The Principles and Practice of International Commercial Arbitration

415 Pages·2008·2.61 MB·English

by  Margaret L. Moses

THE PRINCIPLES AND PRACTICE OF INTERNATIONAL
COMMERCIAL ARBITRATION
SECOND EDITION
The Principles and Practice of International Commercial Arbitration provides
the reader with immediate access to understanding the world of international
arbitration.Arbitrationhasbecomethedisputeresolutionmethodofchoicein
internationaltransactions.Thisbookexplainshowandwhyarbitrationworks.
It provides the legal and regulatory framework for international arbitration,
as well as practical strategies to follow and pitfalls to avoid. It is short and
readable,butcomprehensiveinitscoverageofthebasicrequirements,including
the most recent changes in arbitration laws, rules, and guidelines. The second
editionincludesupdatesonrulesandguidelines,suchasthearbitrationrulesof
theICC,theSCC,theACICA,andUNCITRAL,aswellasthe2010IBARules
ontheTakingofEvidenceinInternationalArbitration.Inthisbook,theauthor
includesinsightsfromnumerousinternationalarbitratorsandcounsel,whotell
firsthand about their own experiences with arbitration and their views of the
bestarbitrationpractices.Throughoutthebook,theprinciplesofarbitrationare
supported and explained by the practice, providing a concrete approach to an
importantmeansofresolvingdisputes.
Margaret L. Moses is Professor of Law at Loyola University Chicago School
of Law. She teaches international commercial arbitration, international busi-
ness transactions, European community law, international trade finance, and
contracts. Professor Moses is also the Director of the International Program
at Loyola and coaches the Vis Moot International Arbitration teams, which
competeinViennaandHongKong.
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:37 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:37 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
The Principles and Practice
of International Commercial
Arbitration
Second Edition
Margaret L. Moses
LoyolaUniversityChicagoSchoolofLaw
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:37 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
cambridgeuniversitypress
Cambridge,NewYork,Melbourne,Madrid,CapeTown,
Singapore,Sa˜oPaulo,Delhi,MexicoCity
CambridgeUniversityPress
32AvenueoftheAmericas,NewYork,ny10013-2473,usa
www.cambridge.org
Informationonthistitle:www.cambridge.org/9781107401334
(cid:2)C MargaretL.Moses2008,2012
Thispublicationisincopyright.Subjecttostatutoryexception
andtotheprovisionsofrelevantcollectivelicensingagreements,
noreproductionofanypartmaytakeplacewithoutthewritten
permissionofCambridgeUniversityPress.
Firsteditionpublished2008
Secondeditionpublished2012
PrintedintheUnitedStatesofAmerica
AcatalogrecordforthispublicationisavailablefromtheBritishLibrary.
LibraryofCongressCataloginginPublicationdata
Moses,MargaretL.
Theprinciplesandpracticeofinternationalcommercial
arbitration/MargaretL.Moses.–2nded.
p. cm.
Includesbibliographicalreferencesandindex.
isbn978-1-107-00878-6(hardback)–isbn978-1-107-40133-4(pbk.)
1.Arbitrationandaward,International. I.Title.
k2400.m65 2012
341.5′22–dc23 2011044158
isbn978-1-107-00878-6Hardback
isbn978-1-107-40133-4Paperback
CambridgeUniversityPresshasnoresponsibilityforthepersistenceoraccuracyofurlsfor
externalorthird-partyInternetwebsitesreferredtointhispublicationanddoesnotguarantee
thatanycontentonsuchwebsitesis,orwillremain,accurateorappropriate.
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:37 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
Contents
PrefacetotheSecondEdition pagexv
ForewordtotheFirstEditionbyEricE.Bergsten xvii
1 IntroductiontoInternationalCommercialArbitration 1
A. Purpose 1
B. DefiningCharacteristics 2
1. Consent 2
2. NongovernmentalDecisionMakers 2
3. AFinalandBindingAward 2
C. AdvantagesofArbitration 3
D. DisadvantagesofArbitration 4
E. TheRegulatoryFramework 5
F. InstitutionalArbitrationv.AdHocArbitration 9
G. ArbitralInstitutions 10
1. TheInternationalChamberofCommerce(ICC)
InternationalCourtofArbitration 11
2. TheAmericanArbitrationAssociation’s(AAA)
InternationalCenterforDisputeResolution(ICDR) 11
3. TheLondonCourtofInternationalArbitration(LCIA) 12
4. OtherArbitralInstitutions 12
H.ArbitrationsInvolvingStates 13
1. ICSIDArbitrations 13
2. ThePermanentCourtofArbitration 13
I. OtherDisputeResolutionMethods 14
1. Mediation 14
2. Conciliation 15
3. NeutralEvaluation 15
4. ExpertDetermination 15
v
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:43 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
vi CONTENTS
5. Mini-Trials 16
6. Last-OfferArbitration(BaseballArbitration) 16
J. Conclusion 16
2 TheArbitrationAgreement 18
A. FunctionandPurpose 18
1. ArbitrationClausesandSubmissionAgreements 18
2. Separability 19
B. Validity 19
1. TheWritingRequirement 21
a. RecommendedInterpretationofArticlesIIandVII 24
b. AmendmenttoArticle7ofUNCITRALModel
Law 25
c. U.N.ConventiononUseofElectronic
Communications 28
d. OtherArticle7Issues 29
e. EffectoftheMoreFavorableRightProvision 29
2. ADefinedLegalRelationship 31
3. CapableofBeingSettledbyArbitration 32
4. NullandVoid,Inoperable,orIncapableofBeing
Performed 33
a. NullandVoid 33
b. Inoperable 34
c. IncapableofBeingPerformed 34
C. BindingNonsignatories 34
1. Agency 36
2. EquitableEstoppel 36
3. ImpliedConsent 37
4. GroupofCompanies 38
5. VeilPiercing/AlterEgo 39
6. TimingofObjections 42
3 DraftingtheArbitrationAgreement 43
A. EssentialRequirements 45
1. ChoiceofArbitrators 46
2. SeatoftheArbitration 47
3. LanguageoftheArbitration 48
4. SubstantiveLaw 48
B. AdditionalProvisions 49
1. InternationalBarAssociationRulesonTaking
Evidence 49
2. PreliminaryRelief 50
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:43 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
CONTENTS vii
3. TechnicalExpertise 51
4. MultistepDisputeResolutionClauses 51
5. DispositiveMotions 52
6. LegalFeesandCosts 53
7. Confidentiality 54
8. ExpandedJudicialReview 55
9. WaiverofStateImmunity 56
10. MultipartyAgreements 57
C. Conclusion 58
4 ApplicableLawsandRules 59
A. ImportanceoftheLaw 59
B. Delocalizationv.Territoriality 60
1. ArgumentsFavoringDelocalization 60
2. ArgumentsOpposingDelocalization 61
3. SomeModernApproachestoDelocalization 61
a. SportsArbitrations 62
b. OnlineArbitrations 62
C. TheLexMercatoria 64
1. DefinitionoftheLexMercatoria 64
2. ApplicationoftheLexMercatoria 66
a. ContractsbetweenStates 66
b. ContractsbetweenaStateandaPrivateCompany 67
D. TheParties’ChoiceofLaw 67
1. TheLawGoverningtheArbitralProceedings 68
2. TheRulesGoverningtheArbitralProceedings 69
3. TheLawGoverningtheArbitrationAgreement 69
4. TheLawGoverningArbitrability 72
5. TheLawGoverningtheContract 73
a. NationalorInternationalLaw 73
b. LexMercatoria 74
c. UnrelatedNationalLaw 74
d. De´pec¸age 76
e. Renvoi 76
f. ExAequoetBonoandAmiableCompositeur 77
E. WhenPartiesFailtoChoosetheSeatortheGoverning
Law 78
1. FailuretoChooseaSeat 79
2. FailuretoChooseaGoverningLaw 79
3. ConflictsofLaws 80
4. VoieIndirecte 81
5. VoieDirecte 81
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:43 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
viii CONTENTS
F. AnArbitrator’sDutytoApplytheLaw 82
1. LaworEquity 82
2. DutytoRenderanEnforceableAward 83
3. ApplyingtheLaw 83
a. TheLexArbitri 83
b. MandatoryLaw 84
c. MandatoryLawandPublicPolicy 84
5 JudicialAssistanceforArbitration 87
A. EnforcementofArbitrationAgreements 88
1. ExtentofJudicialReview 88
2. Competence-Competence 91
B. Anti-SuitInjunctions 95
1. Anti-SuitInjunctionsintheUnitedStates 96
2. Anti-SuitInjunctionsinEurope 101
C. InterimMeasures 105
1. KindsofInterimMeasures 105
2. TribunalorCourt–WheretoGoforInterimRelief? 107
3. BasisforInterimMeasures 110
4. EnforcementofInterimMeasures 111
D. CourtAssistanceinObtainingEvidence 112
1. ProceduralOrders 112
2. NationalLawsConcerningCourtAssistance 113
3. SummonsIssuedbyU.S.Arbitrators 114
4. TribunalintheUnitedStatesSeekingEvidenceOutside
theUnitedStates 118
5. CourtAssistanceintheUnitedStatestoForeign
Tribunals 119
6. Conclusion 120
6 TheTribunal 122
A. AppointmentofArbitrators 122
1. HowManyArbitrators? 122
2. Qualifications 123
a. KnowledgeandExperience 123
b. LawyersorNonlawyers 123
c. ProfessorsasArbitrators 124
d. LanguageFluency 125
e. Availability 125
f. Reputation 125
g. SpecificationsandRequirements 126
3. MethodofSelection 126
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:43 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
CONTENTS ix
a. ThreeArbitrators 126
i. TheRules 126
ii. ThePractice 127
(1) ChoosingtheParty-AppointedArbitrators
(Coarbitrators) 128
(2) ChoosingthePresidingArbitrator(Chairof
theTribunal) 130
b. ASoleArbitrator 132
c. AdHocArbitration 133
4. InterviewingProspectiveArbitrators 134
B. ObligationsofArbitrators 135
1. IndependenceandImpartiality 135
a. TheIBAGuidelinesonConflictsofInterest 136
i. PartI:TheGeneralStandards 137
ii. PartII:PracticalApplicationoftheGeneral
Standards 138
b. The1987IBARulesofEthicsforArbitrators 141
c. AmericanArbitrationAssociation–AmericanBar
AssociationCodeofEthicsforArbitratorsin
CommercialDisputes 142
d. DutytoInvestigate 144
2. OtherObligations 145
C. ChallengestotheArbitrator 147
D. FlawedConductofArbitrators 151
E. ReplacementofArbitrators 153
F. ArbitratorImmunity 153
G. CostsandFees 156
7 TheArbitralProceedings 157
A. BeginningtheArbitration 158
B. PreliminaryMatters 160
C. WrittenSubmissions 166
D. TheHearing 167
1. ChairCanDecideProceduralIssues 167
2. SchedulingtheHearings 168
3. SeatoftheArbitration 168
4. LanguageoftheArbitration 169
5. LocalBarRequirements 169
6. ClosedHearings 169
7. RecordofProceedings 170
8. Technology 170
9. TimeLimitsperSide 170
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:43 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012
x CONTENTS
10. DefaultofAppearance 171
11. ExpeditedProceedings 172
E. PresentingEvidence 172
1. IBARulesofEvidence 173
2. BurdenofProof 174
3. DocumentaryEvidence 175
a. HearsayEvidence 176
b. Authentication 176
c. DocumentRequests 176
d. ArbitratorDiscretion 179
4. FactWitnesses 179
a. TestimonyPriortotheHearing 179
b. WitnessStatements 180
c. WhoCanTestify 180
d. MeetingwithWitnesses 181
e. ExaminingWitnesses 181
f. ArbitratorIntervention 184
g. AvailabilityofWitnesses 185
h. CompellingWitnessTestimony 185
5. ExpertWitnesses 185
F. ClosingtheHearing 188
G. Post-HearingProceedings 188
8 TheAward 189
A. Differencebetween“Orders”and“Awards” 189
B. TypesofAwards 190
1. FinalAward 190
2. PartialandInterimAwards 191
3. ConsentAward 192
4. DefaultAward 193
C. ValidityoftheAward 194
1. Formalities 194
2. Communication 194
3. TimeLimits 195
4. ConcurringandDissentingViews 195
5. ScrutinyoftheDraftAward 195
6. Finality,Clarity,andScope 196
D. RemediesandCosts 196
1. MonetaryDamages 196
2. Interest 196
3. OtherRemedies 197
4. Costs 197
Downloaded from Cambridge Books Online by IP 14.139.43.12 on Mon Oct 08 07:02:43 BST 2012.
http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511920073
Cambridge Books Online © Cambridge University Press, 2012