The benefits of arbitration

1

The procedural flexibility of arbitration

The parties establish a tribunal which is adapted to their dispute and agree on the procedural arrangements, in accordance with principles of public order, including the respect of adversarial proceedings. 

2

The time saving aspect of Arbitration.

Compared to judicial litigation, arbitration shortens the average delay of dispute resolution. A predicted delay is established by the parties before the beginning of the proceedings and the arbitrators agree on the procedure, in theory without appeal, unless agreed otherwise. The setting aside of arbitral awards is limited to narrow conditions, established by law, and the enforcement of awards is made easier. 

3

A better management of costs in Arbitration.

By avoiding the hazards of judicial litigation and by choosing to adapt the proceedings to their dispute, parties can limit procedural costs.

4

The safety offered by Arbitration.

In an international environment, arbitration eliminates the risk of conflicting jurisdictions. Therefore, it offers much more security than judicial litigation.

5

The parties choose one or more arbitrators.

Parties are free to nominate professionals familiarized to the particularities of each dispute as arbitrators. These individuals can be specialists and experts in different judicial and technical area connected to the dispute.

Discover Arbitration

Why resort to arbitration? Regardless of its size, each company can resort to arbitration to resolve a dispute born form a commercial transaction.

Resulting to arbitration comes from the parties’ choice.

The decision to result to arbitration happens at two key moments:

  • During the conclusion of the contract 
  • After the dispute is bor

In the first case, instead of the clause which, at the end of the contract, establishes the tribunal with jurisdiction in case of a dispute, the parties incorporate an “arbitration clause”. 

This clause stipulates that any dispute resulting from the contract will be dealt with arbitration, and which procedural rules will apply.

In the second case, the parties conclude an “arbitration agreement”. The agreement is an independent contract in which the parties give jurisdiction to arbitrators in an already born dispute. It must hold three elements: a presentation of the dispute, the designation of one or more arbitrators and the will to have the dispute ruled by arbitration.

RESULTING TO ARBITRATION

Arbitration clause example: 

“Any dispute arising in connection with this contract shall be resolved by arbitration under the aegis of the PARIS INTERNATIONAL COURT OF ARBITRATION (6 avenue Pierre 1er de Serbie, 75116 Paris, tel: 01.42.36.99.65), in accordance with its Rules, which the parties declare to know and accept”.

THE PROCEEDINGS

Arbitration is having a dispute settled by arbitrators chosen by the parties whose award has similar effects to a decision reached by a jurisdiction.  

The process is simple, fast and its cost is predictable. 

For each dispute, the Paris International Court of Arbitration forms an arbitral tribunal and is in charge of supervising the proceedings. 

Three different types of proceedings exist: ordinary procedure / emergency procedure/ expedited procedure

By seizing the Paris International Court of Arbitration, the parties decide to apply its Rules of arbitration which present the practical aspects of arbitration proceedings.

These Rules take into account applicable law and precedents. 

As a matter of exception, the parties can request the application of, specific Rules of arbitration, developed in conjunction with the Paris International Court of Arbitration. The capacity to “taylor-make” dispositions is one of the Court’s particularity. The CAIP is of course dedicated in periodically updating these industries’ specific rules.

At a practical level, the Court makes available to the parties, besides its Rules of Arbitration and a list of national and international arbitrators:

  • A permanent secretary, composed of legal experts specialized in arbitration, talking several languages, in charge of organizing the proceedings 
  • hearing rooms located in the center of Paris

By doing so, the Paris International Court of Arbitration brings great serenity to the parties. Since arbitral proceedings are confidential, neither the existence, the content of the proceedings nor the deliberation, the decision and the award rendered by the tribunal will be disclosed.

It is worth noting that the CAIP acts in accordance with the  Ethical Charter of the Federation of Arbitral Centers.


THE ARBITRATORS

The parties chose their arbitrators.

The CAIP offers a list of arbitrators specialized in different areas. The parties are of course entitled to nominate an arbitrator that is not on the CAIP’s list.

In general, the dispute is brought before an arbitral tribunal composed of three arbitrators. By way of exception, the parties can contractually agree on the intervention of a sole arbitrator or do so during the course of the dispute, which is very rare in practice. 

The arbitral tribunal hands in a decision, called award, which is binding on the parties and puts an end to the dispute.

The Paris International Court of Arbitration takes great care in handing down awards as promptly as possible. Arbitral proceedings last an average of three months and a half, depending on the claimant’s diligence and the complexity of the dispute. This delay can be shortened by using the emergency procedure. For less than 100.000 € disputes, the Rules of arbitration of the CAIP allow for the use of the expedited procedure. In practice, the award is then rendered in a delay of a month and a half. 

The Rules of Arbitration

The Rules of the Paris International Court of Arbitration define all regulations applicable to arbitral proceedings.

They are adapted to all types of disputes in connection to commercial exchanges and correspond to national or international companies’ needs.

Updated in 2021, the Rules of Arbitration of the CAIP leave room for more party autonomy in the designation of arbitrators. The procedure is by principle dematerialized. The emergency procedure is made more efficient. Finally, the effectivity of conservatory or interim measures is guaranteed.

ARBITRAL PROCEEDINGS

The Rules of Arbitration of the Paris International Court of Arbitration provides for three distinct proceedings.

THE ORDINARY PROCEDURE


The Paris International Court of Arbitration offers a single degree procedure, unless agreed otherwise by the parties. The procedure is simple and not too formal but always adversarial.

In the event of complex arbitral proceedings, Terms of Reference and a procedural calendar are established to help the parties exchange easily and promptly while avoiding successive referrals, in order to hear the merits of the case at an early date. 

EMERGENCY PROCEDURE


The emergency procedure provides for a case to be heard immediately by an arbitral tribunal composed of three arbitrators, subject to the discretionary power of the CAIP’s Chairman in this matter.

Within a three month period, the arbitral tribunal rules on the case. The arbitrators can decide on the basis of documents at the parties’ request. 

EXPEDITED PROCEDURE


The expedited procedure is the prompt arbitration procedure. It is applicable to any claim which is less than or equal to 100.000 €.

The award is handed in a maximum period of four months. This procedure is led by a sole arbitrator, nominated by the CAIP, who rules on the basis of documents, fairly and finally on the dispute. 

SPECIFIC RULES OF ARBITRATION

Through a diversity of active partnerships with associations, syndicates and professional federations, the CAIP orchestrates the creation of specific rules of arbitration adapted to the particular practices and customs of several industries.

The CAIP also implements:

  • International arbitrations, governed by the rules of the United Nation Commission on International Trade (UNCITRAL)
  • Ad hoc arbitrations, for which it provides its services and experience to arbitrators who are exercising their mission through a non-institutional form. 

The CAIFL Rules of Arbitration

The International Court of Arbitration for Fruits and Vegetables (CAIFL) was created in 1967 by the European Union of Wholesale


The FFF Rules of Arbitration

Drafted in partnership with the French Franchise Federation (F.F.F.), these Rules of Arbitration are specific to the franchise sector.


The ACPI Rules of Arbitration

Created in collaboration with the Association of Intellectual Property Attorneys (ACPI), these Rules of Arbitration are applicable to all disputes related to intellectual property.


The CAP – ACAREF Rules of Arbitration

Developed particularly for financial disputes, these Rules of Arbitration where drafted in 1998, with the Regional Association of Conciliation, Mediation and Arbitration of Ile-de-France Accountants (ACAREF).

THE ARBITRATORS

The Paris International Court of Arbitration makes available to the parties a list of national and international arbitrators. Of course, the parties have the possibility to nominate an arbitrator who is not on that list.

The arbitrators nominated by each party can be of French or foreign nationality. If the parties do not nominate an arbitrator, the CAIP does it in order to avoid unnecessary delay in the procedure. The designated arbitrators are chosen for their experience, their professional and their legal knowledge. All of them are renowned specialists of arbitral proceedings.

To guaranty each award’s excellence, the CAIP offers the intervention of arbitrators specialized in: 

  • the legal sector
  • the commercial and food industry sector
  • the accounting and finance sector
  • the franchise sector
  • the technical sector
  • the construction sector
  • the railway and logistic sector. 

ARBITRATORS’ INDEPENDANCE AND IMPARTIALITY 

Arbitrators are independent and impartial from the moment they have accepted their nomination. They remain so until the final award is handed down or when the proceedings comes to an end. When he or she accepts the mission, the arbitrator must submit to the CAIP a declaration of acceptance, availability, impartiality and independence to the Court.

BECOME AN ARBITRATOR

If, as an arbitrator, you wish to intervene before the Paris International Court of Arbitration, we invite you to submit your application by sending us the following details:


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INITIATION OF THE PROCEEDINGS

The request for arbitration must mention:

  • the names, postal address and, to the extent possible, electronic contact details of each of the parties and, where applicable, their respective representatives and lawyers.
  • a summary statement of the facts in dispute, the measures requested and, as far as possible, a quantified estimate of the claims, as well as the arbitration agreement.

The response to the request of arbitration:

The respondent’s response to the notification of the Request for Arbitration must be sent to the Court and to the claimant, no later than fifteen days before the date of the arbitral hearing notified to it. Furthermore, a counterclaim can be filed, no later than fifteen days before the date determined for the hearing. Any counterclaim gives the opportunity to the claimant in the main proceedings to postpone the hearing. 

NB: these delays are not applicable in the emergency procedure and the expedited procedure.

Rules of arbitration 2021’s innovations:

  • The arbitral proceedings are by principle dematerialized 
  • The intervention of a third party to the arbitral procedure is possible
  • The possibility to join to one arbitration proceedings, several arbitration proceedings.
  • The guaranty of greater confidentiality