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Preface to the Second Edition
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xv |
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Foreword to the First Edition by Eric E. Bergsten
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xvii |
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1 Introduction to International Commercial Arbitration
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1 |
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A. Purpose
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1 |
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B. Defining Characteristics
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2 |
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1. Consent
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2 |
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2. Nongovernmental Decision Makers
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2 |
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3. A Final and Binding Award
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2 |
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C. Advantages of Arbitration
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3 |
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D. Disadvantages of Arbitration
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4 |
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E. The Regulatory Framework
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5 |
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F. Institutional Arbitration v. Ad Hoc Arbitration
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9 |
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G. Arbitral Institutions
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10 |
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1. The International Chamber of Commerce (ICC) International Court of Arbitration
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11 |
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2. The American Arbitration Association's (AAA) International Center for Dispute Resolution (ICDR)
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11 |
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3. The London Court of International Arbitration (LCIA)
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12 |
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4. Other Arbitral Institutions
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12 |
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H. Arbitrations Involving States
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13 |
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1. ICSID Arbitrations
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13 |
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2. The Permanent Court of Arbitration
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13 |
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I. Other Dispute Resolution Methods
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14 |
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1. Mediation
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14 |
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2. Conciliation
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15 |
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3. Neutral Evaluation
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15 |
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4. Expert Determination
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15 |
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5. Mini-Trials
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16 |
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6. Last-Offer Arbitration (Baseball Arbitration)
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16 |
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J. Conclusion
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16 |
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2 The Arbitration Agreement
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18 |
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A. Function and Purpose
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18 |
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1. Arbitration Clauses and Submission Agreements
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18 |
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2. Separability
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19 |
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B. Validity
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19 |
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1. The Writing Requirement
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21 |
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a. Recommended Interpretation of Articles II and VII
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24 |
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b. Amendment to Article 7 of UNCITRAL Model Law
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25 |
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c. U.N. Convention on Use of Electronic Communications
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28 |
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d. Other Article 7 Issues
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29 |
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e. Effect of the More Favorable Right Provision
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29 |
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2. A Defined Legal Relationship
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31 |
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3. Capable of Being Settled by Arbitration
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32 |
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4. Null and Void, Inoperable, or Incapable of Being Performed
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33 |
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a. Null and Void
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33 |
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b. Inoperable
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34 |
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c. Incapable of Being Performed
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34 |
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C. Binding Nonsignatories
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34 |
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1. Agency
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36 |
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2. Equitable Estoppel
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36 |
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3. Implied Consent
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37 |
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4. Group of Companies
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38 |
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5. Veil Piercing/Alter Ego
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39 |
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6. Timing of Objections
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42 |
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3 Drafting the Arbitration Agreement
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43 |
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A. Essential Requirements
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45 |
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1. Choice of Arbitrators
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46 |
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2. Seat of the Arbitration
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47 |
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3. Language of the Arbitration
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48 |
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4. Substantive Law
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48 |
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B. Additional Provisions
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49 |
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1. International Bar Association Rules on Taking Evidence
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49 |
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2. Preliminary Relief
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50 |
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3. Technical Expertise
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51 |
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4. Multistep Dispute Resolution Clauses
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51 |
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5. Dispositive Motions
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52 |
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6. Legal Fees and Costs
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53 |
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7. Confidentiality
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54 |
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8. Expanded Judicial Review
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55 |
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9. Waiver of State Immunity
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56 |
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10. Multiparty Agreements
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57 |
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C. Conclusion
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58 |
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4 Applicable Laws and Rules
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59 |
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A. Importance of the Law
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59 |
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B. Delocalization v. Territoriality
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60 |
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1. Arguments Favoring Delocalization
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60 |
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2. Arguments Opposing Delocalization
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61 |
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3. Some Modern Approaches to Delocalization
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61 |
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a. Sports Arbitrations
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62 |
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b. Online Arbitrations
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62 |
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C. The Lex Mercatoria
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64 |
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1. Definition of the Lex Mercatoria
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64 |
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2. Application of the Lex Mercatoria
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66 |
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a. Contracts between States
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66 |
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b. Contracts between a State and a Private Company
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67 |
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D. The Parties’ Choice of Law
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67 |
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1. The Law Governing the Arbitral Proceedings
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68 |
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2. The Rules Governing the Arbitral Proceedings
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69 |
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3. The Law Governing the Arbitration Agreement
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69 |
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4. The Law Governing Arbitrability
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72 |
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5. The Law Governing the Contract
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73 |
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a. National or International Law
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73 |
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b. Lex Mercatoria
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74 |
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c. Unrelated National Law
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74 |
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d. Dépeçage
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76 |
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e. Renvoi
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76 |
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f. Ex Aequo et Bono and Amiable Compositeur
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77 |
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E. When Parties Fail to Choose the Seat or the Governing Law
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78 |
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1. Failure to Choose a Seat
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79 |
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2. Failure to Choose a Governing Law
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79 |
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3. Conflicts of Laws
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80 |
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4. Voie Indirecte
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81 |
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5. Voie Directe
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81 |
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F. An Arbitrator's Duty to Apply the Law
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82 |
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1. Law or Equity
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82 |
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2. Duty to Render an Enforceable Award
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83 |
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3. Applying the Law
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83 |
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a. The Lex Arbitri
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83 |
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b. Mandatory Law
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84 |
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c. Mandatory Law and Public Policy
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84 |
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5 Judicial Assistance for Arbitration
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87 |
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A. Enforcement of Arbitration Agreements
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88 |
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1. Extent of Judicial Review
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88 |
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2. Competence-Competence
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91 |
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B. Anti-Suit Injunctions
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95 |
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1. Anti-Suit Injunctions in the United States
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96 |
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2. Anti-Suit Injunctions in Europe
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101 |
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C. Interim Measures
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105 |
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1. Kinds of Interim Measures
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105 |
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2. Tribunal or Court – Where to Go for Interim Relief?
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107 |
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3. Basis for Interim Measures
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110 |
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4. Enforcement of Interim Measures
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111 |
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D. Court Assistance in Obtaining Evidence
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112 |
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1. Procedural Orders
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112 |
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2. National Laws Concerning Court Assistance
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113 |
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3. Summons Issued by U.S. Arbitrators
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114 |
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4. Tribunal in the United States Seeking Evidence Outside the United States
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118 |
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5. Court Assistance in the United States to Foreign Tribunals
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119 |
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6. Conclusion
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120 |
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6 The Tribunal
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122 |
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A. Appointment of Arbitrators
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122 |
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1. How Many Arbitrators?
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122 |
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2. Qualifications
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123 |
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a. Knowledge and Experience
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123 |
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b. Lawyers or Nonlawyers
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123 |
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c. Professors as Arbitrators
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124 |
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d. Language Fluency
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125 |
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e. Availability
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125 |
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f. Reputation
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125 |
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g. Specifications and Requirements
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126 |
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3. Method of Selection
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126 |
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a. Three Arbitrators
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126 |
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i. The Rules
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126 |
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ii. The Practice
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127 |
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(1) Choosing the Party-Appointed Arbitrators (Coarbitrators)
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128 |
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(2) Choosing the Presiding Arbitrator (Chair of the Tribunal)
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130 |
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b. A Sole Arbitrator
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132 |
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c. Ad Hoc Arbitration
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133 |
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4. Interviewing Prospective Arbitrators
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134 |
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B. Obligations of Arbitrators
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135 |
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1. Independence and Impartiality
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135 |
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a. The IBA Guidelines on Conflicts of Interest
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136 |
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i. Part I: The General Standards
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137 |
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ii. Part II: Practical Application of the General Standards
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138 |
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b. The 1987 IBA Rules of Ethics for Arbitrators
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141 |
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c. American Arbitration Association–American Bar Association Code of Ethics for Arbitrators in Commercial Disputes
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142 |
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d. Duty to Investigate
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144 |
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2. Other Obligations
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145 |
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C. Challenges to the Arbitrator
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147 |
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D. Flawed Conduct of Arbitrators
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151 |
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E. Replacement of Arbitrators
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153 |
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F. Arbitrator Immunity
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153 |
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G. Costs and Fees
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156 |
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7 The Arbitral Proceedings
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157 |
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A. Beginning the Arbitration
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158 |
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B. Preliminary Matters
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160 |
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C. Written Submissions
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166 |
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D. The Hearing
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167 |
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1. Chair Can Decide Procedural Issues
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167 |
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2. Scheduling the Hearings
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168 |
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3. Seat of the Arbitration
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168 |
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4. Language of the Arbitration
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169 |
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5. Local Bar Requirements
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169 |
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6. Closed Hearings
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169 |
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7. Record of Proceedings
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170 |
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8. Technology
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170 |
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9. Time Limits per Side
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170 |
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10. Default of Appearance
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171 |
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11. Expedited Proceedings
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172 |
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E. Presenting Evidence
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172 |
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1. IBA Rules of Evidence
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173 |
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2. Burden of Proof
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174 |
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3. Documentary Evidence
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175 |
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a. Hearsay Evidence
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176 |
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b. Authentication
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176 |
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c. Document Requests
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176 |
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d. Arbitrator Discretion
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179 |
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4. Fact Witnesses
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179 |
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a. Testimony Prior to the Hearing
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179 |
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b. Witness Statements
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180 |
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c. Who Can Testify
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180 |
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d. Meeting with Witnesses
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181 |
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e. Examining Witnesses
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181 |
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f. Arbitrator Intervention
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184 |
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g. Availability of Witnesses
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185 |
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h. Compelling Witness Testimony
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185 |
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5. Expert Witnesses
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185 |
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F. Closing the Hearing
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188 |
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G. Post-Hearing Proceedings
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188 |
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8 The Award
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189 |
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A. Difference between “Orders” and “Awards”
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189 |
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B. Types of Awards
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190 |
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1. Final Award
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190 |
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2. Partial and Interim Awards
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191 |
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3. Consent Award
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192 |
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4. Default Award
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193 |
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C. Validity of the Award
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194 |
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1. Formalities
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194 |
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2. Communication
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194 |
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3. Time Limits
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195 |
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4. Concurring and Dissenting Views
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195 |
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5. Scrutiny of the Draft Award
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195 |
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6. Finality, Clarity, and Scope
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196 |
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D. Remedies and Costs
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196 |
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1. Monetary Damages
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196 |
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2. Interest
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196 |
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3. Other Remedies
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197 |
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4. Costs
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197 |
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E. Res Judicata Effect of the Award
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198 |
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F. Confidentiality of the Award
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199 |
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G. Post-Award Proceedings
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201 |
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9 Attempts to Set Aside an Award
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203 |
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A. Methods of Challenge
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203 |
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B. Grounds of Challenge
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205 |
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1. Jurisdictional Challenges
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205 |
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2. Procedural Challenges
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206 |
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3. Challenges Based on the Merits
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207 |
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C. Time Limitations
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209 |
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D. Effects of a Successful Challenge
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209 |
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10 Enforcement of the Award
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211 |
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A. Application of International Conventions
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211 |
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B. Principles Governing Recognition and Enforcement
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212 |
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C. Requirements for Enforcement
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213 |
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1. Scope
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213 |
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2. Jurisdiction and Forum Non Conveniens
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214 |
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3. Procedures for Enforcement
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216 |
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D. Grounds for Nonenforcement under the Convention
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217 |
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1. Incapacity and Invalidity
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217 |
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2. Lack of Notice or Fairness
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220 |
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3. Arbitrator Acting in Excess of Authority
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220 |
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4. The Tribunal or the Procedure Is Not in Accord with the Parties’ Agreement
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222 |
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5. The Award Is Not Yet Binding, or Has Been Set Aside
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222 |
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a. A Binding Award
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222 |
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b. Effect of a Vacated Award
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222 |
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c. The Article V(1)(e) Loophole
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223 |
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d. The Court's Discretion to Ignore the Article V(1)(e) Loophole
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224 |
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e. Deference to Local Law under Article VII
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224 |
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f. Enforcement of Vacated Awards
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224 |
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6. The Last Two Defenses under Article V
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226 |
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a. Subject Matter Not Arbitrable
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226 |
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b. Public Policy
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228 |
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E. Conclusion
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229 |
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11 Investment Arbitration
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230 |
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A. Growth of Foreign Investment and Investment Arbitration
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230 |
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B. Investor Protection
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231 |
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1. The Washington (ICSID) Convention
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231 |
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a. Background
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231 |
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b. ICSID Jurisdictional Requirements
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232 |
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i. Consent
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232 |
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ii. Contracting State or National of Another Contracting State
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233 |
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iii. Legal Disputes and Investments
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235 |
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c. Special Features of ICSID Arbitrations
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236 |
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i. Delocalization
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236 |
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ii. Recognition, Enforcement, and Execution
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236 |
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iii. Publication of Awards
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238 |
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d. Additional Facility Rules
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238 |
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2. Bilateral Investment Treaties
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239 |
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a. Background
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239 |
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b. Substantive Rights
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240 |
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c. Enforcing Rights under a BIT
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241 |
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3. Multilateral Investment Treaties
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242 |
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4. Investor Protection Legislation
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243 |
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C. Overlap of Treaty-Based Rights and Contract-Based Rights
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243 |
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1. The Source of the Right
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243 |
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2. Umbrella Clauses
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245 |
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3. Distinguishing Contract and Treaty Claims
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247 |
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4. Coordinating Contracts with Treaties
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250 |
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Appendices
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A. The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (The New York Convention) (1958)
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253 |
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B. UNCITRAL Model Law on International Commercial Arbitration (original 1985 version)
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259 |
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C. Revised Articles of the UNCITRAL Model Law on International Commercial Arbitration (2006)
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273 |
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D. UNCITRAL Recommendation Regarding the Interpretation of Article II, Paragraph 2, and Article VII, Paragraph 1, of the New York Convention
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279 |
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E. IBA Rules on the Taking of Evidence in International Arbitration
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282 |
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F. IBA Rules of Ethics for International Arbitrators 1987
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309 |
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G. IBA Guidelines on Conflicts of Interest in International Arbitration
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314 |
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H. The AAA–ABA Code of Ethics for Arbitrators in Commercial Disputes
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332 |
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I. Model Clauses
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346 |
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J. Useful Arbitration Websites
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349 |
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Index
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357 |
