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International Commercial Arbitration Rules and Fee Schedule - January 1, 2000

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The Vancouver Advantage

International Commercial Arbitration - Legislation

A Favourable Climate

British Columbia provides a climate which is particularly favourable for negotiation. It was among the first governments to accept the arbitration model proposed by the United Nations Commission on International Trade Law (UNCITRAL). Working with the United Nations, the B.C. Legislature developed its International Commercial Arbitration Act. Enacted in 1986, the legislation embodies two strongly held principles: minimum of judicial intervention and a significant degree of autonomy for parties engaged in arbitration.

The modernization of arbitral law in B.C. is also rooted in the 1958 adoption of the United Nations Arbitration Convention (the "New York Convention"), formally entitled the UN Convention on the Recognition and Enforcement of Arbitral Awards. This convention provided mechanisms by which arbitral awards can be enforced easily between signatory countries. Canada went a step further and announced that all arbitral awards would be recognized and enforced in Canada according to the terms of the New York Convention regardless of whether the countries involved were signatories.

The Centre

A culmination of these initiatives, provincial and federal, public and private, is our Centre. The Centre operates under The ICA Foundation of British Columbia, a non-profit foundation incorporated under the Society Act of B.C. The Foundation is managed by a Board of Trustees consisting of representatives from the commercial, legal and arbitration communities as well as named representatives from the British Columbia government, the University of British Columbia Law Faculty, and the Vancouver Board of Trade.

The Centre was established by the government of the Province of British Columbia in 1986 with additional funding from the Federal Government of Canada. It was part of the initiative of the public and private sectors to position Vancouver to become a leading Centre for international commerce and finance.

The Centre reflects the characteristics that have made Canada an appropriate referee in many international disputes: neutrality, objectivity and political stability. These qualities, combined with Vancouver's geographical position, its moderate climate, striking setting and genuine hospitality, makes the Centre an ideal choice for the international business world.

The services of the Centre, however, are not restricted to international companies. Arbitration and mediation procedures are also provided for domestic disputes.

The services provided by the Centre fall into five categories:

Information and advice on alternative dispute resolution and arbitral institutions.
Model contract clauses for future disputes.
Rules of procedure for arbitration, mediation and other dispute resolution methods.
Administering the infrastructure to ensure the smooth and efficient conduct of arbitrations and mediations.
The provision of skilled arbitrators and mediators from the panel certified by the Centre.

The Vancouver Advantage

With the Model Arbitration Law formulated by the United Nations as its base, our Centre has brought several innovations to the traditional arbitration process. Among these:

Statute and Rules are based on the UN models.
Arbitrators may be selected from anywhere in the world.
Reluctant signatories to an arbitration agreement cannot frustrate the procedure.
Relevance and materiality of evidence is within the jurisdiction of arbitrators.
Arbitrators may travel to any location to view material deemed relevant.
Arbitrators may summon experts, including independent legal advisors, for assistance.
Counsel for disputants need not be members of the Law Society of British Columbia to appear at arbitration proceedings.
When requested, the appointment of a chair by the Chief Justice of the Supreme Court must be made from a country other than those of the disputants.
Upon request, the Centre will provide interpreters, translators and transcripts.
Arbitrators" awards must be made within sixty days of the closing of hearings, unless otherwise determined.
Provisions for payments of settlements into the Centre are similar to those under the Rules of Court.

Sections 18 and 19 of the International Commercial Arbitration Act and Rule 21 of the Rules of Procedure under the Commercial Arbitration Act, establish procedural autonomy. These provisions recognize the freedom of disputants to set rules of procedure; but should parties fail to agree on procedure, the provisions grant the tribunal wide discretion, subject to fundamental principles of fairness, on the conduct of the proceedings.

The City

Vancouver is the largest, most cosmopolitan Canadian city west of Toronto. Poised on the Pacific Rim, it is home to a large ethic community of Asian origin. Efficiently served by major international airlines, it is easily accessible from most of the world's countries

Exchange rates are generally favourable, costs are moderate, the legal environment is hospitable, and the political and social infrastructures are designed for fairness, neutrality and equality.

Tens of thousands of visitors travel to Vancouver each year to ski, sail, fish, hunt, go on adventure treks and wildlife viewing expeditions in B.C. In the city there are outstanding shops, restaurants, major league sports and some of the country"s leading theatre, opera, ballet and music companies.

The Advantages of Arbitration

Some of the advantages in utilizing the Centre in a domestic or international dispute include the following:

The procedures are more flexible than litigation, staying within the control of the parties.
Litigation is expensive. Not only must lawyers' fees and disbursements be taken into account, but also the demand on management time for prolonged discoveries and review of documents. The Centre's rules provide for discovery, but they can be limited and expedited.
The litigation process can be lengthy and debilitating from a business viewpoint, pending the final resolve of the dispute which could take, depending on the nature of the dispute, 5 or more years through the appeal process. There is generally no appeal from the arbitration decision except for the correction of errors which are referred back to the arbitrator(s).
The process under the Centre's rules is confidential. The extent to which any publicity is granted is entirely within the control of the parties and the arbitrator(s).
The parties are free to choose their own arbitrator(s) failing which the Centre has a list of panel members who are recommended to each side and who are selected on the basis of their expertise in the area in question. If there is a failure of each side to select an arbitrator(s), under the Centre rules the arbitrator(s) is then appointed by the Centre.
The Centre has a Panel of commercial arbitrators and mediators who range from judges to senior lawyers, accountants, appraisers, architects and engineers.
The arbitrator(s) has general jurisdiction over the proceedings, and is not bound by the Rules of Court, to allow the parties to present with equity and fairness their position to the neutral. The arbitrator(s) must decide the dispute in accordance with the law governing the dispute.
The award of the arbitrator(s) in British Columbia must be made no later than 60 days after the closure of the arbitration hearings thus avoiding delays.
The award to the arbitrator(s) is final and binding and may be enforced as an order of the Court in any country signatory to the New York Convention. This brings certainty to the proceedings, so often sought by the business community.

All of the above factors can aid and assist in the preservation of a healthy and continuing commercial relationship between the parties. The proceedings are normally not as adversarial as those found in court and, if counsel approaches the proceedings with the "arbitral spirit" as well as the parties themselves, a continuing relationship is the likely outcome.

Model Clause

All disputes arising out of or in connection with this contract, or in respect of any defined legal relationship associated therewith or derived therefrom, shall be referred to and finally resolved by arbitration under the rules of the British Columbia International Commercial Arbitration Centre.

The appointing authority shall be the British Columbia International Commercial Arbitration Centre.

The case shall be administered by the British Columbia International Commercial Arbitration Centre in accordance with its Rules.

The place of arbitration shall be Vancouver, British Columbia, Canada.

(The following matters should also be considered by the parties for inclusion in the arbitration provisions of contracts: the governing or proper law; procedural law; number of arbitrators; specific qualifications of arbitrators or presiding arbitrator including, but not limited to, language, technical training, nationality and legal training; language(s) or arbitration.)