Provisional measures in international commerical arbitration.

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Provisional measures in international commerical arbitration.
Yesilirmak, Ali

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UNIVERSITY OF LONDON
PROVISIONAL MEASURES
IN
INTERNATIONAL COMMERCIAL ARBITRATION
A DISSERTATION SUBMITTED TO
QUEEN MARY COLLEGE
UNIVERSITY OF LONDON
FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY
BY
ALI YESILIRMAK
LLM, LLB
LONDON
2003
LONDM.
ABSTRACT
Interim
protection
of (through including
rights
provisional, protective,
is
measures) important
as the final
those
as protection of rights.
This
thesis
examines
several
problems and uncertainties surrounding
provisional
measures in international Those
commercial arbitration.
problems
and uncertainties influence the
effectiveness of arbitration;
thus,
they
constitute a threat to the future The thesis
of arbitration. aims
to identify,
analyse, to those
and offer solutions problems and
uncertainties.
The
thesis
initially
examines the the
roots and evolution of concepts of
arbitral to
powers
to
grant provisional measures and court assistance
This
arbitration.
examination highlights the the
roots of problems and
uncertainties and demonstrates how the towards
approach provisional
measures shifted, in due time, from judicial
course of authorities'
exclusive power to to those how
arbitrators' power grant measures and
the
courts' interim has into
role regarding
protection evolved assistance.
It further
deals
the forum to to
with
seek provisional measures mainly
demonstrate
that today
an arbitrator or another party-determined
is
authority and should be the natural judge regarding interim protection
of rights and that the courts' assistance should be restricted to ensure
the
effectiveness of arbitration.
It, in investigates to for
addition, complementary mechanisms arbitration
interim in to that
providing protection order show such mechanisms
the for to the
enhance effectiveness of arbitration a period prior
appointment of an arbitrator.
The thesis to the
also endeavours establish standards of procedure and
in for instance, form,
principles regard of arbitral provisional measures,
types The
and of arbitral provisional measures.
requirements
these
of standards and principles makes arbitration a
establishment
dispute It thus
and predictable resolution mechanism.
more consistent
boosts the of arbitration.
effectiveness
It finally discusses the enforcement of arbitral provisional measures to
these
that of measures are effective without any coercion
some
show
however, the
that others, necessitate use of coercive powers,
some
and
by judicial
lent authorities.
are
which
2
ACKNOWLEDGMENTS
The author is grateful to the Schmitthoff Foundation for the Mrs
grant of
Ilse Schmitthoff Scholarship
that him to initiate his doctoral
enabled
studies.
He further to his
to those
wishes express gratitude all whose support
to this thesis, in the
and cooperation contributed greatly
particular
American Arbitration Association the International Court
and of
Arbitration the International Chamber Commerce for
of of granting
to through decisions in their databases
permission research arbitral and
to in this thesis the The is
evaluate outcome of such research. author
thankful to the in those institutions for their
also staff working patience
invaluable to William K Slate II, Michael
and assistance, particularly
Hoellering (former General Counsel), Luis M Fernandez, Laura Ferris
Brown, Steven Simpson the AAA, Dr Robert Briner, Dr
and of and
Horacio Grigera Naon (former Secretary General), Dominique Hascher
(former General Counsel), Dr Anne Marie Whitesell, Fernando Mantilla
Serrano (former Counsel), Slyvie Picard Renue the ICC.
of
Special thanks due to Professor Alan S Rau for the introduction
are of
the this thesis to the to Professors Hans Baade,
subject of author and
Carl Baudenbacher, Roy M Mersky, Michael S Sturley, Russell J
Weintraub Mr Jonathan Pratter the University Texas, School
and of of
Law, Professors Hasan Nerad Hakan Pekcanitez Dokuz Eylül
of and of
University, Professor John Adams the Queen Mary College, Centre
of
for Commercial Law Studies, Professor Ian Fletcher the University
of
College London, Larry Shore Herbert Smith for their kind
of of
throughout the
assistance and support author's post-graduate studies.
Thanks due to the Sue Sullivan Sandra
are also staff, particularly and
Baird the Centre for Commercial Law Studies, Queen Mary College
at
for their kind
assistance.
The to his deepest indebtedness to his
author wishes express
Professor Julian DM Lew Dr Loukas Mistelis for their
supervisors and
friendship.
guidance, support, encouragement and
Finally, the is thankful to his Arzu Aksap for her
everlasting
author wife
support and patience.
3
TABLES
TABLE OF CONTENTS
Table
Abbreviations
of 8
........................................................................
Table
Cases
of 14
..............................................................................
Introduction
25
.................................................................................
CHAPTER
I Evolution
Provisional Measures in International
of
Commercial
Arbitration 51
.............................................
1 Arbitration
Rules
56
...................................................................
1.1 Power Organ
Head A Trade Institution 58
of or of
............................
1.1.1
1915 Plan 59
.................................................................. .
1.1.2
1922 Plan 60
.................................................................. .
1.1.3 ICC Arbitration Rules 1931 61
..........................................
1.2 Recognition Arbitrators' Power Concurrent Jurisdiction 63
of and of
.....
1.2.1 ICC Arbitration Rules 1923,1927,1931, 1939 64
and
..............
1.2.2 Further Developments in the 1940s Onwards 67
and
.............. .
1.2.2.1 AAA Commercial Arbitration Rules (1944 to 1997) 69
............
1.2.2.2 Copenhagen Rules 70
......................................................
1.2.2.3 ICC Arbitration Rules (1955 to 1988) 70
...............................
1.2.2.4 UNECE Arbitration Rules 1966 72
.......................................
1.2.2.5 UNECAFE Arbitration Rules 1966 73
...................................
2 International National Legislations Court Decisions 73
and and
...........
2.1 1920-30s: Breaking Judicial Mistrust Towards Arbitration
of
-
Emergence the Concepts Court Assistance (Decrease in Rivalry
of of
Towards Arbitration) Arbitral Power to Grant Provisional
and of
Measures 76
...........................................................................
2.2.1950-60s: Even Less Rivalry but Residue Mistrust 78
of
....................
2.3 1980s: The Tide Began to Turn Trust to Integrity Arbitrators
of and
-
Arbitration 82
............................................................................
Conclusion 84
.....................................................................................
CHAPTER II Forum to Seek Provisional Measures 87
...........................
1 General Jurisdiction Arbitrators to Grant Provisional Measures 89
of
....... ...
1.1 Reasons In Support Arbitral Jurisdiction 90
of
................................ ..
1.2 Sources Arbitral Power 95
of
...................................................... ..
1 2.1 Parties' Agreement Lex Arbitri 96
and
................................ ..
.
1 2.2 Inherent, Implied Other Powers 98
or
.................................
.
Exclusion the Power 100
1.3 Amendment
and of
.................................
Mandatory Rules Applicable Law 101
1.4
of
.......................................
Grant Provisional Measures 103
2 Exclusive Arbitral Powers to
............
Exclusive Judicial Powers to Grant Provisional Measures 106
3
............
Powers Judicial Authorities Arbitrators 109
4 Concurrent of and of
......... .
Reasons In Support Concurrent Jurisdiction 113
4.1 of
.......................... .
4
4.2 Jurisdiction
the Merits Compatibility Request for Judicial
on and of
Provisional
Measure Agreement to Arbitrate 121
with
.
............................
4.3 Court Assistance
to Foreign Arbitration 127
.....................................
4.4 Relationship
Between Arbitral Jurisdiction Courts' Jurisdiction 131
and
.
4.4.1
Freedom Choice Approach 135
of
.......................................
4.4.2 Restricted-Access
Approach: Principles Complementarity
of and
Subsidiarity
138
.................................................................. .
4.4.2.1 Approach National Laws 139
of
.................................
4.4.2.2 Approach Arbitration Rules 141
of
...........................
4.4.2.2.1 The Principle Priority 142
of
.......................................
4.4.2.2.2 Appropriate Circumstances 143
...................................
4.4.2.2.2.1 Urgency 145
...............................................
4.4.2.2.2.2 Limits the Tribunals' Power 147
of
...................
4.4.2.2.2.3 Paralysed Tribunal 147
..................................
4.4.3 Damages Compensation for Judicial Provisional Measures
as
Incompatible Arbitration Agreement
with
Found to be Unjustified 148
or
................................................
4.4.3.1 Damages Arising From Judicial Provisional Measure
s
Incompatible Arbitration Agreement 150
with
............... .
4.4.3.2 Damages Arising From Judicial Provisional Measure
s
Compatible With Arbitration Agreement 152
..................
4.4.4 Exclusion Agreements 153
.................................................
4.5 Conflict Jurisdictions 157
of
..........................................................
Conclusion
161
.................................................................................
CHAPTER III Emergency Arbitral Provisional Measures: Complementary
Mechanisms 166
.............................................................
1 Emergency Provisional Measures Available from Head Organ
or of
Institution 173
............................................................................
2 Emergency Arbitral Provisional Measure Procedures 176
.................. .
2.1 Terminology 178
........................................................................
2.2 Integration Arbitration Rules 179
with
.............................................
2.3 Jurisdictional Relationship Arbitral Judicial Proceedings 181
with and
...
2.3.1 Relationship to Judicial Other Arbitral Proceedings 181
or
......
2.3.1.1 Relationship Judicial Proceedings 181
with
........................
2.3.1.2 Relationship Other Arbitral Proceedings 184
with
.................
2.3.2 Relationship Arbitral Proceedings Initiated Arbitration
with under
Rules the Arbitration Institution 185
of same
..................................
2.4 Request for Measure Answer 186
and
..........................................
2.4 Request 186
.1 ................................................................... .
2.4.2 Answer 189
..................................................................
2.5 Appointment Challenge Emergency Arbitrator 189
and of
.................. .
2.6 Proceedings 193
....................................................................... .
2.7 Requirements to Grant Emergency Measures 195
........................... .
2.8 Form Emergency Arbitrator's Decision 197
of
...................................
2.9 Modification Revocation Decision 199
or of
....................................
2.10 Types Emergency Measures 199
of
.............................................. .
2.11 Effect Decision 201
of
................................................................ .
2.12 Appeal
201
..............................................................................
.
2.13 Compliance Decision Consequences Non-compliance 201
with and of
..
5
2.14 Confidentiality 205
........................................................................
2.15 Liability
205
................................................................................
.
2.16 Costs Emergency Measure Proceedings
of 207
.............................. .
2.17 Ex Parte Requests for Emergency Measures
208
........................... .
3 Complementary Mechanisms:
Can They be Useful/Effective
Anyway?
209
....................................
.
4 Alternative Solutions Complementary
to Mechanisms 213
...............
Conclusion
213
.................................................................................
CHAPTER IV Arbitral Provisional Measures
218
...................................
.
1 Initiation Proceedings for Arbitral Provisional Measures 225
of
............
1.1 Who Initiates the Proceedings: A Party the Tribunal 225
or
............... ..
1.2 What Should Request Contain?
226
a
..........................................
.
2 Priority Proceedings Request for Provisional Measures 227
of on
......
3 Requirements to Grant Measure 229
a
..........................................
3.1 The Positive Requirements
234
...................................................
.
3.1.1 Prima Facie Establishment Jurisdiction 235
of
...................... .
3.1.2 Prima Facie Establishment Case 236
of
.............................. .
3.1.3 Urgency
239
.................................................................. .
3.1.4 Imminent Danger, Serious Substantial Prejudice 240
or
.......... .
3.1.5 Proportionality 242
.......................................................... .
3.2 The Negative Requirements 243
................................................. ..
3.2.1 If the the is the
an examination of merits of case required,
tribunal from the 243
may refrain granting measure requested
. ..
3.2.2 No Grant Final Relief 245
of
.............................................
3.2.3 The tribunal if the
may not grant a provisional measure
does have "clean hands" 246
applicant not
.......................... ..
3.2.4 The tribunal is
may not grant a measure where such measure
being 247
not capable of carried out
................................... ..
3.2.5 When the is the
measure requested not capable of preventing
harm 248
alleged
............................................................
3.2.6 Request Must be Moot 248
not
.......................................... ..
3.3 Security for Damages 248
.........................................................
3.4 An Undertaking 251
..
..................................................................
252
4 Form Measure
of a
..
.............................................................
4.1 Award Order? 254
or
................................................................. .
4.2 Decision the Form 257
on
..
..........................................................
4.3 Provisional Measures in Case Extreme Urgency After the
of
260
Appointment Arbitrators
of
...................................................
262
5 Duration Provisional Measure
of
............................................ ..
6 Revision Reconsideration Modification Revocation 263
or
................ ..
267
7 Types Measure
of a
..
............................................................
7.1 Measures Concerning Preservation Evidence 271
of
....................... ..
271
7.2 Injunctions
........................................................................
277
7.3 Security for Payment
..
...........................................................
279
7.4 Security for Costs
..
...............................................................
282
7.5 Provisional Payment
..
...........................................................
284
8 Ex Parte Measures
..
.............................................................
8.1 Right to be Heard As Objection to Arbitral Power
an
to Grant Ex Parte Provisional Measures 287
....................................
6
8.2 Observance the Principle Impartiality As Objection
of of an
to Arbitral Power to Grant Ex Parte Provisional Measures
290
.............
8.3 Certain Other Considerations Ex Parte Arbitral Measures
on 292
.........
Costs Regarding Provisional Measure
9 Proceedings
293
....................
10 Damages As Compensation for Arbitral Provisional
Measures
Found to be Unjustified Disobeyed
or 296
.......................................
Conclusion
297
.................................................................................
CHAPTER V Enforcement Arbitral Provisional
Measures
of 303
............
1 Sanctions for Non-Compliance
309
.............................................
...
1.1 Adverse Inference
311
.............................................................
...
1.2 Damages Costs
and 312
..........................................................
...
2 Varying Need for Enforceability
313
............................................
...
3 Enforcement Arbitral Provisional Measures
of 316
.........................
...
3.1 Enforcement the Seat Arbitration
317
at of
...................................
.
3.1.1 First Approach: Direct Enforcement Arbitral Provisional
of
Measure if It Were Decision Court
318
as a of a
................... ..
3.1.2 Second Approach: Executory Assistance from National
Judicial Authorities
319
...................................................
3.1.3 Third Approach: Transposition Arbitral Order Into Court
of
Order
327
....................................................................
.
3.1.4 Fourth Approach: Enforcing Separate Court Order Based
on
Arbitral Provisional Measure
328
...................................... .
3.2 Enforcement Abroad 330
.......................................................... ...
3.2.1 Enforcement Through National Laws 331
........................... ...
3.2.2 Enforcement Through Treaties 331
................................... .
3.3 UNCITRAL's Endeavours 339
.................................................... ..
Conclusion 344
.................................................................................
Conclusion 349
..................................................................................
Annex 364
..........................................................................................
Bibliography 377
..................................................................................
7
TABLE OF ABBREVIATIONS
Institutions
Organisations
and
AAA American Arbitration Association
AFMA
American Film Marketing Association
AIA Italian Arbitration Association
AR Arbitration Rules
ASA Swiss Arbitration Association
CIA
Chartered
Institute Arbitrators
of
CAMCA Commercial
Arbitration and Mediation Centre for the
Americas
CANE
the Court Arbitration Northern Europe
of of
CEPANI
Belgian Centre for Arbitration Mediation
and
CCI Chamber
Commerce
Industry
of and the Russian
of
Federation
CCIG Chamber Commerce
Industry Geneva
of and of
CIETAC China International Economic Trade Arbitration
and
Commission
CMEA Council for Mutual Economic Assistance (Eastern Europe)
(COMECON)
CPR Center for Public Resources
DIS Deutsche Institution für Schiedsgerichtbarkeit
EAA English Arbitration Act
ECA European Court Arbitration
of
ECAFE United Nations Economic Commission for Asia the
and
Far East
EDF European Development Fund
ERR Emergency Relief Rules
EU European Union
FAA French Arbitration Association
FOSFA Federation Oils, Seeds Fats Associations
of and
GAFTA Grain Feed Trade Association
and
GCC Geneva Chamber Commerce
of
HKIAC Hong Kong International Arbitration Centre
IACAC Inter-American Commercial Arbitration Commission
IBA International Bar Association
ICC International Chamber Commerce
of
ICCA International Council for Commercial Arbitration
ICDR International Center for Dispute Resolution
ICSID International Centre for the Settlement Investment
of
Disputes
JCAA Japan Commercial Arbitration Association
LCIA London Court International Arbitration
of
8
London Maritime Arbitration Association
LMAA
LME London Metal Exchange
MERCOSUR Common Market the Southern Cone
of
MICA Multilateral Investment Guarantee Agency
NAI Netherlands Arbitration Institute
OREMP Optional Rules for Emergency Measures Protection
of
PARP Pre-Arbitral Referee Procedure
PARR Pre-Arbitral Referee Rules
PCA Permanent Court Arbitration (The Hague)
of
SAP Summary Arbitration Proceedings
SCC Stockholm Chamber Commerce Arbitration Institute
of
SIAC Singapore International Arbitration Centre
UNCC United Nations Compensation Commission
UNCITRAL United Nations Commission for International Trade Law
UNECE United Nations Economic Commission for Europe
UNECAFE United Nations Economic Commission for Asia the
and
Far East
UNIDROIT International Institute for the Unification Private Law
of
WIPO World Intellectual Property Organisation
ZCC Zurich Chamber Commerce
of
General Abbreviations
AA Arbitration Act
AC Law Reports, House Lords (Appeal
of
Cases)
AO Arbitration Ordinance
AR Arbitration Rules
Arb J Arbitration Journal
ADR Alternative Dispute Resolution
ADRLJ Arbitration Dispute Resolution Law
and
Journal
All ER All England Law Reports
ALR Australian Law Reports
Am J Comp L American Journal Comparative Law
of
Am J Int'l L American Journal International Law
of
Am Rev Int'l Arb American Review International Arbitration
of
Arb Int Arbitration International
ASA Bulletin Swiss Arbitration Association Bulletin
BATIDER Banka Ticaret Hukuku Araýtirma
ve
Enstitüsü Dergisi
Boston U Intl LJ Boston University International Law Journal
BLR Building Law Reports
BYBIL British Yearbook International Law
of
CA Court Appeal England Wales
of of and
9