The new DIFC-LCIA Arbitration Rules (the Rules) came into force as of 1 October The Rules reflect amendments made to the LCIA Arbitration . The DIFC-LCIA’S Rules On 1 October , the DIFC-LCIA Arbitration Centre (“DIFC-LCIA”) released its new DIFC-LCIA Arbitration Rules (the ” It is expected that the DIFC-LCIA’s adoption of the Rules will be viewed as providing an enhanced regime for energy, infrastructure and.
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In addition to the now well-known DIFC Courts, an arbitration centre was to be created to provide alternative dispute resolution services i.
DIFC Arbitration Institute appoints new Registrar for DIFC-LCIA
However, in the event they lcis to agree a seat, the default seat of the arbitration shall be the DIFC. If a “Dubai” seat is chosen the curial courts will be the local, Arabic language courts which do not currently benefit from an up-to-date arbitration law.
A strong desire of the parties when opting to arbitration is to minimise judicial intervention in the running of their disputes. The courts of the seat of the arbitration will be the competent vifc to assist and support, and within limited areas, to supervise and control the arbitral proceedings. For example, the DIFC Courts will intervene in proceedings where an application to enforce pcia interim measure ordered by the tribunal is made, where a party involved is defiant.
Article 5 of the NYC sets out an exhaustive list of grounds based on which a court can refuse the recognition and enforcement of an aribtration, these being the following:. The grounds that a counter party could rely on to oppose such an application pursuant to DIFC Arbitration Law are set out in its Article 44 sub paragraphs a and b.
These mirror the grounds set out in Article 5 of the NYC mentioned above.
Lastly, legal costs incurred in these proceedings are recoverable. In contrast, when attempting to enforce a Local Award e.
The claim value is taken in consideration only when specifying the maximum hourly rates applicable to the Tribunal. This is different to the ad valorem system adopted by many of the other regional and global arbitration centres.
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A large but relatively straightforward claim may require simple analysis of uncomplicated matters. Conversely, a small but complex claim might require close analysis and consideration of delicate and controversial issues of law and fact.
Pursuant to the DIFC-LCIA costs rules, the first claim mentioned above will not cost the parties more in terms of the Centres and the Tribunal’s fees simply because the amount in dispute is greater. This is in stark contrast to other costs rules applicable in other leading arbitration centres.
Key arbitration institutions – The Official Portal of the UAE Government
Pursuant to these costs rules, the parties will probably be required to pay more just because the amount in dispute is higher. Although proponents of the ad valorem system argue it gives parties some certainty, the reality is that it is not cost effective. The analysis of the data compiled shows the lciq and mean of both costs and duration as follows: Additionally, for very large claims the parties will not have to make massive payments early in the proceedings.
A series of lesser payments is more likely to be ordered depending on the development and scope of the particular arbitration. Although “lump sum” type fee amounts have been historically quite popular in the region, many practitioners feel that such an ad valorem system is not fair. The new Registrar will be carefully monitoring and administering cases to ensure they proceed as expeditiously and cost effectively as possible. The New Rules help make the arbitral process more efficient and less costly.
The New Rules are applicable to all arbitrations commencing on or after 1 October At any time before the formation of the tribunal, rulez party may apply for the appointment of an emergency arbitrator ruels determine urgent matters or order emergency or protective measures pending the formation of the tribunal. Any order by the emergency arbitrator will be subject of scrutiny by the arbitral tribunal once formed. The tribunal may confirm, vary or revoke the said order, upon its own initiative or the application of any party.
The New Rules contain new provisions which will allow for the consolidation of multiple arbitrations subject to the satisfaction of a few conditions. The New Rules include a set of general guidelines which party representatives will be obliged to comply with.
If these guidelines are breached, the tribunal has the power to impose sanctions on counsel arbitdation, written reprimand, or any other measure the tribunal believes is necessary for it to ensure its ability to maintain its general duties is preserved.
The New Rules include provisions that ensure that arbitrator who accept appointments not only confirm their impartiality and independence but also their availability and commitment to devote the requisite time for expedition conduct of the arbitration, and issuance of the award. Dubai aspires to become the regional hub for international commercial arbitration.