Revised ICC arbitration rules take effect

Paris, 8 January 1998 – The first major revision in 20 years of the rules of arbitration of the International Chamber of Commerce came into force at the New Year. The updated rules make the system more flexible and user-friendly for companies operating in an increasingly complex global business arena.

The new provisions enable parties to a dispute to avoid costly and frustrating delays. They also allow the Court and its Secretariat to intervene in arbitrations much earlier than in the past, to ensure their timely completion.

The Chairman of the ICC Court, Dr Robert Briner, said: "There have been no changes to the fundamentals of ICC arbitration. Its unique advantages remain intact – notably the international nature of the rules, under which arbitration can take place in any country, in any language and under any legal tradition."

The new rules have been introduced at a time of rising demand for arbitration under ICC rules, particularly in Asia and Latin America. At any given time, amounts in dispute before ICC tribunals total around US$30 billion. At present, about 450 new cases yearly are taken up by tribunals formed under ICC rules and that figure continues to rise.

Dr. Briner noted: "As globalization of markets intensifies, disputes handled by ICC arbitrators have tended to become more complex, with a higher incidence of multiparty disputes, and the changes now introduced take account of this."

In principle, the rules apply to all cases brought before the Court from 1 January 1998 onwards. However, they can be applied to any case presented before that date at the suggestion of the Secretary General of the Court, Horacio Grigera Nan, and with the agreement of all parties involved.

Contracts entered into before 1998 that contain an ICC arbitration clause, and do not refer to a particular version of the rules, are now subject to the new rules. When the arbitration clause states that only the rules in place at the time of the agreement may apply to a dispute, there is a choice. Parties may either accept that provision or, provided that all parties agree, submit their case to arbitration under the new rules.

The result of three year’s work, the revision was completed through close collaboration between the ICC Commission on International Arbitration and ICC national committees in every continent. The rules were approved by the ICC Executive Board and Council last April at the ICC World Congress in Shanghai.

Improvements include a provision that allows the arbitral tribunal to rectify mathematical or clerical errors in any award and to issue an interpretation of the award at the request of any of the parties. Also, in multiparty disputes the Court is now empowered to appoint arbitrators, should the parties themselves fail to come to an agreement on their own"

Dr. Briner added: "We are going through a period of radical change in arbitration. It is being recognized as the most efficient and convenient way of settling commercial disputes in parts of the world where it was not widely accepted a few years ago."

"There are new players from Latin America, Africa and many parts of Asia and a whole new generation of highly competent arbitrators from all of these regions. This is a positive development for ICC arbitration and world business."

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