Expedited Arbitration Rules
Expedited arbitration is a streamlined and simplified procedure with a shortened time frame, which makes it possible for the parties to reach a final resolution of the dispute in a cost and time-effective manner. This is evident as: i) there is a limit to the number of submissions that the parties can submit with shorter deadlines, ii) the dispute is normally adjudicated by a sole arbitrator to save costs (yet the parties may agree on a 3 member tribunal); and iii) hearings are only held if requested by one of the parties.
The CRCICA Expedited Arbitration Rules balance on the one hand, the efficiency of the arbitral proceedings and on the other, the rights of the parties to fair treatment and due process. It is worth mentioning that the CRCICA Expedited Arbitration Rules is based on the UNCITRAL Expedited Arbitration Rules (2021) with some minor modifications to reflect the institutional practice of the Centre.
What are the requirements to resolve a dispute using expedited arbitration?
The CRCICA Expedited Arbitration Rules provide a set of rules which parties may agree for expedited arbitration.
Article 1 paragraph 5 of the CRCICA Arbitration Rules 2024 incorporates the Expedited Arbitration Rules, which are presented as Annex (3) to the CRCICA Arbitration Rules 2024. The phrase “where the parties so agree” in that paragraph emphasizes the need for the parties’ express consent (opt in only) for the Expedited Arbitration Rules to apply to the arbitration.
In order to be eligible for expedited arbitration, the parties must have entered into an agreement that the dispute will be resolved in accordance with the CRCICA Expedited Arbitration Rules. In most cases, this is regulated in a specific arbitration clause in the general agreement between the parties, which can be as follows:
CRCICA Model Arbitration Clause under CRCICA Expedited Arbitration Rules
Any dispute, controversy or claim arising out of or relating to this contract, including but not limited to interpretation, execution, termination or invalidity thereof, shall be settled by arbitration in accordance with the CRCICA Expedited Arbitration Rules.
Note: Parties should consider adding:
a.The place of arbitration shall be [city and country]; and
b.The language to be used in the arbitral proceedings shall be …
Note: Parties may consider adding:
–The governing law of the arbitration agreement; and
–The governing law of the contract [is/shall be] the substantive law of …”
Less Arbitrator fees than that of normal CRCICA Arbitration Rules proceedings
At the end of Annex 3 to the CRCICA Arbitration Rules 2024, a table of “Arbitrator’s Fees (Expedited Arbitration)” is introduced. The Arbitrator’s Fees in this table is 20% less than the “Sole Arbitrator’s Fees” found in Table 2, Annex 1 to the Rules. The reason for introducing less Arbitrator’s Fees (Expedited Arbitration) was made in order to attract parties to utilize the CRCICA Expedited Arbitration Rules with less fees than the normal proceedings.
Opting out of the Expedited Arbitration Rules
It is worth mentioning that, in accordance with Article 2 of Annex 3 to the CRCICA Arbitration Rules 2024, at any time during the proceedings, the parties may agree that the Expedited Rules shall no longer apply to the arbitration. As a result, the arbitral tribunal shall remain in place and conduct the arbitration in accordance with the CRCICA Arbitration Rules.
How to initiate expedited arbitration proceedings with CRCICA?
Arbitration proceedings are initiated by the claimant submitting a Notice of Arbitration to the Centre. The Notice of arbitration shall include claimant’s full statement of claim as well as a proposal for the appointment of an arbitrator. At the same time, the claimant must also pay a non-refundable registration fee in accordance with Article 43 of the CRCICA Arbitration Rules.
The Notice of Arbitration shall include all the requirements as mentioned in accordance with Article 3 paragraph 3 of the CRCICA Arbitration Rules.
Annex 3 Expedited Arbitration Rules
Article 1 Scope of application
Article 2 Opting out of Expedited Rules
Article 3 Conduct of the parties and the arbitral tribunal
Article 4 Notice of arbitration and statement of claim
Article 5 Response to the notice of arbitration and statement of defence
Article 6 Number of arbitrators
Article 7 Appointment of a sole arbitrator
Article 8 Challenge, removal and replacement of an arbitrator
Annex 3 Expedited Arbitration Rules
Scope of application
1.Where parties have agreed that disputes between them in respect of a defined legal relationship, whether contractual or not, shall be referred to arbitration under the CRCICA Expedited Arbitration Rules (“Expedited Rules”), then such disputes shall be settled in accordance with the Expedited Rules.
2.Insofar as this Annex 3 does not provide otherwise, the CRCICA Arbitration Rules shall apply to an arbitration under the Expedited Rules.
Opting out of Expedited Rules
1.At any time during the proceedings, the parties may agree that the Expedited Rules shall no longer apply to the arbitration.
2.When the Expedited Rules no longer apply to the arbitration pursuant to paragraph 1 of this article, the arbitral tribunal shall remain in place and conduct the arbitration in accordance with the CRCICA Arbitration Rules.
Conduct of the parties and the arbitral tribunal
1.The parties and the arbitral tribunal shall act expeditiously and in good faith in the proceedings taking into account the time frames set forth in the Expedited Rules.
2.The arbitral tribunal may utilize any technological means as it considers appropriate to conduct the proceedings.
Notice of arbitration and statement of claim
1.A notice of arbitration shall include claimant’s full statement of claim as well as a proposal for the appointment of an arbitrator.
2.When the claimant files its notice of arbitration with the Centre, including its full statement of claim, the Centre shall expeditiously communicate it to the respondent, once the Centre has collected the registration fee required by article 43 of the CRCICA Arbitration Rules.
3.The Centre shall communicate the notice of arbitration, including the full statement of claim, to any arbitrator once appointed.
Response to the notice of arbitration and statement of defence
1.Within 30 days from the receipt of claimant’s notice of arbitration (including its full statement of claim), the respondent shall file a response to the notice of arbitration with the Centre, which shall include its full statement of defence.
2.When the respondent files its response to the notice of arbitration, including its full statement of defence, the Centre shall expeditiously communicate it to the claimant.
3.The Centre shall communicate the response to the notice of arbitration, including the full statement of defence, to any arbitrator once appointed.
Number of arbitrators
1.Unless otherwise agreed by the parties, there shall be one arbitrator.
2.If the parties have agreed that three arbitrators are to be appointed, articles 10 and 11 of the CRCICA Arbitration Rules shall apply. However, each of the 30 days deadlines provided for under articles 10 and 11 of the CRCICA Arbitration Rules shall be abridged to 15 days.
Appointment of a sole arbitrator
1.A sole arbitrator shall be appointed jointly by the parties.
2.If the parties have not reached agreement on the appointment of a sole arbitrator 15 days after a proposal has been received by all other parties, a sole arbitrator shall be directly and expeditiously appointed by the Centre.
Challenge, removal and replacement of an arbitrator
1.A party that intends to challenge an arbitrator shall file with the Centre a written notice of its challenge within 7 days after it has been notified of the appointment of the challenged arbitrator, or within 7 days after the circumstances justifying the challenge became known to that party. The notice of challenge shall state the reasons for the challenge.
2.The Centre shall communicate the notice of challenge to all other parties, and to the challenged arbitrator and the other arbitrators (if any).
3.If, within 7 days from the date of communicating the notice of challenge, all parties do not agree to remove the challenged arbitrator or the latter does not withdraw, the party making the challenge may elect to pursue it. In that case, the challenge shall be decided by an impartial and independent member to be selected by the Centre from among the members of the Advisory Committee(1), after the Centre has afforded an opportunity for the challenged arbitrator, the other party or parties and the other arbitrators (if any) to provide comments in writing within a suitable period of time.
4.In the event that an arbitrator fails to act or in the event of de jure or de facto impossibility of performing his or her functions in accordance with the CRCICA Arbitration Rules, or in the event that he or she deliberately delays the commencement or the continuation of the arbitral proceedings, or if the arbitrator does not fulfil the legal or contractual requirements, the said arbitrator may be removed, at the request of a party. In that case, the removal shall be decided by an impartial and independent member to be selected by the Centre from among the members of the Advisory Committee(2), after the Centre has afforded an opportunity for the said arbitrator, the other party or parties and the other arbitrators (if any) to provide comments in writing within a suitable period of time.
5.Where an arbitrator has to be replaced during the course of the arbitral proceedings, a substitute arbitrator shall be directly appointed by the Centre within 7 days from the date of the relevant decision.
Hearings
The arbitral tribunal may, after inviting the parties to express their views and in the absence of a request to hold hearings submitted at an appropriate stage of the proceedings, decide that hearings shall not be held.
Evidence
1.The arbitral tribunal may decide which documents, exhibits or other evidence the parties should produce. The arbitral tribunal may reject any request, unless made by all parties, to establish a procedure whereby each party can request another party to produce documents.
2.Unless otherwise directed by the arbitral tribunal, statements by witnesses, including expert witnesses, shall be presented in writing and signed by them.
3.The arbitral tribunal may decide which witnesses, including expert witnesses, shall testify to the arbitral tribunal if hearings are held.
Award
1.The award shall be made within 6 months from the date of the constitution of the arbitral tribunal unless otherwise agreed by the parties.
2.The Centre may extend the period of time established in accordance with paragraph 1 of this article upon a reasoned request from the arbitral tribunal or on the Centre’s own initiative if it decides it is necessary to do so.
Costs of Expedited Arbitration
Section V of the CRCICA Arbitration Rules shall apply, except for the Schedule of Arbitrator’s Fees provided within this Annex 3.
Arbitrator’s Fees (Expedited Arbitration)
|
Sum in Dispute in US Dollars |
Fees of the Arbitrator in US Dollars |
|
|
Up to 25,000 |
840 |
|
|
From 25,001 to 50,000 |
840 + 1.4% of the amount above 25,000 |
|
|
From 50,001 to 100,000 |
1,190 + 1.26% of the amount above 50,000 |
|
|
From 100,001 to 200,000 |
1,820 + 1.12% of the amount above 100,000 |
|
|
From 200,001 to 500,000 |
2,940 + 1.05% of the amount above 200,000 |
|
|
|
Minimum Fees |
Maximum Fees |
|
From 500,001 to 1,000,000 |
6,090 + 0.56% of the amount above 500,000 |
27,405 + 2.52% of the amount above 500,000 |
|
From 1,000,001 to 2,000,000 |
8,890 + 0.42% of the amount above 1,000,000 |
40,005 + 1.89% of the amount above 1,000,000 |
|
From 2,000,001 to 5,000,000 |
13,090 + 0.322% of the amount above 2,000,000 |
58,905 + 1.449% of the amount above 2,000,000 |
|
From 5,000,001 to 10,000,000 |
22,750 + 0.084% of the amount above 5,000,000 |
102,375 + 0.378% of the amount above 5,000,000 |
|
From 10,000,001 to 30,000,000 |
26,950 + 0.042% of the amount above 10,000,000 |
121,275 + 0.189% of the amount above 10,000,000 |
|
From 30,000,001 to 50,000,000 |
35,350 + 0.0392% of the amount above 30,000,000 |
159,075 + 0.1764% of the amount above 30,000,000 |
|
From 50,000,001 to 80,000,000 |
43,190 + 0.0228% of the amount above 50,000,000 |
194,355 + 0.126% of the amount above 50,000,000 |
|
From 80,000,001 to 100,000,000 |
51,590 + 0.0196% of the amount above 80,000,000 |
232,155 + 0.0882% of the amount above 80,000,000 |
|
Over 100,000,000 |
55,510 + 0.007% of the amount above 100,000,000 |
249,795 + 0.0315% of the amount above 100,000,000 |
