As per the arbitration and civil rules in the UAE, the arbitration rules shall be governed by the Terms of Reference. The Terms of Reference is a document used within international arbitration law. Its main purpose is to ensure the fast and efficient progress of arbitration proceedings. The agreement is drawn and signed by mutual consent of the parties and arbitrators.
An arbitrator can be appointed directly by name (this is not the common method used), through the court or through the arbitration centre. If you agree for the court or arbitration centre to appoint an arbitrator you need to make an application. The arbitration provisions of the Civil Procedure Code contain mandatory provisions concerning the appointment of an arbitrator. There must be an odd number of arbitrators, although there is no limit set on the number of arbitrators.
The UAE has rapidly emerged as a leading financial centre, attracting large global investors and businesses. As international developers and contractors continue to invest in construction projects, there has been an increasing trend in the use of arbitration in Dubai. The arbitration process is the preferred method to resolve disputes by commercial companies. As the certified language of arbitration proceedings is in English, a specialist tribunal can be appointed as opposed to the more broad UAE courts, and arbitration is generally more cost-effective and less time-consuming. This has led businesses and investors in the UAE to ensure that arbitration clauses or agreements are inserted into their contracts. Furthermore, the downturn in economic conditions in the real estate market over the past few years has led to an increase in disputes in general, and parties are more likely to issue court proceedings than to try to recover their losses through other ventures.
In International Chamber of Commerce (“ICC”) arbitrations, new claims that are subsequent to the terms of reference are subject to the arbitral tribunal’s authorization. Article 23(4) of the ICC Arbitration Rules (“Rules”) give discretion to the arbitral tribunal by setting forth that the arbitral tribunal shall consider the nature of new claims, the stage of the arbitration, and other relevant circumstances.
The issue of new claims in ICC arbitrations and the application of Article 23(4) in these matters are analyzed in this article.
The Supreme Court of Canada recently reviewed the law of recognition and enforcement in Canada of foreign judgments in a decision called Chevron Corp. v. Yaiguaje. The decision has implications for large multi-national corporations with subsidiaries in Canada, as the effect of the decision is to open the door to ignoring the separate legal personality of the local subsidiaries and putting at risk the assets of those subsidiaries in order to satisfy a judgment obtained against a foreign parent corporation in a foreign jurisdiction. The decision is therefore a victory for foreign plaintiffs who are being thwarted in their enforcement efforts by complex corporate structures that shield assets from them under the legal fiction of separate corporate personalities.