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LA MEDIACIÓN LOCAL CON REGLAS GLOBALES (SPANISH)

*Carlos Vera Quintana[1] Con los negocios transnacionales aterrizando en casa país, con los países suscribiendo constantemente acuerdos internacionales que usualmente imponen normas supra constitucionales y con plataformas de cooperación y comunicación que no se afectan porque barreras fronterizas, es obvio pensar en un sistema de alianzas globales para la mediación que permita hacer uso efectivo de sus beneficios a nivel masivo, en la cotidianidad, basados en  mejores prácticas y experiencias que están disponibles y que deben aplicarse localmente, aprovechando su potencial global. Esto es justamente lo que se desprende del trabajo de Ex Curia International, ECI, como un espacio global de aplicación local que evidentemente resulta en beneficios en cualquier mecanismo de resolución de disputas, independientemente de la jurisdicción involucrada (muchas veces difícil de identificar), las normas aplicables o el ámbito de acción de que se trate. La virtualidad acelerada por la COVID19 aporta positivamente para la conformación de redes y plataformas y la natural transición a adoptar, operar y convivir en ellas. La prevención de disputas, a través de los mecanismos de cooperación internacional de aplicación local, es una consecuencia real de la convivencia en redes de interés común y de las plataformas de interacción mutua que muchos sectores y actores se encuentran desarrollando. Las normas globales de aplicación general son comunes, a través de leyes modelo, muy factibles en temas de esta naturaleza y que son normalmente promovidas por  organismos internacionales especializados. Algunos casos típicos son el comercio marítimo o el comercio electrónico sectores en los cuáles existen leyes modelo que han sido de enorme utilidad en la generación de normas locales que comparten principios comunes que facilitan los procesos y que se extienden con éxito a áreas de la mediación y arbitraje para la resolución de disputas, arbitraje, anticipación de conflictos y numerosos otros importantes campos de acción en los cuáles aplica la cultura de paz y que incluyen la mediación en temas comerciales y económicos, cuestiones de usuarios y consumidores, solución de conflictos personales, comunitarios y sociales. La mediación como propuesta de una cultura de paz, apoyada en medios tecnológicos y en organizaciones como ECI, con el soporte de numerosos activistas y profesionales involucrados, se enrumba apresuradamente hacia el éxito, con una propuesta de masificación en asuntos no solamente macro sino, y aquí radica su verdadero potencial, en temas cotidianos donde normalmente por costos o dificultad de aplicación, no ha tenido mayor aplicación antes de la posibilidad de resolución de disputas en línea, ODR. En los temas de mediación, la generación de normas locales basadas en normas modelo de aplicación global, resulta de enorme interés y beneficio para usuarios y consumidores de estos sistemas que requieren más facilidades en el acceso a los procesos extra judiciales cuya práctica y utilidad están plenamente demostrados. Vamos hacia una cultura de mediación global de aplicación local como un mecanismo de aprovechamiento y masificación de la cultura de paz y prevención de conflictos, donde la tecnología abre fronteras una vez más creando redes para su exitosa implementación. [1] Director Ejecutivo, Consumidores Ecuador  www.consumidoresecuador.ec [email protected]

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LOCAL MEDIATION WITH GLOBAL RULES [English Translation]

*Carlos Vera Quintana[1] With transnational businesses landing at home, with countries constantly signing international agreements that usually impose supra-constitutional rules, and with cooperation and communication platforms that are not affected because of border barriers, it is obvious to think of a system of global alliances for mediation that  allow effective use of its benefits on a massive scale, on a daily basis, based on best practices and experiences that are available and that must be applied locally, taking advantage of its global potential.  This is precisely what emerges from the work of Ex Curia International, ECI, as a global space for local application that evidently results in benefits in any dispute resolution mechanism, regardless of the jurisdiction involved (often difficult to identify), the  applicable rules or scope of action in question.  The virtuality accelerated by COVID19 contributes positively to the formation of networks and platforms and the natural transition to adopt, operate and coexist in them.  Dispute prevention, through local application international cooperation mechanisms, is a real consequence of coexistence in networks of common interest and of the mutual interaction platforms that many sectors and actors are developing.  The global norms of general application are common, through model laws, very feasible in matters of this nature and that are normally promoted by  specialized international organizations.  Some typical cases are maritime trade or electronic commerce, sectors in which there are model laws that have been extremely useful in the generation of local regulations that share common principles that facilitate processes and that are successfully extended to areas of mediation and  arbitration for the resolution of disputes, arbitration, anticipation of conflicts and numerous other important fields of action in which the culture of peace applies and which include mediation in commercial and economic matters, user and consumer issues, resolution of personal, community and social conflicts.  Mediation as a proposal for a culture of peace, supported by technological means and in organizations such as ECI, with the support of numerous activists and professionals involved, is heading hastily towards success, with a proposal of massification in matters not only macro but also, and  this is where its true potential lies, in everyday issues where, usually due to costs or difficulty of application, it has not had a major application before the possibility of online dispute resolution, ODR.  In mediation issues, the generation of local rules based on model rules of global application is of enormous interest and benefit for users and consumers of these systems that require more facilities in accessing extrajudicial processes whose practice and utility are fully  proven.  We are moving towards a culture of global mediation of local application as a mechanism for the use and massification of the culture of peace and conflict prevention, where technology opens borders once again by creating networks for its successful implementation. [1] Director Ejecutivo, Consumidores Ecuador  www.consumidoresecuador.ec [email protected]

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ODR in India

*Sangeeta Mehrotra The best way to create a successful ODR environment is to build a mindset for mediation. The need, therefore, is to build an effective autonomous ODR ecosystem of resolution options, where the private sector can generate many options to pursue redressal for different types of cases. Presently, everything is going online – shopping, travelling, dating, marriage, divorce etc. – acceptability is not an issue anymore. As far as ADR is concerned, Covid-19 has literally pushed us to go online, and to communicate, to settle our disputes online. This is an opportunity to understand that this technology, this mindfulness of resolving disputes together in an online setting will become the norm. We can say that ODR will be the new legacy coming out of this pandemic. After all something we have understood is that resolution, particularly pre-litigation redress, is more effective, and much more scalable and efficient in resolving cases. Now, we need to create awareness on a big scale. However, there is a difference between this model, and taking mediation into a completely process-driven environment where there is no video, interface or voice exchange, AND it is all done by Artificial Intelligence. Maybe the time of such robotic ODR process has not come as yet – we still prefer video conferences and voice calls where people can create digital empathy. The ability to empathize with the other person is important. Time zone, computer screen etc. do not matter. We can continue to empathize, continue to dialogue, continue to share, and continue to learn. Parties can see online sittings as being less intimidating, where there is no extensive travel involved, no elaborate arrangements to be made for all parties to assemble at one particular place, and where they can settle disputes through communication from the comfort and safety of their offices or homes. It is easier to make the parties sit in separate virtual rooms from their respective lawyers to let them interact freely with their permission. Thus, posturing can be eliminated.  But in ODR, advocates play a much greater role so as to help create the required comfort level for parties – especially when the parties are not corporate clients who in any case are exposed to video conferencing, etc. Here, I must say that when I deal with issues of small-time commercial disputes regarding loan repayments, credit card dues settlements etc., I resort to a more informal approach because the borrowers generally get intimidated by a very formal business-like environment. They seek out a hand-holding role from the Neutral. Here, the balancing act plays an essential part. In ODR, time schedule management is better. With proper basic tools like a larger screen and a good camera, we can pretty well-read parties’ emotions and body language – by this, I mean the subtle nuances of communication. Even regarding confidentiality, there is no issue as such. Often people express apprehension about online leaks, etc. Offline leaks are also possible. A mediator can be as good as the law allows him or her to be, and the process he or she is following stays secure and they follow the protocol. Mediation proceedings are strictly private and confidential here in India. Section 75 of the Arbitration & Conciliation Act provides that, notwithstanding anything contained in any other law in force in India, the conciliator and the parties shall keep all matters relating to the mediation proceedings confidential, and that confidentiality extends to the settlement agreement except where its disclosure is necessary for implementation and enforcement. Best practices dictate that in a private commercial mediation, parties to the dispute and the mediator must sign a confidentiality agreement prior to the commencement of mediation proceedings. Mediators or the Service Providers make sure that all steps possible are taken to protect confidentiality, which are reasonable because even in in-person mediation if parties want to record they can record, if at the time of caucus the other party wants to make a phone call, he or she will. So what is essential is – A robust confidentiality agreement, in my opinion. Further, typical to our culture (like in face-to-face mediation, in online process also) we can see many other people accompanying the parties. It is ok. If the mediator is having the skill and ability to connect and build a rapport with the parties, it is immaterial how many lawyers or family members/friends accompanying him or her as long as everybody present there signs the confidentiality agreement and abides by the rules. At the same time, both parties must have the knowledge about the presence of who all are in the virtual room for equity. Trust is an important element. Whether it is a billion-dollar stock market deal gone wrong or your spouse does not allow you to access your child or married sisters hoping to get a share to their parent’s property/legacy – everywhere emotion plays a big role. We must remember that corporations are run by human beings, after all. Intrapersonal/interpersonal relations do matter everywhere. So, having emotional intelligence is extremely important – the Mediator must have the capacity to read the body language, feel the air and energy around. My own experience if I may say so:- First, I try to make parties aware of what mediation is and then the practicality/usefulness of ODR [COVID made it easier, though]; then make them feel comfortable with the process, describing the ground rules, role of the neutral. Knowing the process gives them confidence to be a part of it. All apprehensions put to rest; I go to the basics that are the Parties’ innate [human] desire to avoid disputes [at least in Indian context] and to be heard. So, I listen. If I am not aware of certain terminology, acronyms etc. or for that matter how a certain commercial transaction was conducted; I simply ask. I do not pose about being at a pedestal knowing everything. I maintain neutrality through my overall demeanour, my verbal/non-verbal communications with parties, the time and attention given

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Mediation in the Hellenic Civil Law: A seed yet to sprout?

by Paschalis Ioannidis* Is the legal framework favorable? Despite the permanent and persistent will of the administration in both local and European level, the popularity of civil mediation remains restricted. The will for the institution of mediation in Greek civil law occurred between 2007-2010; ultimately, law No3898/2010 provided the definition of the term, set the general principles of the procedure and the range of cases in which the statute applies, determined the requirements of the parties involved and ordered the creation of the Committee of Certification for Mediators, under the supervision of the Ministry of Justice, Transparency and Human Rights. The option of resorting to the procedure of mediation was provided in “private disputes” including those characterized as “cross-border” (a term most probably linking to EU legislation regarding the Common European Market).  Between 2012 and 2015 the Hellenic legislator has enhanced mediation and widened its field of appliance, thus providing a very favorable environment for the spread of its usage. More specifically, in 2012, by virtue of law No 4055/2012 judges in first-instance courts were provided with the discrete option to propose the resolution of the dispute by mediation in any face of the litigation procedure. Three years later, law No 4335/2015 commissioned the judges with the obligation to propose mediation, while the acceptance of this proposal would postpone the hearing for three months; in a case of an already started trial, the law defined that, the initiation of mediation by the parties would instantly cancel all hearings already conducted.[1] The final step was taken in 2018; law No 4512/2018 initiated the statute of mandatory mediation for a variety of cases, including disputes arising from apartment-renting contracts, compensation from car damages, family law, patent-law and others. The case can be issued to the competent court only if the mediation procedure has been proven fruitless, whereas attempting to completely skip it leads to the characterization of the action as inadmissible. The aforementioned law also clearly states that every private law case (including both civil and commercial disputes) can be resolved with the use of mediation; it also further facilitates the procedure of ascribing certifications for mediators, via the creation of the Central Committee of Mediation with several sub-committees and the systematization of the procedure of testing and certifying candidates.  It should be noted that all aforementioned laws have been voted for the purpose of the Incorporation of the EU Directive 2008/52/EP. Has the initiation of Mediation been fruitful? The Greek legal world has been hesitant towards this new -and quite unknown in Greece- form of ADR. The institution of mandatory mediation, in particular, has caused several reactions among academics, as many state that it is quite dubious weather the statute complies with the provisions of the Article 20 of the Constitution and of the Article 61 of the European Convention on Human Rights (regarding the jus standi right). These concerns have been loudly expressed through the jurisprudence of Areios Pagos (the Hellenic civil and penal Supreme Court of Appeals). More specifically, the Administrative Plenary Session of the Court has judged (by a vote of 21 in favor and 18 against) that mandatory mediation is unconstitutional. The Judges’ reasoning was based on the fact that mediation comes with a high cost, and therefore forcing Citizens to resort to it offends the core of the constitutionally enshrined right of jus standi. Although the aforementioned judgement is not legally binding it surely brings grim tidings to the potentials of spreading mandatory civil-law mediation further than law No 4512/2018 did.[2] Apart from the experts’ reactions, it is becoming more and more obvious that the Greek society is rather skeptical towards mediation. The usage of the Statute remains exceptionally low, as only 15% of the cases that require mediation attempt for the action to be admissible, have been actually resolved by mediation in a period from 30/11/2019 to 9/6/2020[3]. The phenomenon of bypassing mandatory mediation is not rare, as in many cases, the parties prefer to move straight to Court, and therefore go through the procedure for typical reasons and very often without even their physical presence, in order to just obtain the minutes, which are necessary for their action to be admissible. As for the cases in which mediation is initiated by the parties, the success rate reaches up to 75%[4]; although this looks encouraging, the actual amount of cases in which the parties initiate it is only 3% on the total number of civil cases[5]. This means that the percentage of the successful party-led mediations on the total number of cases for the period from November 2019 to June 2020 is just 2,25%.[6] What are the reasons for the malfunction of Mediation? There are various causes to why the statute has not reached the expected popularity. First of all, attorneys and the Associations across the country have done little to encourage its promotion. During disputes, few lawyers actually propose the resort to mediation, whereas the Bars advertise the Statute as little as possible. This reaction is partially fueled by the aforementioned doubts expressed by the country’s academics and judges, regarding both the legality and the functionality of the Statute. However, more “practical” motives contribute to this skepticism as well; given the fact that long lasting “judicial adventures” come with a high cost and are often followed by appeal, it is undeniable that many lawyers choose not to encourage mediation for the shake of preserving their high bills.[7] Taking into consideration the exceptionally high number of attorneys in Greece and the oversaturation of the profession ( it is estimated that Greece has the second larger number of lawyers per resident in the EU)[8] one could easily come to the conclusion that the idea of trying to “choke” this “new brand of lawyers” (etc. the mediators) exists in many attorney’s mind. The Statute has not been embraced warmly enough by the judges either. Their main concern consists in what a part of the legal society characterizes as “Privatization of Justice”[9]. According to several Judge’s point

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Enka v. Chubb – Reaching Certainty Concerning the Proper Law of the Arbitration Agreement.

Recently, the  UK Supreme Court handed down the judgement in Enka Insaat Ve Sanayi AS v OOO “Insurance Company Chubb” & Ors(‘Enka v. Chubb’),[i] in an attempt to settle the law on the determination of the law of arbitration agreement. The Court differed from the law previously settled in Sulamerica Cia Nacional de Seguros SA v Enesa Engenharia SA (‘Sulamerica’),[ii] while also clarifying the applicability of the position taken by the Court of Appeal bench in Kabab-Ji SAL (Lebanon) v Kout Food Group (Kuwait)(‘Kabab-ji’).[iii] Background of the Case The dispute before the court arose from an insurance agreement between the respondent (‘Chubb’), and Unipro Russia, for the construction of the Berezovskaya Power Project. After signing the insurance agreement, Unipro transferred its rights against the claimant (‘Enka’) to Chubb. Chubb later sued Enka, a Turkish construction company, for losses caused due to a fire in the power project. Chubb subsequently initiated proceedings in the Arbitrazh Court in Moscow, against which Enka moved the High Court of England and Wales for an anti-suit injunction, citing an arbitration agreement between the parties. The arbitration agreement provided for a London seated arbitration, governed by the Arbitration Rules of the ICC. The law governing the underlying contract as a whole was Russian law. The High Court determined the law governing the arbitration agreement to be Russian law. On appeal, the English Court of Appeal reversed this decision, and held English law to be the law of the arbitration agreement, and refused to grant an anti-suit injunction. On further appeal, this case reached the Supreme Court against the decision rendered by the Court of Appeal. The question regarding the law of the arbitration agreement: The question before the court, inter alia (the other issues are outside the scope of this comment), was whether it could grant an anti-suit injunction with respect to the proceedings in the Moscow Court. This determination, however, relied on the law of the arbitration agreement. Enka claimed that the law of the arbitration agreement was English law – therefore subjecting the scope of arbitration to English standards, and allowing the court to issue an anti-arbitration injunction to prevent the parties from pursuing litigation in Russia. On the other hand, Chubb argued that the scope of the arbitration agreement could not be determined by English courts, since the law governing it was Russian arbitration law. Therefore, the Arbitrazh Court in Moscow would be competent to decide whether the dispute between Enka and Chubb was within the scope of arbitration. Therefore, the question before the Court boiled down to that of the law governing the arbitration agreement. Decision: The court held that the law of the arbitration agreement was English law. While undertaking this determination, the Court of Appeal explored the existing law regarding the determination of the law governing the arbitration agreement, and settled the law with a unified test. The test laid down by the Court of Appeal in Enka v Chubb was referred to by the Supreme Court to determine the law of the arbitration agreement when the substantive law is different from the seat. This has been provided hereunder: – The proper law of the arbitration agreement has to be determined using the three-stage test under the English conflict of law rules, which is reproduced herein – Determination of whether the parties have made an express choice of law Determination of whether the parties have made an implied choice of law The law which has the closest connection to the arbitration agreement The law governing the underlying contract as a whole may also govern the arbitration agreement if a special contractual construction is present. The parties may wish to import the principles of contractual interpretation of the substantive law to the whole agreement, including the arbitration clause. This may be done either through an express provision, or be implied from contractual construction (such as where parties stipulate that the contract should be constructed as a whole).[iv] Additionally, where the parties have chosen the entire contract (including the arbitration clause) to be governed by a particular law, it would be presumed that the body of law would govern the arbitration clause. Merely choosing a different seat of arbitration would not rebut such a presumption. In other cases, the law of the arbitration agreement would be the law of the seat. The parties had not made a selection on the law of the arbitration agreement in the instant contract. Therefore, the court was beset with a situation where the parties had chosen Russian law as the substantive law, English law as the curial law, but had made no choice as to which law would apply to the arbitration agreement. In the beginning of its analysis, the court reasoned that the English Arbitration Act did not allow the court to draw any inference that, by choosing an English seat, the parties had automatically chosen to apply English law to the arbitration agreement. However, the court ruled that the curial law had the closest connection with the arbitration agreement. It said this for four reasons. First, by choosing the place of performance of the arbitration agreement as England, it would be in line with the parties’ intention to have the curial law govern all matters relating to arbitration. Second, it was in the interest of commercial sensibility that the parties would subject the arbitration to a single body of rules. Third, placing the seat as the default choice for governing the arbitration agreement provides legal certainty to the contracting parties. Of course, if the parties do not wish to apply the curial law to the arbitration agreement, they have the freedom to choose a different law. Lastly, the court referred to the UNCITRAL Model Law and the New York Convention to conclude that it was in line with international practice that the curial law have the closest and most real connection with the arbitration agreement. Therefore, in the absence of an express or implied selection, the curial law would govern the arbitration agreement. 

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Remote Mediation: Adapting to Covid 19

*Lilly Parratt & Shivam Rehan Background: With the Covid-19 crisis having a significant impact on all industries, our aim was to take a closer look and examine the potential effects which it has had on the practice of mediation.  Remote mediation Our initial focus was to outline that although online mediation pre-existed, the most common structure prior to the pandemic was face-to-face mediation, with the majority of parties opting for a physical session. Whilst recognising that physical mediations are resuming (following health and safety measures), we aimed to identify how service providers managed to efficiently move online during times when physically meeting was prohibited. We sought to highlight the benefits of remote mediation, covering it’s flexibility, cost-effectiveness, and the potential to spend less time commuting to physical venues. With an aim to indicate the substantial practical benefits which online mediation offers.  Despite this, through research, we recognised the potential obstacles which online mediation presents. Being based on a virtual platform has led to an impact on the non-verbal communication between mediators and clients within sessions. We conclude that there is great scope for a growth in online mediation, as the practical benefits it can provide are indubitable, whilst acknowledging that its success depends on the specific client and the set of circumstances.  Potential growth and the future of remote mediation Highlighting the growth of mediation during Covid-19, because of the court-backlog, we point to a potential realisation that mediation works, not only as an alternative, but as the first option. We further explored the logistics of mediation, taking into account it’s rapid growth within recent years. Researching and analysing both the advantages and disadvantages of online mediation, we were able to scrutinise how technology is flourishing with its potential of becoming the future backbone of mediation.  Remote Mediation: Adapting to Covid-19. Covid- 19 has had a global impact on the everyday lives of citizens. With social distancing measures set to be in place for the foreseeable future, how has Covid-19 affected Alternative Dispute Resolution (ADR) and in particular, the practice of mediation? What did mediation look like before Covid-19? Online Dispute Resolution (ODR) has offered parties an innovative tool to resolve disputes for decades. ADR ODR International, founded by Rahim Shamji in 2016, is just one service provider which demonstrated prior to Covid-19, just how technology could facilitate the resolution of disputes, through practices such as online mediation. Despite the pre-existence of online mediation, prior to Covid-19 the most frequently used model of mediation was the traditional structure of in-person, face-to-face contact, requiring the parties to travel to a venue. This physicality enables a mediator to read the parties body language and build trust and rapport within the sessions, in order to guide the parties towards a desirable outcome.  How has Covid-19 affected the practice of mediation? Remote mediation With the globe spiralling into lockdown and the social distancing measures in full swing, face-to-face mediation had to adapt, and do so expeditiously. As restrictions were eased, nations steadily crept out of lockdown. The question of whether there will be future waves of Covid-19 may be uncertain, but what is certain, is that mediation managed to adapt rapidly to the unprecedented period. Services which had previously provided mediation through the traditional structure of face-to-face contact, quickly turned to technology to allow business as usual. Video conferencing through digital platforms such as Zoom, and Skype became the norm. Even the use of telephone calls and private emails became an alternative for service providers.  Video conferencing provides parties with a platform to visually connect through seeing one another (albeit being virtually). Utilising the breakout rooms on forums such as Zoom enables private sessions to go ahead, so parties can privately communicate with a mediator, secluded from the others. This effectively mirrors the usual structure of a face-to-face mediation. The leading national law firm Freeths, transitioned to Zoom in March. James Hartley and Chloe Oram, two of the firms Dispute Resolution lawyers highlighted the success of remote mediation through platforms like Zoom as ‘you are able to see the other attendees as real people.’[i]The Centre for Effective Dispute Resolution (CEDR) were quick to release their ‘Mediator’s Guide to Online Meditations’[ii] which demonstrates how to efficiently carry out online mediations. Is online mediation advantageous?  Online mediation provides a flexible alternative to the traditional structure of mediation. It overcomes geographical barriers, as parties involved in international matters can use digital platforms to easily connect. Furthermore, a digital platform is cost-effective, as Goodman submits, there is no need to rent a neutral facility to conduct the mediation, as well as the convenience of materials being readily available; not having to be transported great distances.[iii] In many circumstances, online mediation may be ideal for these practical reasons. Furthermore, for certain subject matter, for example, a family dispute including the ex husband and wife, not having to be face-to-face may be a preferable whilst more suitable method of resolution involving a sensitive topic. Using digital platforms to execute mediations may offer clear practical benefits, with the ability to build rapport through virtual means. Despite this, many mediators are aware of potential weaknesses. Alerting to the difficulty in reading clients body language through digital platforms, mediators can only see what the client shows online, which in most cases is merely the clients head. The lack of non-verbal communication could potentially affect the mediators ability to build rapport. Another obstacle is that the parties may not feel comfortable opening up on a virtual platform, which could therefore serve as a barrier for some clients. Additionally, although online mediation provides a great route to overcome geographical barriers, there are still obstacles such as time differences, and unstable internet connections which can pose as weaknesses.  Whether online mediation is effective depends on the client and their circumstance. For some clients’ online mediation may be the most practical means to resolve a dispute, but for some it may be a barrier. With the traditional structure of mediation being allowed to resume (whereby health

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SHOULD THE ARBITRATOR RAISE THE MANDATORY RULES OF EUROPEAN LAW EX-OFFICIO?

Edouard Papeil* The arbitrability of disputes implicating mandatory rules of European law being widely accepted,[i] the arbitrator has become a “regular judge of such disputes”[ii] alongside the national courts, in particular with regard to competition and consumer law. However, for the arbitrator, whose jurisdiction originates from the will of parties and not from the States, the application of those rules has not been without raising many questions.[iii] Although most issues have been addressed by the European Court of Justice and Member States’ national courts, and despite the fact that arbitrators are generally chosen for their expertise on these matters,[iv] some doubts remain, particularly as to existence of a duty to raise, ex-officio, the mandatory rules of European law applicable to the dispute. *** The uncertainty as to the answer that should be given to this matter originates from the deterritorilized nature of international arbitration. Unlike national judges, arbitrators are detached from the State’s legal orders. They are not bound either by procedural rules provided by national laws or by any strict judicial hierarchy.[v] In the absence of attachment to a forum, the arbitrators are similarly not bound by the European legal system. As a result, they are not subject to the principle of primacy or to the principle of effectiveness, on which the Court de Cassation relies to oblige judges in raising ex-officio, and where appropriate applying, the rules of public policy deriving from European law.[vi] This autonomy vis-à-vis legal orders is coupled with considerable autonomy granted to arbitrators in the exercise of the mission conferred upon them by the parties. In principle, arbitrators are obliged to rule on the basis of the law chosen by the parties as applicable to their contract. Nonetheless, they are authorized to depart from it, if it is contradictory to a norm hierarchically superior because “the term law is sufficiently broad to cover not only the law in the sense of a text adopted by Parliament, but also regulations, case-law, customs, treaties insofar as their content is incorporated into the legal order of the State, federal law or the law of a regional entity (the European Union, for example) to the same extent, and the constitution”.[vii] Consequently, arbitrators may, at the request of a party or on their own initiative, and subject to respect for the adversarial principle,[viii] exclude the application of the chosen law should it be contrary to a mandatory rule of European law. Despite this particular autonomy granted to the arbitrator, it is still constrained by the respect of certain standards deriving from national law. Indeed, when ruling on a dispute submitted to arbitration by the parties, it must ensure the effectiveness of the award,[ix] i.e. reasonably guarantee its recognition and non-setting aside. This presupposes the observance by the arbitrator of grounds for non-recognition provided by the law of the States, in which enforcement of the award will be sought, as well as grounds for setting it aside in the State of the seat of arbitration. In this respect, if one or several law of those States provide for the duty of the arbitrator to raise ex-officio the mandatory rules of the European law, the arbitrator shall have no other choice but to submit to it failing which arbitration proceedings would have been veined. This subject was directly addressed by the Paris Court of Appeal  in Thales v. Euromissile.[x] The court ruled that, under French law “no setting aside (of the award)  is incurred simply because the arbitrators failed to raise questions of European competition law ex-officio”.[xi] In this view, by rejecting the principle whereby the award is not subject to setting aside, in the event that the arbitrator would not have ex-officio raised the mandatory rules of European Union law applicable to the case, judges refused to impose such a duty on the arbitrator. Nevertheless, the arbitrator still has a vested interest, if the seat of the arbitration is Paris, or if the award is to be enforced on the territory of the Member-State, in seeking and ultimately raising the mandatory rules of European law. Indeed, even if the mere fact that the arbitrator has not raised these rules does not cause the award to be set aside, it is nevertheless weakened by its potential conflict with international public policy at the enforcement stage. In this regard, the Paris Court of Appeal, in the Shooner[xii] case has, in line with the Thales case-law, guaranteed that the violation by the award of international public policy, of which European public policy is part,[xiii] is sanctioned by national courts. For this purpose, the court clarified the scope of article 1466 of the Code of Civil Procedure (applicable to international arbitration in virtue of article 1506 of the Code of Civil Procedure) providing that “the party who, knowingly and without legitimate reason, fails to invoke in due time an irregularity before the arbitral tribunal shall be deemed to have waived the right to invoke it”.[xiv] On the one hand, it was affirmed that the presumption of waiver “does not only apply to procedural irregularities but to all claims that may be considered as grounds for initiating an action for the setting aside of awards [provided for by French law]”, and, on the other hand, were excluded from its scope of application “the claims alleging that the recognition or enforcement of the award would […] violate substantive international public policy”.[xv] On the basis of this exclusion, it was held that the parties, and the judge ex-officio, may raise any violation of international public policy in the proceedings subsequent to the award. Consequently, French judges have the power to set aside an award on the grounds of the arbitrator\’s failure to raise and apply the mandatory rules of European law, even if the parties have not raised them during the arbitral or judicial proceedings. This ruling, although not directly imposing a duty on the arbitrator, is such as to prompt arbitrators to raise the mandatory rules of European Union law. This is all the more

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ALTERNATIVE DISPUTE RESOLUTION AND ONLINE ALTERNATIVE DISPUTE RESOLUTION IN CYBER SPACE

*Shruti Bist Alternative Dispute Resolution (ADR) mechanisms are procedures that assist parties in settling questions without formal court proceedings. Normal ADR forms incorporate intervention and assertion. There are several procedures that can be utilized to determine claims in dispute. Online Alternative Dispute Resolution (ODR) systems have been seen as significant forms for settling worldwide Internet-related questions. Nowadays, efforts are being made to make accessible modest Online Alternative Dispute Resolution instruments for comprehending debates. Numerous Internet-related debates are without a doubt about people and organizations, who grumble about the online conduct of people or organizations on grounds that such conduct would supposedly contrarily influence them and against which they wish to act and get review often by mentioning the expulsion of the pertinent online substance. ALTERNATIVE DISPUTE RESOLUTION; ODR AND CYBERSPACE  ADR primarily focuses on moving dispute resolution away from the conventional litigation and court-based decision-making process. This process is further propagated by designing cyberspace as the forum to adopt traditional offline ADR processes such as mediation and arbitration. ODR is much more than just electronic ADR. ODR is regarded as a multi-disciplinary enterprise which provides secure and confidential dispute resolution processes. Commercial online dispute resolution services started off since 1999, with most ODR facilitators being based in the United States. For the first time in history in January 2000, parties located in the four corners of the globe successfully resolved international legal disputes completely online. There were no real meetings between the parties, but documents, comments and evidence were exchanged which were produced before the appointed arbitrators of various countries. This dispute – concerning domain names – was arbitrated under the dispute resolution policy and rules of the Internet Corporation for Assigned Names and Numbers (ICANN). This was administered by e-resolution – the primary organization providing a complete online resolution service relating to domain name disputes. WIPO Guide to the Uniform Domain Name Dispute Resolution Policy (UDRP) The WIPO Center acts as technical advisors to the ICANN drafting committee charged with finalizing the UDRP and its Rules. It has developed WIPO Supplemental Rules which supplement the UDRP. This Guide addresses the most frequently asked questions about domain name dispute resolution under the UDRP and the administration of disputes by the WIPO Arbitration and Mediation Center under the UDRP. The UDRP sets out the lawful system for the resolution of disputes between a domain name registrant and an outsider i.e., a gathering other than the enlistment center over the harsh enrollment and utilization of an Internet domain name in the conventional high level domains or gTLDs e.g., .biz, .com, .info, .mobi, .name, .net, .org, and those nation code high level domains or ccTLDs that have embraced the UDRP on an intentional basis. On October 24, 1999, the ICANN Board received the UDRP Rules setting out the strategies and different necessities for each phase of the dispute resolution regulatory strategy. The methodology is controlled by dispute resolution service provider licensed by ICANN. The WIPO Arbitration and Mediation Center is such a dispute resolution service provider.  DISPUTES THAT ARE COVERED BY THE UDRP ADMINISTRATIVE PROCEDURE The UDRP Administrative Procedure is available for disputes concerning an alleged abusive registration of a domain name; that is, which meet the following criteria as per Paragraph 4(a) of the UDRP: (i) The domain name enrolled by the domain name registrant is indistinguishable or confusingly like a trademark or service mark in which the complainant i.e. the individual or substance bringing the objection has rights; and (ii) The domain name registrant has no rights or real interests in regard of the domain name being referred to. The five basic stages in a UDRP Administrative Procedure are: The Complainant will file a Complaint in WIPO Center with an ICANN-accredited dispute resolution service provider;  The filing of a Response by the person or entity against whom the Complaint was made;  A chosen dispute resolution service provider of one or three persons in an Administrative Panel will decide the dispute;  The issuance of the Administrative Panel\’s decision and the notification of all relevant parties; and The implementation of the Administrative Panel’s decision by the registrar(s) concerned should there be a decision that the domain name(s) in question be cancelled or transferred. The Administrative Procedure normally should be completed within 60 days of the date the WIPO Center receives the Complaint. CYBER DISPUTES MEDIATION AND ARBITRATION CENTER (CDMAC) Many criminal cases have arrived up with the police and a large portion of them are pending examination since the police don’t have time and important expertise at all police stations to deal with the complex Cyber Crime cases. Therefore, it is necessary for the community and the Government to consider adopting the ADR processes for Cyber Disputes in a serious way. ADR, as of now, is being utilized in certain spaces of Cyber Disputes. For instance, the vast majority of the E-Commerce Companies have been utilizing Mediation and Arbitration to determine their questions with the clients perceiving the debates as a “Customer Protection Issue”. CDMAC will utilize ODR offices and this could be an incredible way to arrive at a settlement without the problems of individual hearings. Techno Legal specialist’s assistance will be taken by CDMAC who can decipher forensic discoveries and Cyber Laws. CDMAC (if approached by the parties to the dispute) should take up mediation or a non-binding arbitration which is then submitted by the parties jointly to the Adjudicating Officer for ratification. If the parties come to an amicable settlement, the process can be closed at the CDMAC level itself. In case one of the parties has refused the terms of the mediation but there is a “non-binding arbitration award”, the party may prefer to refuse to abide and then the matter has to be taken up by either party to the Adjudicator. The Adjudicator may completely ignore the prior proceedings under CDMAC and hear the issue afresh and take a decision, based entirely on its discretion. To conclude the formal course of action of ADR, a more organized

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Investment Arbitration: The weaknesses of the current system (1/2)

*Panagiotis Athanasiadis When two states sign a trade agreement, the question of dispute settlement is a major focal point. What should happen in the case of a violation of the rights of an investor; what recourse should be available; how can fairness in that proceeding be assured. Historically states resulted to diplomatic means or even the occasional military intervention in order to protect the assets of their nationals in the host-state. These practices have nowadays largely eclipsed. Nevertheless, investors are still unlikely to place the fate of their disputes at the hands of a domestic court, which could be biased towards its own government.  Hence most investment treaties now contain ISDS chapters. ISDS stands for “investor-state dispute settlement” and describes an arbitration system through which foreign investors can sue host-states. This legal instrument can be used to seek monetary redress against host-states for discrimination, uncompensated expropriations, unequitable and unfair treatment or any other kind of violation of the investor-rights established in the underlying treaty.[i] Since its rise to prevalence, the ISDS has been widely criticized. States have to pay obscene compensations when they regulate sectors that might adversely affect investors’ profits.[ii] Questions of consistency, impartiality and transparency are also a recurring issue with ISDS. 1.                  Investor super-rights – The Trojan Horse complaint The rights an investor enjoys under a modern-day investment treaty go far beyond protection against expropriations and nationalizations.[iii] Investment arbitration has seen a thematic shift. Most disputes nowadays deal with issues of public concern such as energy, health, technology etc.[iv] Experts in the field have voiced concern over how handing foreign investors a tool that can award them exorbitant sums in damages can hamper a host-state’s ability to regulate those sectors.[v] This so-called Trojan horse critique to the ISDS describes how multinational enterprises can challenge, in a private setting, legitimate public regulation that threatens their profit margins. The ISDS platform circumvents domestic remedies for challenging legitimate public policies and allows investors to derail legislative programs with impunity.[vi] This chilling-effect on democratic, regulatory processes becomes especially apparent in economically developing states. The majority of ISDS cases see a claimant from an economically developed country against an economically developing government.[vii] Some retort that the high standard of care and diligence that must be shown by the states so as not to be held liable might “spill over into domestic law.”[viii] Host-states are thus incentivized to apply good governance. A more likely scenario however is that investment arbitration creates an insulated foreign investor enclave with preferential treatment, all the while national legislation and judiciaries lag behind.[ix] As a result, many countries have stopped signing international investment agreements with ISDS clauses and in the case of Indonesia and South Africa have gone as far as terminating already existing ones.[x] Bolivia, Ecuador and Venezuela all withdrew from the ICSID.[xi] 2.                 Procedural and structural issues The current ISDS model has further been criticized for its lack of consistency in cases bearing a high degree of similarity. This failure can be attributed to the fragmented nature of the ISDS system. The lack of binding precedent contributes to the legal uncertainty surrounding investment arbitration, but it is not its sole cause. Inconsistency seems to be inescapable on account of how investment arbitration is set up. Different ad hoc tribunals with different arbitral institutions and arbitrators with different legal backgrounds all laying judgement independently and with little reference to one another.[xii] Achieving a unified interpretative front concerning the legal questions of each respective treaty seems almost unattainable. A side effect of this incoherence is that it allows claimants to look for Tribunals, whose interpretations best suit their needs. This so-called phenomenon of “forum shopping” describes the practice of choosing a court in which to bring an action based on a determination of which court is most likely to yield a favourite outcome. Enabled by the decentralized nature of investment arbitration, “forum shopping” in investment arbitration has drawn large scale criticism.[xiii] Some argue that a dedicated appeal mechanism could bottleneck diverging interpretations and provide a steadier and more predictable flow of arbitral decisions.[xiv] This would help combat “forum shopping” and also generally increase the correctness of awards.[xv] 3.                 Transparency Investment arbitration is based on commercial arbitration. It is thus not surprising that one of the most attractive qualities of commercial arbitration, its confidentiality, was carried over to investment arbitration. Given, however, the public relevance of the issues at hand questions of legitimacy are raised.[xvi] Behind-closed-doors decisions on topics of public interest by private arbitrators with no public accountability highlight what many describe as the democratic deficit of the ISDS.[xvii] The criticism focuses on the unreliably sporadic publication of awards and documents relating to arbitral proceedings and the scarcity of open hearings. Seeing how both states and investors have an interest in keeping certain aspects of the dispute confidential a balance has to be struck between confidentiality and transparency on matters of public interest.[xviii] The application of the UNCITRAL Transparency Rules has helped in that regard. Nevertheless, many treaties still condition the openness of hearings to party consent thus impeding comprehensive transparency.[xix] 4.                 Independence and impartiality Agency in investment arbitration works in a unique fashion. Only those who meet the very high qualification standards get to be part of the industry. This means that the pool of potential arbitrators and counsellors is necessarily a shallow one. Some end up undertaking both the role of an arbitrator and that of a counsellor, even in cases very similar to one another.[xx] The constant back-and-forth between roles has been dubbed as the “double-hat”[xxi] dilemma. This alteration can have an adverse effect on impartiality (e.g. conflicts of interest)[xxii] while it also reinforces the “clique” perception many have of investment arbitration. The problem is exacerbated by the lack of stricter ethical codes and rules preventing the same candidates from occupying different roles.[xxiii] Arbitrators might also have monetary and career interests in seeing more and more cases move forward. Firstly, since most arbitrators are paid per day of work, they might be inclined to

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GOVERNING LAW OF THE ARBITRATION AGREEMENT – KABAB-JI REJECTED: COUR D’APPEL DE PARIS V. THE ENGLISH COURT OF APPEAL

*Abhinav Gupta The law governing the arbitration agreement has been immensely debated with courts frequently overruling previous judgments and decisions. On June 23, 2020, the Paris Court of Appeals delivered its judgment in Kout Food Group v. Kabab-ji SAL[1] overruling the holding of the English Court of Appeals. This confrontation arises due to the English Court’s refusal to stay the proceedings and wait for the decision of the French court which is the seat of the arbitration in the instant case.   I. Background – The English Court of Appeal’s decision The English Court’s decision in Kabab-ji SAL v. Kout Food Group[2] focused on the first stage, which is the express choice stage, laid down in Sulamerica CIA Nacional De Segurous SA and others v. Enesa Engenharia SA and others.[3] In the present case of Kabab-ji,[4] English law was the governing law of the contract while French law was the law of the seat. The court interpreted the wording of the contract and observed that ‘This Agreement’ as stated in Article 1 of the contract includes all the subsequent articles. Further, Article 15 (governing law clause) stated that ‘This Agreement’ shall be governed by English law. Furthermore, the placement of the arbitration agreement (Article 14), within the main contract, led the court to conclude that the parties made an express choice to govern the entire contract, including the arbitration agreement, by English law. This conclusion was further fortified by the court’s interpretation of Article 14.3 of the Agreement. It stated that the tribunal shall ‘also’ apply principles of law generally recognised in international transactions. The court held that this provision demonstrated a clear intention that the entire agreement was to be governed by English law. Thus, the court never went into determining the implied choice (second stage) or the closest and most real connection test (third stage). The implied choice stage is applied when there is insufficient evidence to prove that the parties expressly and unequivocally chose a law to govern the arbitration agreement while the closes connection test is applied as the last resort to determine the law governing the arbitration agreement by taking into account the governing law, seat of arbitration, or the nationality of the parties.  When faced with the question of separability of the arbitration clause from the main contract, the court relied on the decision of Sulamerica[5] and stated that the purpose of the doctrine of separability is to insure that the chosen dispute resolution mechanism by the parties survives even when the substantive contract is rendered ineffective. Thus, it observed that the purpose of the aforementioned doctrine is not to protect the arbitration agreement from the substantive provisions of the contract for other purposes such as interpretation of the intention of the parties. Thus, the English court concluded that the wordings of the substantive provisions of the contract showed that the parties had ‘expressly’ chosen to govern the arbitration agreement by the substantive law (English law) and not the law of the seat (French law). II. The Paris Court of Appeal’s decision The French court effectively dismissed the findings of the English court by concluding that according to the substantive rule of international arbitration law, the arbitration agreement is legally distinct from the underlying contract. Thus, it applied the doctrine of separability to interpret Article 14 of the Agreement distinctly from Article 15 and Article 1 of the Agreement. It observed that the validity and existence of the arbitration agreement are governed by the law of the seat unless there is a contrary intention by the parties. Thus, it applied the second stage (implied) test of Sulamerica[6] recently decided in the Enka Insaat Ve Sanayi A.S. v. OOO “Insurance Company Chubb” and others.[7] The court thus held that French law, that is the law of the seat, will apply to the arbitration agreement. It rejected the interpretation made by the English courts that there existed an express choice of law of the arbitration agreement between the parties. Conversely, it found that there existed nothing in the contract to indicate that the law of the seat will not be applied in the instant case.   The Court of Appeal stated that choosing English law as the general law governing the contract and prohibiting the arbitrators from applying rules that contradict the Agreement as per Article 14.3 of the Agreement did not show the intention of parties to govern the arbitration clause by English law and is therefore insufficient to diverge from the substantive rules of international arbitration. The court further pointed out that the party Kout Food Group did not provide sufficient evidence to suggest that the parties had expressly and unequivocally agreed to subject the arbitration agreement to English law. The court acknowledged Article 14.3 of the contract which stated that “The arbitrator(s) shall also apply the principles of law generally recognised in international transactions…Under no circumstances shall the arbitrator(s) apply any rule(s) that contradict(s) the strict wording of the Agreement.” It heavily relied on the former part of the aforementioned statement in supporting its view of applying the international principles. Therefore, the court concluded that the arbitrators were not wrong and did not apply any rule that contradicted the Agreement. Consequently, the court upheld the award. III. Comments The ruling by the Paris Court of Appeals creates yet another contradiction based on substantive law between the common and civil law countries. The approach by the French courts seems to reflect on the general approach in French law to treat an arbitration as distinct from national laws and apply international principles. While the English Court narrowly interpreted the doctrine of separability, the Paris court interpreted it in the widest possible sense. Such interpretation is argued to be an overstatement. As observed by the English courts in Kabab-ji[8] and Sulamerica,[9] the rationale of the doctrine of separability is to preserve the arbitration agreement in situations when the main contract is rendered ineffective. Utilisation of the doctrine to prevent interpretation of the wordings of the

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