Environmental Engineering Reference
In-Depth Information
Up to the present day, there has been application of the UNCITRAL Rules in
international commercial arbitration and international investment arbitration.
109
For utilization of UNCITRAL Rules, both parties must agree on a respective
arbitration clause in the contract.
110
There is a reluctance to define the term
commercial, so it is left to the parties
discretion.
111
The UNCITRAL Rules only
offer arbitration rules for a particular case, but they do not include an arbitration
“body” such as the one the ICSID offers with special tribunals.
112
This legal
framework can be used in cases of ad hoc arbitration or within existing institutions
like ICSID or the LCIA.
113
If it comes down to ad hoc arbitration, the UNCITRAL
Rules are the most popular legal framework.
114
'
2.2
International Commercial Arbitration in Practice
The arbitration agreement is the cornerstone of international arbitration.
115
Inter-
national law, and in most cases national law, require a written arbitration agree-
ment.
116
A clear formulation of the arbitration agreement is important to avoid the
question of tribunal jurisdiction or award enforcement.
117
The seat of arbitration
determines which court supervises and supports the process, and what nationality
the award has.
118
The seat of an arbitration institution can be different from the seat
of the actual arbitration.
119
It is vital that the seat of arbitration favors international
arbitration.
120
It is beneficial to conduct an arbitration agreement prior to a dispute
and not afterwards.
121
Lastly, arbitration relies on the consent of both parties.
122
109
Horn (
2008
), 587 (588).
110
Private autonomy of the parties, in: UNCITRAL (
1981
), 75 (78) para 17 accessed 07 January
2011; Great freedom for parties, in: Hanotiau and Caprasse (
2008
), 721 (721); Horn (
2008
),
587 (588).
111
UNCITRAL (
1981
), 75 (80) para 31.
112
Dolzer and Schreuer (
2008
), 227-228; Hughes (
2010
), 149 (150).
113
Kutty (
2006
), 565 (571-572); Dolzer and Schreuer (
2008
), 228; Hughes (
2010
), 149 (150).
114
Especially after the UNCITRAL Rules where used in the 1980s during the Iran-US Claims, in:
Hughes (
2010
), 149 (150); McIlwrath and Savage (
2010
), 63 para 1-139.
115
Hauschka (
2005
), 1550 (1552); Partasides and Fullelove (
2010
), 1 (3).
116
Partasides and Fullelove (
2010
), 1 (3).
117
McIlwrath and Savage (
2010
), 11-12 para 1-003; cf Partasides and Fullelove (
2010
), 1 (3).
118
Especially the nationality of the award can be a deciding factor in the case of enforcement, in:
McIlwrath and Savage (
2010
), 21 para 1-025; It is advised that the law governing the contract
should be equal to the law of the seat of arbitration, in: Partasides and Fullelove (
2010
), 1 (4).
119
McIlwrath and Savage (
2010
), 21-22 para 1-026.
120
Partasides and Fullelove (
2010
), 1 (4).
121
Partasides and Fullelove (
2010
), 1 (3).
122
Wood (
2007
), 575 (586); Reason for arbitration, e.g. confidentiality, in: Harten and Loughlin
(
2006
), 121 (140).
