Table Of Content

Materials for INTERNATIONAL COMMERCIAL ARBITRATION (513HS) VOLUME I January 2003 Paul Michell Faculty of Law University of Toronto These Materials are sold at cost and are not to be considered as published. They are solely for the educational use of students at the University of Toronto or at other educational institutions to whom the Materials may also be sold at cost. Materials for INTERNATIONAL COMMERCIAL ARBITRATION (513HS) VOLUME I January 2003 Paul Michell Faculty of Law University of Toronto These Materials are sold at cost and are not to be considered as published. They are solely for the educational use of students at the University of Toronto or at other educational institutions to whom the Materials may also be sold at cost. Digitized by the Internet Archive in 2018 with funding from University of Toronto https://archive.org/details/materialsforinte01mich_2 INTERNATIONAL COMMERCIAL ARBITRATION (513HS) 2002-2003 MATERIALS, VOLUME I TABLE OF CONTENTS I. NATURE AND FUNCTION OF INTERNATIONAL ARBITRATION A. Introduction Michell, Review of International Commercial Arbitration: Cases, Materials & Notes on the Resolution of International Business Disputes (2000) 16 Bank. & Fin. 1 L. Rev. 151-161. Dezalay & Garth, Dealing in Virtue: International Commercial Arbitration and the Construction of a Transnational Legal Order (1996), at 311 -317. 5 B. History of Commercial Arbitration Blackstone, Commentaries on the Laws of England, vol. 3 (1768), at 16-17. 9 Roebuck “The Myth of Judicial Jealousy” (1994) 10 Arb. IntT 395-406. 10 C. Relationship to Other Forms of ADR Redfem & Hunter, Law and Practice of International Commercial Arbitration (3d ed. 1999), at 31-43... 16 D. Role of Party Autonomy Nygh, Autonomy in International Contracts (1999), at 24-28. 21 McConnaughay, “The Scope of Autonomy in International Contracts and Its Relation to Economic Regulation and Development” (2001) 39 Col. J. TransnatT L. 595 at 610-621. 24 Bockstiegel, “The Role of Party Autonomy in International Arbitration” (1997) 52 Disp. Res. J. 24-30. 30 E. Nature of International Arbitration Glossner, “Sociological Aspects of International Commercial Arbitration” in Schultsz & van den Berg, eds.. The Art of Arbitration: Essays in International Arbitration, Liber Amicorum Pieter Sanders (1982), at 143-152. 33 Mann, “Private Arbitration and Public Policy” (1985) 4 Civ. Just. Q. 257-267 . 38 2 II. THE CANADIAN ARBITRATION FRAMEWORK AND THE UNCITRAL MODEL LAW A. Historical Canadian Ambivalence to Arbitration Brierley, “International Trade Arbitration: The Canadian Viewpoint” in MacDonald et al., eds., Canadian Perspectives on International Law and Organization (1974), at 826-841 . 44 Carbonneau, Alternative Dispute Resolution: Melting the Lances and Dismounting the Steeds (1989), at 75-81. 52 B. Constitutional Framework for Commercial Arbitration in Canada Compania Maritima Villa Nova S.A. v. Northern Sales Co., (1992) 137 N.R. 20 (Fed. C.A.), leave to appeal refd, [1992] 2 S.C.R. ix. ^ Quintette Coal Ltd. v. Nippon Steel Corp., [1989] 1 W.W.R. 120 (B.C.S.C.). 60 Stancroft Trust Ltd. v. Can-Asia Capital Co. Ltd. (1990), 67 D.L.R. (4th) 131 (B.C.C.A.), leave to appeal refd, [1990] 2 S.C.R. xi . 70 C. Domestic Legislation Arbitration Act, 1991, S.O. 1991, c. 17 (Supplement). S International Commercial Arbitration Act, R.S.O. 1990, c. 1.9 (Supplement). S Commercial Arbitration Act, R.S.C. c. 17 (2nd Supp. 1985), as am. (Supplement). S United Nations Foreign Arbitral Awards Convention Act, R.S.C. 1985, c. 16 (2nd Supp.) (Supplement)... S D. International Conventions van den Berg, The New York Arbitration Convention of 1958: Towards a Uniform Judicial Interpretation (1981), at 6-10. 73 1958 New York Convention on the Recognition and Enforcement of Arbitral Awards (Supplement-Schedule to United Nations Foreign Arbitral Awards Convention Act). S E. UNCITRAL Model Law 1985 UNCITRAL Model Law on International Commercial Arbitration, as adopted by the United Nations Commission on International Trade Law, June 21, 1985 (Supplement-Schedule to International Commercial Arbitration Act). S Herrmann, “The UNCITRAL Model Law on International Commercial 3 Arbitration: Introduction and General Provisions” in Sarcevic, ed. Essays on International Commercial Arbitration (1989), at 3-26. 75 Biukovic, “Impact of the Adoption of the Model Law in Canada: Creating a New Environment for International Arbitration” (1998) 30 C.B.L.J. 376 at 376-386. 87 F. International Arbitration Institutions and Institutional Rules Bom, International Arbitration and Forum Selection Agreements (1999), at 44-55 92 ICC Rules (Supplement). S LCIA Rules (Supplement). S G. “Commercial” Arbitration Carter v. McLaughlin (1996), 27 O.R. (3d) 792 (Gen. Div.). 98 Canada Packers Inc. v. Terra Nova Tankers Inc. (1992), 11 O.R. (3d) 382 (Gen. Div.). 101 Kaverit Steel and Crane Ltd. v. Kone Corp. (1992), 87 D.L.R. (4th) 129 (Alta. C.A.), leave to appeal refd, [1992] 2 S.C.R. vii. 102 H. “Dispute” Hercules Data Comm. Co. Ltd. v. Koywa Communications Ltd., [2001] 2 H.K.C. 75 (C.F.I.). 108 III. THE ARBITRAL AGREEMENT A. Writing Requirement SchiffFood Products Inc. v. Naber Seed and Grain Co. Ltd. (1996), 5 C.P.C. (4th) 122 (Sask. Q.B.). 110 Kahn Lucas Lancaster, Inc. v. Lark International Ltd., 186 F.3d 210 (2d Cir. 1999) 112 Pacific International Lines Ltd v. Tsinlien Metals and Minerals (HK) Ltd., [1993] 2 H.K.L.R. 249 (H.C.). 116 Thyssen Canada Ltd. v. Mariana Maritime S.A. (2000), 254 N.R. 346 (Fed. C.A.), leave to appeal refd, [2000] 2 S.C.R. xiv. 119 4 B. Existence and Validity of the Arbitration Clause Harbour Assurance Co. (U.K.) Ltd. v. Kansa General International Co. Ltd., [1993] Q.B. 701 (C.A.). 123 Brower v. Gateway 2000, Inc., 616 N.Y.S.2d 569 (App. Div. 1998). 133 OEMSDFInc. v. Europe Israel Ltd. (1999), 42 C.P.C. (4th) 229 (Ont. S.C.J.). 136 C. Autonomy of Arbitration Clause and the Separability Doctrine Schwebel, International Arbitration: Three Salient Problems (1987), at 1-13. 142 Nygh, Autonomy in International Contracts (1999), at 72-79. 147 ABN Amro Bank Canada v. Krupp Mak Maschinenbau GmbH (1996), 135 D.L.R. (4th) 130 (Ont. Div. Ct.). 151 D. Substantive Law (“Rules Applicable to the Substance of the Dispute”) 1. Generally Hamlyn & Co. v. Talisker Distillery, [1894] A.C. 202 (H.L.). 156 2. Lex Mercatoria Craig, Park & Paulsson, International Chamber of Commerce Arbitration (3d ed. 2000), at 623-638. 162 Deutsche Schachtbau- und Tiefbohrgesellschaft mbHv. Ras Al Khaimah National Oil Co., [1987] 2 All E.R. 769 (C.A.), revd on other grounds, [1990] 1 A.C. 329 (H.L.).'. 170 Compania Valenciana de Cementos Portland S.A. v. Primary Coal Inc. (1993) XVIII Y.B. Comm. Arb. 137 (Fr. Cour de Cassation 1991). 174 E. Mandatory Rules Arthur Wishart Act (Franchise Disclosure) 2000, S.O. 2000, c. 3, ss. 10 and 11. 175 Marine Liability Act, S.C. 2001, c. 6, ss. 45 and 46. 175 Vimar Seguros y Reaseguros, S.A. v. M/V Sky Reefer, 515 U.S. 528, 115 S.Ct. 2322 (1995) 176 5 F. Arbitral Procedural Law 1. Generally Pechota, “The Future of the Law Governing the Arbitral Process” (1992) 3 Am. Rev. Int’l Arb. 17-29. 184 Mann, “Lex Facit Arbitrum” in Sanders, ed. International Arbitration: Liber Amicorum for Martin Domke (1967), at 157-183. 191 Naviera Amazonica Peruana S.A. v. Cia Internacional de Seguros del Peru, [1988] 1 LI. R. 116 (C.A.). 205 Union of India v. McDonnell Douglas Corporation, [1993] 2 LI. R. 48 (Q.B.D.).... 208 2. Delocalization Paulsson, “Delocalisation of International Commercial Arbitration: Why and When It Matters” (1983) 32 I.C.L.Q. 53. 210 G. Scope of Arbitration Clause Onex Corp. v. Ball Corp. (1994), 12 B.L.R. (2d) 151 (Ont. Gen. Div.). 215 H. Arbitrability' Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 105 S.Ct. 3346 (1985). 218 Desputeaux v. Les Editions Chouette (1987) Inc. (2001), 16 C.P.R. (4th) 77 (Que. C.A.), leave to appeal granted [2001] C.S.C.R. No. 309 (S.C.C.). 233 Automatic Systems Inc. v. Bracknell Corp. (1994), 113 D.L.R. (4th) 449 (Ont. C.A.). 239 I. Parties Interim Award of September 23, 1982 in ICC Case No. 4131 (1984), IX Y.B. Comm. Arb. 131-138 (Dow Chemical). 244 The Bay Hotel and Resort Ltd. v. Cavalier Construction Co. Ltd., [2001] UKPC (P.C.). 247 American Bureau of Shipping v. Tencara Shipyard S.p.A., 170 F.3d 349 (2d Cir. 1999). 256 Fibreco Pulp Inc v. Star Shipping A/S (2000), 257 N.R. 291 (Fed. C.A.). 258 6 IV. THE ARBITRAL TRIBUNAL A. Nature of the Relationship Between the Arbitrators and Parties Bedjaoui, “The Arbitrator” One Man—Three Roles” (1988) 7 J. Int’l Arb. 7-20 ... 259 Gaillard & Savage, eds., Fouchard Gaillard Goldman on International Commercial Arbitration (1999), at 599-608. 266 B. Competence-Competence Gulf Canada Res. Ltd. v. Arochem Int’l Ltd. (1992), 43 C.P.R. (3d) 390 (B.C.C.A.) 271 First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (1995). 275 Compagnie de Navigation et Transports S.A. v. MSC—Mediterranean Shipping Company S.A. (1996) XXI Y.B. Comm. Arb. 690 (Swiss Trib. Federal 1995). 281 C. Appointment of Arbitral Tribunal Pan Atlantic Group Inc. v. Hassneh Insur. Co. of Israel, [1992] 2 LI. R. 120 (C.A.) 285 Dalimpex Ltd. v. Janicki (2000), 137 O.A.C. 390 (Div. Ct.). 289 Siemens AG and BKMIIndustrieanlagen GmbH v. Dutco Construction Co. (1993) XVII Y.B. Comm. Arb. 140 (Fr. Cour de Cassation 1992). 292 D. Impartiality Szilard v. Szasz, [1955] S.C.R. 3. 293 Ghirardosi v. Minister of Highways (1966), 56 D.L.R. (2d) 469 (S.C.C.). 296 Commonwealth Coatings Corp. v. Continental Casualty Co., 393 U.S. 145 (1968) 299 AT&T Corp. v. Saudi Cable Co., [2000] 2 LI. R. 127 (C.A.). 305 E. Waiver of Right to Challenge AAOT Foreign Economic Association (VO) Technostroyexport v. International Development and Trade Services, Inc., 139 F.3d 980 (2d Cir. 1999). 312 F. Truncated Arbitral Tribunal Agence Transcongolaise des Communications - Chemin de Fer Congo Ocean (ATC-CFCO) v. Compagnie Miniere de I’Ogooue—Comilog XT.(1999) XXIV Y.B. Comm. Arb. 281 (Paris Cour d’Appel 1997) . 313 Dobererv. Megaw (1904), 34 S.C.R. 125.:. 316