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IDI Conference 2010

IDI Conference 2010. Fast arbitration: The experience of the Piedmont Arbitration Chamber Turin, June 12 th , 2010. Need for arbitration?. Is arbitration a tool only for big business? Does arbitration always cost too much? Is arbitration an alternative to court justice?.

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IDI Conference 2010

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  1. IDI Conference 2010 Fast arbitration: The experience of the Piedmont Arbitration Chamber Turin, June 12th, 2010 Daniela Cena – Piedmont Arbitration Chamber

  2. Need for arbitration? • Is arbitration a tool only for big business? • Does arbitration always cost too much? • Is arbitration an alternative to court justice? Daniela Cena – Piedmont Arbitration Chamber

  3. The answer: Institutional arbitration • The arbitration is governed by a public or private institution • Advantages: • Settled Rules of proceedings: possibility to control deadlines and steps of the proceeding • Cost control : table of fees • Assistance during the proceedings • Quality control (arbitrators independence and competence) Daniela Cena – Piedmont Arbitration Chamber

  4. The Chambers of Commerce: • Scope of Market protection • Not in competition with the judicial system, but ... • Their approach is service oriented, by means of cost limitation and speed • Public bodies – institutional approach Daniela Cena – Piedmont Arbitration Chamber

  5. Civil justice in Italy • Pending proceedings before civil courts (official figures 2008): 5.549.891 • New proceedings introduced in 2008: 4.826.373 • Terminated proceedings : 4.605.551 • Duration: (World Bank figures “doing Business 2010 Report”) • Ocse: 462,4 • Italy: 1210 Too slow a justice is No Justice Daniela Cena – Piedmont Arbitration Chamber

  6. ADR before Italian Chambers of commerce Arbitration • N. of annual arbitration proceedings before Chambers of commerce: 435 • Duration of arbitral proceedings: 138 days • New law n.28/2010 • Max. duration : 4 months ; media in Piedmont in 1° Qu. 2010: 33 days Mediation Daniela Cena – Piedmont Arbitration Chamber

  7. Piedmont Arbitration Chamber • From 1996, it is the only regional arbitration chamber in Italy, with a spread presence through a network of offices in all the 8 provinces of Piedmont. • from 2004 the organizations of lawyers, accountants and notaries have entered with a representative into the Chamber governing bodies. • Managing of Arbitration and Mediation proceedings Daniela Cena – Piedmont Arbitration Chamber

  8. Reasons for Fast Arbitration • “need for justice” for small value disputes • spread of arbitration also for SME • Cost limitation + fast resolution of the dispute Daniela Cena – Piedmont Arbitration Chamber

  9. Fast Arbitration • Availability: (default)fordisputes up to 150.000 € • Costs: 1000 to 3500 Euros to be spared between the parties. Administrative costs included • Procedure: (generally) one oral hearing • Duration: award within 30 days from the hearing (in international procedures all the terms are doubled) • Decision: ritual (= value as a decision by the judge) and ex bono et aequo Daniela Cena – Piedmont Arbitration Chamber

  10. Daniela Cena – Piedmont Arbitration Chamber

  11. Fast Arbitration A. The tools • sole arbitrator • oral hearing • ex bono et aequo decision • foreclosures • concentration • models and forms Daniela Cena – Piedmont Arbitration Chamber

  12. Fast arbitration B. The different style of the fast arbitrator • Not linked to ordinary civil process restrictions and limits • Limited only by principle of cross-examination • Can be more creative (can ask for evidence means, can dispose cross-examination etc.. ) • Concentration (oral hearing…) Daniela Cena – Piedmont Arbitration Chamber

  13. Fast arbitration C. The proceeding • value limits: up to 150.000 € (art. 19) • particular system for appointment of the arbitrator (preferences of the parties within a list of names of prospectives arbitrators) (art. 23) • an oral hearing, award within 30 days (art. 24) • registered verbalisation and use of forms • forfetary costs (art. 26) Daniela Cena – Piedmont Arbitration Chamber

  14. N. of cases (B2B) Daniela Cena – Piedmont Arbitration Chamber

  15. Typology of arbitral procedure Daniela Cena – Piedmont Arbitration Chamber

  16. Matters arbitration cases 2009

  17. An example of a fast case managed by the CAP • Italian compliant / brasilian defendant • Distribution agreement / breach of contract • Request for arbitration: 23/6/2009 • Hearing: 27/10/09 ; 5/11/09 • Award: 3/12/09 • Cost: 1800 euro Daniela Cena – Piedmont Arbitration Chamber

  18. The arbitration clause • If the parties don’t provide otherwise, the threshold of 150.000 euros will determine automatically the type of applicable procedure (fast track / ordinary arbitration). • The parties can provide for mixed solutions • They can establish that mediation shall be attempted before going to arbitration

  19. The arbitration clause ARBITRATION CLAUSE All disputes arising in connection with the present contract or connected thereto shall be finally settled under the Rules of the Piedmont Arbitration Chamber. The arbitration proceeding shall be according to Ordinary Arbitration or to Fast Arbitration depending on the value of the claim. In case of Fast Arbitration, the sole arbitrator shall decide ritually ex aequo et bono. Note: The Rules provide that in principle the dispute shall be devolved to a sole arbitrator. Parties may expressely provide in the arbitration agreement that the tribunal shall be composed by three arbitrators. Parties can modify the standard clause providing for an “ irrituale ” arbitration. They can also provide that Ordinary arbitration shall be ex aequo et bono or on the contrary, that Fast arbitration shall be according to law principles, if the law so permits. The Rules provide that unless otherwise agreed, the Fast Arbitration procedure shall apply to disputes whose value doesn ’ t exceed 150.000 euros; the parties can provide for application of Fast arbitration to higher disputes or on the contrary, the application of Ordinary arbitration to smaller ones. Remind that in case a party is a consumer according to european rules the arbitration agreement has to be negotiated.

  20. Thank for your attention Daniela Cena – Piedmont Arbitration Chamber

  21. Contacts Camera Arbitrale del Piemonte Secretariat Via Cavour 17, Torino Tel. 011 5669 205 - Fax 011 5669 290 E-mail cam.arbitrale@pie.camcom.it www.pie.camcom.it/cameraarbitralepiemonte Daniela Cena – Piedmont Arbitration Chamber

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