permanent court of arbitration rules

7/23/2019 Permanent Court of Arbitration Rules

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Permanent Court ofArbitration Rules2012



Article 1 (Scope of Application)

• State, State-controlled entity, or intergoernmentalorgani!ation "as agreed #it" one or more States, State-controlled entities, intergoernmental organi!ations, orpriate parties t"at disputes bet#een t"em in respectof a de$ned legal relations"ip, #"et"er contractual,treaty based, or ot"er#ise, s"all be referred toarbitration under t"e Permanent Court of Arbitration

• Agreement by a State, State-controlled entity, orintergoernmental organi!ation to arbitrate under t"eseRules #it" a party t"at is not a State, State-controlled

entity, or intergoernmental organi!ation constitutes a#aier of any rig"t of immunity from %urisdiction inrespect of t"e proceedings relating to t"e dispute in&uestion to #"ic" suc" party mig"t ot"er#ise beentitled



Article 1 (Scope of Application)

• '"e nternational ureau of t"e PermanentCourt of Arbitration at t"e *ague s"allsere as registry for t"e proceedings and

proide secretariat serices+• '"e inolement of at least one State,State-controlled entity, orintergoernmental organi!ation as a party

to t"e dispute is not necessary for %urisdiction #"ere all t"e parties "aeagreed to settle a dispute under t"eseRules+



Article 2 (otice and Calculations ofPeriods of 'ime)

• may be transmitted by any means ofcommunication t"at proides or allo#s for arecord of its transmission

• f an address "as been designated by a partyspeci$cally for t"is purpose or aut"ori!ed byt"e arbitral tribunal, any notice s"all bedeliered to t"at party at t"at address, and ifso deliered s"all be deemed to "ae been

receied+• eliery by electronic means suc" as

facsimile or e-mail may only be made to anaddress so designated or aut"ori!ed



Article . (umber ofArbitrators)

• f t"e parties "ae not preiously agreed on t"e number ofarbitrators,

• and if #it"in /0 days after t"e receipt by t"e respondent oft"e notice of arbitration t"e parties "ae not agreed ont"enumber of arbitrators

• / arbitrators s"all be appointed

• ot#it"standing t"e preceding statements, if no ot"erparties "ae responded to a partys proposal to appoint asole arbitrator #it"in t"e time limit proided and t"e partyor parties concerned "ae failed to appoint a second

arbitrator in accordance #it" articles or 10, t"e appointingaut"ority may, at t"e re&uest of a party, appoint a solearbitrator pursuant to t"e procedure proided for in article, paragrap" 2 if it determines t"at, in ie# of t"ecircumstances of t"e

case, t"is is more appropriate



Article (Appointment ofArbitrators)

• f t"e parties "ae agreed t"at a sole arbitrator is tobe appointed and if #it"in /0 days after receipt by allot"er parties of a proposal of an indiidual #"o #ouldsere as a sole arbitrator t"e parties "ae not reac"edagreement t"ereon, a sole arbitrator s"all, at t"ere&uest of a party, be appointed by t"e appointingaut"ority

• appointing aut"ority s"all appoint t"e sole arbitratoras promptly as possible

•

t"e appointing aut"ority s"all use t"e follo#ing list-procedure, unless t"e parties agree t"at t"e list-procedure s"ould not be used or unless t"e appointingaut"ority determines in its discretion t"at t"e use oft"e list-procedure is not appropriate for t"e case



Article 10(Appointment ofArbitrators)

• n t"e eent of any failure to constitute t"earbitral tribunal under t"ese Rules, t"eappointing aut"ority s"all, at t"e re&uest ofany party, constitute t"e arbitral tribunal and,

in doing so, may reo3e any appointmentalready made and appoint eac" of t"earbitrators and designate one of t"em as t"epresiding arbitrator+

• n appointing arbitrators pursuant to t"eseRules, t"e parties and t"e appointing aut"ority are free to c"oose persons #"o arenot 4embers of t"e Permanent Court of

Arbitration+



Article 12 (isclosure andC"allenge of Arbitrators)• Any arbitrator may be c"allenged if

circumstances e5ist t"at gie rise to %usti$abledoubts as to t"e arbitrators impartiality orindependence

• A party may c"allenge t"e arbitrator appointedby it only for reasons of #"ic" it becomes a#areafter t"e appointment "as been made

• n t"e eent t"at an arbitrator fails to act or in

t"e eent of t"e de jure or de facto impossibilityof"is or "er performing "is or "er functions, t"eprocedure in respect of t"e c"allenge of anarbitrator as proided in article 1/ s"all apply



Article 12 (isclosure andC"allenge of Arbitrators)• f an arbitrator on a tribunal of t"ree, $e, or more

persons fails to participate in t"e arbitration, t"e ot"erarbitrators s"all, unless t"e parties agree ot"er#ise,"ae t"e po#er in t"eir sole discretion to continue t"earbitration and to ma3e any decision, ruling or a#ard,not#it"standing t"e failure of one arbitrator toparticipate+

• n determining #"et"er to continue t"e arbitration orto render any decision, ruling or a#ard #it"out t"eparticipation of an arbitrator, t"e ot"er arbitratorss"all ta3e into account t"e stage of t"e arbitration, t"ereason, if any, e5pressed by t"e arbitrator for suc"non-participation, and suc" ot"er matters as t"eyconsider appropriate in t"e circumstances of t"e case+



Article 1/ (isclosure andC"allenge of Arbitrators)• A party t"at intends to c"allenge an arbitrator

s"all send notice of its c"allenge #it"in /0 daysafter it "as been noti$ed of t"e appointment oft"e c"allenged arbitrator, or #it"in /0 days

after t"e circumstances mentioned in articles11 and 12 became 3no#n to t"at party

• notice of c"allenge s"all be communicated toall ot"er parties, to t"e arbitrator #"o is

c"allenged, to t"e ot"er arbitrators, and to t"enternational ureau+

• '"e notice of c"allenge s"all state t"e reasonsfor t"e c"allenge



Article 1/ (isclosure andC"allenge of Arbitrators)• n rendering a decision on t"ec"allenge, t"e appointing

aut"ority may indicate t"ereasons for t"e decision,unless t"e parties agree t"at

no reasons s"all be gien



Article 1 (Place of Arbitration)

• f t"e parties "ae not preiouslyagreed on t"e place of arbitration, t"eplace of arbitration s"all be determined

by t"e arbitral tribunal "aing regard tot"e circumstances of t"e case+

• '"e arbitral tribunal may meet at anylocation it considers appropriate for

deliberations+ 6nless ot"er#ise agreedby t"e parties, t"e arbitral tribunal mayalso meet at any location it considersappropriate for any ot"er purpose,including "earings



Article 2/ (Pleas as to

%urisdiction of t"e arbitral

tribunal)• '"e arbitral tribunal s"all "ae t"epo#er to rule on its o#n %urisdiction,including any ob%ections #it" respect to

t"e e5istence or alidity of t"earbitration agreement

• A plea t"at t"e arbitral tribunal doesnot "ae %urisdiction s"all be raised no

later t"an in t"e statement of defenceor, #it" respect to a counterclaim or aclaim for t"e purpose of a set-o7, in t"ereply to t"e counterclaim or to t"eclaim for t"e purpose of a set-o7

i l



Article 2/ (Pleas as to

%urisdiction of t"e arbitral

tribunal)• '"e arbitral tribunal may rule on a pleareferred to in paragrap" 2 eit"er as apreliminary &uestion or in an a#ard on

t"e merits+ '"e arbitral tribunal maycontinue t"e arbitral proceedings andma3e an a#ard, not#it"standing anypending c"allenge to its %urisdiction

before a competent aut"ority+



Article 28(nterim 4easures)

• An interim measure is any temporarymeasure by #"ic", at any time prior tot"e issuance of t"e a#ard by #"ic" t"e

dispute is $nally decided, t"e arbitraltribunal orders a party, for e5ampleand #it"out limitation, to9

• (a) 4aintain or restore t"e status &uo

pending determination of t"e dispute:• (b) 'a3e action t"at #ould preent, or

refrain from ta3ing action t"at is li3ely

to cause,



Article 2.(;idence)

• ;ac" party s"all "ae t"e burden ofproing t"e facts relied on to supportits claim or defence



Article /2(<aier of Rig"t to

=b%ect)

• A failure by any party to ob%ectpromptly to any non-compliance #it"t"ese Rules or #it" any re&uirement of

t"e arbitration agreement s"all bedeemed to be a #aier of t"e rig"t ofsuc" party to ma3e suc" an ob%ection,unless suc" party can s"o# t"at, under

t"e circumstances, its failure toob%ect#as %usti$ed+



Article />(?orm and e7ect of

a#ard)

• '"e arbitral tribunal may 0on di7erentissues at di7erent times

• All a#ards s"all be made in #riting and

s"all be $nal and binding on t"eparties+ '"e parties s"all carry out alla#ards #it"out delay+



Article /@(Applicable a#)

• '"e arbitral tribunal s"all apply t"erules of la# designated by t"e parties as applicable to t"e substance of t"e

dispute



Article /8(Settlement or ot"er

grounds for termination)

• before t"e a#ard is made, t"e parties agreeon a settlement of t"e dispute, t"e arbitraltribunal s"all eit"er issue an order for t"etermination of t"e arbitral proceedings or, if

re&uested by t"e parties and accepted by t"earbitral tribunal, record t"e settlement in t"eform of an arbitral a#ard on agreed terms+

• f, before t"e a#ard is made, t"e continuation

of t"e arbitral proceedings becomesunnecessary or impossible for any reason notmentioned in paragrap" 1, t"e arbitraltribunal s"all inform t"e parties of its

intention to issue an order for t"e terminationof t"e proceedings



Article /.(nterpretation of

a#ard)

• <it"in /0 days after t"e receipt oft"e a#ard, a party, #it" notice tot"e ot"er parties and

t"enternational ureau, mayre&uest t"at t"e arbitral tribunalgie an interpretation of t"e

a#ard• '"e interpretation s"all be gienin #riting #it"in >@ days after t"e

receipt of t"e re&uest+



Article >2 (Allocation of Costs)

• '"e costs of arbitration s"all inprinciple be borne by t"e unsuccessful party or parties+

• '"e arbitral tribunal s"all in t"e $nala#ard or, if it deems appropriate, inany ot"er a#ard, determine anyamount t"at a party may "ae to pay

to anot"er party as a result of t"edecision on allocation of costs++



Article >/ (eposit of Costs)

• '"e nternational ureau, follo#ing t"ecommencement of t"e arbitration, mayre&uest t"e parties to deposit an e&ual

amount as an adance for t"e costs• After a termination order or $nal a#ard

"as been made, t"e nternationalureau s"all render an accounting to

t"e parties of t"e deposits receiedand return any une5pended balance tot"e parties+

permanent court of arbitration rules

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