Restatement of the Law Third The US Law of International Commercial Arbitration

504 Pages·2011·3.88 MB·English

Restatement of the Law Third
The U.S. Law of International Commercial Arbitration
Council Draft No. 3
(December 23, 2011)
subjects covered
chapter 1 Definitions (revised)
chapter 4 Post-Award Relief (revised)
appendix a Convention on the Recognition and Enforcement of
Foreign Arbitral Awards
appendix b Inter-American Convention on International Commercial
Arbitration
appendix c Federal Arbitration Act
appendix d Black Letter of Council Draft No. 3
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This document is submitted for discussion at the meeting of the Council of The American Law Institute on
January 26 (at 10:00 a.m.), and 27, 2012, at the Wolkin Conference Center, 4025 Chestnut Street, Philadelphia,
Pennsylvania. This Draft is scheduled for discussion on Friday, January 27. As of the date it was printed, it had
not been considered by the Council or membership of The American Law Institute, and therefore does not
represent the position of the Institute on any of the issues with which it deals.
The American Law Institute
Roberta Cooper Ramo, President
Allen D. Black, 1st Vice President
Douglas Laycock, 2nd Vice President
Carolyn Dineen King, Treasurer
Susan Frelich Appleton, Secretary
Lance Liebman, Director
Stephanie A. Middleton, Deputy Director
COUNCIL
Kenneth S. Abraham, University of Virginia School of Law, Charlottesville, VA
Shirley S. Abrahamson, Wisconsin Supreme Court, Madison, WI
Susan Frelich Appleton, Washington University School of Law, St. Louis, MO
Kim J. Askew, K&L Gates, Dallas, TX
José I. Astigarraga, Astigarraga Davis, Miami, FL
John H. Beisner, Skadden, Arps, Slate, Meagher & Flom, Washington, DC
Sheila L. Birnbaum, Skadden, Arps, Slate, Meagher & Flom, New York, NY
Allen D. Black, Fine, Kaplan and Black, Philadelphia, PA
Amelia H. Boss, Earle Mack School of Law at Drexel University, Philadelphia, PA
William M. Burke, Shearman & Sterling (retired), Costa Mesa, CA
Elizabeth J. Cabraser, Lieff Cabraser Heimann & Bernstein, San Francisco, CA
Edward H. Cooper, University of Michigan Law School, Ann Arbor, MI
N. Lee Cooper, Maynard, Cooper & Gale, Birmingham, AL
Mary B. Cranston, Pillsbury Winthrop Shaw Pittman, San Francisco, CA
George H. T. Dudley, Dudley, Topper and Feuerzeig, St. Thomas, U.S. VI
Christine M. Durham, Utah Supreme Court, Salt Lake City, UT
Kenneth C. Frazier, Merck & Co., Inc., Whitehouse Station, NJ
Paul L. Friedman, U.S. District Court, District of Columbia, Washington, DC
Yvonne Gonzalez Rogers, Superior Court of California, County of Alameda,
Oakland, CA
Anton G. Hajjar, O’Donnell, Schwartz & Anderson, Washington, DC
Geoffrey C. Hazard, Jr.*, University of California, Hastings College of the Law,
San Francisco, CA; University of Pennsylvania Law School, Philadelphia, PA
D. Brock Hornby, U.S. District Court, District of Maine, Portland, ME
William C. Hubbard, Nelson Mullins Riley & Scarborough, Columbia, SC
Wallace B. Jefferson, Texas Supreme Court, Austin, TX
Mary Kay Kane, University of California, Hastings College of the Law, San Francisco, CA
Herma Hill Kay, University of California at Berkeley School of Law, Berkeley, CA
Carolyn Dineen King, U.S. Court of Appeals, Fifth Circuit, Houston, TX
Carolyn B. Lamm, White & Case, Washington, DC
Derek P. Langhauser, Maine Community College System, South Portland, ME
Douglas Laycock, University of Virginia School of Law, Charlottesville, VA
David F. Levi, Duke University School of Law, Durham, NC
Martin Lipton, Wachtell, Lipton, Rosen & Katz, New York, NY
Gerard E. Lynch, U.S. Court of Appeals, Second Circuit, New York, NY
Margaret H. Marshall, Massachusetts Supreme Judicial Court (retired),
Cambridge, MA
M. Margaret McKeown, U.S. Court of Appeals, Ninth Circuit, San Diego, CA
John J. McKetta, III, Graves, Dougherty, Hearon & Moody, Austin, TX
Daniel J. Meltzer, Harvard Law School, Cambridge, MA
Judith A. Miller, Chevy Chase, MD
Robert H. Mundheim, Shearman & Sterling, New York, NY
*Director Emeritus
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Kathryn A. Oberly, District of Columbia Court of Appeals, Washington, DC
Harvey S. Perlman, University of Nebraska, Lincoln, NE
Roberta Cooper Ramo, Modrall Sperling, Albuquerque, NM
David W. Rivkin, Debevoise & Plimpton, New York, NY
Lee H. Rosenthal, U.S. District Court, Southern District of Texas, Houston, TX
Gary L. Sasso, Carlton Fields, Tampa, FL
Mary M. Schroeder, U.S. Court of Appeals, Ninth Circuit, Phoenix, AZ
Anthony J. Scirica, U.S. Court of Appeals, Third Circuit, Philadelphia, PA
Marsha E. Simms, Weil, Gotshal & Manges (retired), New York, NY
Jane Stapleton, Australian National University College of Law, Canberra, Australia;
University of Texas School of Law, Austin, TX
Robert A. Stein, University of Minnesota Law School, Minneapolis, MN
Larry S. Stewart, Stewart Tilghman Fox Bianchi & Cain, Miami, FL
Elizabeth S. Stong, U.S. Bankruptcy Court, Eastern District of New York, Brooklyn, NY
Catherine T. Struve, University of Pennsylvania Law School, Philadelphia, PA
David K. Y. Tang, K&L Gates, Seattle, WA
Michael Traynor**, Cobalt LLP, Berkeley, CA
Bill Wagner, Wagner, Vaughan & McLaughlin, Tampa, FL
Diane P. Wood, U.S. Court of Appeals, Seventh Circuit, Chicago, IL
COUNCIL EMERITI
Philip S. Anderson, Williams & Anderson, Little Rock, AR
Bennett Boskey***, Washington, DC
Michael Boudin, U.S. Court of Appeals, First Circuit, Boston, MA
Hugh Calkins, Initiatives in Urban Education Foundation, Cleveland Heights, OH
Gerhard Casper, Stanford University, Stanford, CA
William T. Coleman, Jr., O’Melveny & Myers, Washington, DC
Roger C. Cramton, Cornell Law School, Ithaca, NY
George Clemon Freeman, Jr., Hunton & Williams, Richmond, VA
Conrad K. Harper, Simpson Thacher & Bartlett (retired), New York, NY
Vester T. Hughes, Jr., K&L Gates, Dallas, TX
Nicholas deB. Katzenbach, Princeton, NJ
Pierre N. Leval, U.S. Court of Appeals, Second Circuit, New York, NY
Betsy Levin, Washington, DC
Hans A. Linde, Portland, OR
Myles V. Lynk, Arizona State University, Sandra Day O’Connor College of Law,
Tempe, AZ
Robert MacCrate, Sullivan & Cromwell, New York, NY
Vincent L. McKusick, Pierce Atwood, Portland, ME
Roswell B. Perkins**, Debevoise & Plimpton, New York, NY
Ellen Ash Peters, Connecticut Supreme Court (retired), Hartford, CT
Louis H. Pollak, U.S. District Court, Eastern District of Pennsylvania,
Philadelphia, PA
Wm. Reece Smith, Jr., Carlton Fields, Tampa, FL
Patricia M. Wald, Washington, DC
Lawrence E. Walsh, Crowe & Dunlevy (retired), Oklahoma City, OK
William H. Webster, Milbank, Tweed, Hadley & McCloy, Washington, DC
George Whittenburg, Whittenburg Whittenburg Schachter & Harris, Amarillo, TX
Herbert P. Wilkins, Boston College Law School, Newton, MA
***President Emeritus and Chair of the Council Emeritus
***Treasurer Emeritus
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Restatement of the Law Third
The U.S. Law of International Commercial Arbitration
Council Draft No. 3
Comments and Suggestions Invited
Written comments on this draft are welcomed and should be addressed to the
Director and the Reporters; their contact information appears below. Unless ex-
pressed otherwise in the submission, by submitting written comments the author
authorizes The American Law Institute to retain the submitted material in its files
and archives, and to copy, distribute, publish, and otherwise make it available to
others, with appropriate credit to the author.
Reporter Associate Reporters
Professor George A. Bermann Professor Jack J. Coe, Jr.
Columbia University School of Law Pepperdine University School of Law
435 W. 116th St. 24255 Pacific Coast Highway
Box A-10 Malibu, CA 90263-3999
New York, NY 10027-7201 Fax: [phone]
Fax: [phone] Email: [email protected]
Email: [email protected]
Professor Christopher R. Drahozal
John M. Rounds Professor of Law
Director University of Kansas School of Law
Professor Lance Liebman 1535 W. 15th St.
The Executive Office Green Hall
The American Law Institute Lawrence, KS 66045-7577
4025 Chestnut Street Fax: [phone]
Philadelphia, PA 19104-3099 Email: [email protected]
Fax: [phone]
Professor Catherine A. Rogers
Email: [email protected]
The Pennsylvania State University,
Dickinson School of Law
324 Katz Bldg.
University Park, PA 16802-1910
Fax: [phone]
Email: c [email protected] and
Università Commerciale Luigi
Bocconi 3
Via Gobbi, 5
20136 MILAN
ITALY
Email: c [email protected]
iv
Restatement of the Law Third
The U.S. Law of International Commercial Arbitration
REPORTER
George A. Bermann, Columbia University School of Law, New York, NY
ASSOCIATE REPORTERS
Jack J. Coe, Jr., Pepperdine University School of Law, Malibu, CA
Christopher R. Drahozal, University of Kansas School of Law, Lawrence, KS
Catherine A. Rogers, The Pennsylvania State University, Dickinson School of Law,
University Park, PA; Bocconi University, Milan, Italy
ADVISERS
Gerald Aksen, New York, NY
José I. Astigarraga, Astigarraga Davis, Miami, FL
R. Doak Bishop, King & Spalding, Houston, TX
Andrea K. Bjorklund, University of California at Davis School of Law, Davis, CA
Gary Brian Born, Wilmer Cutler Pickering Hale and Dorr, London, England
David D. Caron, University of California at Berkeley School of Law, Berkeley, CA
James H. Carter, Dewey & LeBoeuf, New York, NY
Cedric C. Chao, Morrison & Foerster, San Francisco, CA
Donald F. Donovan, Debevoise & Plimpton, New York, NY
Dana H. Freyer, Skadden, Arps, Slate, Meagher & Flom, New York, NY
Horacio A. Grigera Naón, American University, Washington College of Law,
Washington, DC
Toni D. Hennike, Hess Corporation, Houston, TX
Louis B. Kimmelman, Allen & Overy, New York, NY
Jeffrey D. Kovar, Washington, DC
Carolyn B. Lamm, White & Case, Washington, DC
Michelle Leetham, Ogletree, Deakins, Nash, Smoak & Stewart, San Francisco, CA
M. Margaret McKeown, U.S. Court of Appeals, Ninth Circuit, San Diego, CA
Douglas Earl McLaren, Washington, DC
Lawrence W. Newman, Baker & McKenzie, New York, NY
William W. Park, Boston University School of Law, Boston, MA
Jan Paulsson, University of Miami School of Law, Coral Gables, FL
Alan Scott Rau, University of Texas School of Law, Austin, TX
Lucy Reed, Freshfields Bruckhaus Deringer, New York, NY
W. Michael Reisman, Yale Law School, New Haven, CT
David W. Rivkin, Debevoise & Plimpton, New York, NY
Kathleen M. Scanlon, New York, NY
Linda J. Silberman, New York University School of Law, New York, NY
Robert H. Smit, Simpson Thatcher Bartlett, New York, NY
Abby Cohen Smutny, White & Case, Washington, DC
Thomas J. Stipanowich, Pepperdine University School of Law, Malibu, CA
Elizabeth S. Stong, U.S. Bankruptcy Court, Eastern District of New York, Brooklyn, NY
[from 2011]
John M. Townsend, Hughes Hubbard & Reed, Washington, DC
Elpidio Villarreal, GlaxoSmithKline, Philadelphia, PA
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MEMBERS CONSULTATIVE GROUP
Restatement of the Law Third
The U.S. Law of International Commercial Arbitration
(as of December 5, 2011)
Kristen David Adams, Gulfport, FL Thomas L. Cubbage, III,
Robert H. Alsdorf, Seattle, WA Washington, DC
Owen L. Anderson, Norman, OK Vivian Grosswald Curran,
William G. Arnot, Houston, TX Pittsburgh, PA
Ronald G. Aronovsky, Christopher Scott D’Angelo,
Los Angeles, CA Philadelphia, PA
Richard A. Bales, George A. Davidson, New York, NY
Highland Heights, KY
Evan A. Davis, New York, NY
Jürgen Basedow, Hamburg, Germany
FranÇois Dessemontet,
William G. Bassler, Red Bank, NJ
Saint Barthelemy,
Peter V. Baugher, Chicago, IL
French West Indies
Karl Bayer, Austin, TX
Anthony M. DiLeo, New Orleans, LA
Bruce J. Berger, Washington, DC
William S. Dodge, San Francisco, CA
Sanford L. Bohrer, Miami, FL
Gordon L. Doerfer, Boston, MA
William J. Boyce, Texas Court of
Richard F. Dole, Jr., Houston, TX
Appeals, Fourteenth District,
Mitchell F. Dolin, Washington, DC
Houston, TX
Ronald A. Brand, Pittsburgh, PA Thomas A. Dubbs, New York, NY
Charles H. Brower II, University, MS Allyson K. Duncan, U.S. Court of
Charles N. Brower, London, England Appeals, Fourth Circuit, Raleigh, NC
Michael K. Brown, Walnut Creek, CA Sheldon H. Elsen, New York, NY
Stephen B. Burbank, Philadelphia, PA Robert Evans III, New York, NY
Timothy W. Burns, Madison, WI John N. Fellas, New York, NY
John P. Burton, Santa Fe, NM Joseph Z. Fleming, Miami, FL
William E. Butler, Carlisle, PA Michael D. Floyd, Birmingham, AL
Fabrizio Cafaggi, Florence, Italy C. Allen Foster, Washington, DC
Charles Calleros, Tempe, AZ Henry D. Gabriel, Greensboro, NC
David N. Calvillo, McAllen, TX Richard Garnett,
Marilyn Blumberg Cane, Melbourne, Australia
Fort Lauderdale, FL
Steven S. Gensler, Norman, OK
Elena A. Cappella, Philadelphia, PA
E. Duncan Getchell, Jr.,
William Richard Casto, Lubbock, TX
Richmond, VA
John Allen Chalk, Fort Worth, TX
James W. Gewin, Birmingham, AL
Steve Charnovitz, Washington, DC
Llewellyn J. Gibbons, Toledo, OH
David A. Chaumette, Houston, TX
Daniel C. Girard, San Francisco, CA
Tai-Heng Cheng, New York, NY
Marc J. Goldstein, New York, NY
Stephen Yee Chow, Boston, MA
Randy Gordon, Dallas, TX
Jacob Katz Cogan, Cincinnati, OH
Katherine Ann Graham, St. Paul, MN
David K. Cohen, Chevy Chase, MD
Marvin L. Gray, Jr., Seattle, WA
Michael Marks Cohen, New York, NY
Neil B. Cohen, Brooklyn, NY Norman L. Greene, New York, NY
Lord Collins of Mapesbury, Michael Greenwald, Philadelphia, PA
United Kingdom Supreme Court, Charles E. Griffin, Ridgeland, MS
London, England Patricia Isela Hansen, Austin, TX
Edward H. Cooper, Ann Arbor, MI Micalyn Shafer Harris, New York, NY
Robert A. Creamer, Cambridge, MA Robert W. Hillman, Davis, CA
vii
Maria Tankenson Hodge, Edward M. Mullins, Miami, FL
St. Thomas, U.S. VI Daniel T. Murphy, Richmond, VA
Richard W. Hulbert, New York, NY Peter L. Murray, Portland, ME
John E. Iole, Pittsburgh, PA Ved P. Nanda, Denver, CO
Melissa B. Jacoby, Chapel Hill, NC Barbara Reeves Neal,
Kirk C. Jenkins, Chicago, IL
Los Angeles, CA
Mark R. Joelson, Washington, DC
Joseph E. Neuhaus, New York, NY
Jennifer J. Johnson, Portland, OR
David John O’Callaghan,
Cally Jordan, Victoria, Australia
Melbourne, Australia
Lee L. Kaplan, Houston, TX
Sir Geoffrey Palmer, Wellington,
Catherine Kessedjian, Paris, France
New Zealand
Paul F. Kirgis, Jamaica, NY
Stephen Patrick Pate, Houston, TX
Christopher M. Klein, U.S. Bankruptcy
Frank A. Pfiffner, Anchorage
Court, Eastern District of California,
Superior Court, Anchorage, AK
Sacramento, CA
Hansel T. Pham, Washington, DC
Daniel M. Kolkey, San Francisco, CA
Sheldon Raab, New York, NY
Richard H. Kreindler,
Luca G. Radicati di Brozolo,
Frankfurt, Germany
Milano, Italy
Peter B. Kutner, Norman, OK
Florentino Ramirez, Dallas, TX
Herbert I. Lazerow, San Diego, CA
Carey R. Ramos, New York, NY
E. Bruce Leonard,
Bernard D. Reams, Jr.,
Toronto, ON, Canada
San Antonio, TX
John Leubsdorf, Newark, NJ
Joe R. Reeder, Washington, DC
William H. Levit, Jr., Milwaukee, WI
C. Ryan Reetz, Miami, FL
Eric L. Lewis, Washington, DC
Henry duPont Ridgely, Delaware
Cynthia Crawford Lichtenstein,
Supreme Court, Dover, DE
Sarasota, FL
Delissa A. Ridgway, U.S. Court of
Peter Linzer, Houston, TX
International Trade, New York, NY
Andreas F. Lowenfeld, New York, NY
James L. Robertson, Jackson, MS
Houston Putnam Lowry, Meriden, CT
Steven S. Rosenthal, Washington, DC
Robert E. Lutz, II, Los Angeles, CA Mary Massaron Ross, Detroit, MI
William Cullen Mac Donald, Peter B. Rutledge, Athens, GA
New York, NY Michael D. Sandler,
Peter B. Maggs, Urbana, IL Mercer Island, WA
C. Scott Maravilla, Washington, DC Michael A. Scodro, Chicago, IL
Andrew J. Markus, Miami, FL David W J Scorey, London, England
Pedro Julio Martinez-Fraga, Leopold Z. Sher, New Orleans, LA
Miami, FL Matthew D. Slater, Washington, DC
Lorelie S. Masters, Washington, DC Douglas G. Smith, Chicago, IL
Andrea J. Menaker, Washington, DC David V. Snyder, Washington, DC
Carrie J. Menkel-Meadow, Luis Eduardo Sprovieri,
Washington, DC Buenos Aires, Argentina
James P. Mercurio, Washington, DC E. Blythe Stason, Jr., DeKalb, IL
John Eric Middleton, Federal Court Hans Rudolf E. Steiner, Zurich,
of Australia, Melbourne, Australia Switzerland
J. W. Montgomery, III, Pittsburgh, PA Paul B. Stephan III, Charlottesville, VA
Jonathan M. Moses, New York, NY David P. Stewart, Washington, DC
Margaret L. Moses, Chicago, IL S. I. Strong, Columbia, MO
Richard M. Mosk, California Court of Guy Miller Struve, New York, NY
Appeal, Los Angeles, CA Rolf Stürner, Freiburg, Germany
Mark L. Movsesian, Jamaica, NY Symeon C. Symeonides, Salem, OR
viii
Louise Ellen Teitz, Bristol, RI William Arthur Webb, U.S. District
Larry D. Thompson, Greenwich, CT Court, Eastern District of
Peter D. Trooboff, Washington, DC North Carolina, Raleigh, NC
George K. Walker, Winston-Salem, NC Henry Weissmann, Los Angeles, CA
Janet Walker, Toronto, ON, Canada Jay L. Westbrook, Austin, TX
Sue Walker, Texas Court of Appeals, Ralph U. Whitten, Omaha, NE
Second District, Fort Worth, TX Stephan Wilske, Stuttgart, Germany
Don Wallace, Washington, DC David B. Wilson, Denver, CO
Nicholas J. Wallwork, Peter Winship, Dallas, TX
Ruckersville, VA Nicholas J. Wittner, East Lansing, MI
Rhonda Wasserman, Pittsburgh, PA Tobias B. Wolff, Philadelphia, PA
ix
The bylaws of The American Law Institute provide that “Pub-
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quires approval by both the membership and the Council.” Each
portion of an Institute project is submitted initially for review to the
project’s Consultants or Advisers as a Memorandum, Preliminary
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After review by the Council, it is submitted as a Tentative Draft,
Discussion Draft, or Proposed Final Draft for consideration by the
membership at the Institute’s Annual Meeting. At each stage of
the reviewing process, a Draft may be referred back for revision
and resubmission. The status of this Draft is indicated on the front
cover and title page.
The Council approved the start of this project in De cember
2007. Work has begun on topics of recognition and enforcement.
The first Tentative Draft was approved at the 2010 Annual Meeting,
but the material contained therein was not previously approved by
the Council. Council Draft No. 2 was approved by the Council in
October 2010, and thus that Draft represents the position of the
Institute.
Earlier versions of Chapter 1 can be found in Preliminary
Draft No. 5 (2011), Pre limi nary Draft No. 4 (2010), Council Draft
No. 2 (2010), and Tentative Draft No. 1 (2010). This version of
Chapter 4 consolidates versions that had previously been desig-
nated as “Chapter 4” and “Chapter 5.” An earlier draft of this ver-
sion of Chapter 4 is contained in Preliminary Draft No. 5 (2011).
An earlier version of the previous Chapter 4 can be found in
Preliminary Draft No. 4 (2010). Prior versions of Chapter 5 were
contained in Council Draft No. 2 (2010), Tentative Draft No. 1
(2010), Preliminary Draft No. 3 (2010), and Council Draft No. 1
(2009).
The project’s Reporters may have been involved in other en-
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available and, for confidentiality reasons, parts of the disclosures
may be redacted or withheld.
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