Arbitration Clause / Constitution of the Tribunal Arbitration Agreement - Jurisdiction of the Arbitral

17 Pages·2016·0.1 MB·English

InternationalCommercialArbitration(FS2016)
Arbitration Clause /
Constitution of the Tribunal
FelixDasser([email protected])
March22,2016
FelixDasser-InternationalCommercialArbitration-FS2016 |
Arbitration Agreement -
Jurisdiction of the Arbitral
Tribunal
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 2
ArbitrationAgreement(1|3)
Definition:
"Thearbitrationagreementisanagreementwherebytwoor
morepartiesagreethatadispute,whichhasarisenormay
arisebetweentheminconnectionwithaparticularlegal
relationship,willbefinallysettledbyoneormorearbitrators."
(Girsberger|Voser,54)
cf.DFT138III29c.2.2.3
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 3
1
ArbitrationAgreement(2|3)
Coreelements:
 Obligationtoarbitrate
 Jurisdictionofanarbitrationtribunal
 Exclusionofnationalcourts
Arbitrationclause(usual)vs.submissionagreement(rare)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 4
ArbitrationAgreement(3|3)
Legalnature
 DFT116Ia56c.3a:ratherprocedural
 Contraryview:Mixed–partlysubstantive,partlyprocedural
• Substantive:obligationsbetweentheparties
• Procedural:exclusionofstatecourts;enforceabilityofaward
 Notreallyrelevant/decisive
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 5
ValidityoftheArbitrationAgreement
Requirements:
 Form
 Essentialelements
 Objectivearbitrability
 Subjectivearbitrability
Basis:Article178PILA
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 6
2
Form
Article178(1)PILA
"Thearbitrationagreementmustbemadeinwriting,by
telegram,telex,telecopieroranyothermeansof
communicationwhichpermitsittobeevidencedbyatext."
 Nosignaturerequired
 Useoftextbyallpartiestotheoriginalagreement
(reciprocalwritingrequirement)?
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 7
SubstantiveValidity
Article178(2)PILA:favorvaliditatis
 Lawchosenbytheparties,or
 Lawgoverningthesubject-matter,or
 Swisslaw
 (lawoftheparties'domiciles?–cf.Article177(2)PILA)
 (generalprinciplesofarbitrationlaw?)
 Swisslaw:Arbitrationclausealsovalidifcontainedinother
documentsreferencedinthesignedcontract(general
conditions)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 8
EssentialElements(1|2)
1. Consenttoreferdisputestoarbitration
(DFT129III675E.2.3)
 Restrictiveinterpretationconcerningconsenttoreferto
arbitrationingeneral
 Oncesuchgeneralconsentisestablished:applicationofthe
generalrulesforinterpretationofcontracts;presumptionthat
partieswantedthearbitraltribunaltohavejurisdictionto
adjudicateallaspectsoftheirdispute.
(DFT138III681c.4.4:"principleofutility")
 Watchoutforcarve-outs!
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 | 9
3
EssentialElements(2|2)
2. Designationofthelegalrelationship
 Designationofexistingdisputeorlegalrelationshipoutof
whichdisputesmightpossiblyarise
 E.g.:"alldisputesarisingfromorinconnectionwiththe
Agreement"
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |10
AdditionalElements
 Seat(important!)
 Adhocvs.institutionalarbitration
 Compositionofthearbitraltribunal
 Languageofthearbitration
 Applicablelaw
 Provisionsformulti-partyproceedings
 Jurisdictionforinterimrelief
 Preliminaryalternativedisputeresolutionmechanisms(ADR)
• Issueofenforceability(FT4A_18/2007ofJune6,2007c.4.3)
 (Waiverofrighttochallenge:cf.Article192PILA)
 Confidentiality,proceduralprovisions
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |11
Checklist(IBAGuidelinesforDrafting
Int.Arb. Clauses2010–BasicGuidelines)
Thepartiesshould
1. decidebetweeninstitutionalandadhocarb.;
2. selectasetofarb.rulesandusetherecommendedmodelclauseasa
startingpoint;
3. notlimitthescopeofdisputessubjecttoarb.;
4. selecttheplaceofarb.;
5. specifythenumberofarbitrators;
6. Specifythemethodofselectionandreplacementofarbitratorsand,
whenadhocarb.ischosen,anappointingauthority;
7. specifythelanguage;
8. specifytherulesoflawgoverningthecontractandanysubsequent
disputes.
(http://www.ibanet.org/Publications/publications_IBA_guides_and_free_materials.aspx)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |12
4
Example(1|4)
SwissRules2012
"Anydispute,controversyorclaimarisingoutof,orinrelationto,this
contract, including the validity, invalidity, breach, or termination
thereof,shallbesettledbyarbitrationinaccordancewiththeSwiss
RulesofInternationalArbitrationoftheSwissChambers’Arbitration
InstitutioninforceonthedateonwhichtheNoticeofArbitrationis
submittedinaccordancewiththeseRules.
[…]"
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |13
Example(2|4)
ICCRules2012
"Alldisputesarisingoutoforinconnectionwiththepresentcontract
shall be finally settled under the Rules of Arbitration of the
International Chamber of Commerce by one or more arbitrators
appointedinaccordancewiththesaidRules.
[...]"
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |14
Example(3|4)
LiechtensteinRules(2012)-Foundations
"Anydispute,controversyorclaimarisingbetweenthefoundation,
itsexecutivebodies,thefounderorbeneficiariesinrelationtothe
foundation,itsformation,activityorliquidation,includingthe
existenceorscopeofabeneficialinterest,thedesignationof
beneficiaries,thevalidity,invalidity,amendmentordissolutionofthe
foundation,appealofdecisions,andsupervisorymeasures,shallbe
resolvedbyarbitrationinaccordancewiththeRulesofArbitrationof
theLiechtensteinChamberofCommerceandIndustrytothe
exclusionofthejudicialauthorities.
[...]"
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |15
5
[CONTINUEDFROMLASTSLIDE]"Inanyeventbyacceptingabeneficial
interest,thebeneficiaryshallsubmittothisarbitrationagreement.The
foundationmaycalluponthebeneficiarytoconfirmthisbysignature.
Refusalofthisconfirmationshallbedeemedawaiverofthebeneficial
interest.
[...]
Ifapartyisindigent,thefoundationmayinitsdiscretionfortheduration
oftheproceedingsprovisionallyassumethecostsoftheproceedings,
includingadvancesoncostsandreasonablerepresentationofthat
party,reservingtherighttoreclaimthesecostsafteradecisionofthe
arbitraltribunalonthefinalobligationtobearthecosts."
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |16
Example(4|4)
Standardadditionalelements
"Thenumberofarbitratorsshallbe...[oneorthree]"
"Theseatofthearbitrationshallbein...[cityinSwitzerland,
unlessthepartiesagreeonacityabroad]"
"Thearbitralproceedingsshallbeconductedin...[insert
desiredlanguage]"
"Thesubstantivelawof...isapplicabletothedispute."
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |17
ObjectiveArbitrability
 Article177(1)PILA:"Anydisputeoffinancialinterestmaybethe
subjectofanarbitration."
 Substantiveruleofinternationalprivatelaw
 Notarbitrable:e.g.
• Familylawmattersconcerningstatus
• Claimsofthedebtcollectionprocedureinitsstrictestsense("rein
betreibungsrechtlicheKlagen"),includingsummaryproceedingson
dismissalofobjection("Rechtsöffnungsverfahren")pursuanttoArticle
82oftheFederalDebtProsecutionAct(DFT136III583c.2.1)
 Arbitrable:e.g.employmentmatters
≠ Swiss domestic arbitration, Article 354 SCCP:
"disputes,whicharesubjecttotheparties'freedisposition"
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |18
6
SubjectiveArbitrability
 Capacityofaspecificentityorpersontovalidlyenterintoan
arbitrationagreement
• Capacitytoactasapartytoarbitralproceeding
• Capacitytoenterintoanarbitrationagreementinthenameandon
behalfofanotherpersonorentity
 DeterminedbyPILA
• Articles35-36(naturalpersons),Articles154-155(legalentities)
• Articles126,155,158(voluntary/legalrepresentation)
• Article177(2)
• Thisisnotamatterofcourse,though transnationalapproach
(e.g.FrenchCourdeCassation)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |19
…incaseof bankruptcy
Portugal-Poland1:0
 "Vivendi"-decisionFT4A_428/2008ofMarch31,2009,c.3.2:Whetheraparty
hasthecapacitytoactinarbitrationdependsuponitsownlaw(lex
incorporationis).InPoland,abankruptpartylosesitsstandingtobesuedin
arbitration.
 DFT138III714:
(i)Leftopenwhether"Vivendi"correctlyappliedPolishlaw(well,itprobably
didn't);Portugueselawisdifferent.
(ii)If,pursuanttoitsownlaw,apartyhaslegalcapacityingeneral,ithas
standingtosueorbesuedinarbitrationpursuanttoSwisslaw(i.e."Vivendi"was
wronganyway)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |20
Theoryof"Separability"
 Validity of arbitration clause ≠ main contract
(Article178(3)PILA)
• Twocontracts Tobeassessedseparately
• Tobechallengedseparately
• Possibilityoftwodifferentcontractlaws
 Limitations:
• Contraryagreement
• Nullityofthemaincontractthatalsoextendstothearb.agreement
(e.g.dissent;lackofcapacitytoexecute)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |21
7
SubjectiveScope
 Matterofapplicablesubstantivelaw,notofform
(Art.178(2)PILA:favorvaliditatis;DFT129III727)
 Partieswhooriginallyagreed
 Thirdparties(exceptionally):
• DFT129III727:extensionbasedontherealintentofthepartiesand
theprincipleofgoodfaith
• FT4A_160/2009ofAugust20,2009:piercingofthecorporateveil
• Group-of-companiesdoctrine(extensionwithinthesamegroupof
companies,suchastoaparentcompany;e.g.inFrenchlaw;sofar
notacceptedinSwitzerland)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |22
Subject-matterScope
 Anycontractualclaims(incl.validity,interpretationand
terminationcontract)
 Counterclaims?
 Set-offclaims?
 Groupofcontracts?
 Tortclaims,unjustenrichment?
(DFT138III681c.4.4:ifthereisanarbitrationclause,it
shouldpresumablyapplytoallaspectsofadispute)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |23
"Competence-Competence"(1|2)
 Arbitraltribunalshalldecideonitsownjurisdiction
(Article186PILA)
• Corollarytoprincipleof"separability"
• Relativecompetence ultimatecontrolbyFT
• Noex-officioexamination objectionrequired
• Problemofparallelcourtorarbitrationproceeding
 Article186(1bis)PILA
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |24
8
"Competence-Competence"(2|2)
 Exception:Article7PILA
"Ifthepartieshaveconcludedanarbitrationagreementconcerningan
arbitrabledispute,theSwisscourtinvokedshalldeclinejurisdictionexcept
where:
a.thedefendantmadeanappearanceintheproceedingswithoutreservation;
b.thecourtdeterminesthatthearbitrationagreementisvoid,withouteffect,
orcannotbefulfilled,or
c.thearbitraltribunalcannotbeconstitutedduetoreasonsforwhichthe
defendantinthearbitrationproceedingsisobviouslyresponsible."
• Fullreviewifforeignseat(DFT121III42)
• SummaryreviewifSwissseat(DFT138III681c.3.2)
 Fullreviewofeventualaward(Article190(2)(b)PILA)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |25
Example(1|3)
"The parties agree that any dispute or difference which may arise
outofthisAgreementortheexecutionorinterpretationofanyofthe
Clauses hereof shall be settled amicably. If such dispute or
difference cannot be settled in the aforementioned manner they
shallbefinallysettledundertheRulesofConciliationandArbitration
of the Zurich Chamber of Commerce, Zurich/Switzerland, in
accordance with the UNCITRAL Arbitration Rules. The number of
arbitrators shall be three (3). ICC shall be the appointing authority
acting in accordance with the rules adopted by ICC for that
purpose."
(DFT130III66)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |26
Example(2|3)
"ARBITRAZA
Nesuglasice i sporove ugovorne strane rijesavaju suglasno. Ukoliko
sporazumnemozebitipostignutugovarasenadleznostTrgovackogsuda
Zürich, Kanton Zürich, Svicarska uz primjenu svicarskog materijalnog
prava.Arbitraznaodlukajekonacnaiizvrsna."
"ARBITRATION
ThepartieswilltrytosolveanydisputesarisingoutofthisAgreementby
peaceful means. If no settlement may be reached, the dispute will be
arbitrated by the Economic Court in Zurich, Canton of Zurich, with
application of the Swiss material law. The decision of the arbitration is
regardedasfinalandexecutory."
(DFT129III675)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |27
9
Example(3|3)
"Thecompetentinstanceincaseofadisputeconcerningthis
AgreementistheFIFACommission,ortheUEFACommission,
whichwillhavetodecidethedisputethatcouldarisebetween
theclubandtheagent."
(DFT138III29)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |28
Termination(1|2)
 Not(necessarily)togetherwithmaincontract
 Contrariusactus:
• Norequirementofform(FT4A_305/2013of October2,2013,
c.3.2.1)
• E.g.onepartysuesinstatecourt,theotherdoesnotdispute
jurisdiction("Einlassung") mayamounttoconsensual
terminationatleastforthespecificdispute
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |29
Termination(2|2)
 Timelimitonclauseorprocedure(dangerous!)
 Impossibility:Mayariseif,e.g.,
• institutionceasedtoexist,noreplacement
• chosenarbitratornolongavailable
 Byonepartyforcause
• E.g.penuryofphysicalparty(notofacompany)
FelixDasser-InternationalCommercialArbitration-FS2016 March22,2016 |30
10