Simplified arbitration procedure ICC
International arbitration is the most widely used administrative tool to resolve international trade disputes. In international arbitration, in the agreement of the parties, the ordinary judge is replaced by a private arbitrator. The International Chamber of Commerce of Paris is among the most authoritative arbitration institutions in the world and is responsible for overseeing the proper functioning of the Arbitration Institute. For this reason, the ICC has established the International Court of Arbitration since 1923. An organization that acts with its regulation for international arbitration disciplines, c.d. Rules of Arbitration. From 1 March 2017, the ICC has introduced a simplified arbitration procedure, the accelerated procedure, for arbitrators for disputes below $ 2 million
How does the international arbitration agreement work?
Among the most important sources of international arbitration are:
- The New York Convention of 1958
- Arbitration Regulations adopted by various international arbitration bodies including: ICC Paris and American Association of Arbitration in New York
- The laws of individual legal systems that recognize arbitration
How the Arbitration Agreement between the parties works
When 2 legal entities, companies or natural persons, belonging to 2 or more states, enter into a commercial contract, they have the right to provide c.d. arbitration agreement. It is an alternative tool to the “pre-established legal judge by law”. The parties agree to the arbitration agreement on the basis of their negotiating autonomy, to settle the disputes arising during the performance of the contract. The arbitration agreement may be referred to as a contractual clause, defined as a compromise clause, or may be provided in a separate document (accessory contract) which is called a compromise.
The request for simplified arbitration procedure ICC
The advantages of arbitration have always been so many. The arbitration procedure is faster than ordinary court proceedings. Hence, the reason for its frequent recurrence in international trade contracts. In the compromise clause or in the compromise, the parties must establish:
- timing and manner of arbitration proceedings
- the composition of the arbitration panel (and the selection of professionals identified on the basis of the most appropriate technical competencies for the resolution of specific disputes).
However, representatives of international commercial organizations have for a long time requested simplified arbitration procedures, at least for arbitration awards for minor disputes. From March 1, 2017, these requests were accepted by the International Chamber of Commerce with a process of reviewing their arbitration rules and inserting c.d. Expedited Procedure.
The arbitration procedure simplified in the new ICC regulation
The reform involves the introduction of simplified procedures for arbitration fees up to USD 2,000,000. Reform of ICC Arbitration Regulations provides:
- The possibility of finding a single arbitrator rather than an arbitration panel;
- The time limit for issuing the award of 6 months from the start of the procedure, starting from the 15 days following the transmission of the dossier;
- The grant of office of extension to the end of the issuance of the arbitral tribunal, only if the circumstance so permits, or on the basis of a court award by reason of a reasoned request of the Arbitral Tribunal;
- Any auditions may be held in videoconference;
- The dispute can also be decided on the sole basis of the produced documents, making the proceedings merely documented and facilitating the investigation.
Recovering Credits with the Expedited Procedure is OK
The accelerated procedure should not be confused with emergency arbitration but it is always a merit judgment, albeit simplified. Since the simplified arbitration procedure will be cheaper and faster, the regulation allows arbitration players to include it also for settlement of disputes over $ 2 million. However, even in cases where the requirements for the simplified arbitration procedure are used, the Arbitration Court has the discretionary power to refer the parties to arbitration in the ordinary course of action, if the simplified one is not considered appropriate to the subject matter of the dispute.
The recognition of the arbitral award in Italy
In the Italian legal system there is no automatic recognition of the Former Arbitration formed abroad. In Italy, judgments and measures issued by the courts of the EU Member States are recognized. In order to have legal effects in Italy, as an out-of-court and private instrument, although recognized at international level, the Arbitral Court must be recognized by the judge and declared executive with a decree to be notified to the counterparty. A company based in a foreign country can obtain the decree for the exemption of the arbitration award, in accordance with the procedure laid down in Articles 839 and 840 of the Code of Civil Procedure. The appeal must be submitted to the President of the Court of Appeal of the place where the party against whom the claim is based, accompanied by all the necessary documents in Italian. The court verifies the formal regularity of Lodo and declares it executive in Italy with a special decree to be notified to the other party.
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Natural Judge pre-established by law: The court established by law, taken out of any arbitration designation.
International Arbitration or International Trade Arbitration: It is a method of out-of-court settlement of disputes between legal entities of different states.
Arbitration award: It is comparable to a judgment and is the act by which arbitration ends. In Italian law it has effects only if recognized by the judge, with an ad hoc decree.
Judgment: act by which the court defines in whole or in part the dispute that has been submitted to it