ASPEN CASEBOOK SERIES

INTERNATIONAL ARBITRATION

Cases and Materials

Second Edition

Gary B. Born

Wolters Kluwer

TABLE OF CONTENTS

Preface xxix Acknowledgments xxxiii

CHAPTER 1 INTRODUCTION TO INTERNATIONAL ARBITRATION 1_

A. Historical Overview of International Arbitration 2 1. Historical Development of Arbitration Between States 2

a. Inter-State Arbitration in Antiquity 2 b. Inter-State Arbitration in the European Middle Ages 4 c. Inter-State Arbitration in the 18th and 19th Centuries 5 d. Arbitral Procedures in Inter-State Arbitrations 6

2. Historical Development of Commercial Arbitration 10 a. Commercial Arbitration in Antiquity 11 b. Commercial Arbitration in the European Middle Ages 14 c. Commercial Arbitration in England 16 d. Commercial Arbitration in France 19 e. Commercial Arbitration in the United States of America 21 f. Commercial Arbitration in Other European Jurisdictions in the 18th and 19th

Centuries 27 B. Contemporary International Arbitration Conventions 28

1. 1899 and 1907 Conventions for the Pacific Settlement of International Disputes 29 2. Geneva Protocol and Geneva Convention 30 3. New York Convention 33 4. Inter-American Convention 39 5. European Convention 40 6. ICSID Convention 41 7. Bilateral Investment Treaties and Other Investment Protection Agreements 43

C. Overview of National Arbitration Legislation 44 1. Supportive National Arbitration Legislation 46

a. UNCITRAL Model Law and 2006 Revisions 47 b. United States of America 51

(1) Unenforceability of Arbitration Agreements Under U.S. Law in the 19th Century 51

(2) U.S. Federal Arbitration Act: Chapter One 53 (3) U.S. Federal Arbitration Act: Chapters Two and Three 54 (4) U.S. State Arbitration Laws 56

c. Swiss Law on Private International Law 60 d. French Code of Civil Procedure 61 e. English Arbitration Act, 1996 64

2. Less Supportive National Arbitration Legislation 67 D. Overview of Institutional and Ad Hoc Arbitration 69

1. Institutional Arbitration 70 2. Ad Hoc Arbitration 71 3. Relative Advantages and Disadvantages of Institutional and Ad Hoc Arbitration 71 4. UNCITRAL Arbitration Rules 72 5. Leading International Arbitral Institutions 74

a. International Chamber of Commerce ("ICC") International Court of Arbitration 75

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b. American Arbitration Association ("AAA") and International Centre for Dispute Resolution ("ICDR") 77

c. London Court of International Arbitration ("LCIA") 79 d. International Centre for Settlement of Investment Disputes ("ICSID") 80 e. Permanent Court of Arbitration ("PCA") *' f. Swiss Chambers' Arbitration Institution 83 g. Singapore International Arbitration Centre ("SIAC") 84 h. Hong Kong International Arbitration Centre ("HKIAC") 84

E. Elements of International Arbitration Agreements 84 1. Agreement to Arbitrate *5 2. Scope of Arbitration Agreement 86 3. Institutional Versus Ad Hoc Arbitration 87 4. Seat or Place of Arbitration 87 5. Number, Method of Selection and Qualifications of Arbitrators 87 6. Language of Arbitration 89 7. Choice-of-Law Clauses 89 8. Other Provisions of International Arbitration Agreements 90

F. Overview of Choice of Law in International Commercial Arbitration 90 1. Law Applicable to Substance of Parties' Dispute 90 2. Law Applicable to Arbitration Agreement 91 3. Procedura! Law Applicable to Arbitral Proceedings 91 4. Choice-of-Law Rules Applicable in International Arbitration 92

G. Overview of Sources of Information About International Arbitration 9.3 1. ICCA Yearbook of Commercial Arbitration and Handbooks 93 2. Mealey's International Arbitration Reports 93 3. Journal du Droit International (Clunet) 93 4. Revue de l Arbitrage 94 5. Arbitration International 94 6. ASA Bulletin 94 7. Collection of ICC Arbitral Awards 94 8. International Legal Materials 94 9. Born on International Commercial Arbitration 94 10. Fouchard Gaillard Goldman on International Commercial Arbitration 95 11. Redfern and Hunter on International Arbitration 95 12. Commentary on International Chamber of Commerce Arbitration 95 13. Commentary on New York Convention 95 14. A Guide to the UNCITRAL Model Law on International Commercial Arbitration 96 15. International Arbitration Law Databases 96 16. KluwerArbitration and Kluwer Arbitration Blog 96 17. Global Arbitration Review 96 18. Draft ALI Restatement of International Commercial Arbitration Law 96

PARTI INTERNATIONAL ARBITRATION^AGREEMENTS

CHAPTER 2 LEGAL FRAMEWORK FOR INTERNATIONAL ARBITRATION AGREEMENTS 99

A. Reasons for International Arbitration 99 W. Crum & G. Steindorff, Koptische Rechtsurkunden aus Djeme 99

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M. Bloch, Feudal Society | oo N.Y. Weekly Post-Boy (May 20, 1751) 100 Transparency International, Global Corruption Barometer 2013 100 Loewen Group v. United States of America 101 Treaty of Washington, Arts. I-VI, X 104 1907 Hague Convention for the Pacific Settlement of International Disputes 104 Arbitration Agreement Between the Government of Sudan and the Sudan

People's Liberation Movement/Army on Delimiting the Abyei Area 105 Rainbo w Warrior Affair 105 Bühring-Uhle, A Survey on Arbitration and Settlement in International

Business Disputes 106 Queen Mary, Univ. of London, International Arbitration Survey: Corporate

Choices in International Arbitration 108 United Kingdom/Bosnia-Herzegovina BIT, Arts. 8, 9 108 Notes 108

B. Jurisdiction»! Requirements for International Arbitration Agreements Under International Arbitration Conventions and National Arbitration Legislation 115

1. Definition of "Arbitration Agreement" 116 United Nations Charter, Art. 33(1) 117 Jivraj v. Hashwani 117 Walkinshaw v. Diniz 124 Elberon Bathing Co. v. Ambassador Insurance Co. 129 Notes 130

2. Jurisdictional Requirements of International and National Arbitration Regimes 137 a. "Commercial" Relationship Requirement 138

U.S. Commercial Relationship Reservation to New York Convention 138 Bautista v. Star Cruises, Norwegian Cruise Line, Ltd 138 RMInvestment & Trading Co. Pvt Ltd v. Boeing Co. 143 Judgment of 10 November 1993 144 North American Free Trade Agreement, Art. 1136(7) 145 Notes 145

b. "Existing or Future Disputes" and "Defined Legal Relationship" 148 Roose Industries Ltd v. Ready Mixed Concrete Ltd 149 Halki Shipping Corp. v. Sopex Oils Ltd 150 Notes 154

c. "Foreign" or "International" Arbitration Agreements 158 Bergesen v. Joseph Muller Corp. 159 Brier v. Northstar Marine Inc. 162 Notes 164

d. Reciprocity Requirements Under International Conventions and National Arbitration Legislation 1 &9 National Iranian Oil Co. v. Ashland Oil, Inc. 170 Notes ' 7 1

CHAPTER 3 INTERNATIONAL ARBITRATION AGREEMENTS: BASIC ISSUES 177

A. Presumptive Validity of International Arbitration Agreements 177 Judgment of 10 July 1843, Cie l'Alliance v. Prunier 178 Decision 24 of the Andean Commission Conceming Treatment of Foreign

Capital, Art. 51 179

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Saudi Arabian Arbitration Law, 2012, Art. 10(2) 179 Arkansas Code, 2010, §16-108-201 ' Brazilian Law No. 9,307 of 23 September 1996, Arts. 3, 7 180 Ledee v. Ceramiche Ragno • ' ̂ ' Judgment of20 December 1993, Municipalite de Khoms el Mergeb v. Societc

Dalico ' *2 Judgment of 7 September 2005, Hotels.com v. Zuz Tourism Ltd 183 Notes ' KG

B. Separability of International Arbitration Agreements 190 Kulukundis Shipping Co., SA v. Amtorg Trading Corp. 191 Judgment of7 October 1933, Tobler v. Justizkommission des Kantons

Schwyz '93 Judgment of 27 February 1970 194 All-Union Export-Import Ass'n Sojuznefteexport (Moscow) v. JOC Oil, Ltd 198 Buckeye Check Cashing, Inc. v. Cardegna 201 Fiona Trust & Holding Co. v. Privalov 205 Notes 211

C. Allocation of Competence to Decide Disputes Over Interpretation and Validity of International Arbitration Agreements 218

Swedish Arbitration Act, §§2, 34(1) 21X Kulukundis Shipping Co., SA v. Amtorg Trading Corp. 218 Final Award in ICC Case No. 5294 21 8 Judgment of 7 December 1994, V 2000 v. ProjectXJ 220 Ltd 221 Shin-Etsu Chemical Co. Ltd v. Aksh Optiftbre Ltd 223 Buckeye Check Cashing, Inc. v. Cardegna 230 First Options of Chicago, Inc. v. Kaplan 230 BG Group plc v. Republic of Argentina 233 Fiona Trust & Holding Co. v. Privalov 247 Dallah Real Estate & Tourism Holding Co. v. Ministry of Religious Affairs,

Government of Pakistan 247 European Convention on Human Rights, Art. 6(1) 270 Notes 271

D. Law Applicable to International Arbitration Agreements 287 Judgment of 30 May 1994 288 Jordanian Amendment to Merchandise Maritime Law, Law No. 35 of 1983 290 Interim Award in ICC Case No. 6149 290 Final Award in ICC Case No. 5294 292 XL Insurance Ltd v. Owens Corning Corp. 292 Hamlyn & Co. v. Talisker Distillery 295 Judgment of 20 December 1993, Municipalite de Khoms el Mergeb v. Societe

Dalico 298 Ledee v. Ceramiche Ragno 298 Rhone Mediterranee etc. v. Achille Lauro 298 BG Group plc v. Republic of Argentina 300 Dallah Real Estate & Tourism Holding Co. v. Ministry of Religious Affairs,

Government of Pakistan 300 300

E. Effects of International Arbitration Agreements 3 j ^ 1. Positive Effects of International Arbitration Agreements: Obligation to Arbitrate

in Good Faith ^ 15

All-Union Export-Import Ass'n Sojuznefteexport (Moscow) v. JOC Oil, Ltd 316

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Judgment of 30 May 1994 316 Notes 316

2. Negative Effects of International Arbitration Agreements: Obligation Not to Litigate 320

Judgment of30 May 1994 321 Judgment of 7 September 2005, Hotels.com v. Zuz Tourism Ltd 321 WSG Nimbus Pte Ltd v. Board of Control for Cricket in Sri Lanka 321 Ibeto Petrochemical Industries Ltd v. M/TBeffen 325 Notes 327

CHAPTER 4 FORMATION AND VALIDITY OF INTERNATIONAL ARBITRATION AGREEMENTS 335

A. Formation of International Arbitration Agreements 335 1. Essential Terms of International Arbitration Agreements 335

Judgment of 3 February 1990 336 E. Gaillard & J. Savage, Fouchard Gaillard Goldman on International

Commercial Arbitration 337 Lucky-Goldstar International (H.K.) Ltd v. Ng Moo Kee Engineering Ltd 338 Lea Tai Textile Co. v. Manning Fabrics, Inc. 341 Judgment of21 November 2003 342 Hoogovens Ijmuiden Verkoopkantoor BVv. MVSea Cattleya 345 Judgment of 1 February 1979 346 WSG Nimbus Pte Ltd v. Board of Control for Cricket in Sri Lanka 347 lnt'1 Law Commission Model Rules on Arbitral Procedure, Art. 2 347 Notes 348

2. Formation of International Arbitration Agreements 355 Kulukundis Shipping Co., SA v. Amtorg Trading Corp. 355 Republic of Nicaragua v. Standard Fruit Co. 355 Judgment of 30 March 1993, Nokia-Maillefer SA v. Mazzer 359 Buckeve Check Cashing, Inc. v. Cardegna 360 Interim Award in ICC Case No. 6149 360 First Options of Chicago v. Kaplan 360 BG Group plc v. Republic of Argentina 360 Notes 361

3. Formal Validity of International Arbitration Agreements 375 Sphere Drake Insurance plc v. Marine Towing, Inc. 376 Kahn Lucas Lancaster, Inc. v. Lark International Ltd 377 Judgment of 5 November 1985 381 Award in V1AC Case No. SCH-4366 382 Notes 383

4. Substantive Validity of International Arbitration Agreements 393 a. Unconscionability and Duress 393

Netherlands Code of Civil Procedure, Art. 1028(1) 394 Brower v. Gateway 2000, Inc. 394 Bautista v. Star Cruises, Norwegian Cruise Line, Ltd 397 Judgment of 17 February 1989 399 Judgment of 26 January 1989 401 Gutierrez v. Academy Corp. 402 Notes 404

b. Fraudulent Inducement or Fraud 412

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Fiona Trust & Holding Co. v. Privalov 4 Judgment of 30 May 1994 4' ̂ Republic of the Philippines v. Westinghouse Electric Corp. 412 Notes 4' ̂

c. Impossibility, Frustration and Repudiation 421 Awards in ICC Cases Nos. 10373 & 10439 421 Gatoil International v. National Iranian Oil Co. 425 National Iranian Oil Co. v. Ashland Oil, Inc. 427 Partial Decision of 2 April 1992 429 Astra Footwear Industry v. Harwyn International 431 Notes 433

d. Illegality 436 Judgment of27 February 1970 436 Buckeye Check Cashing, Inc. v. Cardegna 436 Judgment of7 May 1994, Fincantieri-Cantieri Navali ltaliani SpA v. Min. of

Def, Armament & Supply Directorate of Iraq 436 Final Award in ICC Case No. 5294 440 Interim Award in ICC Case No. 6149 440 Notes 440

e. Consumer Disputes, Employment Contracts and Bankruptcy 446 Belgian Judicial Code, Art. 1676(5) 44X Italian Code of Civil Procedure, Art. 806 448 Japanese Arbitration Law, Supplementary Provisions Art. 4 448 Arkansas Code, 2010, §16-108-201 448 Bautista v. Star Cruises, Norwegian Cruise Line, Ltd 448 Judgment of 28 November 2011, Hatem Tamimi v. Medecins Sans Frontieres 448 EU Unfair Terms in Consumer Contracts Directive, Arts. 1-3, Annex 449 Quebec Consumer Protection Act, §§ l(e), 11 450 Ontario Consumer Protection Act, §§1, 6-8 450 Polish Bankruptcy Law, Arts. 142, 147 451 In re Marcia L. Pate 451 In re United States Lines, Inc. 453 Notes 455

f. Lack of Capacity 461 Centroamericanos, SA v. Refmadora Costarricense de Petroleos, SA 461 Constitution of Islamic Republic of Iran, Art. 139 462 B. V. Bureau Wijsmuller v. U.S.A. as Owner of the Warship Julius A. Furer 462 Restatement (Second) Conflict of Laws, § 198 465 Benteler v. State of Belgium 465 Notes 468

g. Waiver of Right to Arbitrate 472 Stone v. E.F. Hutton & Co. 472 Notes 473

B. Nonarbitrability Doctrine 475 1. Introduction to Nonarbitrability Doctrine 475

Arkansas Code, 2010, §16-108-201 475 Jordanian Amendment to Merchandise Maritime Law, Law No. 35 of 1983 475 Award in ICC Case No. 6149 476 Wilko v. Swan 476 Judgment of 18 July 1987 47g Notes 479

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2. Contemporary Status of Nonarbitrability Doctrine 483 Scherk v. Alberto-Culver Co. 483 Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. 486 Eco Swiss China Time Ltd v. Benetton International NV 492 Judgment of 7 May 1994, Fincantieri-Cantieri Navali Italiani SpA v. Min.

ofDef, Armament & Supply Directorate of Iraq 493 Notes 494

3. Contemporary Nonarbitrability, Choice-of-Law and Enforcement Issues 502 Roby v. Corp. of Lloyd's 502 Rome Convention, Arts. 3(3), 7(1) 506 Rome I Regulation, Art. 9 506 Restatement (Second) Conflict of Laws, § 187 507 Notes 507

C. Arbitration Agreements in Investor-State Disputes 511 Decision 24 of Andean Commission Concerning Treatment of Foreign

Capital, Art. 51 512 U.S.A.-Haiti Treaty Concerning the Encouragement & Reciprocal Protection of

Investments, Art. 7(3) 512 Spain-Algeria Agreement on the Promotion & Reciprocal Protection of

Investments, Art. 11(2) 512 BG Group plc v. Republic of Argentina 513 Notes 513

CHAPTER 5 INTERPRETATION OF INTERNATIONAL ARBITRATION AGREEMENTS 517

A. Scope of International Arbitration Agreements 517 1. Rules of Construction for International Arbitration Agreements 517

Mediterranean Enterprises. Inc. v. Ssangyong Corp. 518 Hi-Fert Pty Ltd v. Kiukiang Maritime Carriers Inc. 520 Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. 522 Roose Industries Ltd v. Ready Mixed Concrete Ltd 525 Judgment of 3 February 1990 525 Fiona Trust & Holding Co. v. Privalov 525 Judgment of 27 February 1970 525 Interim Award in ICC Case No. 6149 525 Italian Code of Civil Procedure, Art. 808-quater 525 BG Group plc v. Republic of Argentina 526 Judgment of30 March 1993, Nokia-Maillefer SA v. Mazzer 526 Notes 526

2. Allocation of Competence to Interpret International Arbitration Agreements 534 First Options of Chicago v. Kaplan 534 Apollo Computer, Inc. v. Berg 534 Notes 536

B. Interpretation of Procedural and Related Issues in International Arbitration Agreements 541

Final Award in ICC Case No. 8445 541 Gone to the Beach LLC v. Choicepoint Services, Inc. 542 Astra Footwear Industry v. Harwyn International 543 BG Group plc v. Republic of Argentina 543 Notes 543

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CHARTER 6 NON-SIGNATORIES AND INTERNATIONAL ARBITRATION AGREEMENTS 551

A. Non-Signatories to Arbitration Agreements 551 Bridas SAPIC v. Government of Turkmenistan 5 51 Bridas SAPIC v. Government of Turkmenistan 558 Interim Award in ICC Case No. 4131 558 Award in ICC Case No. 8385 562 Judgment of 30 May 1994 566 Peterson Farms Inc. v. C&MFarming Ltd 566 Judgment ofl7 February 2011, Gov V of Pakistan, Ministry of Religious

Affairs v. Dallah Real Estate & Tourism Holding Co. 570 Dallah Real Estate & Tourism Holding Co. v. Ministry of Religious Affairs,

Government of Pakistan 573 Notes 573

B. Allocation of Competence to Decide Non-Signatory Issues 588 Oriental Commercial & Shipping Co. (U.K.) Ltd v. Rosseel, NV 588 Builders Federal (H.K.) Ltd v. Turner Construction 589 Bridas SAPIC v. Government of Turkmenistan 591 Peterson Farms Inc. v. C&M Farming Ltd 591 Dallah Real Estate & Tourism Holding Co. v. Ministry of Religious Affairs,

Government of Pakistan 592 Judgment ofl7 February 2011, Gov 't of Pakistan, Ministry of Religious

Affairs v. Dallah Real Estate & Tourism Holding Co. 592 Notes 592

PART II INTERNATIONAL ARBITRATION PROCEEDINGS

CHAPTER 7 SELECTION OF ARBITRAL SEAT IN INTERNATIONAL ARBITRATION 599

A. Meaning and Importance of Arbitral Seat in International Arbitration 599 PT Garuda Indonesia v. Birgen Air 600 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 605 Notes 619

B. Applicable Procedura! Law in International Arbitration 625 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 626 Union of India v. McDonnell Douglas Corp. 626 Preliminary Award in ICC Case No. 5505 629 Sapphire Int 7 Petroleum Ltd v. National Iranian Oil Co. 632 Notes 633

C. Selection of Arbitral Seat by Parties' Agreement or Arbitral Tribunal in International Arbitration 640

Dubai Islamic Bank Pjsc v. Paymentech Merchant Servs. Inc. 640 PT Garuda Indonesia v. Birgen Air 646 In the Matter of Charles R. Stevens v. Coudert Brothers 646 ADF Group Inc. v. United States of America 647 Notes 652

D. Selection of Arbitral Seat by National Courts in International Arbitration 658 Swedish Arbitration Act, §47 658

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Japanese Arbitration Law, Art. 8(1) 658 Econo-Car International, Inc. v. Antilles Car Rentals, Inc. 659 Lea Tai Textile Co. v. Manning Fabrics, Inc. 660 Bauhinia Corp. v. China Nat'l Machinery & Equipment Imp. & Exp. Corp. 660 National Iranian Oil Co. v. Ashland Oil, Inc. 661 Tolaram Fibers, Inc. v. Deutsche Engineering etc. 662 Notes 663

CHAPTER 8 SELECTION, CHALLENGE AND REPLACEMENT OF ARBITRATORS IN INTERNATIONAL ARBITRATION 671

A. Selection of Arbitrators by Parties or Appointing Authority in International Arbitration 671

1. Parties' Autonomy in Selection of Arbitrators 671 Geneva Protocol, Art. 2 672 Sumukan Ltd v, Commonwealth Secretariat 672 Certain Underwriters at Lloyd 's London v. Argonaut Insurance Co. 676 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 679 Jivraj v. Hashwani 679 Americo Life, Inc. v. Myer 679 Judgment of 24 February 1994 682 Notes 683

2. Exercise of Parties' Autonomy to Select Arbitrators 689 O. Glossner, Sociological Aspects of International Commercial Arbitration 689 Jivraj v. Hashwani 690 2010 NAI Rules, Art. 14 690 IBA Rules of Ethics for International Arbitrators, Art. 5(1) 690 2014 IBA Guidelines on Conflicts of Interest in International Arbitration,

Green List 691 XL Insurance Ltd v. Toyota Motor Sales U.S.A. Inc. 691 Notes 694

B. Selection of Arbitrators by National Courts in International Arbitration 702 Judgment of 18 January 1991 702 Astra Footwear Industry v. Harwyn International 704 Partial Decision of 2 April 1992 704 Gatoil International Inc. v. National Iranian Oil Co. 704 XL Insurance Ltd v. Toyota Motor Sales U.S.A. Inc. 705 Notes 705

C. Identity Requirements for Arbitrators in International Arbitration 709 1. Restrictions on Arbitrators' Nationality, Qualifications and Experience 710

Netherlands Code of Civil Procedure, Arts. 1023, 1028 710 Chinese Arbitration Law, Art. 13 710 Rules for the Implementation of the Saudi Arabian Arbitration

Regulation, 1985, §3 711 Saudi Arabian Arbitration Law, 2012, Art. 14 711 Ecuador!an Organic Law of the Judiciary, 1974, Art. 89, 90 711 Uzbek Law on Arbitration Tribunals, Art. 14 711 Jivraj v. Hashwani 711 Judgment of 26 January 1989 712 Notes 712

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2. Requirements for Arbitrato«' Independence and Impartiality Veritas Shipping Ltd v. Anglo-Canadian Cement, Ltd Commonwealth Coatings Corp. v. Continental Casualty Co. Sphere Drake Insurance Ltd v. All Am. Life Insurance Co. Americo Life, Inc. v. Myer ASM Shipping Ltd of India v. TTM1 Ltd of England Judgment of 9 February 1998 ICS Inspection & Control Services Ltd (U.K.) v. Republic of Argentina Notes

D. Procedures for Challenging Arbitrators in International Arbitration Jivraj v. Hashwani Certain Underwriters at Lloyd 's v. Argonaut Insurance Co. Judgment of 9 February 1998 ASM Shipping Ltd of India v. TTMI Ltd of England AAOTForeign Economic Ass 'n (VO) Technostroyexport v. Int 7 Development

& Trade Services, Inc. Notes

CHARTER 9 PROCEDURAL ISSUES IN INTERNATIONAL ARBITRATION

A. Applicable Procedural Rules in International Arbitration Belgian Judicial Code, Arts. 1699, 1700, 1708 Guatemalan Code of Civil and Commercial Procedure, 1963, Arts. 287, 288 Sapphire Int 7 Petroleum Ltd v. National Iranian Oil Co. Interim Award in ICC Case No. 5029 Final Award in ICC Case No. 7626 Card v. Stratton Oakmont, Inc. Corporacion Transnacional de Inversiones, SA de CV v. Stet Int'l, SpA Notes

B. Limited Grounds for Interlocutory Judicial Review of Arbitrators' Procedural Decisions

Stanton v. Paine Webber Jackson & Curtis Inc. Mobil Oil Indonesia Inc. v. Asamera (Indonesia) Ltd Elektrim SA v. Vivendi Universal SA Notes

C. Arbitrators' Exercise of Procedural Authority in International Arbitration UNCITRAL Notes on Organizing Arbitral Proceedings Repräsentative Procedural Order in ICC Arbitration 2010 IBA Rules on the Taking of Evidence in International Arbitration Mediterranean and Middle East Institute of Arbitration Standard Rules of

Evidence, Art. 5 Procedural Order in ICC Case No. 7170 Procedural Order in ICC Case No. 5542 Final Award in ICC Case No. 7626 Certain Underwriters at Lloyd's v. Argonaut Insurance Co. Parker v. United Mexican States (U.S.A. v. Mexico) Notes

D. Evidence-Taking and Disclosure in International Arbitration 1. Authority of International Arbitral Tribunals Over Evidence-Taking and

Disclosure

716 716 717 721 725 725 729 730 732 758 758 759 765 766

766 767

777 777 778 779 780 780 781 782 784 785

797 798 799 800 806 810 810 811 811

811 812 812 814 814 814 815 830

830

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Belgian Judicial Code, Art. 1700 831 Guatemalan Code of Civil and Commercial Procedure, 1963, Arts. 287, 288 831 2010 IBA Rules on the Taking of Evidence in International Arbitration 831 Final Award in ICC Case No. 7626 831 Corporation Transnacional de Inversiones, SA de CV v. Stet Int 'l, SpA 831 Notes 831

2. Discovery Ordered by National Courts in Aid of Arbitration at Request of Tribunal or Party 839

28 United States Code §1782 839 Oceanic Transp. Corp. of Monrovia v. Alcoa Steamship Co. 839 Commercial Solvents Corp. v. La. Liquid Fertilizer Co. 840 Koch Fuel International Inc. v. M/V South Star 842 In re Arbitration in London, England Between Norfolk Southern Corp.

et al. & Ace Bermuda Ltd 844 Notes 846

E. Confidentiality and Transparency in International Arbitration 851 Hassneh Insurance Co. of Israel v. Mew 851 Esso Australia Resources Ltd v. Plowman 856 Biwater Gauff (Tanzania) Ltd v. United Republic ofTanzania 861 Arbitration Agreement Between the Government of Sudan and the Sudan

People's Liberation Movement/Army on Delimiting the Abyei Area 866 Notes 866

CHAPTER10 PROVISIONAL MEASURES IN INTERNATIONAL ARBITRATION 871

A. Arbitrators' Authority to Order Provisional Measures in International Arbitration 871

1. Effect of National Arbitration Legislation on Arbitrators' Authority to Order Provisional Measures 872

Argentine Code of Civil and Commercial Procedure, Art. 753 873 Italian Code of Civil Procedure, Art. 818 873 Swiss Intercantonal Concordat, 1969, Art. 26 873 Notes 873

2. Effect of Institutional Arbitration Rules on Arbitrators' Authority to Order Provisional Measures 877

Charles Construction Co. v. Derderian 878 Certain Underwriters at Lloyd's v. Argonaut Insurance Co. 880 Notes 880

3. Arbitrators' Exercise of Authority to Order Provisional Relief 883 Decision of Geneva Chamber of Commerce of 25 September 1997 884 Interim Award in ICC Case No. 8786 886 Certain Underwriters at Lloyd's v. Argonaut Insurance Co. 888 Notes 888

B. Judicial Enforcement of Provisional Measures Ordered by Arbitrators in International Arbitration 896

Charles Construction Co. v. Derderian 897 Certain Underwriters at Lloyd's v. Argonaut Insurance Co. 897 Sperry International Trade, Inc. v. Government of Israel 897 Notes 900

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C. National Courts' Authority to Order Provisional Measures in Aid of International Arbitration 904

1. Effect of New York Convention on Authority of National Courts to Grant Provisional Measures in Aid of International Arbitration 904

Cooper v. Ateliers de la Motobecane, SA 906 New York Civil Practice Law and Rules, §7502(c) 908 Carolina Power & Light Co. v. Uranex 909 Halki Shipping Corp. v. Sopex Oils Ltd 910 Notes 910

2. Effect of National Arbitration Legislation on Authority of National Courts to Grant Provisional Measures in Aid of International Arbitration 916

Rogers, Burgun, Shahine & Deschler, Inc. v. Dongsan Constr. Co. 916 Borden, Inc. v. Meiji Milk Products Co. 919 Notes 921

D. Appropriate National Court to Grant Pre-Award Provisional Measures in Aid of International Arbitration 925

Channel Tunnel Group Ltd v. Balfour Beatty Constr. Ltd 926 Borden, Inc. v. Meiji Milk Products Co. 930 Notes 930

CHARTER 11 MULTIPARTY ISSUES IN INTERNATIONAL ARBITRATION 933

A. Consolidation, Joinder and Intervention Under National Arbitration Legislation 933

British Columbia International Commercial Arbitration Act, §§27(2), (3) 936 Netherlands Code of Civil Procedure, Art. 1046 936 Massachusetts General Laws Annotated, Chapter 251, §2A 937 California Code of Civil Procedure, §1281.3 937 Hong Kong Arbitration Ordinance, 2013, §99, Schedule 2 §2 938 Belgian Judicial Code, Art. 1709 939 U.K. of Great Britain & Northern Ireland v. Boeing Co. 939 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 943 Notes 943

B. Consolidation, Joinder and Intervention Under Institutional Arbitration Rules 950 Partial Award in ICC Case No. 5625 950 2010 NAI Arbitration Rules, Art. 41 951 2012 Swiss International Arbitration Rules, Art. 4 951 2013 HKIAC Rules, Arts. 27, 28 952 Judgment of 7 January 1992, Societes BKMI et Siemens v. Societe Dutco 954 Notes 955

CHAPTER 12 CHOICE OF SUBSTANTIVE LAW IN INTERNATIONAL ARBITRATION 961

A. Choice of Law Governing Merits of Parties' Dispute in Absence of Agreement on Applicable Law 962

Japanese Arbitration Law, Art. 36 964 2012 Swiss International Arbitration Rules, Art. 33(1) 964 Final Award in ICC Case No. 5460 964 Award in ICC Case No. 4237 965 Award in ICC Case No. 2930 966

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Award in ICC Case No. 4491 967 Preliminary Award in ICC Case No. 4132 967 Notes 969

B. Choice of Law Governing Merits of Parties' Dispute Pursuant to Choice-of-Law Agreement 983

1. Presumptive Validity of Parties' Choice of Law in International Arbitration 983 Rome I Regulation, Arts. 3, 9 984 Restatement (Second) Conflict of Laws, § 187 984 SecondInterim Award in ICC Case No. 4145 985 Preliminary Award in ICC Case No. 5505 985 Ruler of Qatar v. International Marine Oil Co. Ltd 985 Notes 988

2. Public Policy Limitations on Parties' Choice of Law in International Arbitration 992 Final Award in ICC Case No. 6379 993 Final Award in ICC Case No. 5622 994 Preliminary Award in ICC Case No. 4132 999 Final Award in ICC Case No. 5946 999 Notes 999

3. Interpretation and Content of Choice-of-Law Agreements 1005 Rome I Regulation, Arts. 3,9 1005 Restatement (Second) Conflict of Laws, § 187 1005 Preliminary Award in ICC Case No. 5505 1005 Award in ICC Case No. 6618 1006 Compagnie d'Armement Maritime SA v. Compagnie Tunisienne de

Navigation SA 1006 State of Kuwait v. American Independent Oil Co. 1011 Notes 1013

CHAPTER 13 LEGAL REPRESENTATION AND PROFESSIONAL RESPONSIBILITY IN INTERNATIONAL ARBITRATION 1023

A. Right to Select Counsel in International Arbitration 1023 Michigan Compiled Laws, §600.916(1) 1024 Williamson v. John D. Quinn Construction Co. 1024 Lawler, Matusky & Skeller v. Attorney General of Barbados 1025 Judgment of 23 May 1995 1026 Singapore Legal Profession Act, §§32(1), 33(1) 1026 Builders Federal (H.K.) Ltd v. Turner (East Asia) Pte Ltd 1026 Singapore Legal Profession (Amendment) Bill (2004), §35 1028 Second Reading Speech on Singapore Legal Profession (Amendment)

Bill 2004 1029 2014 GAFTA Arbitration Rules, Art. 16(2) 1029 ICS Inspection & Control Servs. Ltd (U.K.) v. Republic of Argentina 1029 Notes 1029

B. Standards and Supervision of Professional Conduct in International Arbitration 1035

District of Columbia Bar Opinion (1979) 1036 van Houtte, Counsel- Witness Relations and Professional Misconduct in

Civil Law Systems 1039 Partial Award in ICC Case No. 8879 1041

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Bidermann Industries Licensing, Inc. v. Avmar NV 1042 ABA Model Rules of Professional Conduct, Rules 5.5(c), 8.5(b) 1043 2013 IBA Guidelines on Party Representation in International Arbitration 1044 Hrvatska Elektroprivreda, DD v. Republic of Slovenia 1044 Notes 1046

PART III INTERNATIONAL ARBITRAL AWARDS

CHAPTER 14 LEGAL FRAMEWORK FOR INTERNATIONAL ARBITRAL AWARDS 1059

A. Definition of "Arbitral Award" 1059 Belgian Judicial Code, Art. 1713 1061 Notes 1062

B. Jurisdictional Requirements of International Arbitral Awards Under International and National Arbitration Regimes 1070

1. "Commercial" and "Defined Legal" Relationships 1072 2. "Foreign," "Nondomestic" and "International" Awards 1072

Bharat Aluminium Co. ("BALCO") v. Kaiser Aluminium Tech. Serv., Inc. 1073 Brier v. Northstar Marine Inc. 1081 Bergesen v. Joseph Muller Corp. 1081 Yusuf AhmedAlghanim & Sons, WLLv. Toys "R" Us, Inc. 1081 Notes 1084

3. Reciprocity Requirements Under International Conventions and National Arbitration Legislation 1093

Fertilizer Corp. of India v. IDI Management, Inc. 1094 National Iranian Oil Co. v. Ashland Oil, Inc. 1095 Notes 1095

C. Limits on Forums for Annulment of International Arbitral Awards 1099 PT Garuda Indonesia v. Birgen Air 1100 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 1100 Union of India v. McDonnell Douglas Corp. 1100 International Standard Electric Corp. v. Bridas SAPIC 1100 National Thermal Power Corp. v. Singer Co. 1102 Bharat Aluminium Co. ("BALCO") v. Kaiser Aluminium Tech. Serv., Inc. 1106 Notes 1106

CHAPTER 15 ANNULMENTAND REVISION OF INTERNATIONAL ARBITRAL AWARDS 1113

A. Presumptive Finality and Preclusive Effects of International Arbitral Awards 1113 German ZPO, § 1055 1114 Japanese Arbitration Law, Art. 45(1) 1114 Certain Underwriters at Lloyd's v. Argonaut Insurance Co. 1114 Fertilizer Corp. of India v. IDI Management, Inc. 1114 Notes 1116

B. Correction, Interpretation and Supplementation of International Arbitral Awards 1125

La Vale Plaza, Inc. v. R.S. Noonan, Inc. 1126 Japanese Arbitration Law, Art. 40(3) 1129

Table of Contents xxvii

Judgment of 12 January 2005 1129 Notes 1131

C. Grounds for Annulment of International Arbitral Awards 1134 Belgian Judicial Code (pre-1999 amendments), Art. 1717(4) 1135 Belgian Judicial Code (pre-2013 amendments), Art. 1717(4) 1135 Belgian Judicial Code (as amended in 2013), Art. 1718 1135 Chinese Arbitration Law, Art. 58 1135 Argentine Code of Civil and Commercial Procedure, Art. 758 1136 First Options of Chicago, Inc. v. Kaplan 1136 BG Group plc v. Republic of Argentina 1136 Judgment ofl7 February 2011, Gov 't of Pakistan, Ministry of Religious

Affairs v. Dallah Real Es täte & Tourism Holding Co. 1136 Laminoirs-Trefileries-Cableries de Lens, SA v. Southwire Co. 1136 Judgment of 21 November 2003 1138 Card v. Stratton Oakmont, Inc. 1139 I/S Stavborg v. National Metal Converters, Inc. 1139 Judgment of30 December 1994 1143 Northcorp Corp. v. Triad International Marketing SA 1146 Desputeaux v. Editions Chouette 1148 Hall Street Associates, LLC v. Mattel, Inc. 1150 Notes 1155

D. Consequences of Annulment of International Arbitral Awards 1174 Chromalloy Aeroservices Inc. v. Arab Republic of Egypt 1174 Termorio SA v. Electranta SP 1177 Notes 1182

CHAPTER 16 RECOGNITION AND ENFORCEMENT OF INTERNATIONAL ARBITRAL AWARDS 1189

A. Presumptive Obligation to Recognize International Arbitral Awards 1189 1. Presumptive Obligations to Recognize International Commercial Arbitral

Awards 1189 2. Presumptive Obligation to Recognize International Arbitral Awards Under

National Arbitration Legislation 1190 3. Proof of F oreign Awards 1191

a. Proof of Award Under New York and Inter-American Conventions 1191 b. Proof of Award Under National Arbitration Legislation 1191

4. Selected Materials on Presumptive Obligation to Recognize International Arbitral Awards 1191

Parsons & Whittemore Overseas Co. v. Societe Generale de 1'Industrie du Papier 1192

Dallah Real Estate & Tourism Holding Co. v. Ministry of Religious Affairs, Government of Pakistan 1193

Judgment of 20 August 1984, Navigation Maritime Bulgare v. PT. Nizwar 1193 Notes 1194

B. Grounds for Refusal to Recognize International Arbitral Awards 1199 1. No Valid Arbitration Agreement or Excess of Authority 1200

First Options of Chicago, Inc. v. Kaplan 1200 China Minmetais Materials Imp. & Exp. Co. v. Chi Mei Corp. 1201 Dallah Real Estate & Tourism Holding Co. v. Ministry of Religious Affairs,

Government of Pakistan 1209

xxviii Table of Contents

Judgment of 19 July 2000 1209 Parsons <£ Whittemore Overseas Co. v. Societe Generale de I'Industrie

du Papier 1211 Notes 1211

2. Denial of Opportunity to Present Party's Case and Irregulär Procedural Conduct of Arbitration 1218 a. Denial of Opportunity to Present Party's Case 1218 b. Irregulär Procedural Conduct of Arbitration 1219

Parsons & Whittemore Overseas Co. v. Societe Generale de l 'Industrie du Papier 1219

Judgment of 3 April 1987 1220 Laminoirs-Treßleries-Cableries de Lens, SA v. Southwire Co. 1221 Judgment of 23 April 2004 1221 Judgment of21 May 1976 1222 Encyclopaedia Universalis SA v. Encyclopaedia Britannica, Inc. 1223 Food Services of America Inc. v. Pan Pacific Specialties Ltd 1227 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 1230 Judgment of 24 February 1994 1230 AAOT Foreign Economic Ass'n (VO) Technostroyexport v. lnt'l

Development & Trade Services, Inc. 1231 Notes 1231

3. Lack of Independence, Bias, Misconduct of Arbitrators and Fraud 1242 Judgment of 21 May 1976 1242 Judgment of 24 February 1994 1242 Commonwealth Coatings Corp. v. Continental Casualty Co. 1243 Fertilizer Corp. of India v. IDI Management, Inc. 1243 Severe Sentences for a Bogus "Arbitration " 1245 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 1245 AAOT Foreign Economic Ass 'n (VO) Technostroyexport v. Int 7

Development & Trade Services, Inc. 1246 Notes 1246

4. Non-Recognition Based on Award Not Being "Binding" 1250 5. Awards Annulled in Arbitral Seat 1250 6. Awards Contrary to Public Policy 1250

Judgment of 14 February 1995 1250 Parsons & Whittemore Overseas Co. v. Societe Generale de l'lndustrie

du Papier 1251 Karaha Bodas Co., LLC v. Perusahaan Pertambangan etc. 1252 Laminoirs-Trefileries-Cableries de Lens, SA v. Southwire Co. 1254 Notes 1254

7. Disputes Not "Capable of Settlement" by Arbitration 1260 Eco Swiss China Time Ltd v. Benetton International NV 1260 Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. 1261 Baxter International, Inc. v. Abbott Laboratories 1261 Notes 1264

Table of Cases 1267 Table of Conventions and Statutes 1287 Table of Rules, Codes and Guidelines 1293 Index 1297