Arbitration – Institution Rules Update

Japan Commercial Arbitration issues new sets of Arbitration Rules Japan Commercial Arbitration Association announced issuance of three sets of Arbitration Rules for public comments on 16th November, 2018. The evident motive for introduction of these new sets of rules is to change the offering of a unique arbitration model which is attractive to the wide range of businesses. These new sets of rules will come into force on 1 January 2019. The new set of rules are as follows:

1. Amended Administrative Rules for UNCITRAL Arbitration:

These are formulated for the most complex and high value international disputes. These Rules allow the Japan Commercial Arbitration Association to conduct arbitration under the UNCITRAL Arbitration Rules 2010.

2. Amended Commercial Arbitration Rules:

These are formulated where cost efficiency is a greater priority for the Parties. The amendments are targeted towards removal of inefficiencies in the arbitral proceedings. The major amendments introduced relates to ongoing duties for arbitrators to investigate potential conflicts of interest, detailed rules regarding the role of the Tribunal Secretary, right for the Tribunal to reject evidence submitted in an untimely manner, no disclosure of dissenting opinion and increase in scope of automatic expedited procedures to cover disputes up to JPY 50 million.

3. The Newly enacted Interactive Arbitration Rules:

These rules are formulated for parties who have cost efficiency as the greatest priority. Majorly these are similar to the Amended Commercial Arbitration Rules, they however differ in two aspects. First, under the Interactive Rules the arbitral tribunal has to adopt Inquisitorial approach. Second, the fees of the Arbitrator is fixed and depends upon the value of the claim and the counter claim.