Meaning
Rules established by the International Chamber of Commerce provide a structured framework for resolving global commercial disputes. The icc arbitration rules govern the appointment of tribunals, the submission of evidence and the conduct of hearings for parties seeking an alternative to national litigation. This procedural code ensures a predictable process for companies operating across multiple legal jurisdictions.
Tribunal Control
Arbitrators under this system have wide powers to manage the proceedings to ensure efficiency and fairness. Under the icc arbitration rules, the tribunal must establish a provisional timetable and conduct a case management conference early in the process. The rules allow for the use of emergency arbitrators to grant interim relief before the main tribunal is formed.
This prevents parties from destroying evidence or dissipating assets while the case is prepared.
Scale Risk
Industrial projects moving from prototype to full manufacturing can suffer if disputes arise between joint venture partners. When a disagreement halts the construction of a processing plant, using the icc arbitration rules can resolve the conflict without stopping work entirely. However, calling for arbitration too early can disrupt the collaboration before the partners have tried to resolve the issue through negotiation.
This can cause delays that threaten the production yield of the new facility.
Procedural Cost
Resolving disputes through this international body involves significant administrative fees and tribunal expenses. The application of the icc arbitration rules requires the parties to pay advances on costs based on the sum in dispute. If the claim involves complex technical specifications, the cost of expert witnesses and specialized arbitrators can accumulate quickly.
This expense can drain resources that were meant for scaling up production capacity.
