This article first appeared on the Securities Arbitration Alert (SAA) Blog, here.
The American Arbitration Association recently amended its rules governing international arbitrations and mediations. Here is a succinct analysis.
As reported in SAA 2021-09 (Mar. 11) the AAA’s International Centre for Dispute Resolution (“ICDR”) amended its International Dispute Resolution Procedures effective for cases filed on and after March 1, 2021, unless the parties otherwise agree. As we said in #09, the changes are many and are not cosmetic. The amendments were announced in a March 1 Press Release that included an excellent summary. We borrow heavily to offer this succinct analysis.
Why the Changes?
The revised procedures: “are the result of a yearlong review by an ICDR drafting committee comprised of arbitration and mediation practitioners from around the world, and additional ICDR committees, administrative teams, and others. The review was undertaken in response to several factors driving changes to international dispute resolution, including third-party funding, the necessity of videoconferencing in the wake of COVID-19, heightened concerns regarding cybersecurity.”
As described in another summary, the arbitration rule amendments: “promote greater efficiency and economy by addressing the early disposition of issues, emphasizing the use of mediation, and expanding the applicability of the expedited procedures. Importantly, the rules also place an increased emphasis on arbitrators’ ethical obligations.” Key arbitration rule changes:
The Procedures are also amended as to mediation. The summary states the changes:
A Key Change
One change of note is in Article 5, which as described in Holland & Knight LLP’s March 5 Blog post, New 2021 Rules Issued by the International Centre for Dispute Resolution (ICDR), “Codifies] the ICDR’s practice of having the International Administrative Review Council, which is comprised of current and former ICDR executives, decide arbitrator challenges and other administrative disputes…. The IARC is constituted by at least three current or former ICDR executives or other individuals with significant arbitration experience that the ICDR may determine. The ICDR has published the procedures to be followed when submitting an issue to the IARC in the Council Overview and Guidelines that touch upon these topics. Although IARC had already been operating prior to the new Rules, by expressly including it under its Article 5, the ICDR reaffirms its commitment to further transparency of institutional decision-making in international arbitration.”
(ed: *The changes – the first since 2014 – are significant. A detailed section-by-section description starts at page 3 of the 8-page detailed summary. **Kudos to the AAA for providing extensive resource materials.)
This article first appeared on Securities Arbitration Alert, here. SCOTUS again has eschewed an opportunity to clear up the split over the Federal Arbitration Act’s (“FAA”) section 1 exemption for...By George Friedman
This article was originally published in the ARIAS·U.S. Quarterly, Q3, 2021 and is republished here with permission. A. Overview The Supreme Court has extended the validity and expanded the scope...By Edward Lenci
At her confirmation hearing Justice Kagan noted “So in that sense, we are all originalists.” (U.S. Senate Judiciary Committee Hearing, p.62, 6/29/2020) Her observation was prescient as adherence to the...By Terry Moritz