Jumat, November 18, 2016

SIAC Rules 2016: A Breakthrough in Singapore?s Arbitration Procedures

Marcell Sihombing, Nanda Narendra Putra

ojk

SIAC Rules 2016 Roadshow in Jakarta. Photo by: NNP.

In a bid to cement its leading position in the field of international arbitration, the Singapore International Arbitration Centre (SIAC) has just released the sixth edition of the SIAC Arbitration Rules (SIAC Rules 2016), which incorporate a number of innovative and improved provisions when compared with the existing SIAC arbitration procedures, specifically SIAC Rules 2013. SIAC Rules 2016 came into force on 1 August 2016 and offer clients an updated set of procedures which are timely, efficient, cost-effective, user-friendly, and which also accommodate the interests and demands of clients, regardless of their relevant legal systems and cultural backgrounds, as they relate to the settlement of any disputes through the SIAC.

Based on Hukumonline’s observations, here is a brief summary of eight key changes which have been stipulated under the new SIAC Rules 2016:

1.	Multiple Contracts and Consolidations(Rule 6 & Rule 8) Due to the growing complexity of commercial disputes nowadays, SIAC Rules 2016 have introduced an increasingly streamlined process for any disputes which arise out of, or in connection to, multiple contracts. A disputing party will now have two options when dealing with this type of dispute. The first option is to file multiple notices of arbitration, one for each contract, and concurrently submit an application for consolidation. A second option, on the other hand, allows for any disputing parties to file single notices of arbitration for all such contracts, under the assumption that said party has commenced multiple arbitrations, one in respect of each contract, and that the abovementioned notice of arbitration shall be deemed to be an application to consolidate all such arbitrations. SIAC Rules 2016 also introduce a unique consolidation process whereby a party may apply to the SIAC court of arbitration for the consolidation of multiple arbitrations prior to the constitution of any tribunal, or apply directly to the tribunal in cases where a tribunal has already been constituted.
2.	Joinder of Additional Parties(Rule 7) SIAC Rules 2016 allow for both parties and non-parties to apply to take part in a given arbitration process, and such applications may be made either prior to or after the constitution of the relevant tribunal.
3.	Early Dismissal of Claims and Defenses (Rule 28) The SIAC also claims to be the first major commercial arbitration center to have introduced a procedure for the early dismissal of claims and defenses. This procedure has been established in order to provide the opportunity for any disputing parties to respond to claims or defenses which have been proven to not have any legal merit outside the jurisdiction of the tribunal, and also has the potential to offer significant savings in both time and costs. However, in order to provide a safeguard against any unmeritorious applications, the tribunal retains the discretion to decide whether or not an application for early dismissal should be allowed to proceed or not.
4.	Delocalizing the Seat of Arbitration(Rule 20) Given the increasingly international nature of SIAC cases and the diversity of clients’ origins, Singapore will no longer be the default seat of arbitration under the SIAC Rules 2016. Instead, the determination of the seat of arbitration will be left for the relevant tribunal to decide, unless the relevant parties agree otherwise. It should be noted, however, that Singapore will remain the default seat of arbitration in cases of emergency arbitration proceedings, unless the relevant parties agree otherwise.
5.	Remedy Against Non-Paying Parties(Rule 26) SIAC Rules 2016 expressly specify that the tribunal has the power to issue an order or award for the reimbursement of any unpaid deposits as regards the costs of the arbitration process, and that any such order or award should be incorporated into the arbitration award.
6.	Enhancement of Emergency-Arbitration Proceedings(Rule 29, Schedule 1 & Schedule of Fees) In order to further increase the speed of emergency-arbitration proceedings, SIAC Rules 2016 have now shortened the time required for the appointment of an emergency arbitrator to within one day of the receipt by the relevant registrar of any application for emergency interim relief and the payment of any administration fees and deposits, rather than one business day. SIAC Rules 2016 also state that any order or award of interim relief must be issued within a maximum of 14 days from the appointment of the emergency arbitrator. Additionally, in order to ensure that emergency-arbitration proceedings are cost effective for all kinds of cases, emergency-arbitrator fees have now been fixed at SGD 25,000, unless otherwise determined by the registrar.
7.	Expanding and Refining the Expedited Procedure(Rule 5) The expedited procedure which was first introduced in 2010, has quickly developed into one of the SIAC’s most popular procedures in terms of its ability to save both time and costs. In order to allow more cases to make use of this mechanism, the monetary threshold for the applicability of the expedited procedure has now been raised from SGD 5 million to SGD 6 million under SIAC Rules 2016. Furthermore, in keeping with the objective of expediting proceedings, SIAC Rules 2016 grant tribunals the discretion to determine whether a case which is being conducted under the expedited procedure is to be decided on the basis of documentary evidence only after a consultation session with the disputing parties has been completed. Finally, SIAC Rules 2016 also clarify that in the event of any conflict that emerges between the terms of the arbitration agreement and the provisions set out under the expedited procedure, the latter will apply.
8.	Arbitrator Challenges(Rule 15 & Schedule of Fees) SIAC Rules 2016 have now adopted a procedure whereby the arbitration tribunal will issue reasoned decisions on all challenges which relate to the arbitrators. Moreover, in order to provide certainty for users, as well as to save time, the administrative fees which are payable for arbitrator challenges have now been fixed at SGD 8000.

(cd/sp)

Indonesian Version

Marcell Sihombing, Nanda Narendra Putra

ojk

SIAC Rules 2016 Roadshow in Jakarta. Photo by: NNP.

1.	Multiple Contracts and Consolidations(Rule 6 & Rule 8) Due to the growing complexity of commercial disputes nowadays, SIAC Rules 2016 have introduced an increasingly streamlined process for any disputes which arise out of, or in connection to, multiple contracts. A disputing party will now have two options when dealing with this type of dispute. The first option is to file multiple notices of arbitration, one for each contract, and concurrently submit an application for consolidation. A second option, on the other hand, allows for any disputing parties to file single notices of arbitration for all such contracts, under the assumption that said party has commenced multiple arbitrations, one in respect of each contract, and that the abovementioned notice of arbitration shall be deemed to be an application to consolidate all such arbitrations. SIAC Rules 2016 also introduce a unique consolidation process whereby a party may apply to the SIAC court of arbitration for the consolidation of multiple arbitrations prior to the constitution of any tribunal, or apply directly to the tribunal in cases where a tribunal has already been constituted.
2.	Joinder of Additional Parties(Rule 7) SIAC Rules 2016 allow for both parties and non-parties to apply to take part in a given arbitration process, and such applications may be made either prior to or after the constitution of the relevant tribunal.
3.	Early Dismissal of Claims and Defenses (Rule 28) The SIAC also claims to be the first major commercial arbitration center to have introduced a procedure for the early dismissal of claims and defenses. This procedure has been established in order to provide the opportunity for any disputing parties to respond to claims or defenses which have been proven to not have any legal merit outside the jurisdiction of the tribunal, and also has the potential to offer significant savings in both time and costs. However, in order to provide a safeguard against any unmeritorious applications, the tribunal retains the discretion to decide whether or not an application for early dismissal should be allowed to proceed or not.
4.	Delocalizing the Seat of Arbitration(Rule 20) Given the increasingly international nature of SIAC cases and the diversity of clients’ origins, Singapore will no longer be the default seat of arbitration under the SIAC Rules 2016. Instead, the determination of the seat of arbitration will be left for the relevant tribunal to decide, unless the relevant parties agree otherwise. It should be noted, however, that Singapore will remain the default seat of arbitration in cases of emergency arbitration proceedings, unless the relevant parties agree otherwise.
5.	Remedy Against Non-Paying Parties(Rule 26) SIAC Rules 2016 expressly specify that the tribunal has the power to issue an order or award for the reimbursement of any unpaid deposits as regards the costs of the arbitration process, and that any such order or award should be incorporated into the arbitration award.
6.	Enhancement of Emergency-Arbitration Proceedings(Rule 29, Schedule 1 & Schedule of Fees) In order to further increase the speed of emergency-arbitration proceedings, SIAC Rules 2016 have now shortened the time required for the appointment of an emergency arbitrator to within one day of the receipt by the relevant registrar of any application for emergency interim relief and the payment of any administration fees and deposits, rather than one business day. SIAC Rules 2016 also state that any order or award of interim relief must be issued within a maximum of 14 days from the appointment of the emergency arbitrator. Additionally, in order to ensure that emergency-arbitration proceedings are cost effective for all kinds of cases, emergency-arbitrator fees have now been fixed at SGD 25,000, unless otherwise determined by the registrar.
7.	Expanding and Refining the Expedited Procedure(Rule 5) The expedited procedure which was first introduced in 2010, has quickly developed into one of the SIAC’s most popular procedures in terms of its ability to save both time and costs. In order to allow more cases to make use of this mechanism, the monetary threshold for the applicability of the expedited procedure has now been raised from SGD 5 million to SGD 6 million under SIAC Rules 2016. Furthermore, in keeping with the objective of expediting proceedings, SIAC Rules 2016 grant tribunals the discretion to determine whether a case which is being conducted under the expedited procedure is to be decided on the basis of documentary evidence only after a consultation session with the disputing parties has been completed. Finally, SIAC Rules 2016 also clarify that in the event of any conflict that emerges between the terms of the arbitration agreement and the provisions set out under the expedited procedure, the latter will apply.
8.	Arbitrator Challenges(Rule 15 & Schedule of Fees) SIAC Rules 2016 have now adopted a procedure whereby the arbitration tribunal will issue reasoned decisions on all challenges which relate to the arbitrators. Moreover, in order to provide certainty for users, as well as to save time, the administrative fees which are payable for arbitrator challenges have now been fixed at SGD 8000.

(cd/sp)

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