Arbitration in 49 jurisdictions worldwide 2014...Esin Attorney Partnership Fangda Partners Fangda...

Arbitrationin 49 jurisdictions worldwide

Contributing editors: Gerhard Wegen and Stephan Wilske2014

Published by Getting the Deal Through

in association with:Aarna Law

Anderson Mori & TomotsuneASAR – Al Ruwayeh & Partners

Association for International ArbitrationBaker & McKenzie Habib Al Mulla

Bán, S Szabó & PartnersBarbosa, Müssnich & Aragão

Barger Prekop sroBilliet & Co

Braddell Brothers LLPCairo Regional Centre for International Commercial Arbitration

Chinese European Arbitration Centre Chinese European Legal Association

Crowell & Moring LLPDorothy Ufot & Co

Dzungsrt & Associates LLCEsin Attorney Partnership

Fangda PartnersFangda Partners (in association with Peter Yuen & Associates)

Gan PartnershipGinestié Magellan Paley-Vincent in association with Ahdab Law Firm

Gleiss LutzHeussen Rechtsanwaltsgesellschaft mbH

Hoet Pelaez Castillo & DuqueHughes Hubbard & Reed LLP

Johnson Winter & SlatteryKim & Chang

Kimathi & Partners, Corporate AttorneysKosheri, Rashed & Riad Law Firm

Łaszczuk & PartnersLawFed BRSA

Law Offices BelohlávekLilla, Huck, Otranto, Camargo Advogados

Mamic Peric Reberski RimacMcClure Naismith LLP

Meyer Fabre AvocatsMiranda Correia Amendoeira & Associados

Mkono & Co AdvocatesMotieka & Audzevicius

Niedermann RechtsanwälteNorton Rose Fulbright (Middle East) LLP

Oblin MelicharPérez Bustamante & Ponce

Pestalozzi Attorneys at Law LtdPosse Herrera Ruiz

Roosdiono & PartnersSandart & Partners

Schellenberg WittmerSherby & Co, AdvsStoica & Asociat

´ii

Stockholm Arbitration & Litigation Center (SALC) Advokatbyrå KBTilleke & Gibbins

Vasil Kisil & PartnersVon Wobeser y Sierra SC

www.gettingthedealthrough.com 1

contents

Arbitration 2014

contributing editors:Gerhard Wegen and stephan WilskeGleiss Lutz

Getting the Deal Through is delighted to publish the ninth edition of Arbitration, a volume in our series of annual reports, which provide international analysis in key areas of law and policy for corporate counsel, cross-border legal practitioners and business people.

Following the format adopted throughout the series, the same key questions are answered by leading practitioners in each of the 49 jurisdictions featured. New jurisdictions this year include Equatorial Guinea, Mexico, Nigeria and Scotland.

Every effort has been made to ensure that matters of concern to readers are covered. However, specific legal advice should always be sought from experienced local advisers. Getting the Deal Through publications are updated annually in print. Please ensure you are referring to the latest print edition or to the online version at www.gettingthedealthrough.com.

Getting the Deal Through gratefully acknowledges the efforts of all the contributors to this volume, who were chosen for their recognised expertise. We would also like to extend special thanks to contributing editors Gerhard Wegen and Stephan Wilske of Gleiss Lutz for their continued assistance with this volume.

Getting the Deal throughLondonJanuary 2014

PublisherGideon [email protected]

subscriptionsRachel [email protected]

Business development managers George [email protected]

Alan [email protected]

Dan [email protected]

Published by Law Business Research Ltd87 Lancaster Road London, W11 1QQ, UKTel: +44 20 7908 1188Fax: +44 20 7229 6910© Law Business Research Ltd 2014No photocopying: copyright licences do not apply.First published 2006Ninth editionISSN 1750-9947

The information provided in this publication is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer–client relationship. The publishers and authors accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of January 2014, be advised that this is a developing area.

Printed and distributed by Encompass Print SolutionsTel: 0844 2480 112

Introduction 4

Gerhard Wegen and stephan Wilske Gleiss Lutz

CAM-CCBC 10

André de Albuquerque cavalcanti Abbud and Gustavo santos KuleszaBarbosa, Müssnich & Aragão

CEAC 16

eckart Brödermann and christine HeegChinese European Arbitration Centre

thomas Weimann Chinese European Legal Association

CIETAC 21

Peter Yuen, Helen shi and Benjamin Miao Fangda Partners

CMA 25

André de Albuquerque cavalcanti Abbud and Gustavo santos Kulesza Barbosa, Müssnich & Aragão

CRCICA 30

Mohamed Abdel Raouf Cairo Regional Centre for International Commercial Arbitration

DIAC 36

Gordon Blanke and soraya corm-Bakhos Baker & McKenzie Habib Al Mulla

DIS 39

Renate Dendorfer-Ditges Heussen Rechtsanwaltsgesellschaft mbH

HKIAC 44

Peter Yuen and Doris Yeung Fangda Partners (in association with Peter Yuen & Associates)

ICC 48

José Rosell and María Beatriz Burghetto Hughes Hubbard & Reed LLP

ICSID 54

nicolas Herzog and niccolò Gozzi Niedermann Rechtsanwälte

The Polish Chamber of Commerce 60

Justyna szpara and Maciej Łaszczuk Łaszczuk & Partners

SCC 63

Dan engström & cornel Marian Stockholm Arbitration & Litigation Center (SALC) Advokatbyrå KB

The Swiss Chambers’ Arbitration Institution 67

Philippe Bärtsch, christopher Boog and Benjamin Moss Schellenberg Wittmer

Angola 72

Agostinho Pereira de Miranda, cláudia Leonardo and Jayr Fernandes Miranda Correia Amendoeira & Associados

Australia 79

tony Johnson and Henry Winter Johnson Winter & Slattery

Austria 87

Klaus oblin Oblin Melichar

Bahrain 94

Adam Vause Norton Rose Fulbright (Middle East) LLP

Belgium 102

Johan Billiet Billiet & Co

tatiana Proshkina Association for International Arbitration

Brazil 111

Hermes Marcelo Huck, Rogério carmona Bianco and Fábio Peixinho Gomes corrêa Lilla, Huck, Otranto, Camargo Advogados

contents

2 Getting the Deal through – Arbitration 2014

China 118

Peter Yuen, Helen shi and Benjamin Miao Fangda Partners

Colombia 127

carolina Posada Isaacs, María Alejandra Arboleda González and Diego Romero cruz Posse Herrera Ruiz

Croatia 134

natalija Peric and Frano BelohradskyMamic Peric Reberski Rimac

Czech Republic 141

Alexander J BelohlávekLaw Offices Belohlávek

Ecuador 149

Rodrigo Jijón Letort and Juan Manuel MarchánPérez Bustamante & Ponce

Egypt 158

tarek F Riad Kosheri, Rashed & Riad Law Firm

England and Wales 164

Jane Wessel, claire stockford and Meriam n Alrashid Crowell & Moring LLP

Equatorial Guinea 175

Agostinho Pereira de Miranda and cláudia Leonardo Miranda Correia Amendoeira & Associados

France 180

nathalie Meyer Fabre Meyer Fabre Avocats

Germany 189

stephan Wilske and claudia Krapfl Gleiss Lutz

Ghana 196

Kimathi Kuenyehia sr and Kafui Baeta Kimathi & Partners, Corporate Attorneys

Hong Kong 204

Peter Yuen and Doris Yeung Fangda Partners (in association with Peter Yuen & Associates)

Hungary 214

chrysta Bán Bán, S Szabó & Partners

India 222

Mysore Prasanna, shreyas Jayasimha, Rajashree Rastogi and s Bhushan Aarna Law

Indonesia 233

Anderonikus A s Janis Roosdiono & Partners

Israel 241

eric s sherby and tali Rosen Sherby & Co, Advs

Italy 250

Mauro Rubino-sammartano LawFed BRSA

Japan 258

shinji Kusakabe Anderson Mori & Tomotsune

JordanGinestié Magellan Paley-Vincent in association with Ahdab Law Firm see www.gettingthedealthrough.com

Korea 265

Bc Yoon, Richard Menard and Liz Kyo-Hwa chung Kim & Chang

Kuwait 274

Ahmed Barakat and Ibrahim sattout ASAR – Al Ruwayeh & Partners

LibyaGinestié Magellan Paley-Vincent in association with Ahdab Law Firm see www.gettingthedealthrough.com

Lithuania 282

Ramunas Audzevicius and Rimantas Daujotas Motieka & Audzevicius

Malaysia 289

Foo Joon Liang Gan Partnership

Mexico 299

claus von Wobeser and Montserrat ManzanoVon Wobeser y Sierra SC

Morocco Ginestié Magellan Paley-Vincent in association with Ahdab Law Firm see www.gettingthedealthrough.com

Mozambique 306

Agostinho Pereira de Miranda, Filipa Russo de sá and catarina carvalho cunhaMiranda Correia Amendoeira & Associados

Nigeria 313

Dorothy Udeme Ufot sAnDorothy Ufot & Co

Poland 323

Justyna szpara and Andrzej MaciejewskiŁaszczuk & Partners

Portugal 330

Agostinho Pereira de Miranda, cláudia Leonardo and catarina carvalho cunhaMiranda Correia Amendoeira & Associados

Qatar 337

Jalal el Ahdab and Myriam eid Ginestié Magellan Paley-Vincent in association with Ahdab Law Firm

Romania 346

cristiana-Irinel stoica, Daniel Aragea and Andrei Buga Stoica & Asociat

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Saudi Arabia 353

Jalal el Ahdab and Myriam eidGinestié Magellan Paley-Vincent in association with Ahdab Law Firm

Scotland 363

Brandon Malone McClure Naismith LLP

Singapore 372

edmund Jerome Kronenburg and tan Kok Peng Braddell Brothers LLP


contents

Slovakia 382

Roman Prekop, Monika simorova and Peter Petho Barger Prekop sro

Sweden 391

eric M Runesson and simon Arvmyren Sandart & Partners

Switzerland 398

thomas Rohner and nadja Kubat erkPestalozzi Attorneys at Law Ltd

Tanzania 406

Wilbert Kapinga, ofotsu A tetteh-Kujorjie and Kamanga Kapinga Mkono & Co Advocates

Thailand 413

Kornkieat chunhakasikarn and John King Tilleke & Gibbins

Turkey 421

Ismail G esin, Dogan Gultutan and Ali Yesilirmak Esin Attorney Partnership

Ukraine 429

oleksiy Filatov and Pavlo Byelousov Vasil Kisil & Partners

United Arab Emirates 439

Gordon Blanke and soraya corm-Bakhos Baker & McKenzie Habib Al Mulla

United States 448

Birgit Kurtz, Arlen Pyenson and Amal Bouhabib Crowell & Moring LLP

Venezuela 455

José Gregorio torrealba Hoet Pelaez Castillo & Duque

Vietnam 463

nguyen Manh Dzung, Le Quang Hung and nguyen ngoc Minh Dzungsrt & Associates LLC

Bahrain norton rose Fulbright (Middle East) LLP

94 Getting the Deal Through – Arbitration 2014

BahrainAdam Vause

Norton Rose Fulbright (Middle East) LLP

Laws and institutions

1 Multilateral conventions relating to arbitrationIs your country a contracting state to the New York Convention on

the Recognition and Enforcement of Foreign Arbitral Awards? Since

when has the Convention been in force? Were any declarations or

notifications made under articles I, X and XI of the Convention? What

other multilateral conventions relating to international commercial and

investment arbitration is your country a party to?

Bahrain is a contracting state to the New York Convention. The Convention came into force in Bahrain on 5 July 1988 with the fol-lowing reservations:• BahrainwillapplytheConventiononlywithregardtorecogni-tionandenforcementofawardsmadeintheterritoryofanothercontractingstate;and

• BahrainwillapplytheConventiononlytodifferencesarisingoutoflegalrelationships,whethercontractualornot,thatareconsideredcommercialunderBahrainilaw.

OtherrelevantmultilateralconventionsthatBahrainisapartytoinclude:• theGCCConventionfortheExecutionofJudgments,Delega-tionsandJudicialNotifications;

• theRiyadhConventiononJudicialCooperationbetweenStatesoftheArabLeague;and

• theWashingtonConventionontheSettlementof Investment Disputes between States andNationals ofOther States (theICSIDConvention).

2 Bilateral investment treatiesDo bilateral investment treaties exist with other countries?

BahrainhassignedbilateralinvestmenttreatieswithAlgeria,Bela-rus, Belgium and Luxembourg, Brunei, Bulgaria, China, Czech Republic, Egypt, France, Germany, India, Iran, Italy, Jordan, Lebanon,Malaysia,Morocco,theNetherlands,Seychelles,Singa-pore,Spain,Sudan,Syria,Thailand,Tunisia,Turkey,Turkmenistan,theUnitedKingdom,theUnitedStates,UzbekistanandYemen.

3 Domestic arbitration lawWhat are the primary domestic sources of law relating to domestic

and foreign arbitral proceedings, and recognition and enforcement of

awards?

InBahrain,domesticandinternationalarbitrationisgovernedbyseparatelegislation.DomesticarbitrationissubjecttotherulessetoutintheCivilandCommercialProceduresLawof1971articles233to243(theDomesticArbitrationLaw).Internationalarbitra-tionisgovernedbytheInternationalCommercialArbitrationLaw,promulgatedbyLegislativeDecreeNo.9of1994(theInternationalArbitrationLaw).

In international commercial arbitration, the International ArbitrationLawspecificallydisappliestherulesgoverningdomes-tic arbitration. Arbitration proceedings are considered to beinternational if theparties to thedispute conduct theirbusinessindifferentstates, ifthecontract isperformedortheseatofthearbitrationissituatedinastateoutsideoneorbothoftheparties’placesofbusinessorifthepartieshaveagreedthatthesubjectmat-terofthearbitrationagreementrelatestomorethanonecountry.Followingtheentryintoforceofanewlawpromulgatedby

DecreeNo.30of2009,anewdisputeresolutionregime,whichcom-binesaspectsoflitigationandarbitrationincertaincircumstances,wasintroducedinBahrain.DecreeNo.30establishestheBahrainChamberforDisputeResolution(BCDR),whichisanewdisputeresolutioncentreofferingarbitration,mediationandotherADRservices.TheBCDRhasjurisdictiontoheardisputeswhereithasbeenchosenbythepartiesastheplaceofarbitration(undersection2ofDecreeNo.30),butalsohasautomaticandmandatoryjurisdic-tion(undersection1ofDecreeNo.30)overanyclaimexceeding500,000Bahrainidinarsthat:• would,butfortheexistenceoftheBCDR,havecomewithinthejurisdictionofthecourtsofBahrain;and

• involveseitheraninternationalcommercialdisputeorapartylicensedbytheCentralBankofBahrain.

4 Domestic arbitration and UNCITRALIs your domestic arbitration law based on the UNCITRAL Model Law?

What are the major differences between your domestic arbitration law

and the UNCITRAL Model Law?

TheDomesticArbitrationLaw isnotbasedon theUNCITRALModelLaw(unliketheInternationalArbitrationLaw).ThemaindifferencesbetweentheModelLawandtheDomesticArbitrationLaware:• article234oftheDomesticArbitrationLawprovidesthatarbi-tratorsmustnotbeminors,incapacitatedordeprivedoftheircivilrightsasaresultofhavingbeenimprisonedormadebank-rupt.TheserestrictionsarenotmentionedintheModelLaw;

• underarticle11oftheModelLawpartiesarefreetoagreeonaprocedureforappointingthetribunal.IntheabsenceofsuchanagreementtheModelLawspecifiestheappointmentproce-dureandthecircumstancesinwhichthenationalcourtmaybeapproachedfortheappointmentofarbitrators.IncontrasttheDomesticArbitrationLawstatesthatthecourtthatwouldhavehadjurisdictionintheabsenceofanarbitrationagreementshallappointthetribunalwhere:

• thereisnoagreementbetweentheparties; • ifoneoftheagreedarbitratorshasabstained,withdrawnor

beendismissed;or • animpedimenthasarisentopreventanarbitratorfromact-

ing;and

© Law Business Research Ltd 2014


Norton Rose Fulbright (Middle East) LLP BahRaiN

• article237oftheDomesticArbitrationLawstatesthatifthepartiesfailtoagreeonthelawapplicabletotheelementsofthedisputeinrelationtoarbitrationtakingplaceinBahrain,thelawsofBahrainwillapply.Incontrast,article28oftheModelLawprovidesthat,failinganydesignationbyparties,thearbitraltribunalwillapplythelawitconsidersappropriatethroughtheapplicationoftheconflictof laws rules.

5 Mandatory provisionsWhat are the mandatory domestic arbitration law provisions on

procedure from which parties may not deviate?

Accordingtoarticle233oftheDomesticArbitrationLaw,avalidarbitrationagreementmustbemadeinwritingandmusthaveasub-jectmattercapableofbeingdealtwithbyarbitration.Thesubjectofthearbitrationmustbespecifiedinthewrittenarbitrationagreementorduringthepleadingsphase.Arbitrationcanonlytakeplaceinrelationtoareasofthelaw

where amicable resolution is possible. Also arbitration is only permissiblebetweenpartiesthathavelegalcapacitytodealwiththeresolutionofthedisputeviaarbitration.Pursuanttoarticle234oftheDomesticArbitrationLawthe

arbitrationisconsideredvoidunlessthereareanoddnumberofarbitrators.

6 Substantive lawIs there any rule in your domestic arbitration law that provides the

arbitral tribunal with guidance as to which substantive law to apply to

the merits of the dispute?

Bahrainilawpermitsthepartiestoagreeonthelawthatisapplicabletotheirdispute.Underarticle237oftheDomesticArbitrationLawthetribunalappliesthesubstantivelawofthecontractbetweenthepartieswhendecidingissuesindisputeunderthecontractandifthelaw governing a contractual claim is not clear from the agreement betweentheparties,inrelationtodomesticarbitration,thelawofBahrainapplies(unlessthepartiesagreeotherwise).ItisexplicitinDecreeNo.30inrelationtoproceedingsbefore

theBCDRundersection2(ie,arbitrationbyagreementofthepar-ties)thatthetribunalappliesconflictsoflawsprinciplesanddecidesthelawthatitdeemsapplicabletothesubjectmatterofthedis-puteifthepartieshavenotmadetheapplicablelawclearintheiragreement.

7 Arbitral institutionsWhat are the most prominent arbitral institutions situated in your

country?

Bahrain Chamber for Dispute Resolution ParkPlazaPOBox20006DiplomaticAreaKingdomofBahrainTel:+97317511311Fax:+97317511300www.bcdr-aaa.org

TheBCDRwasestablishedbyLegislativeDecreeNo.30for2009inpartnershipwiththeAmericanArbitrationAssociation(AAA).TheBCDRhasjurisdictiontoheardisputeswhereithasbeenchosenbythepartiesastheplaceofarbitration(undersection2ofDecreeNo.30),butitalsohasautomaticandmandatoryjurisdiction(undersection1ofDecreeNo.30)inthecircumstancesdescribedunderquestion 3.

Gulf Cooperation Council Commercial Arbitration CentrePOBox16100AladliyaKingdomofBahrainTel:+97317278000Fax:+97317825580www.gcac.biz/new/index.php

TheGulf CooperationCouncil (GCC)Commercial Arbitration Centre(GCAC)wasjointlyestablishedbythechambersofcommerceofeachoftheGCCcountriesin1993,andbecamefullyoperationalin1995.TheaimoftheGCACistoestablishstrongrelationshipswithotherArabandinternationalarbitrationcentres.

Arbitration agreement

8 ArbitrabilityAre there any types of disputes that are not arbitrable?

Thereisarangeofjudicialopiniononwhatmattersmaybedealtwithbyarbitration,andBahrainilawcontainsnoprovisionthatspecifiesthosemattersonwhichconciliation(andthereforearbitra-tion)cannotbeused.Asaruleofthumb,itappearsthatwhereitispossibletoresolveadisputebyagreement,thatdisputewillbe‘arbitrable’.Thisformulationexcludes,forexample,mattersarisingoutofcriminallawandrelatingtoissuessuchaspublicorder.

9 RequirementsWhat formal and other requirements exist for an arbitration

agreement?

Pursuanttoarticle233oftheDomesticArbitrationLaw,anarbitra-tionagreementmustbemadeinwritingandmusthaveasubjectmattercapableofbeingdealtwithbyarbitration.Thesubjectofthearbitrationmustbespecifiedinthewrittenarbitrationagreementorduringthepleadingsphase,otherwisethearbitrationagreementwillbenullandvoid.Arbitrationisonlypermissiblebetweenpartiesthathavecapacitytodisposeoftheirrights.TheInternationalArbitrationLawandDecreeNo.30require

thearbitrationagreementtobeinwriting.

10 EnforceabilityIn what circumstances is an arbitration agreement no longer

enforceable?

UnderBahrainilawanarbitrationagreementisdeemednolongerenforceableifitviolatesthemandatoryrequirementsspecifiedbythelaw(seequestion5).

11 Third parties – bound by arbitration agreementIn which instances can third parties or non-signatories be bound by an

arbitration agreement?

TheBahrainilawdoesnotcontainanyspecificprovisionrelatedtothirdpartiesornon-signatoriesbeingboundbyanarbitrationagreement.

12 Third parties – participationDoes your domestic arbitration law make any provisions with respect

to third-party participation in arbitration, such as joinder or third-party

notice?

Bahrainilawcontainsnospecificprovisionsrelatedtotheparticipa-tionofthirdpartiesinarbitration.




13 Groups of companiesDo courts and arbitral tribunals in your jurisdiction extend an

arbitration agreement to non-signatory parent or subsidiary companies

of a signatory company, provided that the non-signatory was somehow

involved in the conclusion, performance or termination of the contract

in dispute, under the ‘group of companies’ doctrine?

Bahraini law is silent on this matter.

14 Multiparty arbitration agreementsWhat are the requirements for a valid multiparty arbitration

agreement?

Bahraini lawdoesnot includeany specificprovisions related to multipartyarbitrationagreementsbutsuchagreementsarepermittedinpractice.

Constitution of arbitral tribunal

15 Eligibility of arbitratorsAre there any restrictions as to who may act as an arbitrator? Would

any contractually stipulated requirement for arbitrators based on

nationality, religion or gender be recognised by the courts in your

jurisdiction?

Inmanyrespects,therequirementsforselectionasanarbitratorinBahrainarelessstringentthanthosefacedbytheBahrainijudiciary.Inaccordancewitharticle234oftheDomesticArbitrationLaw,anarbitratormaynotbeaminor,incapacitatedordeprivedofhisorhercivilrightsasaresultofhavingbeenimprisonedormadebankrupt.ThereisnorequirementunderBahrainilawastoanarbitrator’sreligionorgender.Article11(2)oftheInternationalArbitrationLawandtheBCDR

rulesrelatingtoarbitrationundersection2ofDecreeNo.30statethatthepartiesarefreetoagreeontheappointmentofarbitrators.

16 Default appointment of arbitratorsFailing prior agreement of the parties, what is the default mechanism

for the appointment of arbitrators?

Article235oftheDomesticArbitrationLawprovidesthatifadis-putearisesandthepartieshavenotagreedonthearbitrators,orifoneormoreoftheproposedarbitratorshasabstained,withdrawnorbeendismissed,oranimpedimenthasarisentopreventanarbitra-torfromactingandthereisnoagreementbetweentheparties,theBahrainicourtthatwouldhavejurisdictiontoexaminethedisputeintheabsenceofthearbitrationagreementwillappointtheneces-saryarbitrators.TheInternationalArbitrationLawenablestheBahrainiHigh

CivilCourtofAppealtoperformcertainfunctionsregardinginter-nationalarbitrations.Theseinclude(underarticle11(3))theappoint-mentofarbitratorsifthepartiescannotagreeontheirappointment,and(underarticle13(3))hearingappealsonanyunsuccessfulchal-lengetotheappointmentofanarbitratorshouldthetribunalrefusethe challenge.Underarticle6oftheBCDRArbitrationRulesif,within45days

ofthecommencementofthearbitration,allofthepartieshavenotmutuallyagreedonaprocedureforappointingthearbitrators,orhavenotmutuallyagreedonthedesignationofthearbitrators,theadministratormust,atthewrittenrequestofanyparty,appointthearbitratorsanddesignatethepresidingarbitrator.TheGCACrulesstatethatapplicantsshouldincludethename

oftheirproposedarbitratorintheapplicationforarbitration(article9).Respondentsthenhave20daysfromnotificationoftheappli-cationtorespond(althoughtheymayobtainanextensionof20days)and,amongotherthings,providethenameoftheirproposedarbitrator(article11).Ifthetribunalismadeupofasolearbitratorandthepartiescannotagreeonanappointmentwithintheperiod

describedabove,thesecretarygeneraloftheGCACwillmaketheappointmentfromtheGCAC’slistofapprovedarbitratorswithintwoweeks(article12).Ifeithertheapplicantortherespondentdoesnotnominateanarbitratorwithinthetimeframesprescribedinthisparagraph,thesecretarygeneralwillappointanarbitratorforeachpartyfromtheGCAC’sapprovedlistwithintwoweeksandinvitethetwoarbitratorstoappointathirdmemberofthetribunal.Iftheappointedarbitratorsfailtoagreeontheappointmentofthethirdmemberofthetribunalwithin20days,thesecretarygeneralwillmaketheappointmentwithintwoweeks(article12).

17 Challenge and replacement of arbitrators On what grounds and how can an arbitrator be challenged and

replaced? Please discuss in particular the grounds for challenge and

replacement, and the procedure, including challenge in court. Is there

a tendency to apply or seek guidance from the IBA Guidelines on

Conflicts of Interest in International Arbitration?

TheDomesticArbitrationLawprovidesonlythatarbitratorsmaybedismissedbythemutualconsentofthepartiesorbycourtorder(article234).TheInternationalArbitrationLawstatesthatarbitratorsmust

discloseanycircumstancesthatmaygiverisetodoubtsastotheirimpartialityor independence (article12). If thepartieshavenotagreedtoaprocedureforchallengingtheappointmentofthearbitra-tors,thereisamechanismforthetribunaltodecideonthechallenge,subjecttoappealtotheHighCivilCourtofAppeal(article13).Theappointmentofanarbitratormaybechallengedifdoubts

havearisenastohisorherimpartialityorindependence,orifheorshedoesnotpossessthequalificationsagreedtobytheparties.Par-tiesmaynotchallengeanarbitratortheyhavethemselvesappointed,orinwhoseappointmenttheyhaveparticipated,unlesstheydiscoverareasontodoubtthearbitrator’sindependenceaftertheappoint-menthasbeenmade.Ifanarbitratorhasbecomeunabletoperformhisorherfunc-

tionsorfailstoactwithoutunduedelay,thepartiesmayasktheHighCivilCourtofAppealtodecideontheterminationofthearbitrator’smandate(article14).Article8oftheBCDRArbitrationRulesprovidesthataparty

may challengeanyarbitratorwhenever circumstances exist thatgiverisetojustifiabledoubtsastothearbitrator’simpartialityorindependence.Duetotheconfidentialnatureofmostarbitrationitisdifficultto

statewhetherthereisatendencytoapplyorseekguidancefromtheIBAGuidelinesonConflictsofInterestinInternationalArbitration.

18 Relationship between parties and arbitratorsWhat is the relationship between parties and arbitrators? Please

elaborate on the contractual relationship between parties and

arbitrators, neutrality of party-appointed arbitrators, remuneration, and

expenses of arbitrators.

Therelationshipbetweenthepartiesandthearbitratorsisnotmen-tionedintheDomesticArbitrationLaw.UnderboththeInternationalArbitrationLawandtheBCDR

DecreeNo.30,arbitratorsarerequired(whetherparty-appointedornot)tobeneutralandindependent.Pursuanttoarticle12oftheInternationalArbitrationLaw,arbitratorsmustwhenapproachedwithapossibleappointmentdisclosecircumstanceslikelytogiverisetojustifiabledoubtsastotheirimpartialityorindependence.

19 Immunity of arbitrators from liabilityTo what extent are arbitrators immune from liability for their conduct in

the course of the arbitration?

LiabilityofarbitratorsisnotexpresslyregulatedinBahrainundertheDomesticArbitrationLawortheInternationalArbitrationLaw.




Article36ofDecreeNo.30for2009statesthatanydisputeresolutiontribunalmemberappointedinaccordancewiththelawinrelationtoproceedingsbeforetheBCDRwillnotbeliableforany‘actofcommissionoromissioninthemannerofperforminghisduties’,unlesstheactwascommittedwith‘badintention’or‘itwasaresultofagrossmistake’.

Jurisdiction and competence of arbitral tribunal

20 Court proceedings contrary to arbitration agreementsWhat is the procedure for disputes over jurisdiction if court

proceedings are initiated despite an existing arbitration agreement,

and what time limits exist for jurisdictional objections?

Pursuanttoarticle236oftheDomesticArbitrationLawrespondents,incircumstanceswhereavalidarbitrationclauseexists,relinquishtheirrightsofrecoursetothecourtthatwouldhavejurisdictiontodealwiththedisputebutforthearbitrationclause.Ifadisputearisesconcerningtheexecutionofacontractcontain-

inganarbitrationclauseandoneofthepartiescommencesproceed-ingsinaBahrainicourt,theotherpartymayrelyontheaboveasavalidbasisonwhichthecaseshouldnotbeheardbythecourtandshouldbedealtwithbyarbitration.Ifapartybringsproceedingsrelatingtoaninternationalcom-

mercialdisputebeforetheBahrainicourtsdespitetheexistenceofanarbitrationclause,article8oftheInternationalArbitrationLawallowsthecourtstoreferthepartiestoarbitration,ifrequestedtodosobyoneofthepartiesnolaterthanthefirststatementtothecourtintheproceedingsunlesstheyfindthatthearbitrationagreementisnullandvoid,inoperativeorincapableofbeingperformed.

21 Jurisdiction of arbitral tribunalWhat is the procedure for disputes over jurisdiction of the arbitral

tribunal once arbitral proceedings have been initiated and what time

limits exist for jurisdictional objections?

Article16oftheInternationalArbitrationLawexpresslyempowersthearbitraltribunalinaninternationalarbitrationtoruleonitsownjurisdiction.Apartymustobjecttothejurisdictionofthetribunalortothearbitrabilityofaclaimorcounterclaimnolaterthanthefilingofthestatementofdefence.TheabilityofthetribunaltoruleonitsownjurisdictionisalsorecognisedintheGCACandBCDRRules.

Arbitral proceedings

22 Place and language of arbitrationFailing prior agreement of the parties, what is the default mechanism

for the place of arbitration and the language of the arbitral

proceedings?

TheDomesticArbitrationLawdoesnotdealwithadefaultmecha-nismfortheplaceandlanguageofarbitrationbutintheabsenceofagreementArabicislikelytobethelanguageusedandBahrainwillbetheplaceofarbitration.Articles20and21oftheInternationalArbitrationLawprovide

thatthepartiesmayagreeonthelanguageusedandplaceofarbitra-tion.Intheabsenceofpartyagreementthetribunalmaydecide.Article13oftheBCDRArbitrationRulesprovidesthatifthe

partiesdisagreeastotheplaceofarbitration,theadministratormayinitiallydeterminetheplaceofarbitration,subjecttothepowerofthetribunaltodeterminefinallytheplaceofarbitrationwithin60daysafteritsconstitution.Article14oftheBCDRArbitrationRulesprovidesthatifthe

partieshavenotagreedotherwise,thelanguageofthearbitrationmustbethatofthedocumentscontainingthearbitrationagreement,subjecttothepowerofthetribunaltodetermineotherwisebaseduponthecontentionsofthepartiesandthecircumstancesofthearbitration.

Articles6and7oftheGCACrulesprovidethatintheabsenceofpartyagreement,thetribunalhastheabilitytodeterminethelan-guageandplaceofarbitration.

23 Commencement of arbitrationHow are arbitral proceedings initiated?

TheDomesticArbitrationLawincludesnospecificprovisionrelatedtothecommencementofarbitralproceedings.Article22oftheInternationalArbitrationLawprovidesthat

unlessotherwiseagreedbytheparties,arbitralproceedingsinrespectofaparticulardisputecommenceonthedatearequestforthatdis-putetobereferredtoarbitrationisreceivedbytherespondent.Article2oftheBCDRArbitrationRulesprovidesthatarbitral

proceedingsaredeemedtocommenceonthedatetheadministra-torreceivesthenoticeofarbitration.Uponreceiptofthenoticeofarbitration,theadministratormustcommunicatewithallpartiesinrespectofthearbitrationandacknowledgethecommencementofthearbitration.Thenoticeofarbitrationmust containa statementof claim

includingthefollowing:• ademandthatthedisputebereferredtoarbitration;• thenames,addressesandtelephonenumbersoftheparties;• a reference to the arbitration clause or agreement that isinvoked;

• a reference to any contract in relation towhich thedisputearises;

• adescriptionoftheclaimandanindicationofthefactssupport-ingit;and

• therelieforremedysoughtandtheamountclaimed.

Thenoticemayalsoincludeproposalsastothemeansofdesignat-ingandthenumberofarbitrators,theplaceofarbitration,andthelanguageofthearbitration.

24 HearingIs a hearing required and what rules apply?

TheDomesticArbitrationLawissilentontherequirementforahearingandontherulesthatapplytosuchhearings.TheInternationalArbitrationLawgivesthepartieswidescopeto

agreeontheproceduretobefollowedbythetribunalinconductingarbitrationproceedings,includinghearings(article19(1)).Wherethepartiesdonotdetermineanyrulesofaparticulararbi-

tralinstitutiontogoverntheproceedings,thetribunalmayconducttheproceedingsinsuchmannerasitseesfit(article19(2)).However,itisbound(byarticle18)totreatthepartieswithequalityandtogiveeachpartyafullopportunitytopresentitscase.Asaresult,eachpartymustbegivenreasonablenoticeofanyhearing(thoughthetri-bunalmayofcourseproceedwiththehearinginthatparty’sabsenceprovidedthatitconsidersthatithasgiventhepartyinquestionafullopportunitytopresentitscase).Article20oftheBCDRArbitrationRulesprovidesthatthetri-

bunalgivesthepartiesatleast30daysadvancenoticeofthedate,timeandplaceoftheinitialhearing.Article21oftheGCACrulesprovidesthatthetribunalmust

hold,attherequestofeitherparty,atanystageoftheproceedings,ahearingfororalsubmissionsorforhearingtestimonyfromwit-nessesorexperts.Ifneitherpartymakessucharequest,thetribunalwillhavetheoptiontoholdahearingortoproceedonthebasisofdocumentsalone,providedthatatleastonehearinghasalreadybeenheld.




25 EvidenceBy what rules is the arbitral tribunal bound in establishing the facts of the case? What types of evidence are admitted and how is the taking of evidence conducted?

Article238oftheDomesticArbitrationLawstatesthatthepartiesmustsubmitalldocumentsandwrittenevidenceintheirpossessionorcharge,anddoallthatthetribunalrequiresofthem,butissilent(andassuchleavesittotheparties’discretion)astothemeaningof‘all’.Thepartiesorthetribunalmayalsofileanapplicationwiththecourtrequestingproductionofanydocumentnecessarytothearbitrationthatisinthepossessionof‘others’ortheattendanceofaparticularwitnesstogiveevidencebeforethearbitration.Article238alsostatesthatthetribunalmayrequirethatwit-

nessestakeanoathormakeaformaldeclarationoftruth.Anyonegivingfalseevidenceconcerningan‘essentialissue’beforeatribunalcouldbeheldtohavecommittedperjuryandpunishedaccordingly.Ininternationalarbitrations,subjecttoanyrulesofprocedure

agreedbytheparties,thetribunalhasdiscretiontoconductthepro-ceedingsinthemanneritconsidersappropriate(article19oftheInternationalArbitrationLaw).TheBCDRrules(article19)statethattheclaimingpartyhas

theburdenofprovingthefactsreliedontosupportitsclaims.Thetribunalmayorderthepartiestodeliverasummaryofthedocumentsandotherevidencethatthepartyintendstorelyonandmayorderthepartiestoproduceotherdocumentsasnecessary.Article22oftheGCACrulesstatesthatwithregardtowitness

testimony,thepartybearingtheburdenofproofmustnotifythetribunalandtheotherpartiesatleastsevendaysbeforethehearingdateandprovidethenamesandaddressesofwitnesses,themat-tersonwhichtheywilltestifyandthelanguagetobeusedforthetestimony.Further,article24referstotheabilityofthetribunalatanystagetorequestthepartiestoproduceadditionaldocumentsorevidence(thanalreadysubmitted)ortoconductaninspectionofanypremisesthatarethesubjectofthedisputeandmakeinvestigationsifitdeemsnecessary.

26 Court involvementIn what instances can the arbitral tribunal request assistance from a court and in what instances may courts intervene?

TheDomesticArbitrationLaw(article236)statesthattheparties(inconsequenceofavalidarbitrationclause)relinquishtheirrightsofrecoursetothecourtstoexaminethedispute.Asaresult,Bah-rainicourtsmaynotinterveneindomesticarbitrations.However,thetribunalmayrequestassistancefromacourtinrelationtowitnesstestimonyanddisclosureofdocuments(seequestion25).Courtassistanceindomesticarbitrationsislimitedbyarticle235

oftheDomesticArbitrationLawto:• productionofdocumentsinthepossessionof‘others’thatare‘necessary’;

• thesendingofnoticesrequiringawitnesstoattendtogiveevi-dencebeforethetribunal;

• instanceswherethepartieshavenotagreedontheconstitutionofthetribunal,orifoneormoreoftheagreedarbitratorshasabstained,withdrawnorbeendismissed,oranimpedimenthasarisentopreventhimorherfromacting.Insuchinstancesthecourtthatwouldhavehadjurisdictiontoexaminethedispute(intheabsenceofavalidarbitrationagreement)appointsthenecessaryarbitratorsattherequestofthepartyconcernedwithexpeditingthematter,andthisdecisionmaynotbechallengedorappealed.

Similarly,article5oftheInternationalArbitrationLawalsopreventsthecourtsfrominterveningininternationalarbitrations.However,the court may assist in:• orderingdisclosureofrelevantdocumentsorassistingwithwit-nessevidenceattherequestofthetribunal(article27);

• appointingarbitratorswherethereisnopartyagreementorwherethetribunalfailstodoso(ininstancesspecifiedinarticle6);

• challengestothesuitabilityofarbitrators(ininstancesspecifiedinarticle6);

• issuingarulingonjurisdiction(ininstancesspecifiedinarticle6);and

• annullinganaward(inaccordancewiththeinstancesdescribedinarticle34).

27 ConfidentialityIs confidentiality ensured?

TheDomesticArbitrationLawcontainsnospecificprovisionsontheconfidentialityofarbitrationproceedings.Byvirtueofarticle31oftheInternationalArbitrationLaw,pub-

licationofarbitrationawards(orpartialawards)isonlypermittedwhenthepartiesagree.HearingsheldbeforetheBCDRandGCACareprivateandthis

privacyextendstotheinformationdisclosedbythepartiesorbywit-nessesaswellasallmattersrelatingtotheaward.Pursuanttoarticle34oftheBCDRregulation,theBCDRadministratormaypublishorotherwisemakepubliclyavailableselectedawards,decisionsandrulingsthathavebeeneditedtoconcealthenamesofthepartiesandotheridentifyingdetailsorthathavebeenmadepubliclyavailableinthecourseoftheenforcementorotherwiseunlessotherwiseagreedbytheparties.Confidentialinformationdisclosedduringproceedingsbythepartiesorbywitnessesiskeptprivateandconfidential,unlessotherwiseagreedbythepartiesorrequiredbytheapplicablelaw.

Interim measures and sanctioning powers

28 Interim measures by the courtsWhat interim measures may be ordered by courts before and after arbitration proceedings have been initiated?

TheDomesticArbitrationLawcontainsnospecificprovisionsoninterimmeasuresissuedbythecourts.Ininternationalarbitration,thecourtsmaygrantpreliminaryor

interimordersinsupportofthearbitration.Bahrainilawprovidesthatthepartiesmayrequestinterimmeasuresfromthecourtseitherbeforeorduringarbitrationproceedingsbutthatsuchapplicationsshouldnotaffectthejurisdictionofthetribunal.TheInternationalArbitrationLaw(article17)statesthatthetribunalmayorderanyoftheparties(attherequestofoneofthem)totakeanyinterimmeasureofprotectionnecessaryforthesubjectmatterofthedispute.

29 Interim measures by an emergency arbitrator Does your domestic arbitration law or do the rules of the domestic arbitration institutions mentioned above provide for an emergency arbitrator prior to the constitution of the arbitral tribunal?

TheBCDRrules(article31ofDecreeNo.30for2009)includeprovi-sionswherebyajudgeappointedbythesupremejudicialcouncilhasjurisdictiontodealwithinterimmeasuresthatarisebetweenthesub-missionofthedisputetotheBCDRandtheconstitutionofthetribunal.

30 Interim measures by the arbitral tribunalWhat interim measures may the arbitral tribunal order after it is constituted? In which instances can security for costs be ordered by an arbitral tribunal?

TheDomesticArbitrationLawdoesnotaddressthisissue.Atribunaloperatingunder theBCDRrules (article21)may

take whatever interim measures it deems necessary (includinginjunctivereliefforprotectionorconservationofproperty).Suchinterimmeasureawardsmayrequiresecurityforcostsanditisatthe discretionofthetribunaltoapportioncostsinanyinterimawardorfinalaward.




PursuanttotheInternationalArbitrationLaw(article17)thetribunalmayorderanyofthepartiestotake‘anyinterimmeasureofprotection’itdeemsnecessaryforthesubjectmatterofthedisputeandmayalsorequireanypartytoprovidesecurityinconnectionwithsuch an interim measure.

31 Sanctioning powers of the arbitral tribunalPursuant to your domestic arbitration law or the rules of the domestic

arbitration institutions mentioned above, is the arbitral tribunal

competent to order sanctions against parties or their counsel who use

‘guerrilla tactics’ in arbitration?

TheDomesticArbitrationLawissilentonthismatter.However,undertheBCDR-AAAArbitrationRulesthetribunalhasthepowertoawardarbitrationcoststocompensatefordilatoryorbadfaithconductinthearbitrationunderarticle28(5).

Awards

32 Decisions by the arbitral tribunalFailing party agreement, is it sufficient if decisions by the arbitral

tribunal are made by a majority of all its members or is a unanimous

vote required? What are the consequences for the award if an

arbitrator dissents?

TheDomesticArbitrationLaw(article239)permitstheawardtobemadebyamajorityofthetribunal.However,thelawincludesarequirementthat,ifoneormoreofthearbitratorsrefusestosigntheaward,thisshouldbestatedintheaward.TheInternationalArbitrationLaw(article29)permitsanaward

tobemadebyamajorityofthetribunal.TherulesoftheBCDRandGCACalsostatethatdecisionsof

thetribunalmustbemadebyamajorityofthetribunal.Article26oftheBCDRregulationalsorequirestheawardtoincludeastatementtoexplain(ifapplicable)whyoneofthetribunalhasnotsignedtheaward.

33 Dissenting opinionsHow does your domestic arbitration law deal with dissenting opinions?

Seequestion32.

34 Form and content requirementsWhat form and content requirements exist for an award?

Article239oftheDomesticArbitrationLawprovidesthattheawardmustbeinwriting,basedonprinciplesoflawandmadeonthebasisoftheparties’submissions.Theawardmustalsoincludeacopyofthearbitrationagreement,asummaryoftheparties’pleadedcaseanddocumentsreliedon,thereasonsfortheaward,thedecisionandthedateofissueplusthesignaturesofeachofthearbitrators.Further,awardsmustbefiled,togetherwiththeoriginalarbitra-

tionagreement,attheofficeofthecourtthatwouldhavehadjuris-dictiontohearthecaseintheabsenceofanarbitrationagreement,withinthreedaysofbeingissued.AwardsissuedbytheBCDRmustbeinwriting,containtherea-

sonsfortheawardand,unlessthepartiesagreedotherwise,containthedateandtheplacetheawardwasmade.TheGCACrulescon-tainsimilarrequirementsbutalsorequirestheawardtocontainthenamesofthepartiesandthearbitrators.TheInternationalArbitrationLaw(article31)requirestheaward

tobeinwritingandsignedbythearbitratorandbythemajoritywherethereismorethanonearbitrator(providedthattheawardstateswhythesignatureofanarbitratorismissing).

35 Time limit for awardDoes the award have to be rendered within a certain time limit under

your domestic arbitration law or under the rules of the domestic

arbitration institutions mentioned above?

UndertheDomesticArbitrationLaw(article237),ifthepartiesdonotspecifyatimelimitfortheawardinthearbitrationagreement,thearbitratorsmusthanddownanawardwithinthreemonthsofthetribunalagreeingtoarbitrate.Thepartiesmayagreetoextendthis time limit.TheBCDRrulescontainnoreferencetoatimelimitfortheissue

ofanaward.TheGCACarbitrationrulesstate(articles32and33)thatthe

awardmustberenderedwithin100daysofthecasebeingreferredtothearbitraltribunal,unlessthepartiesagreeotherwise.

36 Date of awardFor what time limits is the date of the award decisive and for what

time limits is the date of delivery of the award decisive?

Article242oftheDomesticArbitrationLawrequiresanychallengetotheawardtobefiledwithin30daysofthedatewhenthetribunalwasinformedthattheawardhadbeenfiledwiththecourt.Article33of the InternationalArbitrationLawrequiresany

requestforthetribunaltomakeacorrectiontotheawardorexplainaparticularpointinthedecisiontobemadewithin30daysofthedateofreceiptoftheaward(unlessthepartiesagreeanextension).Article34of the InternationalArbitrationLawrequiresany

requestforannulmentofanawardtobemadewithinthreemonthsofreceiptoftheawardbytheapplicantorthedateofthetribunal’sdecisioninresponsetoarequestforexplanationorcorrectionmadeunderarticle33.

37 Types of awardsWhat types of awards are possible and what types of relief may the

arbitral tribunal grant?

BahrainilawdoesnotspecifythetypesofawardsthatmaybeissuedbyarbitraltribunalsbuttheBCDRrulesprovideforinterim,inter-locutoryorpartialordersandawardsinadditiontofinalawards.

38 Termination of proceedingsBy what other means than an award can proceedings be terminated?

TheDomesticArbitrationLawisnotprescriptiveregardingtermina-tionofproceedings.The InternationalArbitrationLaw (article 30) states that if

partiesagreetosettlethedispute,thetribunalmustterminatetheproceedingsandacceptthesettlementintheformofanawardonagreedterms.TheBCDRrulesstatethatthetribunalmayterminatethearbi-

trationifrequestedbyallpartiesfollowingasettlementintheformofanawardonagreedterms.Inaddition,theBCDRrules(article29)statethatifthecontinu-

ationoftheproceedingsbecomesunnecessaryorimpossibleforanyotherreason,thetribunalmustissueanorderterminatingthearbi-tration,unlessapartyraisesjustifiablegroundstoobject.

39 Cost allocation and recoveryHow are the costs of the arbitral proceedings allocated in awards?

Bahrainilawhasnosetpolicyforallocatingcosts(itisatthetribu-nal’sdiscretion)buttheBCDRrulesprovideforthetribunaltofixthecostsofthearbitrationinitsaward,whichmayincludethefeesandexpensesofthetribunalandcostsassociatedwithassistancerequiredbythetribunal,forexampleexperts,feesandexpensesof




theadministrator,reasonablecostsforlegalrepresentationofasuc-cessfulpartyandanycostsincurredinconnectionwithanapplica-tion for interim or emergency relief.

40 InterestMay interest be awarded for principal claims and for costs and at what

rate?

Bahrainilawdoesnotexpresslyaddressissuesofinterestinthiscon-text.Theissueofinterestislefttothetribunal’sdiscretion.

Proceedings subsequent to issuance of award

41 Interpretation and correction of awardsDoes the arbitral tribunal have the power to correct or interpret an

award on its own or at the parties’ initiative? What time limits apply?

Seequestion36.

42 Challenge of awardsHow and on what grounds can awards be challenged and set aside?

TheDomesticArbitrationLaw(articles239and242)statesthatarbitralawardsmaynotbe‘challenged’butcanbeappealedbywayofanapplicationfornullification.Article243providesanumberofinstanceswhereanawardmaybenullified:• iftheawardwasissuedonthebasisofaninvalidarbitrationagreementortheawarddepartedfromtheboundariesofavalidagreement;

• iftheawardwasissuedbyarbitratorswhowerenotappointedinaccordancewithBahrainilaw;

• ifthecourtconsidersthatanyreasonsforrehearingthecaseareestablished;or

• ifan‘invalidatingfact’intheawardortheproceedingsaffectstheaward(noguidanceisgiveninthelawastowhatmightamounttoaninvalidatingfact).

Article242ofDomesticArbitrationLawrequiresapartytofileanyapplicationtoinvalidatetheawardwithin30daysfromthedatethatthearbitratorswerenotifiedofthefilingoftheoriginalawardwiththe Bahraini courts.Underarticle34oftheInternationalArbitrationLawanaward

maybesetasideif:• thepartieswereincapableofenteringtheagreementortheagree-mentwasinvalidundertheapplicablelaw;

• apartydidnotreceivepropernoticeoftheappointmentofthetribunalorthearbitralproceedingsorwasnotgivenanoppor-tunitytopresentitscase;

• thearbitratorsexceededtheirauthorityordecidedonissuesout-sidethetermsofthearbitrationagreement;

• thearbitraltribunalwasnotproperlyconstitutedorthearbitra-torswerenotproperlyappointed(inaccordancewiththeInter-nationalArbitrationLawortheparties’agreement);or

• thecourtfindsthatthesubjectmatterofthedisputeisnotcapa-bleofsettlementbyarbitrationortheawardconflictswithBah-rainipublicpolicy.

Pursuanttoarticle25ofDecreeNo.30,awardsissuedbytheBCDRmaybechallengedbeforetheCourtofCassation,butitispossibleforthepartiestoagreeinwritingthatnochallengemaybemadetotheBahrainicourtsprovidedtheyagreeinwritingforaforeignlawtogoverntheirdispute,statethatthepartiesshallnotbeentitledtochallengetheawardintheBahrainicourtsandthatanychallengesshouldbemadetothecompetentauthorityinanotherstate.

43 Levels of appealHow many levels of appeal are there? How long does it generally take

until a challenge is decided at each level? Approximately what costs

are incurred at each level? How are costs apportioned among the

parties?

Asmentionedinquestion42,domesticarbitrationawardsmaybeappealedtothecompetentcourtofappeal(subjecttothepartieswaivingthisright).Subjecttothepointmadeaboveinrelationtoarbitralawards

issued by the BCDR, international arbitration awards may beappealedonalimitednumberofgroundsasoutlinedabovetoanappealcourtaswell,afterthepaymentofthefeesdeterminedbythe court.

44 Recognition and enforcementWhat requirements exist for recognition and enforcement of domestic

and foreign awards, what grounds exist for refusing recognition and

enforcement, and what is the procedure?

Underarticle241oftheDomesticArbitrationLaw,anawardisnotexecutablewithoutanorderissuedbythepresidentofthecourtcompetentfortheappealandafterassurancesthatthereisnothingtopreventitsexecutionafter30days.Internationalarbitrationawardsarebindingandenforceableby

submittingawrittenrequesttotheHighCivilCourttogetherwithauthenticatedoriginalsofthearbitrationagreementandtheaward.Enforcementisonlypossibleaftertheexpirationofthedateforfilinganapplicationforsettingasideoftheawardoradecisiononsuchanapplicationtosetasidetheaward.Thegroundsforrefusingrecognitionorenforcementofinterna-

tionalawardsare:• apartydidnothaveadequatecapacityorthearbitrationagree-mentwasnotvalidundertheapplicablelaw;

• apartywasnotinformedproperlyregardingtheappointmentofanarbitratororthearbitrationproceedingsordidnothaveanadequateopportunitytopresentitscase;

• the award dealswith a dispute not included in the parties’submissions;

• theconstitutionofthetribunalorthearbitralprocedurewascontrarytotheparties’agreement;

• theawarddidnotbecomebinding,wassetasideoritsexecutionsuspendedinthecountrywheretheawardwasissued;or

• ifthecourtdecidesthatthearbitrationwasnotpermissibleinmatterswhereconciliationisnotallowedoriftheawardcon-flictswithBahrainipublicpolicy.

AnawardissuedbyaBCDRtribunalisimmediatelyenforceableinthe Bahraini courts.

45 Enforcement of foreign awardsWhat is the attitude of domestic courts to the enforcement of foreign

awards set aside by the courts at the place of arbitration?

Generally,theBahrainicourtswillnotenforceaforeignarbitralawardifithasbeensetasidebythecourtsattheplaceofarbitration.

46 Cost of enforcementWhat costs are incurred in enforcing awards?

Bahrainilawstatesthatpartiesseekingtoenforceawardsmustpay 1percentofthevalueawardedtoobtainanenforcementorder.




Other

47 Judicial system influenceWhat dominant features of your judicial system might exert an

influence on an arbitrator from your country?

BahrainilawdoesnotprovideforUS-stylediscoverybutproduc-tionofspecifieddocumentsispossibleiftherequestingpartycanpersuadethearbitraltribunalthattheotherpartyhasinitsposses-siondocumentsthatareimportanttothedispute.Writtenwitnessstatementsmaybeusedbutarenotcommon.

48 Regulation of activitiesWhat particularities exist in your jurisdiction that a foreign practitioner

should be aware of?

ForeignpractitionerswouldbeadvisedtoobtainlegaladviceontherequirementsforobtainingaworkingvisaandtheabilitytoappearbeforeatribunalinBahrainorsitasanarbitrator.TheBCDRrulespermitforeignpractitionerstoappearbeforetheBCDR.

Adam Vause [email protected]

48th floor, West Tower Tel: +973 16 500 200

Bahrain Financial Harbour Fax: +973 16 500 299

Manama www.nortonrose.com

Bahrain


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