A recent decision of the German Federal Supreme Court dated 8 May 2014 (case reference no. III ZR 371/12) again calls for a debate on the binding effect of an arbitration agreement for a non-signatory – a well-known and highly-debated phenomenon since the Dow Chemical arbitration. The Dow Chemical case According to the award rendered…
The potential intervention of Indian courts over foreign seated arbitrations is a hot topic in international arbitration. On 28 May 2014, the Supreme Court of India (“SCI”) heated up the debate by handing down a judgment in Reliance Industries Limited & Anr v Union of India. The SCI found that Indian courts had no jurisdiction…
In a case my business had a few years ago, the parties’ contract specified expedited procedures under the AAA’s Commercial Arbitration Rules. Immediately after the request for arbitration had been filed, the case manager of the ICDR, the AAA’s international branch, sent the parties a letter to warn us about this.(1) She pointed out that…
Co-authored by Georg von Segesser, Benjamin Moss and Aileen Truttmann, Schellenberg Wittmer An arbitral tribunal’s relationship to state courts remains a complex and often contested topic. A particularly interesting question in this regard is whether a party to arbitral proceedings should be able to seek recovery of damages it was ordered to pay in state…
Uniform jurisprudence on Sovereign immunity still seems a long distance away in international sphere for the reason that the national laws and approaches adopted by the States govern this issue. There have been attempts in the past to somehow streamline the approach by adopting legislations and, in a broader sense, by bringing a multilateral treaty….
Sandra De Vito Bieri with Anton Vucurovic 1)Sandra De Vito Bieri, attorney at law, LL.M., is a Partner and Co-Head of the Arbitration Practice Group of Bratschi Wiederkehr & Buob in Zurich and Member of the Arbitration Court of the Swiss Chambers’ Arbitration Institution; Anton Vucurovic, attorney at law, LL.M., is a Partner and Head…
By Justin D’Agostino, Jessica Booth and Tracy Wu, Herbert Smith Freehills Ever since the internal fight between CIETAC (Beijing) and its Shanghai and Shenzhen sub-commissions became public in May 2012, the internal jurisdictional dispute between Beijing and the two sub-commissions has loomed large, resulting in the latter two declaring independence, re-naming themselves and introducing new…
By Karl Pörnbacher and Lars Pütz, Hogan Lovells LLP An arbitral tribunal’s preliminary ruling on its jurisdiction can be challenged by application for state court decision according to Sec. 1040 (3) German Code of Civil Procedure, following the example of Art. 16 of the UNCITRAL Model Law. Such a case has been decided by the…
As reported earlier, the US Supreme Court has recently adjudicated on the issue of the standard of review in relation to arbitration agreements in international investment arbitration. It is a fact that the majority of the Court has decided that deference should be given to arbitral tribunals to examine questions of procedural conditions, as it…
Facts The applicant, Darie Engineering (Darie), and the first respondent, Alstom Transport SA (Alstom), had a business relationship spanning over 20 years in which Darie acted as Alstom’s representative in the transportation sector in Israel. Darie filed an action against Alstom and the second respondent, Alstom Israel Ltd. (the Respondents), in the Israeli District Court,…
Introduction In BG Group v. Republic Argentina, a divided U.S. Supreme Court (“the Court”) continued to hold that arbitrators are the proper decision makers in gateway questions of arbitrability, not courts. The issue here concerned whether or not the local litigation requirement in the U.K-Argentina BIT was a procedural prerequisite to investor-state arbitration, or a…
On 28 February 2014, the Regional Court of Munich rendered a decision in the matter opposing German speed skater Claudia Pechstein to the ISU (Judgment of the Regional Court of Munich I, Case Number 37 O 28331/12; the judgment is not final). This decision is sending waves through the sports arbitration community. In a matter…
Defective arbitration clauses are certainly uncommon, but do appear on a recurring basis in domestic and international arbitration practice. Many practitioners can go their entire professional lives without seeing any, while others encounter two or three cases over their career. The types of defective arbitration agreements or clauses are varied. Obviously, in most cases the…
Arbitration proceedings sometimes spawn a host of parallel court proceedings. It is not unheard for parties to seek to instrumentalise courts, sometimes with the complicity of the courts themselves, to escape the jurisdiction of an arbitral tribunal. Such conduct may, however, expose parties to liability for breach of the arbitration agreement, as was confirmed by…
and Niyati Gandhi, National Law School of India University in Bangalore The issues arising out of allegations of fraud in international commercial arbitration can be listed by way of two closely connected questions: 1) Do arbitral tribunals have the substantive jurisdiction to make determinations upon allegations of fraud? 2) If the contract containing an arbitration…
The December 2013 decision of the English Commercial Court (the Court) in Habas Sinai Ve Tibbi Gazlar Istihsal Andustrisi AS and VSC Steel Company Ltd [2013] EWHC 4071 (Comm) (Habas) summarised the guidance provided in Sulamérica Cia Nacional De Seguros S.A. and others v Enesa Engenharia S.A [2012] EWCA Civ 638 (Sulamérica) and Arsanovia Ltd…
It has been over two years since the DC Circuit Court of Appeals (“Circuit Court”) vacated an award in a bilateral investment treaty arbitration (BG Group PLC v. Republic of Argentina (UNCITRAL)) concluding that the panel did not have authority to adjudicate the dispute because the claimant had not satisfied a pre-arbitration requirement, namely, litigating…
A recent amendment to Dubai International Financial Centre (DIFC) Law No. 1 of 2008, the DIFC Arbitration Law, brings the DIFC into line with the New York Convention (on the recognition and enforcement of foreign arbitral awards, done in New York on 10 June 1958). DIFC Law No. 6 of 2013, the Arbitration Law Amendment…
The Brazilian Superior Court of Justice (“STJ”) has issued, on 19 June 2013, a landmark decision addressing the principle of Kompetenz-Kompetenz (Resp. no. 1,278,852-MG Samarco Mineração S/A v Jerson Valadares da Cruz). The decision deals with the allocation of competence between arbitral tribunals and national courts to decide on the validity of an arbitration agreement….
A judgment of the European Court of 17 October 2013 (C-184/12) honors gold plated provisions when considered mandatory. Member state courts are allowed to consider their national gold-plating (the practice of implementing rules tougher than the minimum required by the EU) as being of overriding mandatory character. Arbitration clause In 2005, Unamar, a Belgian commercial…
“The Gang of Four” (and I’m not making this up) is the name taken by four of Europe’s leading arbitration institutions to describe their loose affiliation for discussing common issues and sharing best practices. The “Gang” consists of the German Institution of Arbitration (DIS), the Milan Chamber of Arbitration, the Arbitration Institution of the Stockholm…
In a recent decision, the Mauritian Supreme Court has roundly rejected a challenge to an arbitrator’s jurisdiction brought under section 20 of the Mauritian International Arbitration Act 2008, and in doing so touched upon the interesting question of the standard of review in such cases. Section 20 of the International Arbitration Act 2008 (“IAA”) allows…
The facts On January 9, 2008, in the middle of the Amazon Rainforest, the dam of a hydroelectric power plant ruptured liberating 3.1 billion liters of water and precipitating an environmental mishap. Brazilian authorities hastily cornered the electricity generation company. The electricity generation company hastily pointed the finger at the builder of the hydroelectric power…
and Thomas Baconin, Orange, trainee in International Expertise & Conflict Resolution, Litigation, CSR & Real Estate On the 15th of April in the prestigious venue of the Hotel de Ville in Paris, the non-profit organization Paris Place d’Arbitrage introduced its new ad hoc “Paris Arbitration Rules”, in front of 200 law practitioners from the arbitration…
