ICC arbitration rules revised, new version more flexible and user-friendly
Paris, 16 June 1997 - New rules for ICC arbitration come into force at the beginning of 1998. This first major revision of the rules in more than 20 years makes the system more flexible and user-friendly for companies operating in an increasingly complex world business environment.
Horacio Grigera Nan, Secretary General of the ICC Court, said there were new provisions making it possible for parties to a commercial dispute to avoid delays in the proceedings. The changes are also designed to speed up the process under which the Court and its International Secretariat can intervene to ensure timely completion of an arbitration.
The Secretary General added: "There have been no changes in the fundamentals of ICC arbitration. Its unique advantages remain intact - 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 are being introduced at a time when the Court has never been busier. At any given moment, amounts in disputes total about US$20 billion. More than 400 new cases go to ICC arbitration every year.
The ICC Commission on International Arbitration, headed by its chairman, Paul Glinas, worked on the fine print of the new rules for two years. They were drafted in close collaboration with ICC national committees and the Court and were approved by the ICC Executive Board and Council when they met before the ICC World Congress in Shanghai in April.
Among improvements is a provision permitting the arbitral tribune to rectify mathematical or clerical errors in an award and - at the request of any of the parties - to issue an interpretation of the award. There are also new provisions covering multiparty disputes. The Court is empowered to appoint arbitrators if there are differences between the multiple party claimants or defendants about who should be chosen.
Mr Grigera Nan said the changes reflected the increased global spread of ICC arbitration, and particularly its expansion in the Asia-Pacific region and Latin America.
Court statistics for 1996 show a surge in cases in Latin America, a result of increased commercial activity stimulated by privatization and the reduction of state intervention in economic management.
In the Asia-Pacific region, the ICC has responded to heightened interest in the ICC arbitration by establishing a regional office, based in Hong Kong, at the beginning of the year. Similar growth in arbitration is also evident in North America and in eastern Europe.
Mr Grigera Nan said: "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 these regions. This is good for ICC arbitration, the only arbitral institution that is truly universal."
N.B. - These rules will not come in to effect until 1 January 1998