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2020 | OriginalPaper | Chapter

1. Introduction

Author : Toms Krūmiņš

Published in: Arbitration and Human Rights

Publisher: Springer International Publishing

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Abstract

At a time of a lively debate on the necessity of setting-aside proceedings in contemporary framework of international commercial arbitration, this book provides a novel contribution to that debate from a somewhat unusual perspective—that of arbitrating parties’ procedural human rights and States’ obligations under the European Convention on Human Rights (ECHR). Recently, more and more States have loosened their national arbitration laws and minimized judicial scrutiny over arbitration proceedings by allowing arbitrating parties to voluntary exclude setting-aside proceedings. Some have gone as far to statutorily exclude the annulment mechanism altogether. While seemingly enhancing arbitral efficiency, such approaches to excluding the annulment of arbitral awards equally raise concerns as to their compatibility with arbitrating parties’ most fundamental human rights, such as the right to a fair hearing and the right to an independent and impartial tribunal. By creatively synthesizing two seemingly disparate fields of law—arbitration and human rights, in particular under the ECHR, the present work seeks to identify the most balanced legislative approach from the standpoint of compatibility with the ECHR to excluding setting-aside proceedings under national arbitration law.

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Footnotes
1
Paulsson (2013), p. 30.
 
2
In institutional arbitration, whereby arbitration proceedings are administered by a party-chosen arbitral institution, some of the listed tasks are entrusted to and carried out primarily by the chosen arbitral institution pursuant to its procedural rules. Nevertheless, even in such cases national courts remain important players and are the only ones ‘possessing coercive powers which could rescue the arbitration if it is in danger of foundering’. See Lord Mustill in Copee Levalin NV v Ken-Ren Fertilisers and Chemicals [1994] 2 Lloyd’s Rep. 109 at 116, HL acknowledging that: ‘[t]here is plainly a tension here. On the one hand the concept of arbitration as a consensual process reinforced by the ideas of transnationalism leans against the involvement of the mechanisms of state through the medium of a municipal court. On the other side there is the plain fact, palatable or not, that it is only a Court possessing coercive powers which could rescue the arbitration if it is in danger of foundering’.
 
3
For a general overview of the different roles that national courts may play during the life-cycle of arbitration proceedings see, e.g. Kerr (1985), p. 34.
 
4
See, e.g. Roebuck and De Loynes de Fumichon (2004), p. 96.
 
5
Van den Berg (2014), p. 3.
 
6
Ibid., pp. 3–4.
 
7
When referring to the action of setting-aside these terms are used interchangeably. For examples of the different expressions used in national arbitration legislations see, e.g. Poudret and Besson (2006), p. 703. Hereinafter in this book judicial review of an arbitral award by means of setting aside proceedings will be interchangeably referred to as the ‘setting aside’, ‘challenge’ or ‘annulment’ of an arbitral award.
 
8
Park (2001), p. 595 et seq.
 
9
Sattar (2010), p. 73.
 
10
Craig (1988), p. 174.
 
11
Paulsson (2013), p. 144.
 
12
This view is taken from the famous case Société PT Putrabali Adyamulia v Société Rena Holding et Société Moguntia Est Epices, Cour de Cassation, 29 June 2007, 05-18.053 and represents the French school of thought.
 
13
Art. 192(1) of the PILA provides: ‘[w]here none of the parties has its domicile, its habitual residence, or a place of business in Switzerland, they may, by an express statement in the arbitration agreement or in a subsequent agreement in writing, exclude all setting aside proceedings, or they may limit such proceedings to one or several of the grounds listed in Article 190, paragraph 2.’.
 
14
See, e.g. Queen Mary University of London, White & Case (2018) 2018 International Arbitration Survey: The Evolution of International Arbitration, p. 9. http://​www.​arbitration.​qmul.​ac.​uk/​research/​2018/​. Accessed 21 May 2020.
 
15
Berger (1993), pp. 1–6. See also Illmer (2011), p. 646 citing a study that estimated ‘the total value of the fees generated by the main European arbitration centres not including ad hoc arbitration at around EUR 4 billion per year’.
 
16
Tabbane v. Switzerland, App. No. 41069/12, ECtHR, 1 March 2016.
 
17
Ibid., para. 36.
 
18
See, among other sources, Van den Berg (2014).
 
19
For Switzerland, see Van den Berg (2014), p. 15 Dasser (2007), p. 471. For Sweden, see, e.g., Heuman and Jarvin (2006), p. 536. Generally, see Chap. 5.
 
20
X. v. the Federal Republic of Germany, App. No. 1197/61, ECmHR, 5 March 1962.
 
21
See Sect. 3.​4.
 
22
Suovaniemi and others v. Finland, App. No. 31737/96, ECtHR, 23 February 1999.
 
24
See Sect. 4.​4.​1.
 
25
See Sect. 6.​2.
 
26
See, in particular, Jaksic (2002), pp. 285–318.
 
27
Born (2014), p. 3187.
 
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Metadata
Title
Introduction
Author
Toms Krūmiņš
Copyright Year
2020
DOI
https://doi.org/10.1007/978-3-030-54237-5_1