arbitration in the digital age

326 Pages·2017·2.76 MB·English

Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
More Information
ARBITRATION IN THE DIGITAL AGE
ArbitrationintheDigitalAgeanalyzeshowtechnologycanbeeiciently
andlegitimatelyusedtofurthersoundarbitrationproceedings.Thecon-
tributionsfromavarietyofarbitrationscholarsreportoncurrentdevel-
opments,predictfuturetrendsandassesstheirimpactfromapractical,
legal, andtechnical pointofview. Thebookalsodiscussestherelation-
shipbetweenarbitrationandtheInternetandanalyzeshowsocialmedia
canafectarbitratorsandcounsel’sbehaviour.Furthermore,itanalyzesthe
validityofelectronicarbitrationagreementsandawards,aswellasOnline
Arbitration(OArb).Thevolumeestablishes,onaverypracticallevel,how
technologycouldbeusedbyarbitrationinstitutions,arbitrators,partiesto
anarbitrationandcounsel.Thisbookwillbeofspecialinteresttoarbitra-
torsandlawyersinvolvedininternationalcommercialarbitration.
maud piers isProfessorofLawattheUniversityofGhentinBelgium
where she focuses her research and teaching on arbitration law, Euro-
peanprivatelawandAlternativeDisputeResolution(ADR).Sheisalso
thedirectoroftheUGent’sTransnationalLawCenterthatstudiestherole
oftechnologyattheserviceorasameanstoresolvetransnationalbusiness
disputes.SheregularlyactsasanarbitratorandisVice-PresidentoftheBel-
gianCenterofArbitrationandMediation(Cepani).Shewasafounderand
iscurrentlyaneditor(andformereditor-in-chief)oftheBelgianReview
forArbitration;[email protected];aneditoroftheNederlands-
VlaamsTijdschriftvoorMediationenConlictManagement;anda‘korre-
spondierendeHerausgeber’oftheZeitschriftfürEuropäischesPrivatrecht.
christian aschauerisprofessorofarbitrationlawandpracticeatthe
UniversityofGraz(Austria)andIndependentArbitratorbasedinVienna.
Hispracticeencompassesdiferentindustrysectors,withanemphasison
engineering,generaltrade,machineryandcorporatedisputes.Heisalso
amemberoftheArbitralCounciloftheChamberofArbitrationofMilan
(CameraArbitralediMilano).ChristianAschauerhasconductedarbitra-
tions,includingarbitrationswithstatesandstateentities,undertheRules
oftheICC,VIAC,DIS,CameraArbitralediMilano,FTCA(Belgrade)and
UNCITRAL,aswellasadhocarbitralproceedings.Heisafrequentspeaker
atseminarsandispublishingintheieldofarbitrationaswellasmediation.
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
More Information
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
More Information
ARBITRATION IN
THE DIGITAL AGE
The Brave New World of Arbitration
Editedby
MAUD PIERS
UniversityofGhent
CHRISTIAN ASCHAUER
UniversityofGraz
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
More Information
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© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
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CONTENTS
ListofContributors pagevii
Foreword ix
Introduction 1
maud piers and christian aschauer
1 SurveyonthePresentUseofICTinInternational
Arbitration 15
maud piers and christian aschauer
part i TheUseofTechnologyinInternationalArbitration
2 RevolutionizingTechnologiesandtheUseofTechnologyin
InternationalArbitration:Innovation,Legitimacy,Prospectsand
Challenges 27
mohamed s. abdel wahab and ethan katsh
3 TheSecurityandReliabilityofElectronicCommunication:
WithaCriticalNoteontheHumanFactor 56
philipp schaumann and max burger-scheidlin
4 CaseStudy:TheInstitutionalPerspective 86
erik schäfer
5 CaseStudy:TheLegislator’sPerspective 99
annet van hooft and julia kroes-lastochkina
6 CaseStudy:ThePractitioner’sPerspective 126
sophie nappert and paul cohen
v
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
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vi contents
part ii Arbitration,Arbitrators,CounselandtheInternet
7 E-ArbitrationAgreementsandE-Awards:Arbitration
AgreementsConcludedinanElectronicEnvironmentand
DigitalArbitralAwards 151
reinmar wolff
8 BuildingonOArbAttributesinPursuitofJustice 182
amy j. schmitz
9 LegislatingforanEfectiveandLegitimateSystemofOnline
ConsumerArbitration 209
pablo cortés and tony cole
10 ArbitratorsandTheirOnlineIdentity 246
niuscha bassiri
11 HowOnlineSourcesAfectCounselStrategiesandBehaviorin
Arbitration 272
marc d. veit
12 Conclusion 283
maud piers and christian aschauer
Index 300
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
More Information
CONTRIBUTORS
mohamed s. abdel wahab,Partner,Zulicar&Partners(Cairo),Vice
PresidentoftheICCInternationalCourtofArbitration
christian aschauer, Professor at the University of Graz (Austria),
IndependentArbitrator
niuscha bassiri,Partner,Hanotiau&vandenBerg(Bruxelles)
maxburger-scheidlin,GeneralManagerofICCAustriaandConsul-
tantatICCCommercialCrimeServices
paul h cohen,Barrister,4–5Gray’sInnSquare(London)andEditorin
ChiefoftheJournalofTechnologyinInternationalArbitration
tony cole,OfCounsel,GentiumLawGroup(Geneva)
pablo cortés,ProfessorattheUniversityofLeicesterLawSchool(UK)
annet van hooft,Partner,Bird&Bird(Paris)
ethan katsh, Director, National Center for Technology and Dispute
ResolutionandProfessorEmeritus,UniversityofMassachusettsAmherst
julia kroes-lastochkina,Associate,ClifordChance(Amsterdam)
sophie nappert, Independent Arbitrator, 3 Verulam Buildings
(London)
maud piers, Professor at the University of Ghent (Belgium), Indepen-
dentArbitrator
vii
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
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viii contributors
philipp schaumann,IndependentSecurityConsultant,Lectureratthe
DonauUniversityKrems(Austria)
amy j. schmitz,ProfessorattheUniversityofMissouriSchoolofLaw
erikschäfer,Partner,Cohaus&Florack(Düsseldorf)andCo-Chairof
theICCTaskForceontheUseofInformationTechnologyinInternational
Arbitration
marc d. veit,Partner,Lalive(Zurich)
reinmar wolff, Assistant Professor at the University of Marburg
(Germany)andIndependentArbitrator
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
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FOREWORD
Welcometothe‘BraveNewWorldofArbitration’
Theinteractionbetweentechnologyandarbitrationisnotsomethingfor
thefuture–itishappeningrightnow.Thechallengethatliesbeforeusis
how to integrate technology in an orderly fashion and use it in order to
improvearbitration.Technologywillchangethewaywearbitrate.Itisup
tothearbitrationcommunitytodecideonhowthishappens,notwhen.
The international arbitration community has always been focused on
improving the eiciency and overall quality of arbitration. The diferent
stakeholders in arbitration seek to optimizesuch factors as the duration
andcostsofarbitration,aswellasthetransparencyandpredictabilityof
thesefactors.Thekeyquestionisnowhowtechnologycan(continueto)
playaroleinachievingthesegoals.
Three ways of interaction between arbitration and technology are
distinguishedhere.
Theirstoneisthemostcomprehensible,i.e.wherebypartiesandarbi-
tratorsmakeuseoftechnology,e.g.onlineandelectronictools,insupport
of the procedure. Costs and time are saved by communicating solely by
way of email and iling submissions and exhibits on an online platform
or ‘drop box’, the access to which is provided by the arbitral institution
or the arbitrator. Moreover, over the last few years, procedural hearings
havebeenincreasinglyheldbytelephoneorvideo-conference.Incontrast,
witnesshearingsorhearingsonthemeritstodaylargelyremainphysical
encounterswhichhavetobeplannedwellinadvanceandwhichhavean
importantimpactonthearbitrationcosts.Howmuchlongerwillittake
before an arbitrator, counsel and parties, all in the comfort of their own
oice,logintoavirtualhearingroomwearingtheirvirtualrealityglasses,
insteadoflyingouttosomemajorcapitalforaweeklongwitnesshearing.
Therecanbelittledoubtthatthisevolutionaddstotheeiciencyofthe
arbitral process. The question is of course whether this does not pose a
threat to the principles of fairness and due process. We believe that this
shouldnotbethecase,providedthatthetoolsareavailabletocoverthe
issueofsecurity.
ix
© Cambridge University Press www.cambridge.org
Cambridge University Press
978-1-108-41790-7 — Arbitration in the Digital Age
Edited by Maud Piers , Christian Aschauer
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x foreword
Thesecondinteractionisinfulldevelopment:thecreationanduseof
platformsforOnlineDisputeResolution(ODR)tofacilitatedisputereso-
lution.ODRplatformsexistinallshapesandsizesandcanservediferent
purposes,buttheyallaimatresolvingadisputeinasimple,fast,lexible
and eicient way. The main question surrounding ODR is how to guar-
anteethatthefundamentalprinciplesofdisputeresolutionarepreserved.
AnODRsystemshouldmeettheprinciplesoffairness,dueprocess,trans-
parency, accountability, independence, impartiality, eiciency and efec-
tiveness. Until now, the main focus of ODR is to get disputes regarding
low-valuetransactionsawayfromtraditionaljudicialsystems.Tothatend,
an ODR system will try not to impose costs, delays or burdens that are
disproportionatetotheeconomicvalueatstake.ODRcanalsobearele-
vantsolutionwhentraditionaljudicialmechanismsforlegalrecoursemay
notoferanadequatesolutionforcross-bordere-commercedisputes.The
ODRplatformcreatedbytheEuropeanUnionin2015triestomeetthat
goal,althoughitwouldappearitisprimarilyawayforconsumersto(try
to)interactwithtraderswhenadisputehasarisen.
OneofthemostinterestingfeaturesofODRplatformsisthattheyusu-
allyoferdiferentwaysorlevelstoresolveadispute.Ingeneral,anODR
process will have three stages: negotiation, facilitated settlement and a
third/inal stage with some kind of adjudication. An ODR process will
start up with a notice of claim through an ODR platform, whereby the
ODRadministratorwillnotifytherespondent.Afterthat,atechnology-
enabled negotiation stage will start. Known forms are, e.g. double-blind
bidding or visual-blind bidding, whereby an algorithm will either gen-
erate suggestions or automatically settle a monetary claim if the parties’
proposals/ofersfallwithintherange(zoneofagreement)setoraccepted
bythem.Onecouldstatethatitisanautomated,andperhapsmorepre-
cise, form of baseball arbitration, whereby parties are encouraged to be
reasonable.
Inanycase,aresultshouldbeobtainedwithinacertaintimeframeafter
whichtheODRsystemwillmovetothenextstage,thefacilitatedsettle-
ment. Here, the ODR administrator will appoint a neutral intermediary
who will communicate with the parties in an attempt to reach a settle-
ment.Ifthatfails,thepartieswillmovetothethirdandinalstagewhich
isadisputeresolutionthrougharbitration,third-partybindingdecision,
expert determination, etc. Therefore, in the end, it all comes back to
classic adjudication by a judge, an arbitrator or an expert, who – as a
human–willweightheelementsofthedisputeathandandmakeainal
decision.
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