ICC's New Arbitration Rules: Cheaper, Better, Faster?
International arbitration clauses are ubiquitous in most contracts. And research shows that the international chamber of commerce or ICC is the most popular arbitration center. So for those of you who go by the ICC – here’s some good news. it has made several unique changes to its arbitration rules – for instance allowing consolidation of claims and the provision of an emergency arbitrator. This not only puts ICC ahead of others such as the Singapore International Arbitration Centre or the London Court of International Arbitration; it, more importantly, cuts down time and cost of dispute resolution. Payaswini Upadhyay gets you the details.
A 2010 survey says that 70% of companies include an alternative dispute resolution mechanism in contracts to avoid court delays. This alternative dispute resolution or arbitration is often governed by international rules to provide neutrality especially in contracts with foreign parties. Of the half a dozen International Arbitration Centres, the International Chamber of Commerce or the ICC is the most commonly used one.
To keep pace with the growing needs of business, the ICC has made several unique changes in its arbitration rules that will become effective next year.
Senior Associate, Clifford Chance
“Generally, from arbitration users, the main criticisms are that it is quite costly, it takes a while, lawyers are taking control of the process and it doesn’t really address the business needs of the users. And really what the new rules are trying to do now is to address these concerns of the users.”
The 3 most important changes that the ICC has made are in:
Tackling Jurisdictional Challenges
Emergency Arbitrator Procedure
And most importantly- Multi-Party and Multi-Contract Disputes
On the jurisdictional challenge front, the changes are designed to save time. Under the current rule, if a party to the contract questions the ICC's jurisdiction in spite of the contract specifying it as the arbitrator, the challenge proceeds in 4 steps
Procedural Step Time
Claimant's Request for Arbitration Day ‘X’
Respondent's Answer &n