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International Chamber of

Commerce

N Sushmita Pai
12LUL08045
5th Year BALLB
Index

1.History
2.Misson
2. Dispute Resolution
4. International Court of Arbitration
5. ICC International Centre for ADR
6. Mediation
7. Mediation Rules
8. Present
Misson
The ICC aims to promote international trade and investment as vehicles for
inclusive growth and prosperity.

From resolving disputes when they arise in international commerce to


supporting global efforts to streamline customs and border procedures, we
support multilateralism as the best way to address global challenges and reach
global goals.
Having witnessed the power of international commerce to lift millions of
people out of poverty, today have set their sight on the future of globalisation,
working to promote inclusive and sustainable growth to the benefit of all.

They work to promote international trade, responsible business conduct and a


global approach to regulation by combining our global influence with their
unique expertise in advocacy, standard setting activities and global services.
In the activities we carry out every dayin their work to support the resolution
of commercial disputes, through policy advocacy, in the development of rules
and guidelines, in our training courses, and in the delivery of other practical
tools and services, they help you adapt to the challenges of trading in todays
fast-paced global economy.
History
Dispute Resolution

At ICC, they do more than support trade in todays economy. They also
help solve difficulties that arise in international commerce through our
market leading administered dispute resolution services.
Companies and governments worldwide turn to their services as an
attractive alternative to litigation. Thats because not only are they neutral
and reliable solutions that help save time and money, they are also flexible
enough to meet the diverse interests and needs of parties in different parts
of the world and different sectors of the economy.
From their flagship International Court of Arbitration administering ICC
Arbitration, to their International Centre for ADR providing mediation and
other forms of ADR, our services are based exclusively on respected rules
that only we are empowered and authorised to administer.

You do not have to be a member of ICC for resolving disputes large or


small. In fact, with standard clauses available to include in your
commercial contracts and the availability of the ICC rules in several
languages, ICC dispute resolution is more accessible today than ever
before.
International Court of Arbitration

International Court of Arbitration is the worlds leading arbitral institution.


Since 1923, it has been helping to resolve difficulties in international
commercial and business disputes to support trade and investment.
They perform an essential role by providing individuals, businesses and
governments alike with a variety of customisable services for every stage
of their dispute.

Although it is called a court in name, we do not make formal judgments on


disputed matters. Instead, we exercise judicial supervision of arbitration
proceedings. Our responsibilities include:
confirming, appointing and replacing arbitrators, as well as deciding
on any challenges made against them

monitoring the arbitral process to make certain that it is performed


properly and with the required speed and efficiency necessary

scrutinising and approving all arbitral awards to reinforce quality and


enforceability

setting, managing and if necessary adjusting fees and advances

overseeing emergency proceedings before the start of the arbitration

Our purpose is to ensure proper application of the ICC Rules, as well as


assist parties and arbitrators in overcoming procedural obstacles. These
efforts are supported by the Courts Secretariat, which is made up of more
than 80 lawyers and support personnel.
English and French are the Courts official working languages. However,
we can administer cases in any language and communicate in all major
languages, including Arabic, Chinese, German, Italian, Portuguese,
Russian and Spanish.
We continuously seek to improve efficiency, control time and costs and aid
enforcement and confidentiality by introducing innovative new arbitration
tools and procedures. This ongoing focus makes certain that we are always
in touch with the concerns and interests of trading partners throughout the
world.

ICC International Centre for ADR


While every dispute differs in one way or another, they each have one
common aim: to be resolved in the most effective and appropriate way
possible. Thats why the ICC International Centre for ADR offers a range
of services that can be used separately, successively or even concurrently.
These services include mediation, expert appraisal and dispute boards.
They also oversee work involving DOCDEX (Documentary Instruments
Dispute Resolution Expertise).

The separation between the Court and Centre is intended to preserve the
full confidentiality of mediation and arbitration proceedingswhether
they are concurrent or not and if the parties do not wish the exchange of
information. All our amicable dispute resolution solutions give parties a
procedural framework for settling matters quickly, cordially and in the
most cost-effective way possible.

With a staff of experienced international lawyers, the Centre not only


handles the settlement of disputes but also provides support in contact
drafting. Whatever service or combination of services is required; it is
important to include the most relevant dispute resolution clause in your
contract or treaty. We provide a variety of model clauses exactly for this
purpose. However, parties are also able to draft their own as well. A
properly drafted dispute resolution clause will help ensure that your
preferences are respected when a dispute arises. Even if you do not include
a clause in your contract, you can still agree on ICC later on.
Mediation
ICC mediation is both adaptable and private. Anyone is allowed to use the
settlement techique, whether a comapny, a state, state entity, international
organisation or individual.

Mediation is a flexible and consensual technique in which a


neutral facility helps the parties reach a negotiated settlement
of their dispute. The parties have control over the decision to
settle and the terms of any agreement. Settlements are
contactually binding and widely enforceable.
The mediation process is designed to give parties a better
understanding of each others business needs. As such, each can
look for a win-win solution that upholds their respective interests.
The result always remains in the parties hands, which reduces
potential risks that are so often associated with other forms of
dispute resolution.
Mediation is a useful approach when parties in dispute have an
ongoing relationship that they wish to preserve, such as a joint
venture or long-term supply contract. With mediation, this is
possible whereas there is unlikely to be any legal basis for seeking
such relief in arbitration or litigation.
All ICC Mediations are administered by the ICC International Centre
for ADR and follow the ICC Mediation Rules. Just as the Court is
the only body empowered to administer proceedings under the ICC
Rules of Arbitration, the Centre is the only body entitled to
administer proceedings under the ICC Mediation Rules.
Parties wishing to use proceedings under the ICC Mediation Rules should
consider choosing one of the clauses below, which cover different situations
and needs.

ICC Mediation Clauses


ICC offers four alternative model mediation clauses to parties wishing to have
recourse to ICC mediation or other settlement procedures under the ICC
Mediation Rules. Parties are encouraged to include an appropriate dispute
resolution clause in their agreements.
The Clauses can be adjusted to fit national laws and the parties special needs.
For instance, they may wish to specify the use of a different settlement
technique other than mediation. Furthermore, they are encourage to stipulate the
language and place of the proceedings. At all times, care must be taken to avoid
any risk of ambiguity in the drafting of the clause. Unclear wording causes
uncertainty and delay and can hinder or even compromise the dispute resolution
process.
The Clauses can be used for mediation alone or in parallel with or prior to
arbitration or other proceedings. Two of the proposed clauses combine
mediation with arbitration, one simultaneously, the other successively; another
creates an obligation to consider referring disputes to the ICC Mediation Rules;
while the least constraining clause merely reminds parties of their option to use
the ICC Mediation Rules. The clauses are accompanied by a general
introductory note providing guidance on their use and each clause is followed
by notes addressing its specific effects and meaning and explaining how it may
be adjusted to particular needs and circumstances. In multi-tiered clauses
consideration needs to be given to the Emergency Arbitrator Provisions in the
2012 Arbitration Rules. Parties are encouraged to determine whether or not they
wish to have recourse to the emergency arbitrator when providing for ICC
mediation in parallel with or prior to arbitration proceedings administered by
the ICC International Court of Arbitration.
When incorporating any of these clauses in their contracts, parties are advised
to take account of any factors that may affect their enforceability under
applicable law.

Clause A: Option to Use the ICC Mediation Rules:


The parties may at any time, without prejudice to any other proceedings,
seek to settle any dispute arising out of or in connection with the present
contract in accordance with the ICC Mediation Rules.
Notes: By including this clause, the parties acknowledge that proceedings under
the ICC Mediation Rules are available to them at any time. This clause does not
commit the parties to do anything, but the presence of the clause is designed to
remind them of the possibility of using mediation or some other settlement
procedure at any time. In addition, it can provide a basis for one party to
propose mediation to the other party. One or more parties may also ask the ICC
International Centre for ADR for its assistance in this process.

Clause B: Obligation to Consider the ICC Mediation Rules:


In the event of any dispute arising out of or in connection with the present
contract, the parties agree in the first instance to discuss and consider
referring the dispute to the ICC Mediation Rules.
Notes: This clause goes a step further than Clause A and requires the parties,
when a dispute arises, to discuss and consider together referring the dispute to
proceedings under the ICC Mediation Rules. One or more parties may ask the
ICC International Centre for ADR for its assistance in this process.
This clause may be appropriate where the parties do not wish to commit to
referring a dispute to proceedings under the Rules at the outset but prefer to
retain flexibility as to whether to use mediation to try and settle a dispute.

Clause C: Obligation to Refer Dispute to the ICC Mediation Rules While


Permitting Parallel Arbitration Proceedings if Required:
(x) In the event of any dispute arising out of or in connection with the
present contract, the parties shall first refer the dispute to proceedings
under the ICC Mediation Rules. The commencement of proceedings under
the ICC Mediation Rules shall not prevent any party from commencing
arbitration in accordance with sub-clause y below.
(y) All disputes arising out of or in connection with the present contract
shall be finally settled under the Rules of Arbitration of the International
Chamber of Commerce by one or more arbitrators appointed in
accordance with the said Rules.
Notes: This clause creates an obligation to refer a dispute to proceedings under
the ICC Mediation Rules. It is designed to ensure that when a dispute arises, the
parties will attempt to settle the dispute using proceedings under the Rules.
The clause also makes it clear that the parties do not need to conclude the
proceedings under the ICC Mediation Rules, or wait for an agreed period of
time, before commencing arbitration proceedings. This is also the default
position under Article 10(2) of the Rules.
The clause provides for ICC arbitration as the forum for final determination of
the dispute. If desired, the clause can be adapted to provide instead for a
different form of arbitration, or for judicial or other similar proceedings.
Clause D: Obligation to Refer Dispute to the ICC Mediation Rules,
Followed by Arbitration if Required:
In the event of any dispute arising out of or in connection with the present
contract, the parties shall first refer the dispute to proceedings under the
ICC Mediation Rules. If the dispute has not been settled pursuant to the
said Rules within [45] days following the filing of a Request for Mediation
or within such other period as the parties may agree in writing, such
dispute shall thereafter be finally settled under the Rules of Arbitration of
the International Chamber of Commerce by one or more arbitrators
appointed in accordance with the said Rules of Arbitration.
Notes: Like Clause C, this clause creates an obligation to refer a dispute to
proceedings under the ICC Mediation Rules.
Unlike Clause C, this clause provides that arbitration proceedings may not be
commenced until an agreed period has elapsed following the filing of a Request
for Mediation. The lapse of time suggested in the model clause is 45 days, but
parties should select a period that they consider to be appropriate for the
contract in question.
Clause D changes the default position under Article 10(2) of the ICC Mediation
Rules allowing judicial, arbitral or similar proceedings to be commenced in
parallel with proceedings under the ICC Mediation Rules.
Like Clause C, Clause D provides for ICC arbitration as the forum for final
determination of the dispute. If desired, the clause can be adapted to provide
instead for a different form of arbitration, or for judicial or other similar
proceedings.

Specific Issues Concerning the Emergency Arbitrator Provisions:


The parties should determine whether they wish to have recourse to the
Emergency Arbitrator Provisions under Clauses C and D.
Clauses C and D
If the parties wish to exclude any recourse to the Emergency Arbitrator
Provisions, the following wording should be added to Clause C or D as
applicable:
The Emergency Arbitrator Provisions shall not apply.
Clause D
1 If the parties wish to have recourse to the Emergency Arbitrator
Provisions, and want that recourse expressly to be available prior to
expiry of the 45-day or other agreed period following filing of the
Request for Mediation, the following wording should be added to Clause
D:
The requirement to wait [45] days, or any other agreed period, following
the filing of a Request for Mediation, before referring a dispute to
arbitration shall not prevent the parties from making an application, prior
to expiry of those [45] days or other agreed period, for Emergency
Measures under the Emergency Arbitrator Provisions in the Rules of
Arbitration of the International Chamber of Commerce.
2 If the parties wish to have recourse to the Emergency Arbitrator
Provisions, but only after expiry of the 45-day or other agreed period
following filing of the Request for Mediation, the following wording
should be added to Clause D:
The parties shall not have the right to make an application for Emergency
Measures under the Emergency Arbitrator Provisions in the Rules of
Arbitration of the International Chamber of Commerce prior to expiry of
the [45] days or other agreed period following the filing of a Request for
Mediation.
Present
On Nov. 4, the International Court of Arbitration of the International Chamber
of Commerce (ICC) announced that its Rules of Arbitration would be amended
as of March 2017 to implement a new Expedited Rules procedure for smaller
disputes. The Expedited Rules are designed to streamline and speed up the
arbitration process but involve major departures from the traditional dispute
resolution practices to which many are accustomed.
Although the ICC has not yet published the Expedited Rules, the ICC
announced that the rules will automatically apply to every case involving less
than $2 million in dispute. Parties with larger disputes can mutually choose to
adopt them as well.
The announced Expedited Rules procedure differs from standard ICC practices
in the following respects:
In applicable cases, the ICC will choose a sole arbitrator, rather than
allowing the parties to choose one or more arbitrators, even in the face of
an arbitration agreement providing otherwise.
The parties will not submit Terms of Reference.
The arbitrator can elect to decide the case based on the parties pleadings
and exhibits, without any document production, witness testimony or oral
hearing.
The arbitrator is required to complete the proceedings and issue an award
within six months of the initial case management conference.
The administrative and arbitral fees will be lower than in traditional three-
arbitrator ICC proceedings.
In essence, the Expedited Rules will create a fast-track process that is
expected to produce a final decision in a shorter time and at a lower cost than in
most large international arbitrations administered by major institutions. This
may appeal to companies that engage in smaller-scale transactions and lower-
stakes commercial disputes.
On the other hand, arbitrations under the Expedited Rules may omit certain
basic procedures such as the right to choose an arbitrator and to be heard in
person that many parties ordinarily take for granted in commercial dispute
resolution. A discovery-free, pleadings-only process may be familiar to parties
from civil law jurisdictions but is likely alien to those from common law
countries. Moreover, there is some chance that an award reached through an
Expedited Rules process could be viewed more skeptically by a court reviewing
it in an enforcement proceeding. Because application of the Expedited Rules
will be mandatory in sub-$2 million disputes, a company should consider these
factors before agreeing to ICC arbitration for smaller cross-border transactions.
This is the second action the ICC has taken this year that is aimed at speeding
up the arbitral process. In January 2016, it announced a new policy under which
arbitrators are expected to issue awards within three months of the last
substantive hearing or post-hearing submissions (two months for sole
arbitrators), or else face reductions to their fees.
These innovations reflect the ICCs attempt to address recurrent complaints by
users that international arbitration has become too slow and too expensive.
They also demonstrate that the ICC, considered by many to be the pre-eminent
institution for international commercial arbitration, is facing increasing
competition from a burgeoning array of global and regional institutions, many
of them featuring lower fees and promising more efficient management of
disputes than does the ICC. The ICCs caseload actually declined slightly from
2009 to 2015, while those of other institutions (such as the Singapore
International Arbitration Center and China International Economic and Trade
Arbitration Commission) grew rapidly. The new rules should go some way
toward helping the ICC maintain its stature and continue to attract disputes that
do not warrant a full array of traditional procedural protections.