Tuesday, October 9, 2012

How does it work in practice?


The SCC procedure – A summary                           Logo









If not agreed otherwise, three arbitrators are appointed under the SCC Rules unless the SCC decides that the arbitral tribunal should consist of a sole arbitrator.

Each party appoints one arbitrator and the SCC the third who will act as chairperson of the arbitral tribunal, unless the parties have decided otherwise. There is no list of arbitrators but the parties may appoint any person of any nationality as arbitrator, as long as he or she is impartial and independent.

The parties may be represented or assisted by any person of any nationality in the proceedings.

The parties are free to agree on:
  • the seat of arbitration
  • the language to be used in the proceedings
  • the law, or rules of law, to be applied to the substance of the case
The arbitrators act on the basis of presentations, both oral and written, submitted by the parties.

The award shall be rendered within six months and no appeal is permitted on the merits.


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1. Claimant files its request for arbitration, appoints an arbitrator and provides the Registration Fee

The request for arbitration shall include the names and addresses of the parties and their counsel, a summary of the dispute, a preliminary statement of relief sought, a copy of the arbitration agreement and, the name and address of the appointed arbitrator.

The request may be faxed to the SCC or sent by e-mail. If the request is extensive, paper copies are preferred. In such case, the request should be submitted in five copies.

At the same time as the request for arbitration is filed, the claimant shall pay a registration fee.


2. The SCC

The SCC makes a preliminary check on its jurisdiction and, if the registration fee is provided, notifies the respondent.


3. Respondent submits its answer to the request for arbitration and appoints an arbitrator
 

The answer shall include comments on the request and the name and address of the appointed arbitrator. The respondent should submit any counterclaim or set-off and any objections regarding jurisdiction in its answer. The answer may be brief.

Failure by the respondent to submit an Answer does not prevent the SCC from proceeding with the arbitration.


4. The SCC appoints a chairperson and determines the advance on costs

If the respondent fails to submit its answer, or if the answer does not contain any information regarding an appointed arbitrator, the SCC appoints an arbitrator on the respondent's behalf.

Apart from appointing the chairperson and determining the advance on costs, the SCC decides the seat of arbitration, should the parties not have determined it already.

Should the parties have decided another procedure regarding the appointment of the chairperson, the SCC will consider such decision. Following the above said decisions the SCC requests the parties to provide the advance on costs.


5. Claimant provides its part of the advance on costs

The advance on costs shall be provided in cash to a specific bank account. Generally, the parties are asked to provide the advance with half each. Should the respondent fail to provide its part of the amount the claimant will be asked to provide the entire amount.


6. Respondent provides its part of the advance on costs

The advance on costs shall be provided in cash to a specific bank account. Generally, the parties are asked to provide the advance with half each. The respondent may not pursue a counterclaim without providing an advance on costs.


7. The SCC refers the case to the arbitral tribunal

Following the payment of the advance on costs, the case is referred to the arbitral tribunal.


8. The arbitral tribunal

The arbitral tribunal, in compliance with the conditions set down in the arbitration agreement and the SCC Rules, determines the manner of conducting the proceedings. Due account is taken to the wishes of the parties.

Unless the parties have agreed on the language to be used in the proceedings, the arbitral tribunal will, after consultation with the parties, make such decision.

Unless the parties have agreed which law, or rules of law, shall apply to the merits of the dispute, the arbitral tribunal will apply the law, or rules of law, that it considers to be most appropriate.

The arbitral tribunal requests the claimant to submit a statement of claim and the respondent will be requested to submit a statement of defence.


9. Claimant submits its Statement of Claim

The claimant shall submit a statement of claim, including the following (unless already submitted):

• The relief sought
• The material facts and circumstances
• A preliminary statement of evidence

The claimant may amend its claim until the closure of the proceedings if the amendments are comprised by the arbitration agreement and the arbitral tribunal does not oppose thereto on account of the point of time of the amendment, the prejudice that may be caused to the other party or other circumstances.


10. Respondent submits its Statement of Defence

The respondent shall submit a statement of defence, including the following (unless already submitted):

• A statement as to whether the respondent admits or denies the relief sought by the claimant
• The material facts and circumstances
• Any counterclaim or set-off claim and the grounds on which it is based
• A preliminary statement of evidence

The respondent may amend its counterclaim or set-off until the closure of the proceedings if the amendments are comprised by the arbitration agreement and the arbitral tribunal does not oppose thereto on account of the point of time of the amendments, the prejudice that may be caused to the other party or other circumstances.


11. The arbitral tribunal summons the parties to a hearing

An oral hearing shall be arranged if requested by either party, or if the arbitral tribunal considers it appropriate. The tribunal shall determine the time for the hearing, its duration and how it is to be organised, including the manner in which evidence is to be presented. When planning the hearing, the arbitral tribunal shall take into account the wishes of the parties.

At the hearing the parties shall, at the request of the arbitral tribunal, state the evidence on which they intend to rely.

Despite a party's failure to appear at the hearing, the arbitral tribunal may decide to continue the hearing and render an award.


12. The arbitral tribunal makes an award

An award shall be made not later than six months as from the date when the case was referred to the arbitral tribunal.

At the request of a party, a separate issue or part of the matter in dispute may be decided in a separate award.

When made an award is final and binding for the parties.


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