JUDICIAL BENCHBOOK
ON INTERNATIONAL ARBITRATION
A GUIDE FOR JUDGES IN THE MIDDLE EAST
© 2012
Katlyn Thomas[1] and Abdullah Al Ayoub[2]

PART I:          OVERVIEW

A.    The Importance of Arbitration

Definition of Arbitration

Advantages of Arbitration

Evolution of Arbitration Policy in the MENA Region

The Role of Judges

PART II:         RELEVANT ARBITRATION TREATIES

1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”)

Washington Convention on the Settlement of Investment Disputes Between States and Nationals of Other States (“ICSID”)

Riyadh Arab Judicial Cooperation Agreement of 1983

Agreement for Execution of Judgments, Delegations and Judicial Notifications of the GCC States

Bilateral Investment Treaties (BITS) and Free Trade Agreements (FTAs)

PART III:       1958 NEW YORK CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS

PROVISIONS OF THE NEW YORK CONVENTION

ARTICLE I:   Scope of Obligations Regarding the Recognition and Enforcement of Arbitral Awards

(1)                    Scope

(2)                    Definition of Arbitration

(3)                    Definition of “Award”

(4)        Definition of Awards Made in the Territory of A State Other Than The State in Which the Recognition and Enforcement of Such Awards is Sought (i.e., “Foreign” Awards)

(5)        Definition of Arbitral Awards Not Considered as Domestic Awards In The State Where Their Recognition and Enforcement Are Sought (i.e., “International Awards”)

(6)        Definition of Differences Between Persons Whether Physical        Or Legal .

(7)                    Arbitral Tribunals Covered

(8)                    Possible Limitation: Reciprocity

(9)                    Possible Limitation: Commercial Dispute

(10)      Possible Limitation: Others

(11)      Relationship with Domestic Legislation

(12)      Relationship with Other Treaties

ARTICLE II:  Scope of Obligations Concerning Arbitration Agreements

(1)              Agreements Covered by the Convention

(2)                    Issues of “Validity” and “Arbitrability” Distinguished

(3)                    Jurisdiction to Determine Issues of Validity and Arbitrability

(4)                    Law Applicable to the Determination of Validity and                                                           Arbitrability

(5)                    Public Policy Issues Affecting Arbitrability

(6)                    Issues Affecting Validity

(7)                    Writing Requirement

(8)                    Court Procedure

ARTICLE III:            Conditions Applied to the Recognition and Enforcement of Awards

ARTICLE IV:            Required Documentation

ARTICLE V:  Conditions for the Refusal to Recognize and Enforce an Award

(1)                    Capacity of the Parties to Enter Into Arbitration Agreement

(2)                    Validity of Arbitration Agreement

(3)                    Improper Constitution of Arbitral Tribunal

(4)                    Notice, Opportunity to Present Case

(5)                    Matters Beyond the Scope of Arbitration Agreement

(6)                    Other Problems with Arbitral Procedure

(7)                    Binding Nature of Award

(8)                    Effect of An Award Being Set Aside

(a)        Jurisdiction to Annul an Award

(b)        Enforcing Annulled Awards

(i)         Interpretation of Article V(1)(e)

(ii)        Interpretation of Article VII

(c)        Annulled Non Convention Awards

(9)                    The Status of Provisional, Interim or Partial Awards

(10)                  The Question of Arbitrability

(11)                  Public Policy

ARTICLE VI:            Adjournment of Enforcement

ARTICLE VII:           Interaction with Other Treaties and Rights

(1)                Relationship with Other Treaties

(2)                Rights Under Domestic Laws

ARTICLE VIII:         Other Provisions

Ratification

Accession

Extension of Ratification or Accession

Federal and Non-Unitary States

Date Coming Into Force

Denunciation of Convention

Non Member States

Notifications

Languages; Certified Copies

MATTERS NOT COVERED BY THE NEW YORK CONVENTION

PART IV:       THE UNCITRAL MODEL LAW (1985 Version)

SCOPE AND PURPOSE OF THE MODEL LAW

PROVISIONS OF THE UNCITRAL MODEL LAW

ARTICLE 1:   Scope

(1)                    Territorial Scope

(2)                    Definition of Commercial

(3)                    Definition of International

(4)                    Arbitrability

(5)                    Consistency with the New York Convention and International Practice

(a)        Territoriality

(b)        International Arbitration and Awards

(c)        Commercial Transactions

(d)       Situs

ARTICLE 2:   Definitions and Rules of Interpretation

(1)                    Definition of “Arbitration”

(2)                    Party Autonomy

(3)                    Consistency with the New York Convention and International Practice

ARTICLE 3:   Receipt of Written Communications

(1)                    Receipt of Communications: Date and Modalities

(2)                    Consistency with the New York Convention and International Practice

ARTICLE 4:   Waiver of Right to Object

(1)                    Waiver of Right to Object: Circumstances Constituting

(2)                    Consistency with the New York Convention and International Practice

ARTICLE 5:   Court Intervention

(1)                    Court Intervention: Limitations

(2)                    Consistency with the New York Convention and International Practice

ARTICLE 6:   Court or Other Authority for Certain Functions of Arbitration Assistance and Supervision

(1)                    Court Assistance: Jurisdiction

(2)                    Consistency with the New York Convention and International Practice

ARTICLE 7:   Definition and Form of Arbitration Agreement

(1)                    Form of Agreement: Requirements

(2)                    Consistency with New York Convention and International Practice

ARTICLE 8:   Claim Before Court, Referral to Arbitration

(1)                    Referral to Arbitration: Circumstances Justifying

(2)                    Consistency with New York Convention and International Practice

ARTICLE 9:   Interim Measures By Court

(1)                    In General

(2)                    Compatibility with Arbitration

(3)                    Forum in Which Relief Should Be Sought

(4)                    Standing to Request Relief

(5)                    Types of Relief

(6)                    Consistency with the New York Convention and International Practice

(a)        Compatibility with Arbitration

(b)        Forum in Which Relief Should Be Sought

(c)        Standing to Request Relief

(d)       Scope of Relief

(i)         In General

(ii)        Anti-Suit Injunctions

(e)        Circumstances Justifying Relief

(f)        MENA Jurisdictions

ARTICLE 10: Number of Arbitrators

(1)                    Number of Arbitrators: Fall Back Rule

(2)                    Consistency with the New York Convention and International  Practice

ARTICLE 11: Appointment of Arbitrators

(1)                    Appointment of Arbitrators: When, How and By Whom

(2)                    Consistency with the New York Convention and International   Practice

ARTICLE 12: Grounds for Challenge

(1)                    Grounds for Challenge: List

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 13: Challenge Procedure

(1)                    Challenge Procedure: When, How and By Whom

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 14: Failure or Impossibility to Act

(1)                    Failure to Act: Circumstances Comprising

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 15: Appointment of Substitute Arbitrator

(1)                    Substitute Arbitrators: Appointed When, How and By Whom

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 16: Competence of Arbitral Tribunal to Rule on Its

Jurisdiction

(1)                    Jurisdiction of Tribunal: kompetenz-kompetenz and                                                  separability

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 17: Power of Arbitral Tribunal to Order Interim Measures

(1)                    Interim Measures: Scope of Tribunal’s Power to Order

(2)                    Consistency with the New York Convention and International                                            Practice

(a)        Authority of Arbitrators

(b)        Court Enforcement of Tribunal Orders

(c)        Enforcement as Convention “Awards”

(d)       Ex Parte Relief

(e)        MENA Jurisdictions

(f)        Arbitral Institutions

ARTICLE 18: Treatment of Parties by Arbitrators

(1)                    Treatment of Parties: Requirement of Equality

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 19: Determination of Rules of Procedure

(1)                    Rules of Procedure: How and By Whom Determined

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 20: Place of Arbitration

(1)                  Determining the Situs of an Arbitration

(2)                  Consistency with the New York Convention and International Practice

ARTICLE 21: Commencement of Arbitral Proceedings

(1)                    Commencement of Proceedings: When, How and By Whom

(2)                    Consistency with the New York Convention and International Practice

ARTICLE 22: Language

(1)                    Language: Determined How and By Whom

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 23: Statement of Claim and Defense

(1)                    Claim and Defense: Requirements

(2)                    Consistency with the New York Convention and International Practice

ARTICLE 24: Hearings and Written Proceedings

(1)                    Hearings and Proceedings: Form and Content

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 25: Default of a Party

(1)                    Default: Circumstances Constituting, Effect

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 26: Experts

(1)                    Experts: When Appointed and By Whom

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 27: Court Assistance in Taking Evidence

(1)                    Evidence:  Power of the Court to Require Production

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 28: Rules Applicable to Substance of Dispute

(1)                    Applicable Rules of Substantive Law

(2)                    Equitable Principles and Usages of Trade

(3)                    Consequences for Failure to Apply

(4)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 29: Decision of Arbitrators

(1)                    Majority Rule

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 30: Settlement

(1)                    Settlement: Procedural Requirements, Consequences

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 31: Form and Content of the Award

(1)                    Form and Content of Award: Requirements

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 32: Termination of Proceedings

(1)                    Termination: Procedural Requirements, Consequences

(2)                    Consistency with the New York Convention and International                                            Practice

(a)        Termination of Proceedings

(b)        Suspension of Proceedings

ARTICLE 33: Correction and Interpretation of Award; Additional

Award

(1)                    Correction/Addition to Award: Procedural Requirements, Consequences

(2)                    Consistency with the New York Convention and International                                            Practice

ARTICLE 34: Setting Aside Award

(1)                    Jurisdiction of Court

(2)                    Procedure for Setting Aside Award

(3)                    Grounds for Setting Aside Award

(4)                    Consistency with the New York Convention and International Practice

(a)        “Extra-Territoriality” Jurisdiction

(b)        The Problem of Conflicting Criteria

(c)        Application of the Grounds for Annulment – Scope of         Inquiry

(d)       Waiver

(e)        Re-opening Issues of Fact or Law

(f)        Additional Grounds for Annulment in Model Law   States

(g)        Partial Annulment

ARTICLE 35: Recognition and Enforcement of Award; Procedure

(1)                    Scope

(2)                    Procedure

(3)                    Consistency with the New York Convention and International                                            Practice

(a)        Scope of the Model Law Compared to the Convention

(b)        Scope and Procedures of Non-Model Law Jurisdictions

ARTICLE 36:             Recognition and Enforcement of Award; Grounds

(1)                    Scope

(2)                    Grounds for the Non Recognition and Enforcement of Awards

(3)                    Consistency with the New York Convention and International                                            Practice

(a)        Grounds for Refusal to Enforce an Award in Non-                                                               Model Law Jurisdictions

(b)        Suspension of Enforcement

(c)        Standard of Review

C.        MATTERS NOT COVERED BY THE NEW YORK CONVENTION OR THE MODEL LAW (1985 Version)

(1)                    Electronic Agreements

(2)                    Criteria for Awarding Interim Measures; Types; Enforcement

(3)                    Multiparty Proceedings

(4)                    Issues Involved in the Appointment and Removal of                                                Arbitrators

(5)                    Enforcement of Arbitral Orders

(6)                    Oral and Documentary Evidence

(7)                    Discretion of the Court and Tribunal to Choose Applicable                          Law

(8)                    Definition of Arbitration

(9)                    Preliminary, Interim, Interlocutory, Partial and Final Awards                                   and Peremptory Orders Distinguished for Purposes of                                         Enforcement

(10)      Costs and Fees

(11)      Consequences of Failure to Pay Costs

(12)      Consequences of Setting Aside Award

(13)      Liability of Arbitrators

(14)      Rules Applicable to the Recognition and Enforcement of                             Foreign Arbitral Awards in Non-Convention States

PART V:         UNCITRAL MODEL LAW (2006 Revisions)

A.              GENERAL PRINCIPLES

B.              ARBITRATION AGREEMENT DEFINITION AND FORM

(1)                    Option 1:         Expanded Definition

(2)                    Option 2:         Basic Definition

C.              INTERIM MEASURES OF PROTECTION:     Article 17

SECTION 1:               Interim Measures

SECTION 2:               Preliminary Orders

SECTION 3:               Safeguards Applicable to Interim                                                                               Measures and Preliminary Orders

SECTION 4:               Recognition and Enforcement of Interim       Measures by Courts

SECTION 5:               Court Ordered Interim Measures

D.                    PROCEDURES FOR OBTAINING THE RECOGNITION AND

ENFORCEMENT OF AN AWARD

E.              OTHER RECOMMENDATIONS

PART VI:       VALIDITY AND ARBITRABILITY

VALIDITY AND ARBITRABILITY DISTINGUISHED

DEFINITION OF “VALIDITY”

DEFINITION OF “ARBITRABILITY”

JURISDICTION TO DETERMINE ISSUES OF ARBITRABILITY AND VALIDITY IN THE UNITED STATES

(1)        General Policy

(2)        Gateway Questions

(3)        The Separability Doctrine

(4)        Questions of Scope

(5)        Public Policy

(6)        Validity and Arbitrability Policies Distinguished

JURISDICTION TO DETERMINE ISSUES OF ARBITRABILITY AND VALIDITY IN OTHER JURISDICTIONS

(1)        The Separability Doctrine

(2)        Kompetenz-Kompetenz

(3)        “Gateway Questions” and Other Jurisdictional Distinctions

(4)        Timing and Standard of Court Review

ISSUES AFFECTING VALIDITY

(1)        General Principles

(2)        Issues Involving Consent

(a)        Arbitration Agreements Incorporated by Reference

(b)        Multiple Contracts

(c)        Assignment

(d)       The Group of Companies Doctrine

(3)        Inoperative Agreements and Agreements Incapable of Being           Performed

 

ISSUES AFFECTING ARBITRABILITY

(1)        The Special Status of Non-Commercial Disputes

(2)       Commercial Disputes Raising the Issue of Arbitrability

(a)        Bribery and Corruption

(b)        Patents and Copyrights

(c)        Insolvency

(d)       Competition, Antitrust and Securities Claims

(e)  Employment Contracts

(f)  Administrative Contracts

(g)  Commercial Representation Contracts and Contracts Between Parties of Unequal Bargaining Power

(h)  Other Issues

LAW APPLICABLE TO THE QUESTIONS OF ARBITRABILITY AND VALIDITY

PART VII:      DETERMINING PUBLIC POLICY

DEFINING PUBLIC POLICY

(1)        The Public Policy Of ‘That State’

(2)        International    or Transnational Public Policy

APPLYING PUBLIC POLICY CONSIDERATIONS

(1)       General Principles

(2)        Issues Involving Sharia Principles

(3)        Issues Involving Illegality and Foreign Public Policy

(4)        Issues Involving Consumer Contracts

(5)        Issues Involving Due Process

(6)        Issues Involving Punitive Damages

(7)        Issues Involving Waiver

C.               DETERMINATION AND APPLICATION OF PUBLIC POLICY BY

ARBITRATORS

APPENDIX A            States Which Have Ratified or Acceded to the New York                                       Convention

States Which Have Invoked the Reciprocity Reservation

States Which Have Invoked the Commercial Reservation

States Which Have Invoked Other Reservations