mediation .......................44
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Table of Contents
4.5. Conclusion .............................................................................44
5. Other ADR Techniques .....................................................................44

CHAPTER 3 ISRAEL.....................................................................................47

1. Introduction .......................................................................................47
2. Commercial Disputes ........................................................................48
2.1. SMEs and the Israeli Economy ..............................................48
2.2. The Israeli Legal and Judicial System ...................................48
2.2.1. Magistrate Courts .......................................................49
2.2.2. District Courts .............................................................50
2.2.3. The Supreme Court .....................................................50
2.3. Definition/Classification of Commercial Disputes ................50
2.4. Arbitration Services ...............................................................51
2.5. Mediation Services ................................................................51
3. Arbitration .........................................................................................51
3.1. The Legal Framework for Arbitration ....................................52
3.2. When Can a Dispute Reach Arbitration? ...............................52
3.3. Ad Hoc Arbitration .................................................................53
3.4. Arbitration Conventions and Foreign Arbitration Awards .....53
3.5. Domestic Arbitral Awards .....................................................53
3.6. Arbitration Service Providers .................................................54
3.7. Use of Standard Arbitration Clauses in Commercial
Contracts ................................................................................55
3.8. Compulsory Recourse to a Specific Domestic Arbitration
Center .....................................................................................55
3.9. Confidentiality .......................................................................55
3.10. Appointment of Arbitrators ....................................................56
3.10.1. Nominating Procedures ..............................................56
3.10.2. Arbitrator Qualification ..............................................57
3.10.3. Can Sitting Judges Be Nominated as Arbitrators? ......57
3.10.4. Arbitrator Lists and Rosters ........................................58
3.10.5. Nomination of Foreign Arbitrators .............................58
4. Mediation ..........................................................................................58
4.1. Introduction ............................................................................58
4.2. Mediation Institutionalization.................................................59
4.3. Mediation Service Providers ..................................................59
4.4. Mediator Qualifications .........................................................60
4.4.1. Regulation ...................................................................60
4.4.2. Informal Prerequisite Mediator Characteristics for
Commercial Disputes .................................................60
4.4.3. Training ......................................................................61
x