Are there arbitral laws or arbitration institutional rules providing for simplified or expedited procedures for claims under a certain value? Are they often used?
International Arbitration (2nd Edition)
AIAC Fast Track Arbitration Rules provides simplified procedures intended for parties who wish to obtain an award in the fastest way with minimal costs.
The rules require the completion of arbitrations (with a substantive oral hearing) within 160 days by providing for expedited procedures at each stage of the arbitral proceedings and for documents-only arbitration in certain circumstances. Rule 16, AIAC Fast Track Arbitration Rules provides that, subject to the arbitrators’ views, an arbitration will proceed as a documents-only arbitration where:
- In an international arbitration, the aggregate amount of the claim and/or counter claim in dispute is less than or is unlikely to exceed USD75,000.00; or
- In a domestic arbitration, the aggregate amount of the claim and/or counter claim in dispute is less than or is unlikely to exceed RM150,000.00.
Tribunal’s fees and recoverable costs are capped to a fixed scale. Other attractive features also include the lack of interim awards and tighter obligations for disclosure so as to avoid surprises and controlled usage of expert evidence to ensure that the parties and tribunal are focused only on specific issues.
Neither the International Commercial Arbitration Law No 19.971 nor the Rules of International Commercial Arbitration of the Santiago Arbitration and Mediation Center provide for simplified procedures for claims under a certain value.
Nevertheless, Article 21(2) of the Rules of International Commercial Arbitration of CAM Santiago, allows the arbitral tribunal to “direct the procedure in the manner it deems appropriate as to avoid unnecessary delays and expenses and ensure efficient and fair means as to archive a final settlement of the dispute”, always subject to the provisions of the said statue.
As for the Domestic Rules of Arbitration, CAM Santiago plans to introduce in such statue during 2018, a new simplified procedure for claims under certain value (USD $21.000 approximately). As explained in Section 6 above, the new procedure pretends to shorten the time limits of the arbitration and to decrease the arbitrator’s fees for them to adjust the value of the dispute.
The Commercial Arbitration Centre of the Portuguese Chamber of Commerce and Industry enacted the “Fast Track Arbitration Rules”, in 2016, for claims under € 200.000,00 except if the parties have excluded its application in the arbitration agreement or in other subsequent agreement; if both parties have been notified of that intention and oppose it or if the case circumstances are not adequate for its application. The Chairman of the Centre can determine the application of these rules in proceedings which value is over € 200.000,00 if deemed adequate and there is no opposition from the parties.
The ICC Rules provide for simplified or expedited procedures for claims. They are not often used.
There are no mandatory or default provisions under Swiss statutory law providing for an expedited or simplified procedure. In line with the principle of party autonomy, it is up to the parties to design the arbitration proceeding to fit their needs, irrespective of the amount in dispute (art. 182 para 1 PILA and art. 373 para 1 CPC).
For cases administered by the Swiss Chambers' Arbitration institution, art. 42 Swiss Rules provides for an expedited procedure. The provisions on the expedited procedure apply to every proceeding with an amount in dispute not exceeding CHF 1 million or if the parties so agree. In such expedited proceeding, there is, as a rule, only one exchange of submissions and only one hearing. Furthermore, subject to certain exceptions, the arbitral tribunal must render the award within six months from the date when the case file was first transmitted to the arbitral tribunal. According to 2015 statistics 43 % of all disputes submitted to the Swiss Chambers' Arbitration Institution were conducted under the expedited procedure.
Also WIPO and CAS provide for expedited procedures.
The ZPO does not provide for expedited arbitration proceedings.
The DIS Arbitration Rules were supplemented by rules for expedited proceedings in 2008. Irrespective of the amount in dispute, the Supplementary Rules for Expedited Proceedings (SREP) only apply if the parties have agreed to their application prior to the filing of a statement of claim (section 1.1 SREP). In 2015 and 2016, only 5 out of 300 DIS cases were administered pursuant to the SREP.
However, a new version of the DIS Arbitration Rules will be published within the next months.
The ICAC New Arbitration Rules introduce the possibility of the expedited arbitration proceedings, under which the award may be rendered as soon as within two-three months. For instance, under the general rule the respondent shall submit the statement of defense within 10 days upon the date of the statement of claim receipt and the arbitral tribunal shall render the Arbitral Award within 20 days from the date of the case completion. Under the default rule an arbitral tribunal is composed of a sole arbitrator. There are no limits as to the amount of claim and the core issue is the consent of the parties. The parties’ agreement on expedited arbitral proceedings is admissible no later than filing a response to the statement of claim. Notably, the ICAC President before constitution of the arbitral tribunal or the arbitral tribunal may find the conduct of expedited proceedings inappropriate in view of the complexity and other specific circumstances of the case.
In Panama, there are no arbitral laws or arbitration institutional rules providing for simplified or expedited procedures for claims under a certain value.
There are no provisions within the UAE CPC related to expedited procedures for claims below a certain value.
No such services are presently offered by the DIAC or the ADCCAC.
The draft new DIAC rules propose the provision of expedited proceedings for those arbitrations subject to its new rules and whose value is below AED 2,000,000.
The arbitration rules of the ICC, once the institution is operational in the UAE, will provide for expedited procedures for arbitrations which it administers where the:
ICC Rules 2017 are applicable; and
claim(s) are for less than USD 2,000,000.
The SCC provides rules for expedited arbitration, a fast-track procedure for smaller and medium sized claims in less complex cases. There are no value based limitations for the expedited rules to be used.
Under the expedited rules, a sole arbitrator will decide the dispute. Certain restrictions with respect to the number of written submission and the time available therefor also exist. Moreover, a hearing will only be held on request of a party and if the arbitrator does find a hearing appropriate. A final award is to be rendered within three months from referral of the case to the arbitrator.
Statistics from the SCC illustrates that of the 2016 caseload 28% were administered under the SCC Rules for Expedited Arbitrations, compared to 62% under the SCC Arbitration Rules.
In addition, it should be mentioned that the SCC Rules (2017) include a novelty in the possibility to render awards by way of summary procedure in exceptional cases.
The SAA does not provide for fast track procedures for claims under a certain value. Nevertheless, certain arbitral institutions rules do provide for this type of procedures. As an example, we may refer to the Rules of the Spanish Court of Arbitration, the Rules of the Madrid Court of Arbitration and the Rules of the Catalan Arbitration Association.
Section 35 of the Rules of the Spanish Court of Arbitration establishes that the summary procedure shall apply to all processes in which the total cost of the procedure (including the counterclaim) is less than 300,000 euros.
Additionally, Section 51 of the Madrid Court of Arbitration’s Regulation determines that the fast track procedure shall be applied, by decision of the Court, in all cases in which the total amount of the proceedings (including the counterclaim, if applicable) does not exceed 100,000 euros, provided there are no circumstances which, in the judgment of the Court, make it advisable to use the ordinary procedure. The decision to conduct an arbitration case using the fast track procedure shall be final.
On the 28th January 2014, The Governing Board of the Catalan Arbitration Association (Associació Catalana per a l’Arbitratge) unanimously approved the new Rules of Abbreviated Procedure. This procedure shall be used to process claims worth less than 30,000 euros, unless the parties expressly agree otherwise. Similarly, at the request of both parties or ex oficio by the institution and provided there is no opposition from any of them, claims for higher amounts may be processed by this method.
Rules of the Permanent Arbitration at the Serbian Chamber of Commerce and Industry of Serbia provide for expedited procedure. These rules apply in cases where the amount of dispute does not exceed EUR 50,000, as well as in cases where the amount in dispute is above EUR 50,000, if the parties agreed on application of expedited procedure.
The Arbitration Rules of the PDRCI provides expedited procedure for claims which do not exceed Twenty-Five Million Pesos (Php25,000,000.00 or approximately US$500,000.00).
With the new amendment act, parties may move an application under Section 29B of the Arbitration & Conciliation Act, 1996 for fast track procedure to adjudicate disputes. The award is to be made within 6 months from the date of arbitral tribunal. However, there has been no capping done to the amounts of the claims.
There are no rules in Ecuador providing for simplified or expedited procedures for claims below a certain value. As mentioned in our answer to question number 4, Legal Framework, we have been informed that some arbitration centers are working on simplifying or expediting procedures for claims for a certain value, by shortening the term for the issuance of the award or by providing for the appointment of a sole arbitrator for certain arbitral proceedings.
There are no such rules.
So-called small-claims arbitration exists, but it is rarely used. Parties taking part in arbitration will often hesitate to embark upon a procedure that does not ensure full and proper assessment of the case. In small claim matters, the parties may agree upon a sole arbitrator in order to save costs.
The newest version of Zagreb Rules provide special rules for expedited procedures. They are applied for disputes without an international element where the value of the claim does not exceed EUR 100,000, unless the parties agree otherwise in their arbitration agreement. They can be applied for other disputes as well if the parties agree to use the expedited procedure. These have been enacted recently and we are not aware that they have been used often.
The CEDRAC Arbitration Rules provide for an expedited procedure if the parties so agree or where the aggregate amount of the claim and the counterclaim do not exceed EUR 10,000,000. Such expedited procedure is achieved via, inter alia, having only one hearing date for the examination of witness and oral arguments, imposing a time limit for the issue of the award and issuing the award with the reasons in summary form.
Similarly the CIArb Rules provide for an expedited procedure along similar lines.
French law does not address simplified or expedited procedures, but, as for emergency arbitrator relief, the parties may resort to arbitral institutions that provide for such procedures. In late 2016, the ICC International Court of Arbitration introduced an expedited procedure within its Rules (see Article 30 and Appendix VI of the ICC Rules).
The expedited procedure provisions apply if the arbitration agreement was concluded after 1 March 2017, the amount in dispute does not exceed US$2,000,000, and the parties have not opted out of the expedited procedure rules. They also apply, irrespective of the date of conclusion of the arbitration agreement or the amount in dispute, if the parties have agreed to opt in.
On 6 September 2017, the ICC reported that seven cases were being managed under expedited provisions, all by express party agreement.
The Centre for Mediation and Arbitration of Paris also provides for a fast-track procedure that may apply regardless of the amount of the claims.
There are no laws providing for simplified or expedited arbitration procedures. We are not aware of any Italian arbitration institutional offering such set of rules.
There are such rules. The Nigerian arbitration community has acknowledged the need to simplify arbitral laws under claims of certain values. For instance, the Chartered Institute of Arbitration, (UK) Nigeria Branch (the “CIA”) recently launched on June 30, 2017 the Micro, Small and Medium Enterprises (the “MSME”) Arbitration Scheme. The MSME scheme is for small claims ranging from N250,000.00 to N5,000,000.00. The scheme is not, however, restricted to the stated monetary range, so long as the disputants apply to the Chairman of the CIA to have their disputes resolved through the scheme. The cost effectiveness of the scheme is ensured by a set of rules designed to guide proceedings through simple, quick and affordable paths to resolution. The scheme provides simple cost effective and timely resolution of disputes, and an outcome within ninety (90) days of the appointment of the arbitrator. The outcome is a final, legally binding and enforceable award. Under the MSME scheme, the arbitrators’ fees have been capped to ensure that the expense does not prevent MSMEs from accessing arbitration.
The mentioned expedite procedure under the Vienna Rules can not only be applied to claims of limited value; however, its practical relevance in generally limited.
The AAA/ICDR, JAMS, and CPR all provide for expedited arbitration under certain circumstances. These procedures, which place limits on discovery, simplify hearing procedures, encourage the use of a sole arbitrator, and set a deadline for the arbitrator(s) to render an award, are used often. The parties can modify the expedited procedures by agreement.
In 2017, the ICC introduced a similar set of expedited procedures. Where it applies, however, the ICC expedited rule requiring a sole arbitrator is mandatory and overrides the agreement of the parties to have three arbitrators.
No. With regard to arbitral proceedings, the Israeli law does not provide for simplified or expedited procedures for claims under a certain value. On the other hand, the Israeli law recognizes simplified or expedited procedures for claims under a certain value with regard of claims filed with the courts. In addition, various arbitration institutes in Israel offer an expedited procedure with respect of, for instance, claims under NIS 50,000.
The London Maritime Arbitrators Association (LMAA) Terms contain a Small Claims Procedure, designed for disputes under a value of US$50,000 (however, parties are free to agree a higher limit). A sole arbitrator acts for a fixed fee, and generally assesses the case based on written submissions and documents.
There are no arbitral laws or rules of the arbitration institutions providing for simplified procedures for claims under a certain value, such specific provisions existing only before local courts. A set of rules for an emergency procedure was launched by CICA in May 2017, for public consultations, but they were not adopted yet.
Unless otherwise agreed by the parties, the ISTAC Fast Track Arbitration Rules (“Fast Track Arbitration Rules”) are applied to the disputes where, as at the date of commencement of the arbitration, the total sum of the claims, and any counterclaims, do not exceed TRY 300.000. The parties may also agree that the Fast Track Arbitration Rules are applied where the amount in dispute exceeds this sum. Unless otherwise agreed by the parties, in cases where both the claims and any counterclaims exceed the sum of TRY 300.000 in the course of the arbitration proceedings, the Fast Track Arbitration Rules are still applied. Where the sum of the claims does not exceed TRY 300.000 upon a request of one of the parties, the Board, according to the facts and circumstances, may decide not to apply the Fast Track Arbitration Rules.