The ICC DISPUTE BOARD RULES

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The ICC DISPUTE BOARD RULES

• DRBF 6th Annual
• International Conference Programme
• Budapest 6-7 May 2006
• Presentation by
• Katherine González Arrocha
• Senior Counsel , ICC DRS

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ICC Dispute Resolution Services

• ARBITRATION
• -To obtain a final and binding decision from an
  independent tribunal
• EXPERTISE
• -To obtain an opinion on a financial, legal,
  technical matter or to solve a dispute through
  expert determination.
• DOCDEX
• - To obtain an opinion in disputes concerning
  documentary credits.
• ADR
• - To solve disputes amicably.
• DISPUTE BOARDS
• - To assist the parties in resolving their
  differences or disputes throughout the duration
  of the contract.

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The ICC Dispute Board Rules

• Product of Task Force on DBs of ICC Commission on
  Arbitration
• Entry into force 1 September 2004
• Languages published English, French and Spanish
• Available ICC Publication 829 (Free)
• Web site www.iccdisputeboards.org

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Contribution of the ICC

• Result of discussions of professionals from
  different parts of the world ICC provides
  procedural rules that incorporate current best
  practices internationally recognized.
• Disputes Boards are essentially found in the
  construction and engineering field. ICC DB rules
  have been conceived to be used in all contractual
  disputes arising in the course of mid- or
  long-term contracts. Therefore, they are applied
  not only on the long term engineering contracts
  but also on medium size projects as well as in
  other fields of business transactions.
• The ICC offers 3 Dispute Boards Tools and 3
  different kinds of DBs.

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ICC DISPUTE BOARD TOOLS

• The Rules ICC offers a comprehensive and
  flexible set of rules designed to govern the
  proceedings. They can be adapted to the
  particular needs of the parties (time and place).
• The ICC model Dispute Board Member Agreement
  containing
• DB members undertaking
• DB members remuneration
• The duration of the agreement
• The standard ICC Dispute Board Clauses consisting
  of three alternatives, each providing for a
  different type of Dispute Board.

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Differences between DRB, DBA and CDB approach

• DRB APPROACH
• A consensual and amicable process ending with a
  non binding recommendation
• The parties can accept or reject the
  recommendation
• DAB APPROACH
• A less consensual approach ending with binding
  decision
• The parties have to comply with the decision
• CDB APPROACH
• It offers an intermediate approach.
• The CDB normally issues recommendations with
  respect to any dispute referred to it but may
  issue a Decision.

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Advantages of DRB, DAB and CDB approaches

• DISPUTE REVIEW BOARD
• - The DRB can devise solutions which avoid
  'win-lose' situations.
• - Statistics indicate that DRB decisions are
  generally accepted by both parties.
• DISPUTE ADJUDICATION BOARD
• - Decisions are effectively enforceable as a
  term of the contract.
• - The panel can prevent future disputes between
  the parties.
• COMBINED DISPUTE BOARD
• - Combines the advantages of both systems
  according to different situations.

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ICC DISPUTE BOARD CENTRE

• Providing administrative services to the
  parties
• 1. Appointment of DB members
• 2. Decisions upon challenges
• 3. Revision of Decisions.

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Salient characteristics of ICC Dispute Board
Rules

• Flexibility -Do not impose a particular type of
  Dispute Boards.
• Offer 3 different tools to manage proceedings.
• Possibility to have recourse to ICC Centre for DB
  to resolve problems possibility to request
  scrutiny of decisions.

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Advantages of DBs

• The parties can choose the DB members having the
  characteristics and qualifications
  required by them (technical, legal, financial,
  accounting, engineering, etc...).
• Immediate action / Perfect knowledge of the
  contract DB members can intervene at any moment
  of the execution of the contract, allowing to
  resolve problems as they arise and also helping
  to avoid the deterioration of the relationship
  between the parties.
• Reducing costs By giving recommendations, DB
  permit the parties to reconsider their respective
  positions and to modify, if necessary, the
  contract between the parties, thus reducing
  costs.   

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Additional information

• ICC Dispute Board Centre
• 38, cours Albert 1er
• 75008 Paris
• France
• Tel. [phone]
• Fax number 33.1.49.53.29.29
• Email disputeboards_at_iccwbo.org
• Website www.iccdisputeboards.org