New ICDR Rules of Arbitration (2014)
The New ICDR Rules of Arbitration have been released and may be downloaded below.
The goal of the new ICDR Rules of Arbitration is to improve upon the efficiency of arbitration and mediation proceedings, as well as to codify existing ICDR practices.
The changes to the new ICDR Rules of Arbitration are effective as of 1 June 2014, and they represent the first updates of the ICDR arbitration rules for 18 years.
For small claims under USD 250,000, the new ICDR Rules of Arbitration now provide for both mediation and accelerated procedures (expedited procedures) as possibilities, with only one arbitrator rather than a three-member arbitral tribunal for international arbitrations.
To improve efficiency, the new ICDR Rules of Arbitration also explicitly eliminate many discovery procedures used especially in U.S. litigation. The new ICDR Rules of Arbitration in particular provide that requests, interrogatories and depositions are generally inappropriate to be used to seek information. It is also explicit that the arbitrators are to ensure efficient discovery.
The new ICDR Rules of Arbitration are the first leading arbitration rules to implement rules that explicitly limit discovery in international arbitration, which is less necessary in Europe as these procedures are less frequently abused.
As with ICC arbitration, the new ICDR Rules of Arbitration now provide that potential arbitrators must sign a Notice of Appointment, confirming that they are independent and impartial with respect to the Parties.
Arbitral awards under the new ICDR Rules of Arbitration must now be issued within 60 days of the close of a hearing. The ICC Rules of Arbitration, by contrast, provide for 6 months between the signing of the Terms of Reference and the rendering of the award.
The revised arbitration rules are intended to address the perception that arbitration has become as inefficient as U.S. litigation, and frequently just as expensive. If the new ICDR Rules of Arbitration do increase the efficiency of ICDR international arbitration by limiting discovery, it is likely that similar rules will be adopted by other arbitral institutions.
For high-quality / cost-effective legal representation, with lawyers who do their utmost to ensure both efficient and successful proceedings, the IAA Network’s lawyers are always worth considering as counsel. They provide legal representation for all ICDR arbitrations.