The New Rules codify procedural tools for parties and arbitral tribunals to effectively manage arbitrations both before and after the appointment of the arbitral tribunal, including the ability to apply new simplified procedures for disputes of different values; the coordination of multiple related arbitrations; and other tools to achieve the goal of the expeditious and cost-effective resolution of arbitration disputes.
Innovations
The main innovations of the New Rules are:Streamlined procedureRule 13, Schedule 2 of the New Rules for considering certain categories of disputes
Most arbitration rules provide for special dispute resolution procedures aimed at simplifying the arbitration procedure so that it can be completed in a shorter period and at a lower legal cost.
In addition to the already existing expedited arbitration procedureProvides for the appointment of a sole arbitrator to resolve the dispute on the basis of written documents and to adopt a final award within six months of the appointment of the arbitrator, provided that (i) the parties have agreed to an expedited procedure; or (ii) if the amount in dispute does not exceed
- the parties have agreed to the application of the streamlined procedure; or
- the amount in dispute in the arbitration does not exceed the equivalent amount of
SGD1 million (USD740 000), unless SIAC determines upon application of a party that the streamlined procedure shall not apply to the arbitration.
As a rule, the streamlined procedure provides for the consideration of the dispute on the basis of written submissions and any accompanying documentary evidence; does not include requests for document production; does not allow to file any fact or expert witness evidence and no hearing shall be conducted. The final award shall be made within three months from the date of constitution of the arbitral tribunal, unless the Registrar extends the time for making such final award.
It is important to remember that under the New Rules, the rules of the streamlined procedure apply and take precedence over any inconsistent or contrary terms in the arbitration agreement including a term providing for the appointment of an arbitral tribunal comprising more than one arbitrator.
The new procedure should provide for the more efficient resolution of minor disputes before the SIAC.
Improvement of the procedure for obtaining interim reliefRule 12.1 and Schedule 1 of the New Rules
The New Rules simplify and supplement the rules governing procedures for obtaining urgent interim measure. In particular, applicants may now apply for the appointment of an emergency arbitrator before filing a notice of arbitration, provided that the notice is filed within seven days of the application.
Parties may also now request interim relief prior to notice to the respondent. Such applications will be decided by the emergency arbitrator within 24 hours of his/her appointment.
This is a significant advantage of the New Rules, as all major arbitration rules that allow for the appointment of an emergency arbitrator provide for interim measure to be considered with notice to the other party and the right to state its position, which, of course, delaysThe shortest timeframe for the emergency arbitrator to consider the application was provided for in the SCC Arbitration Rules and was five days from the date of
Preliminary determination of individual issues prior to final awardRule 46 of the New Rules
The New Rules authorise the arbitral tribunal to rule on individual issues before the final award on the merits of the dispute is adopted. This will allow for the efficient resolution of complex disputes involving interlocutory issues that the arbitral tribunal must resolve in order to render a final award. These may include, for example, determining the applicable law, interpreting certain disputed contractual provisions, recognising the agreement as binding, etc.
The ground for a preliminary determination is an application by one of the parties to the arbitration. The applicant is able to demonstrate that:
- the parties agree that the arbitral tribunal may determine such an issue on a preliminary basis; or
- the determination of the issue on a preliminary basis is likely to contribute to savings of time and costs and a more efficient and expeditious resolution of the dispute; or
- the circumstances of the case otherwise warrant the determination of the issue on a preliminary basis.
The ability to resolve individual interlocutory issues may reduce the time and cost of the arbitration proceedings, as it may eliminate the need for alternative arguments due to uncertainty about one of the interlocutory issues.
Coordination of arbitration proceedingsRule 17 of the New Rules
The New Rules introduce a mechanism to coordinate the resolution of related disputes where the composition of the arbitral tribunal is identical. A party may apply to the arbitral tribunal for the arbitrations to be coordinated such that (i) the arbitrations shall be conducted concurrently or sequentially; (ii) the arbitrations shall be heard together and any procedural aspects shall be aligned; and (iii) any of the arbitrations shall be suspended pending a determination in any of the other arbitrations.
Rules on the coordination of arbitrations can help in complex financial or construction disputes where the joinder or consolidation of claims is not in the interests of the participants of the dispute and reduce the risks of conflicting awards.
Third party funding disclosureRule 38 of the New Rules
The New Rules require parties to disclose the existence of any third-party funding agreement and the identity and contact details of the third-party funder.
The New Rules also prescribe that, once an arbitral panel has been constituted, a party may not enter into a third-party funding agreement that could result in a conflict of interest with any member of the arbitral tribunal.
Third-party disclosure rules can eliminate the potential for conflicts of interest and expedite the arbitration of disputes.
Other features of the New Rules
The New Rules also provide for:
- the possibility to refer the issue of prima facie jurisdiction to the SIAC prior to the formation of the arbitral tribunalRule
8.1 of the New Rules; - the possibility to hold an administrative conference prior to the constitution of the arbitral tribunal to discuss any procedural or administrative mattersRule 11 ofRule the New Rules;
- the ability of the arbitral tribunal to take action to ensure cybersecurity, including issuing an order or award for sanctions, damages, or costs, if a party does not take necessary steps to comply with the information security measures agreed by the parties and/or directed by the arbitral tribunalRule 61 of the New Rules; and
- a 90-day periodRule
53.2 of the New Rules from the date of submission of the last directed oral or written submission in respect of the proceedings for the arbitral tribunal to submit a draft award to SIAC for review, unless the Registrar determines otherwise.
The SIAC New Rules should facilitate more efficient (both in terms of time and cost to the parties) consideration of international commercial disputes. Interestingly, the New Rules go beyond stating that arbitrators have certain powers and sometimes oblige them to act at the request of a party to the proceedings (as in the case of the resolution of certain issues). Therefore, it gives party representatives an even wider arsenal to flexibly adapt the procedure to the needs of a particular case.
Although Singapore is technically an “unfriendly” country in terms of Russian regulation, Russian parties should carefully consider incorporating SIAC clauses into their cross-border transactions. In practice, the SIAC ensures the quality and independent resolution of commercial disputes involving parties from any jurisdiction.
