INTERNATIONAL ARBITRATION: AN ENGLISH PERSPECTIVE

1. INTERNATIONAL ARBITRATION:AN ENGLISH PERSPECTIVE a presentation by HEW R. DUNDAS Chartered Arbitrator DipICArb International Arbitrator & Mediator President CIArb to the Centro de Arbitraje de la Cámara de Comercio de Bogotá 13th July 2007

2. OVERVIEW of PRESENTATION • Introduction • Dispute Resolution Clauses & Options • Domestic/International Disputes • International Commercial Arbitration • Arbitration in England • Conclusions

3. DISPUTE RESOLUTION OPTIONS • Litigation • Arbitration Domestic/International • Mediation/Conciliation/Other ADR • Application in Oil & Gas Industry • Advantages and Disadvantages

4. LITIGATION • Difficulties of Litigating • Local Laws – are they adequate ? • Courts – Good, Bad and Ugly • Litigation against States • Timescales - long and VERY long • Finality • Enforceability • Costs

5. INTERNATIONAL COMMERCIAL ARBITRATION (1) - OVERVIEW • What Is It ? • Profusion of Relevant/Applicable Laws • Institutions and Tribunals • Finality • Enforceability • Normalisation of Standards

6. INTL. COMM. ARBITRATION (2)PROFUSION of LAWS • Law of the Contract • Law of the Arbitration Agreement • Law of the Arbitration (Lex Arbitri) • Law governing Capacity of Parties • Law of Seat (Lex Curiae) • Law of Place of Enforcement • Other Potentially Applicable Laws

7. INTL. COMM. ARBITRATION (3)SOME KEY LEGAL ISSUES • Arbitrability • Capacity • Substantive vs Procedural Laws • Arbitrations against States/State Immunity • Enforceability • Public Policy Exception (NYC V(2)(b)) • Protectionism

8. INTL. COMM. ARBITRATION (4) INSTITUTIONS • UNCITRAL • ICSID/NAFTA/ECT • ICC/LCIA • CIAM • Other Regional Institutions eg CIETAC/AAA • Chartered Institute of Arbitrators • Other

9. INTL. COMM. ARBITRATION (5) PROCEEDINGS (1) • Party Autonomy • Ad Hoc vs Institutional Arbitration • Choice of Lex Arbitri • Choice of Rules/Institution • Choice of Tribunal • Choice of Seat • Relevance to Security

10. INTL. COMM. ARBITRATION (6) PROCEEDINGS (2) • Choice of Language + Procedure • Common vs Civil Law Cultures • Communications • Disclosure • Ethics • Tribunal Issues • Relevance to Security

11. INTL. COMM. ARBITRATION (7)AWARD & ENFORCEMENT • Appeals Against Award • Jurisdiction • Procedural Failures • Issues of Law • Exequatur • Enforcement • New York Convention 1958

12. INTL. COMM. ARBITRATION (8)NEW YORK CONVENTION • Recognition of Arbitration Agreements • Enforcement via NYC58; Court may refuse • Art. V(1) • Capacity/Invalidity • Failure of Due Process/other Procedural Failure • Outwith Jurisdiction • Award Not Binding/Set Aside at seat • Art. V(2) • Dispute not Arbitrable • Award Contrary to Public Policy • Court MAY, not “shall”, refuse enforcement • Enforcement other than via NYC58

13. INVESTMENT ARBITRATION • Private Investor vs State/State Entity • Nature of Arbitration Agreement • BITs/MITs • Washington Convention/ICSID • NAFTA • Energy Charter Treaty • State Immunity

14. ARBITRATION in ENGLAND (1) • Historical Origins • Arbitration Acts 1889/1934/1950/1979 • Arbitration Act 1996 • Public Policy • London as The International Centre • LMAA/GAFTA etc • The Role of the Courts • Historically • The Present

15. ARBITRATION in ENGLAND (2):the ARBITRATION ACT 1996 • Why a New Act ? • The Fundamental Principles • Impartial Tribunal • Avoid Unnecessary Delay or Expense • Party Autonomy • Minimal Interference by the Courts • Public Policy Safeguard • Act covers All Aspects of Proceedings • Is Self-Contained eg is Set of Rules

16. ARBITRATION in ENGLAND (3): APPEALS AGAINST AWARDS • Grounds for Appeal • Jurisdiction • Procedural Failures • Issues of Law • Key Decisions Made in High Court • Judicial Comment on Appeals • “Utterly Hopeless” or “No Merit” etc • Success Rate for Appeals • Ecuador v Occidental

17. CIArb CODE of CONDUCT (1) • CIArb is Self-Regulating Professional Institute • CIArb “Code of Professional And Ethical Conduct for Members” [January 2007] • Binding on All CIArb Members • Arbitrators/Mediators/Any Other • Breach of Code is Professional Misconduct • Full Disciplinary Process

18. CIArb CODE of CONDUCT (2) • Avoid Conduct Unbecoming • Uphold Integrity & Fairness of the Process • Disclosure of Potential Conflicts • Failure to Disclose may lead to disqualification. • Arbitrator to Accept Appointment Only If: • Suitable Experience and Ability • Available time to proceed with the arbitration • Can Publicise Qualifications Experience • No Advertising

19. CIArb CODE of CONDUCT (3) • Overriding obligation to act fairly and impartially as between the parties, at all stages of the proceedings • No Delegation of Responsibilities • Observe Trust and Confidentiality • No Private Communications Arbitrator/Party • Includes telephone • Integrity Regarding Fees/Expenses • Fees and Expenses must be Reasonable

20. CIArb GOOD PRACTICE GUIDELINES • “Good”, not necessarily “Best”, Practice • Assistance for Arbitrators • >1,000 Man-Years of Experience • Origins in English Arbitration Act 1996 • Now Internationalised • Covers practical issues not covered by Statute • Quasi-Regulatory Effect

21. CURRENT ISSUES AFFECTING CONDUCT • Arbitrator Interviews • Non-Qualified Arbitrators • Non-Professional Arbitrators • Tribunal Dynamics • Cultural Differences • Arbitrators Appointed by States • “The Club”

22. ALTERNATIVE DISPUTERESOLUTION (1) - OVERVIEW • What is ADR ? • Why ADR ? • Relationship with Courts • Compulsory or Voluntary ? • Court Support of: • The Process • The Outcome • Qualifications and Training

23. ADR (2) – FORMS of ADR • Executive Negotiation • Early Neutral Evaluation (ENE) • Private Mini-Trials • Adjudication, DABs DRBs • Mediation/Conciliation • Med-Arb, Arb-Med, MedExDet • Arbitrediation • Other/None of the Above

24. DISPUTE PREVENTION &DISPUTE MANAGEMENT • Prevention • Corporate Culture • Co-Operation – what do YOU Want • Conciliatory Approach • Local Customs/Culture/Mores • Management • Dedicated Task Force • Expertise – technical/litigator • Decision-making

25. CONCLUSIONS (1) • Arbitration and ADR are Fundamental • Respect for the Rule Of Law • Growth and Development of National & Regional Centres • Maximise Co-Operation • Increasing Normalisation of Standards • Role of Chambers/Colegios • Role of CIArb

26. CONCLUSIONS (2) Muchas Gracias for your ATTENTION this afternoon