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The Principles and Practice of International Commercial Arbitration, 2nd Edition

The Principles and Practice of International Commercial Arbitration, 2nd Edition

Author: Margaret L. Moses
Publisher: Cambridge University Press
ISBN: 9781107401334
Published In: May 2012
Format: Paperback , 392 pages
Jurisdiction: International ? Disclaimer:
Countri(es) stated herein are used as reference only

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This book provides the reader with immediate access to understanding the world of international arbitration. Arbitration has become the dispute resolution method of choice in international transactions. This book explains how and why arbitration works. 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, but comprehensive in its coverage of the basic requirements, including the most recent changes in arbitration laws, rules and guidelines. The second edition includes updates on rules and guidelines, such as the arbitration rules of the ICC, the SCC, the ACICA and UNCITRAL, as well as the 2010 IBA Rules on Taking of Evidence in International Arbitration. The author includes insights from numerous international arbitrators and counsel, who tell firsthand about their own experiences of arbitration and their views of best practices.

• Covers the latest changes in arbitration laws, rules and guidelines

• Short and readable and includes comments of arbitrators and counsel on their views and experience of arbitration

• Provides a comprehensive overview of international commercial arbitration

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