new uplaw edited

8/9/2019 New UPLaw Edited

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Involved in Arbitration / ADR?

We know the different processes.

We can help you dissect and analyze themrefine and combine them and create hybrid

procedures to make them suitable forparticular relationships as well as to developstrate!ies and point you to the ri!ht direction.

"hilippine Institute of Arbitrators


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CONSTITUTING THE TRIBUNAL WITH ARBITRAL ETHICS AND

DISCLOSURESby

MARIO E. VALDERRAMA AB, LLB, FCIARb, FHKIArb,

FPIArb

CIArb Approved Tutor CIAC Accredited Arbitrtor

Me!ber "co#opted$ o% t&e Br'c& Mi' Co!!ittee o%

T&e C&rtered I'(titute o% Arbitrtor(

E(t A(i Br'c&

Co'tct Deti)(

Te) *o +- //01 Te)e%2 +3 04-

Mobi)e /50- 00 65

E#!i) 7!rv).)89:!i).co!;


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STRUCTURE OFPRESENTATION

Introduction# $omprehendin! Arbitrations

%opic I# $onstitutin! the %ribunal

%opic II# Arbitral &thics and Disclosures


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Introduction

COMPREHE*DI*< ARBITRATIO*=


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CLEARING THE CONFUSION: ARBITRATION AND STATUTE BASED

ARBITRATIONS %here are several processes called'arbitration( in the "hilippines.

$lasses#

a. Arbitration )traditional/a!reement based*

b. +tatute based arbitrations , based on law


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CLEARING THE CONFUSION

CO*CEPT OF ARBITRATIO* "Aue(tio', 8&ic& i( o% i'tere(t %or t8o or !oreper(o'(, i( e'tru(ted to o'e or !ore ot&erper(o'( ? t&e rbitrtor or rbitrtor(# 8&oderive t&eir po8er( %ro! privte :ree!e't,'ot %ro! t&e ut&oritie( o% =tte, 'd 8&o re

to proceed 'd decide t&e c(e o' t&e b(i( o%(uc& ' :ree!e't ? Fouc&rd,


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AGREEMENT BASED ARBITRATION

E)e!e't(@

A co'(e'(u) !ode o% di(pute

re(o)utio' by t&ird prty 'eutr) c&o(e'by t&e prtie( )edi': to %i') 'dbi'di': 8rd. ? %ro!


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C)((i%ictio'

Ad Hoc ? do it your(e)% rbitrtio'

I'(titutio') ? d!i'i(tered by ' rbitr)

i'(titutio', u(u))y u'der it( o8' ru)e(.


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C)((i%ictio'@ I'(titutio') Arbitrtio'

Fu))y d!i'i(tered. E2!p)e@ ICC

rbitrtio'(.

Prt)y d!i'i(tered.


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*ote@ PDRCI Arbitrtio'

'der PDRCI Ru)e(, t&e cou'(e) i' c&r:e o%

t&e %i)e i( e!po8ered to "$ i'terve'e i' '

rbitrtio' i' c(e o% !'i%e(t vio)tio' o% t&ePDRCI Ru)e( 'd "b$ to ((i(t t&e tribu') 'd

t&e prtie( to, !o': ot&er(, t&e procedure to

be %o))o8ed1 pre(e'ti': r:u!e't( 'd

evide'ce1 'd !i': 8rd(, but 8it& t&ecvet t&t t&ere i( )i!it to ((i(t'ce.


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Agreeent B!"ed Ar#itr!tionC)((i%ictio' ( to pp)icb)e )8

Forei:' ? uri(dictio') (et i( cou'try

ot&er t&' t&e P&i)ippi'e(. App)icb)e )8

o% rbitrtio' i( t&e rbitrtio' )8 o% t&e(et.

I% %orei:' 8rd 8ere bei': e'%orced i't&e P&i)ippi'e(, t&e pp)icb)e )8 i( t&e

*e8 or Co've'tio' o% 0564.


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Agreeent B!"ed Ar#itr!tion$lassification as to applicable law

-ocal "hilippines is the urisdictional seat

Do!e(tic ? 8it&out %orei:' e)e!e't1 de%i'ed i'

t&e 'e:tive. App)icb)e )8 i( R.A. 4- 'd

Civi) Code Tit)e GIV ( !e'ded!odi%ied by

R.A. 5346.

I'ter'tio') ? 8it& %orei:' e)e!e't.


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Agreeent B!"ed Ar#itr!tion: W$en Ar#itr!tion i" Intern!tion!%

&Mode% L!' (&)** Re parties0 places of business1 Re a!reed seat of arbitration in re places of

business1

Re place where a substantial part of theobli!ations is to be performed1 place with which

the subect matter of the dispute is most closely

connected in re places of business1

Re a!reement that the subect matter of the

arbitration relates to more than one county.


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CLEARING THECONFUSION: =TATTE BA=ED ARBITRATIO*=

+ub $lassification

Optio') # 'eed( (tipu)tio' to rbitrte, e.:.CIAC 'd vo)u'try )bor rbitrtio'(

I!po(ed ? doe( 'ot re>uire :ree!e't torbitrte, e.:. co'(u!er 'd co!pu)(ory )borrbitrtio'(


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FOCUS OF DISCUSSION

Our %ocu( i( o' :ree!e't b(ed

rbitrtio'.

T&i( i( true rbitrtio', b(ed o' co'(e't 'd

'ot o' )8. Co'(e'(u) u(tice.

I' rbitrtio' t&e prtie( cr%t t&e procedure.T&o(e 8&o do 'ot 'o8 8&t to do &ve 'o

recour(e e2cept to re)y o' t&e rbitrtor.


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CLEARING THE CONFUSION: AGREEMENT BASED ARBITRATION

Co'trctu)1 (y'o'y!ou( 8it& t&e co'cept o%

prty uto'o!y i' t&e re(o)utio' o% di(pute(

Tribu') ' i'(tru!e't)ity o% t&e prtie(

A8rd i( product o% privte di(pute re(o)utio'proce((e(, &e'ce t&e 'eed %or udici)

reco:'itio' o% co'%ir!tio'

Pri'cip)e o% %i')ity o% 8rd( i( b(ed o'

co'trct core co!po'e't o% t&e proce(( V)idity i((ue(@ 8rd treted u(t )ie

co'trctu) (tipu)tio'


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ARBITRATION

$ontractual 2ature

Arbitrtio' i( creture o% co'trct, 'ot o%

)8. It i( b(ed o' t&e co'trct pri'cip)e o%prty uto'o!y or t&e 8i)) o% t&e prtie(,e2pre((ed ( t&e %reedo! to co'trct.

He'ce, t&e :over'i': )8 %%ir!ed, rt&ert&' :r'ted, t&e ri:&t to c&oo(erbitrtio'.


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ARBITRATION

$ontractual 2ature#

%he process is !overned more by contractual

precepts less by law.

A:e o% !ority

Auto'o!y o% co'trct(

Li!ittio'( o' t&e %reedo! to co'trct


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ARBITRATION

$ontractual 2ature#

A common mistake is to look at the law first

instead of applyin! contractual precepts.

Doin! so , takin! the le!al approach , will

most likely result to the wron! ideas.


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ARBITRATION

Tribu') ' I'(tru!e't)ity o% t&e Prtie(

I' rbitrtio' t&e prtie( by co'trct crete t&eiro8' tribu') "(ee Mode) L8 provi(io'($. T&eyppoi't t&eir ud:e(1 cr%t t&e procedure1:ree o' (ever) cte:orie( o% c&oice. A(cretor( t&ey o8' t&e tribu')1 ( o8'er( 'dcretor( t&ey c' (&pe t&e tribu') to 8&tt&ey 8't it to be. A( o8'er( 'd cretor( t&ey

py t&e e2pe'(e( o% t&e tribu') t&t t&eycreted. T&e rbitrtor( re i' to te!porrye!p)oyee( 8&o(e ob de(criptio' i( to re(o)vet&e di(pute bet8ee' t&e prtie(.


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ARBITRATION

A8rd Product o% Privte Di(puteRe(o)utio' Proce((1 *eed %orCo'%ir!tio'Reco:'itio'

A vcted 8rd 2 2 2 8( 'i'ter'tio') 8rd 8&ic& 8( 'oti'te:rted i' t&e )e:) (y(te! o% t&t =tte

2 2 2 "Hi)!rto' v OTV, 055 BLL CIV. A,*o. 0/, Court de C((tio', Mrc& 3+,055. Fro! Crbo''eu$.


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ARBITRATION

Pri'cip)e o% Fi')ity o% A8rd i( Co'trctu)2 2 2 rbitrtor( re ud:e( c&o(e' by t&eprtie( to decide t&e !tter( (ub!itted to t&e!,%i'))y 'd 8it&out ppe) 2 2 2 "Burc&e)) v

Mr(&, 64 .=.. +, 06 L.Ed. 5 "046$.

T&e e((e'ce o% t&e rbitrtio' proce(( i( t&t 'rbitr) 8rd (&)) put t&e di(pute to re(t 2 2 2.Arbitr) %i')ity i( core co!po'e't o% t&e

prtie(J :ree!e't to (ub!it to rbitrtio'. T&u(,' rbitrtio' deci(io' i( %i') 'd co'c)u(ivebecu(e t&e prtie( &ve :reed t&t it be (o 2 22. "=t( v =c&8b$.


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ARBITRATION

V)idity I((ue(@ =u!!ry *ture o%E'%orce!e'tReco:'itio' Proce((e(

T&e (y))o:i(!@ T&e co'trct bet8ee' t&e prtie(

i( to bide by t&e 8rd or deci(io' o% t&eTribu')1 t&e (ubect o% t&e petitio' i( t&e 8rd1er:o t&e 8rd !u(t be e'%orced.

Cutio'ry *ote@ (e:re:te %ro! t&e !erit( o% t&e8rd t&e :rou'd( to vcte t&e re%u(ereco:'itio' o% t&e 8rd 8&ere i((ue( o% %ct'd )8 !y ri(e.


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ARBITRATION

V)idity I((ue(@ A8rd i( Treted u(t Lie

Co'trctu) =tipu)tio'

A' 8rd i( i:'ored or vcted i% bd1reco:'ied or co'%ir!ed 'd e'%orced i% :ood1

(ubect to t&e pri'cip)e o% (eprbi)ity.

A' dded (vi': :rce i( re%err) bc to t&eTribu') 8&ic& 8( i'troduced by rbitrtio'

)8(.


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ARBITRATION


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The Constituent Elements of an Arbitration

udici) ? T&e rbitr) tribu') decide( t&e

di(pute( )ie ud:e or co))ective ud:e(, (

t&e c(e !y be. T&i( di(ti':ui(&e(

co'(e'(u) rbitrtio' %ro! !editio' 'dot&er ADR %or!(.

Co'trctu) ? T&e po8er o% t&e tribu')

ri(e( %ro! co'trct. T&i( di(ti':ui(&e(

co'(e'(u) rbitrtio' %ro! )iti:tio' 'd(ttutory rbitrtio'.

)3rom $arbonneu*.


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3rom the 4udicial &lement flows the followin!# Re>uire!e't to ob(erve due proce((

E>u)ity o% t&e prtie(

Re(o'b)e opportu'ity to be &erd

I!prti)ity o% rbitrtor(

Arbitr) Et&ic(


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3rom the $ontractual &lement )con0t*

3orm

Mu(t be i' 8riti':.

*OTE@ T&e )8 &( (i'ce evo)ved to &ve' e2p'ded de%i'itio' o% i' 8riti':.


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3rom the $ontractual &lement )con0t*

uri(dictio' o% t&e Arbitr) Tribu')

Co'trctu) rbitrbi)ity, !e'i': t&t t&e

tribu') (&ou)d 'ot :o beyo'd t&e uri(dictio'

:r'ted to it by t&e prtie(.

But 'ote t&t t&e )8 !y :r't dditio')

po8er( to t&e tribu'), e.:., po8er to i((ue

i'teri! !e(ure( o% protectio'


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3rom the $ontractual &lement )con0t* T&e Ru)e( 'd Procedure

Prtie( !e t&eir o8' ru)e( 'd procedure.

*ote@ T&e ter!( o% re%ere'ce i( !ore i' tot&e Ru)e( o% Court rt&er t&' Pre#Tri) Order.N

Le:) Arbitrbi)ity ")i!ittio'( ri(i': %ro! )8 t&t

%%ect t&e %reedo! to co'trct$

Pri'cip)e o% (eprbi)ity


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STATUTE BASED ARBITRATIONS E(tb)i(&ed by (ttute Hybrid proce((e( Freedo! o% prtie( to (e)ect rbitrtor( 'd

cr%t procedure &evi)y curti)ed Tribu') ' i'(tru!e't)ity o%


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STATUTE BASE ARBITRATIONS Creted by (ttute@

T&ere i( &ereby e(tb)i(&ed i' t&e

CIAP body to be 'o8' ( t&e

Co'(tructio' I'du(try Arbitrtio'

Co!!i((io' "E.O. 0//4 =ectio' +$.


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STATUTE BASE ARBITRATIONS Hybrid Proce((e(

A peru() o% t&e CIAC procedure( 8i))

(&o8 co!bi'tio' o% t&e precept( o%

:ree!e't b(ed rbitrtio' 'd )iti:tio'.


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STATUTE BASE ARBITRATIONS Curti)!e't o% %reedo! to c&oo(e

rbitrtor(@


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STATUTE BASE ARBITRATIONS Curti)!e't o% %reedo! to cr%t procedure@

T&e Arbitr) Tribu') (&)) t )) ti!e( dopt t&e

!o(t e2peditiou( procedure %or t&e i'troductio'

'd receptio' o% evide'ce, 'd =HALL HAVECOMPLETE CO*TROL OVER THE

PROCEEDI*


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STATUTE BASE ARBITRATIONS Tribu') ' i'(tru!e't)ity o% t&e


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STATUTE BASE ARBITRATIONS

*o 'eed %or co'%ir!tio' %or

e'%orcebi)ity ( re(u)t't 8rd i(

)redy i'te:rted i'to t&e )e:)

(y(te!.


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STATUTE BASE ARBITRATIONS

A8rd (ubect to ppe)@

Ru)e + =ectio' 0. =cope. ? T&i( Ru)e

(&)) pp)y to ppe)( %ro! 8rd( 2 2 2.

A!o': t&o(e :e'cie( re t&e 2 2 2

Co'(tructio' I'du(try Arbitrtio'Co!!i((io'.


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TOPIC ONE

CO*=TITTI*< THE TRIB*AL


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Met$od" o+ A,,ointent

(- Noin!tion in t$e !r#itr!tion!greeent

. "e%+.e/,%!n!tor0

. ,o""i#%e di"!d1!nt!ge i+!,,ointent !de in !d1!nce :

!r#itr!tor !0 re+u"e or !0 not#e !#%e to "er1e +or '$!te1erre!"on


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!etho"s of A##ointment

5. A:ree!e't %ter di(pute &(

ri(e'

(e)%#e2p)'tory

'eed( co'(e't o% rbitrtor


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+. by ' :reed ppoi'ti': ut&ority or ot&er:reed procedure

#ppoi'ti': ut&ority !y be ' rbitr)i'(titutio'

"e2!p)e(@ ICC, PDRCI$ or per(o'.# i% prtie( :reed to (ub!it t&eir di(pute

u'der i'(titutio') ru)e(, t&e i'(titutio' i( t&eppoi'ti': ut&ority u')e(( i% t&e prtie(

(tipu)ted ot&er8i(e "(ee R.A. 5346 =ec. 3$.# ad hoc rbitrtio'(@ IBP Pre(ide't or &i(

du)y ut&oried repre(e'ttive i( t&e de%u)tppoi'ti': ut&ority "id., =ec. 3$


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6. by prty ppoi'ted rbitrtor(

# 8&ere t&ere re to be t&ree rbitrtor( ec&prty (&)) ppoi't o'e rbitrtor 'd t&e t8o

ppoi'ted rbitrtor( 8i)) ppoi't t&e t&ird"Mode) L8 Art. 00, per R.A. 5346 =ec. ++ )(opp)icb)e to do!e(tic rbitrtio'$.

*OTE@ I' ICC rbitrtio' it i( t&e ICC Court t&t

ppoi't( t&e t&ird rbitrtor u')e(( i% t&e prtie(:reed to di%%ere't procedure.N


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7. by t&e Court or ot&er ut&ority

# 8&ere t&ere i( de%u)t by prty or ot&erppoi't!e't !ec&'i(! or i'bi)ity o% t&eppoi'ted rbitrtor( to :ree, t&e ppoi't!e't

(&)) be !de by t&e Court or ot&er ut&ority"Mode) L8 Art. 00 +N$.# per R.A. 5346 =ec. 3-@ t&e ut&ority i( t&e

ppoi'ti': ut&ority ( de%i'ed i' t&e )81 i'de%u)t o% t&e ppoi'ti': ut&ority "8&o %i)ed or

re%u(ed to ct 8it&i' t&irty "+/$ dy( to per%or!&i( %u'ctio'($, t&e i'tere(ted prty !y re'e8pp)ictio' to t&e Court "t&e proper RTCBr'c&$.


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$uali%&ations of the Tribunal '!o"el La()

8. I!prti)ity

# pro(pective rbitrtor i( re>uired to

di(c)o(e 'y circu!(t'ce( 8&ic& !y:ive ri(e to u(ti%ib)e doubt( ( to &i(

i!prti)ity "Mode) L8 Art. 03.0$.

# t&e duty to di(c)o(e i( co'ti'ui':

duri': t&e proce((


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3. I'depe'de'ce


di(c)o(e 'y circu!(t'ce( 8&ic& !y :iveri(e to u(ti%ib)e doubt( ( to &i(

i'depe'de'ce "Mode) L8 Art. 03.0$.

# t&e duty to di(c)o(e i( co'ti'ui': duri':

t&e proce((


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6. Di)i:e'ce "(ee Art. 0$

# He !u(t be b)e to per%or! &i(%u'ctio'( 8it&out u'due de)y


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2u!%i3c!tion" o+ t$e Tri#un!% &R-A- 456Sec- (7*

!u(t be o% )e:) :e, i' %u)) e'oy!e't o% &i( civi)ri:&t(, 'd 'o8 &o8 to red 'd 8rite.

!u(t 'ot be re)ted by b)ood or !rri:e 8it&i' t&e(i2 de:ree to eit&er prty to t&e co'trover(y orcu(e to be decided1 !u(t 'ot &ve 'y per(o')bi( 8&ic& !i:&t preudice t&e ri:&t o% 'y prty to %ir 'd i!prti) 8rd.

*OTE@ Mode) L8 Art(. 03 'd 0 )(o pp)y todo!e(tic rbitrtio' "R. A. 5346 =ec. ++$.


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$uali%&ations of the Tribunal

prtie( !y dd ot&er

>u)i%ictio'(di(>u)i%ictio'(

'e:tive@ !u(t 'ot be )8yer

po(itive@ !u(t be ' e':i'eer

# 'tio')ity 'ot ( br u')e((

ot&er8i(e (tipu)ted "Mode) L8 Art.

00.3$.

2UALIFICATIONS OF THE TRIBUNAL IBA


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2UALIFICATIONS OF THE TRIBUNAL: IBARULES OF ETHICS FOR INTERNATIONAL ARBITRATORS

I!prti)

I'depe'de't

Co!pete't

Di)i:e't

Di(creet


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$uali%&ations of Tribunal

Ro)e o% Appoi'ti': Aut&ority

# ppoi'ti': ut&ority !u(t &ve re:rd to

>u)i%ictio'( re>uired by )8 'd by t&e rbitrtio'

:ree!e't

*OTE@ ICC procedure ? re>uire( co'%ir!tio' o%

ppoi't!e't( !de by t&e prtie( or !de pur(u't

to :reed procedure "ICC Art. 5$.

S ti 'R i li% " T ib l) '! " l L


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San&tions 'Re is*uali%e" Tribunal) '!o"el La( Arts+,- . ,/)

ope' to c&))e':e by 'y prty

# c&))e':ed !e!ber !y opt to recu(e&i!(e)%1 i% &e re%u(ed, c&))e':ed to be decidedby tribu') "i% co!po(e o% !ore t&' o'e$.

# u'(ucce((%u) c&))e':e !y be e)evted tot&e ppoi'ti': ut&ority "8i' +/ dy( %ro!'otice o% deci(io'$. Deci(io' o% ppoi'ti':ut&ority 'ot (ubect to ppe).

*ote@ rbitr) proceedi':( !y co'ti'ue duri':t&e pe'de'cy o% t&e c&))e':e i'cide't

S ti &R Di %i3 d


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S!nction" &Re Di"8u!%i3edMe#er" o+ Tri#un!%* &Mode% L!'*

*ote(@

Mode) L8 provi(io' "Art(. 03, 0+ 0$ rede%u)t provi(io'(1 &e'ce procedure

:reed upo' by t&e prtie( previ).

Mode) L8 provi(io'( )(o pp)icb)e to

do!e(tic rbitrtio' "R. =A. 5346 =ec. ++$.

S ti &R Di %i3 d


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S!nction" &Re Di"8u!%i3edMe#er" o+ Tri#un!%* &Mode% L!'*

*ote(@

I% bot&)) prtie( :ree to t&e c&))e':e,t&e' t&e c&))e':ed rbitrtor &( 'o

optio' e2cept to re(i:'.

0h N ll T i


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0hat Normall1 Trans#ires

8. Ad Hoc rr':e!e't( ?

# co'trct( 8it& rbitrtor

# (o)icittio' o% ppoi't!e't(

pro(cribed

# i((ue ( to %ee(e2pe'(e(@ per IBA Ru)e(,

'o u'i)ter) :ree!e't 8it& prty

u')e(( t&e prtie( :ree ot&er8i(e or prty

de%u)t(.

# c'ce))tio' %ee(

# ter!( o% e'::e!e't

# 8&ere o'e prty i( rec)citr't

0h N ll T i


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5. I'(titutio') rr':e!e't(

# ue(ted "ru)e( c&':ed$.

# re %ee(@ (ubect to :ree!e't bet8ee' t&eprtie( 'd t&e tribu')1 de%u)t ru)e i( PDRCI

(c&edu)e "ru)e( c&':ed$.

0h N ll T i


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ICC# prtie( (ub!it t&eir 'o!i'tio' "prty

ppoi'ted$ to ICC

# ICC 8rite( to 'o!i'ee( 8&o re re>uired to %i))up brie% i'%o (&eet, dec)rtio' o% i'depe'de'ce'd co'(e't to (erve

# ICC eit&er co'%ir!( 'o!i'tio' or e2pre((re(ervtio'( "(o t&t t&e prtie( !y ct o' it$ 'd(e'd it to t&e prtie( to:et&er 8it& copie( o% t&ecco!p)i(&ed docu!e't(.

0h t N ll T i


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ICC "co'Jt$

# i' c(e o% rec)citr'ce by o'e prty, ICC

(erc& %or po((ib)e ppoi'tee by i'>uiri': %ro!t&e re)ev't ICC *tio') Co!!ittee %or'o!i'tio'( 'd %o))o8 t&e previou( proce(("*ote c&':e i' ru)e($.

# ICC 'or!))y doe( 'ot ppoi't ( C&ir!' per(o' 8&o i( o% t&e (!e 'tio')ity ( t&eprtie( or 'yo'e o% t&e!.

C tit ti f th T ib l


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Constitution of the Tribunal:CIAC0. C&oice =e)ectio' o% Arbitrtor(

At !o(t (i2 'o!i'ee( I' order o% pre%ere'ce CIAC ccredited

3. Vrib)e( =o)e rbitrtor Tribu') Avi)bi)ity Co!!o' *o!i'ee CIAC di(cretio'

TOPIC II


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TOPIC II

DI=CLO=RE I* ARBITRATIO*

STRUCTURE OF PRESENTATION


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STRUCTURE OF PRESENTATION

Prt 0@


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PART ONE: GENERAL

u)i%ictio'( o% t&e Tribu') "Mode) L8$

0. I!prti)ity

3. I'depe'de'ce

+. Di)i:e'ce

. Ot&er( :reed to by t&e prtie(

2 %i3 i + $ T i# % &M d %


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2u!%i3c!tion" o+ t$e Tri#un!% &Mode%L!'*

0. I!prti)ity ? re%er( to (tte o% !i'd

3. I'depe'de'ce ? re%er( to re)tio'(&ip(

+. Di)i:e'ce ? t&e rb !u(t be b)e to per%or!

&i(&er %u'ctio'( 8it&out u'due de)y

2 %i3 ti + t$ T i# % &M d %


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2u!%i3c!tion" o+ t$e Tri#un!% &Mode%L!'*

FOC=@ O' I!prti)ity 'd I'depe'de'ce

DUT9 TO DISCLOSE


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DUT9 TO DISCLOSE

T&e !o(t i!port't e)e!e't i' t&e

re>uire!e't o% i!prti)ity 'd

i'depe'de'ce i( di(c)o(ure "Red%er' 'd

Hu'ter o' p:e 33 o% L8 'd Prctice

o% I'ter'tio') Arbitrtio'$

Ru)e o' di(c)o(ure )(o )i!it prty uto'o!y ? %i)ure to co!p)y 8it& duty to di(c)o(e

!y :ive ri(e to c&))e':e 8&ic&, i%

(ucce((%u), 8i)) re(u)t to re!ov) or

di(>u)i%ictio' o% ' rbitrtor.

DUT9 TO DISCLOSE


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DUT9 TO DISCLOSE

Re I!prti)ity


di(c)o(e 'y circu!(t'ce( 8&ic& !y:ive ri(e to u(ti%ib)e doubt( ( to &i(

i!prti)ity "Mode) L8 Art. 03.3$.

# t&e duty to di(c)o(e i( co'ti'ui':

duri': t&e proce((


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DUT9 TO DISCLOSE

Re I'depe'de'ce


di(c)o(e 'y circu!(t'ce( 8&ic& !y :iveri(e to u(ti%ib)e doubt( ( to &i(

i'depe'de'ce "Mode) L8 Art. 03.0$.

# t&e duty to di(c)o(e i( co'ti'ui': duri':

t&e proce((


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DUT9 TO DISCLOSE

Ti!e

# t&e di(c)o(ure (&ou)d be !de to t&e

prtie( 8it&out %urt&er de)y, %ro! t&e ti!eo% &i( ppoi't!e't 'd t&rou:&out t&e

rbitr) proceedi':( u')e(( t&e prtie(

&ve )redy bee' i'%or!ed by &i!&er

"(ee Mode) L8 Artic)e 03"0$.$


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DUT9 TO DISCLOSE

To &o! Addre((ed@

# t&e prtie( per (ttute

# re>uire!e't( o% tr'(pre'cy )(o

re>uire di(c)o(ure to t&e ot&er rbitrtor( "i%

'y$, t&e d!i'i(teri': i'(titutio' "i% 'y$ 'd

t&e ppoi'ti': ut&ority "i% 'y$.


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DUT9 TO DISCLOSE

&t to Di(c)o(e@


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DUT9 TO DISCLOSE

&t to Di(c)o(e@ Prticu)r(

# (ee di(cu((io' o' t&e (t'drd(


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DUT9 TO DISCLOSE

E%%ect o% Ru)e( o% Co'%ide'ti)ity

# i% ru)e( o% co'%ide'ti)ity 8i)) preve't '

rb %ro! !i': di(c)o(ure, t&e' &e (&ou)d'ot ccept or re(i:' %ro! t&e ((i:'!e't

"Deri'( 'd =c&8rt@ A


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DUT9 TO DISCLOSE

E%%ect o% Lc o% K'o8)ed:e

# 'ot ' e2cu(e %or 'o'#di(c)o(ure i% t&e rb %i)ed to !e

t&e 'ece((ry i've(ti:tio' "(ee

IBA


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DUT9 TO DISCLOSE

E%%ect( o% Di(c)o(ure

# o' t&e p)u( (ide@ it crete( ' i!pre((io'

t&t, i' (o %r ( t&e rb i( co'cer'ed, &e

be)ieve( t&t &e i( 'ot di(>u)i%ied or i( 'ot i' co'%)ict o% i'tere(t (itutio'.

# o' t&e !i'u( (ide@ di(c)o(ure ope'( t&e

8y %or prtie( to probe %urt&er to deter!i'e8&et&er or 'ot t&e di(c)o(ed %ct or eve't i(

:rou'd %or di(>u)i%ictio'.


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THE STANDARDS

0. QEye( o% t&e Prtie( Te(t "=ubective Te(t$ ?

(t'drd %or di(c)o(ure 'd di(>u)i%ictio' i'

t&e ICC, (o!e ot&er i'(titutio'(1 )(o IBA Ru)e(.

3. Obective Te(t ? t&e :e'er) ru)e. Re%)ected i'

t&e Mode) L8.

3.. T&e IBA u)i%ictio'.


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PART A: ;E9ES OF THE PARTIESTEST<

A' rbitrtor !u(t pper to be i!prti)

'd i'depe'de't i' t&e eye( o% t&e prtie(.

*o' di(c)o(ure by t&e rb 8i)) u(ti%y

prty i' !i': (pecu)tio'( ri(i': %ro!

veri%ib)e or re(o'b)y ((u!ed %ct(1&e'ce t&e rb (&)) ce(e to pper i!prti)

'd i'depe'de't i' t&e eye( o% t&e prtie(.

PART A ;E9ES OF THE PARTIES


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T&e te(t i( re%)ected i' ICC Arbitrtio' Ru)e("0544$ Artic)e -.3.

It i( )(o re%)ected i' t&e IBA Ru)e( o% Et&ic( %or

I'ter'tio') Arbitrtio'@ Fi)ure to !e (uc&di(c)o(ure crete( ' pper'ce o% bi(, 'd

!y it(e)% be :rou'd %or di(>u)i%ictio' eve'

t&ou:& t&e 'o'#di(c)o(ed %ct( or

circu!(t'ce( 8ou)d 'ot o% t&e!(e)ve( u(ti%ydi(>u)i%ictio'.

PART A ;E9ES OF THE PARTIES


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&t to Di(c)o(e

# )!o(t )) re)tio'(&ip( 'd eve't(, ot&er

t&' c(u), t&t re re)ted to t&e rbitrtio'1

t&e prtie( to t&e rbitrtio', i'c)udi': director(,i!port't o%%icer( 'd (i:'i%ic't (toc&o)der(1

t&e ot&er rbitrtor(, prty repre(e'ttive( "or

cou'(e) %or t&e prtie($, eve' i!port't

8it'e((e(.# i' c(e o% doubt, t&e u'8ritte' ru)e i( to

di(c)o(e

PART B( THE OB=ECTI>E TEST


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PART B(: THE OB=ECTI>E TEST

&t to Di(c)o(e

# 2 2 2 &e (&)) di(c)o(e 'y

circu!(t'ce )ie)y to :ive ri(e to

u(ti%ib)e doubt( ( to &i( i!prti)ity or

i'depe'de'ce. "Mode) L8 Art. 03 "0$$.

# i' c(e o% doubt, t&e u'8ritte' ru)e i(to di(c)o(e

PART B( THE OB=ECTI>E TEST


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PART B(: THE OB=ECTI>E TEST

&t to Di(c)o(e

# 2 2 2 &e (&)) di(c)o(e 'y

circu!(t'ce )ie)y to :ive ri(e to

u(ti%ib)e doubt( ( to &i( i!prti)ity or

i'depe'de'ce. "Mode) L8 Art. 03 "0$$.

# I((ue@ 8&e' (&ou)d doubt( beco'(idered u(ti%ib)e

PART B( ;REASONABLE THIRD


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PART B(!: ;REASONABLE THIRDPERSON TEST<

I'tro@ I'troduced by t&e IBA


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Red%er' 'd Hu'ter o' p:e 33@

T&ere i( t&u( (ubt)e di%%ere'ce, i' t&i(

co'te2t, bet8ee' t&e objective te(t ( to

8&et&er t&e re)ev't %ct( 8ou)d cu(e doubt i'

t&e !i'd o% re(o'b)e t&ird prty, 'd t&e

subjective te(t ( to 8&et&er t&ey !i:&t cu(e

doubt i' t&e !i'd o% t&e prtie( i'vo)ved i' t&e

(peci%ic c(e i' >ue(tio'.



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Me'( Adopted by t&e IBA To Atti' it(Obective(

# t&e


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Me'( Adopted by t&e IBA To Atti' it(Obective( "co'Jt$

*ote t&t t&e (itutio'( i' t&e pp)ictio' )i(t(

re !ore )ie e2!p)e(. =o, )oo %or ')o:ou(

(itutio'(.



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PART B(!: ;REASONABLE THIRDPERSON TEST


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PART B(!: ;REASONABLE THIRDPERSON TESTu)i%ictio' u'der t&e 'o'#8ivb)e red

)i(t c''ot be 8ived

"c$ iver( o% di(>u)i%ictio' u'der t&e

8ivb)e red )i(t

"d$ Arbitrtor prticiptio' i' (ett)e!e't

proceedi':(1 8&t to do i% rbitrtor 8ere todeve)op doubt( ( to &i( i!prti)ity 'd

i'depe'de'ce "Cre%u) &ere$

PART B(!: ;REASONABLE THIRD


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PART B(!: REASONABLE THIRDPERSON TEST


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PART B(!: REASONABLE THIRDPERSON TESTu)i%ictio'. I'c)ude!e!ber(&ip i' :roup.

"b$ I% prty )e:) e'tity@ per(o')e:) e'tity

8 co'tro))i': i'tere(t, or direct eco'o!ic i'tere(t

i', or 8it& duty to i'de!'i%y prty %or t&e 8rd i(

to be co'(idered to ber t&e ide'tity o% t&e prty.



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PART B(!: REASONABLE THIRDPERSON TEST


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PART B(!: REASONABLE THIRDPERSON TEST<

THE


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THE


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THE ORA*


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THE ORA*


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I*COMPLETE ORA*


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THE AIVABLE RED LI=T

T&e duty to di(c)o(e e2i(t( i' t&o(e (itutio'(

%))i': 8it&i' t&e Red Li(t. A'd, t&ere (&ou)d

be written 'd informed 8iver o' t&e prt o%

t&e prtie( %or t&e rbitrtor to co'ti'ue cti':

( (uc&. Di(c)o(ure !u(t i'c)ude t&e %ct t&t

rb i( i' t&e 8ivb)e red )i(t 'd 'eed( 8iver

to co'ti'ue.



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THE AIVABLE RED LI=T "co'Jt$

E2!p)e(@

3.0.3. T&e rbitrtor &( previou( i'vo)ve!e't i'

t&e c(e.

3.+.6.T&e rbitrtorJ( )8 %ir! &d previou( butter!i'ted i'vo)ve!e't i' t&e c(e 8it&out t&e

rbitrtor bei': i'vo)ved &i!(e)% or &er(e)%.



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THE *O*#AIVABLE RED LI=T

T&e rbitrtor i( di(>u)i%ied i% t&e (itutio' %))(8it&i' t&e *o'#ivb)e Red Li(t. Di(c)o(ure 8i))'ot cure t&e di(>u)i%ictio'.

0. T&ere i( ' ide'tity bet8ee' prty 'd t&erbitrtor, or t&t rbitrtor i( )e:) repre(e'ttiveo% ' e'tity t&t i( prty i' t&e rbitrtor.

3. T&e rbitrtor i( !':er, director, or !e!ber o%t&e (upervi(ory bord, or &( (i!i)r co'tro))i':i'%)ue'ce i' o'e o% t&e prtie(.



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THE *O*#AIVABLE RED LI=T "co'Jt$

+. T&e rbitrtor &( (i:'i%ic't %i''ci)i'tere(t i' o'e o% t&e prtie( or t&e outco!eo% t&e c(e.

. T&e rbitrtor re:u)r)y dvi(e( t&e

ppoi'ti': prty or ' %%i)ite o% t&eppoi'ti': prty 'd t&e rbitrtor or &i( or&er %ir! derive( (i:'i%ic't i'co!et&ere%ro!.



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IMPORTA*T *OTE=@

0. T&e pp)ictio' )i(t( do 'ot purport to beco!pre&e'(ive. T&ey re :uide)i'e(. "per IBA$.

3. T&e


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IMPORTA*T *OTE= "co'Jt$@

. =o!e (itutio'( !y 'ot be i'c)uded i' t&e (peci%ice2!p)e(.

Vio)tio' o% et&ic) ru)e(, (uc& ( t&e ru)epro(cribi': (o)icittio' o% ppoi't!e't(, i( :rou'd%or di(>u)i%ictio'1 )(o proo% t&t ' rbitrtor !ybe i'%)ue'ced by ot&er %ctor( ot&er t&' t&e !erit(.


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EE= OF THE PARTIE= =TILL EGI=T= T&e prtie( i' !i': c&))e':e !y (ti)) u(e

t&e eye( o% t&e prtie( te(t i' Or':e Li(t

=itutio'(.

*evert&e)e((, t t&e e'd o% t&e dy, t&e i((ue t&t

!y re(u)t to re!ov) i( 8&et&er or 'ot t&e

u'di(c)o(ed %ct or circu!(t'ce 8i)) crete,

%ro! t&e poi't o% vie8 o% re(o'b)e t&ird

per(o' &vi': 'o8)ed:e o% t&e re)ev't %ct(,

u(ti%ib)e doubt( ( to t&e rbitrtorJ(

i!prti)ity or i'depe'de'ce.



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IMPORTA*T *OTE=@0. I' t&e (itutio'( %))i': 8it&i' t&e Or':e

Li(t, it i( (ti)) t&e appearance o% bei': prti) or

bi(ed t&t 8i)) di(>u)i%y t&e rbitrtor. T&e te(t

to be pp)ied i(, &o8ever, t&e i'%or!edre(o'b)e t&ird per(o' te(t.

3. T&e IBA


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Mu(t red@ t&e IBA Ru)e( o' Et&ic( 'd t&e

IBA


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PART THREE

RLE= OF DI=CLO=REI* THE CIAC

COMMENCEMENT OF DUT9 TODISCLOSE


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DISCLOSE

Duty Co!!e'ce( po' Accept'ce o% Appoi't!e't

CIAC Ru)e 0/ =ec 0/.3.

po' ccept'ce o% &i( ppoi't!e't, t&e

Arbitrtor (&)) di(c)o(e i' 8riti': to CIAC 'y

circu!(t'ce( )ie)y to crete i' eit&er prty

pre(u!ptio' o% bi( or 8&ic& &e be)ieve( !i:&t

di(>u)i%y &i! ( ' i!prti) rbitrtor. =uc&8ritte' di(c)o(ure (&)) be co!!u'icted to t&e

prtie( i!!edite)y by t&e (ecretrit. 2 2 2.

DEFERMENT OF DUT9 TO DISCLOSE


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Duty To Di(c)o(e My Be De%erred@ CIAC Ru)e 0/=ec 00.+

Duri': t&e pre)i!i'ry co'%ere'ce t&e rbitrtor

8&o &d %i)ed to !e &i( or &er 8ritte'di(c)o(ure re>uired i' t&e previou( (ectio' (&))

di(c)o(e 'y circu!(t'ce )ie)y to :ive ri(e to

u(ti%ib)e doubt( ( to i!prti)ity or

i'depe'de'ce, i'c)udi': %i''ci) or per(o')i'tere(t i' t&e outco!e o% t&e rbitrtio' or 'y

e2i(te'ce or p(t re)tio'(&ip( 8it& 'y

i'dividu) or corporte prty to:et&er 8it& t&eir

re(pective re)tive( or pri'cip)

(toc&o)der(o%%icer( or %ore(eeb)e rtici 't

DUT9 TO DISCLOSE AFTER THEPRELIMINAR9 CONFERENCE


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PRELIMINAR9 CONFERENCE

T&ere (ee!( to be 'o ru)e

re>uiri': ' rbitrtor to !e

'y di(c)o(ure %ter t&epre)i!i'ry co'%ere'ce.

It i( (ub!itted, &o8ever, t&t t&e

duty e2i(t( 'ot8it&(t'di': t&e

(i)e'ce o% t&e CIAC Ru)e(

FAILURE TO DISCLOSE AS GROUNDFOR CHALLENGE


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FOR CHALLENGE

CIAC Ru)e( &( 'o e2pre(( provi(io'.

Ru)e 5.@ A prty !y )(o re>ue(t t&e i'&ibitio' o%

t&e rbitrtor upo' ot&er u(t 'd v)id re(o'(%%ecti': i'depe'de'ce, i'te:rity, i!prti)ity

'd i'tere(t.

uery@ &t, t&e', i( t&e e%%ect o% 'o'#di(c)o(ure i%,t t&e e'd o% t&e dy, it i( t&e ct, eve't or

re)tio'(&ip 8&ic& di(>u)i%ie(

WITHDRAWAL OF ARBITRATORCONDITIONED ON CIAC APPRO>AL


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CONDITIONED ON CIAC APPRO>AL

THE rbitrtor co'cer'ed c''ot u(t 8it&dr8. It i(

t&e CIAC 8&o (&)) !e t&e deci(io'.

Ru)e 5..+@ T&e rbitrtor 222 !y 8it&outd!itti': t&e e2i(te'ce o% t&e :rou'd o%

c&))e':e, !otio' or re>ue(t, c&oo(e to i'&ibit

&i!(e)% but &i( deci(io' (&)) be (ubect to

pprov) by t&e CIAC.

Ru)e 5..6@ T&e deci(io' o% CIAC to reti' or

rep)ce ' rbitrtor (&)) be %i').

E>OL>ING PRACTICE?


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T&e 8ord( i' CIAC Ru)e 00 =ec

00.+. 222 (&)) di(c)o(e 'y

circu!(t'ce )ie)y to :ive ri(eto u(ti%ib)e doubt( ( to

i!prti)ity or i'depe'de'ce

re (ub(t'ti))y t&e (!e (Mode) L8 Artic)e 03 "0$ 'd i'

*CITRAL Ru)e( "05-$ Artic)e

FINAL NOTES


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CIAC &( 'ot ''ou'ced t&t it

i( pp)yi': 'y te(t or

(t'drd i' decidi': t&e

i((ue or 8&et&er or 'ot '

rbitrtor 8ere di(>u)i%iedor (&ou)d be re!oved.


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WANT TO @NOW MORE? Attend our cour"e" !nd

"ein!r"-Cont!ct u" +or "c$edu%e"-

>i"it u" !t'''-,$i%i,,ine!r#itr!tor"-org

"hilippine Institute of Arbitrators

c/o Atty. 9ario &. :alderrama

new uplaw edited

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