DAC ARBITRATION

DAC Arbitration assures the best quality of service. That’s because it is delivered by a trusted institution and a process that is recognised and respected as the benchmark for international dispute resolution. From straightforward sales contracts to intellectual property matters, joint ventures, share purchase arrangements or state-financed construction projects—whatever the case—we can assist in resolving disputes of all sizes.

While maintaining strict neutrality, our DAC Office and other regional offices are available via telephone or email to answer questions. Although we are happy to provide information, all DAC Offices’ work is strictly confidential. Neither we nor any part of DAC will disclose information concerning a case except to those involved. Anyone can benefit from DAC Arbitration’s flexibility and effectiveness. The only requirement is that parties to a contract, treaty or separate arbitration agreement need to consent to use DAC Arbitration. This is handled through a contract or treaty before a dispute arises. However, it may happen after a dispute has taken place as well.

Unrivalled in experience and expertise, we are a leading international arbitration institution. We administer DAC arbitrations, overcome obstacles in proceedings and strive to ensure DAC awards are enforceable.

Like all DAC dispute resolution services, we base our arbitration solutions on rules that follow international best practice. We update these rules regularly and translate them into many languages to stay current with today’s business needs. We have made these rules short, adaptable and simple for use in virtually any type of procedure.

Constitution of the Arbitral Tribunal

The DAC may appoint a sole arbitrator notwithstanding any contrary provision of the arbitration agreement. The DAC may appoint three arbitrators if appropriate in the circumstances and shall make every effort to make sure that the award is enforceable at law.

Unlike other institutions, we monitor the entire arbitral process—from the initial request for arbitration to scrutiny of the draft final award. If it is necessary to enforce an DAC Award, we can also assist parties in complying with the required formalities.

PROCEDURE

The procedure is simplified:

The date on which the “Request for Arbitration” is received by the DAC office it will be deemed the start date of the arbitration.

By agreeing to arbitration under the DAC Rules, the parties agree that the Expedited Procedure Provisions shall take precedence over any contrary terms of the arbitration agreement.

• Emergency Arbitrator Provisions

A party that needs urgent interim or conservatory measures and cannot await the constitution of an Arbitral Tribunal may apply for emergency relief in accordance with the Emergency Arbitrator Provisions. The application can be submitted at the same time, before or after the “Request for Arbitration.” However, no emergency arbitrator shall be appointed after the file has been transmitted to the Arbitral Tribunal.

The Emergency Arbitrator Provisions do not apply if:

  •  The parties have opted out of the Emergency Arbitrator Provisions; or
  •  The parties have agreed to another pre-arbitral procedure that provides for the granting of conservatory, interim or similar measures.

Furthermore, the Emergency Arbitrator Provisions apply only to parties that are either signatories of the arbitration agreement.

Transmission of File

The Arbitral Tribunal is responsible for running proceedings and deciding on the merits of the dispute.

Transmitting the file to the Arbitral Tribunal

Once the Arbitral Tribunal has been constituted the DAC transmits the file to the Arbitral Tribunal. Accordingly, the parties should correspond directly with the Arbitral Tribunal in reference to their Disputes.

Once the file has been transmitted to it, the Arbitral Tribunal is responsible for running the proceeding and deciding on the merits of a dispute. However DAC monitor the arbitral process from start to finish, making sure that cases run smoothly and correctly. They review the progress of each case to ensure it advances at the right speed and in line with the Rules.

Arbitral Proceedings

The Arbitral Tribunal and the parties shall make every effort to conduct the arbitration in an expeditious and cost-effective manner.

Language of the proceedings

If not agreed by the parties, the Arbitral Tribunal determines the language or languages of the arbitration.

Conservatory measures

The Rules provide that the Arbitral Tribunal can order interim or conservatory measures. This does not affect the parties’ rights, in appropriate circumstances, to apply to any competent judicial authority for such measures.

Law applicable to the merits

In the absence of an agreement between the parties as to the applicable rules of law, the Arbitral Tribunal applies the rules of law that it determines to be appropriate. In all cases, the Arbitral Tribunal takes account of the provisions of the contract and the relevant trade usages.

If the parties have agreed to give it such powers, the Arbitral Tribunal may act as amiable compositeur or decide ex aequo et bono.

 

Rules of procedure

The DAC Arbitration procedure is very flexible. The parties and arbitrators are free to fix the rules of procedure, subject to any mandatory provisions that may be applicable. The parties may determine, for instance, whether and to what extent document production requests or cross-examination will be allowed. The Arbitral Tribunal proceeds within as short a time as possible to establish the facts of the case by all appropriate means. The parties have the right to be heard. The tribunal may also decide to hear witnesses and experts as well as may summon any party to provide additional evidence.

Closing of the proceedings

As soon as the last hearing concerning matters to be decided in an award or the filing of the last authorised submissions has occurred, the Arbitral Tribunal will declare the proceedings closed with respect to the matters to be decided in the award. The Arbitral Tribunal will also inform the DAC Office and the parties of the date by which it expects to submit its award to the Parties.

Time limit for the final award

The Tribunal will, at the outset of a case, fix a time limit for the final award based upon the Tribunal’s procedural timetable. If no such time limit specific to the procedural timetable is fixed, the time limit for the final award will initially default to six months from the date of approval or last signature of the Terms of Reference. The DAC can extend the time limit for the final award.

For more details regarding DAC rules of Arbitration and Fee Schedule please go to Forms and Procedure section of the website.

Other Important Guidelines

Ethics Applicable To DAC Arbitrators

DAC rules of natural justice are legal principles to be followed by any person or body charged with adjudicating disputes or the rights of others. The Rules are:

  • To act fairly, in good faith, without bias, and in a judicial temper.
  • To give each party the opportunity of adequately stating their case, and correcting any relevant statement prejudicial to their case, and to not hear one side behind the back of the other.
  • To not be a judge in one’s own cause (so that an arbitrator must declare any interest in the dispute).
  • To disclose to the parties any relevant documents which are looked at (by the arbitrator).

In short the underlying Principal under DAC is that not only should justice be done but it should be seen to be done. The courts are careful to guard the right of citizens to have their disputes settled with proper regard to the principles of natural justice.

Disclosure by Arbitrator under DAC

Section 12 provides that the arbitrator before accepting his appointment shall disclose in writing to the parties such matters as are likely to give rise to justifiable doubts about his independence or impartiality. This is applicable throughout the arbitral proceedings and any time after his appointment such situation arise, he must disclose the same in writing to the parties.

An arbitrator is never the representative of either party, even if appointed by one of them.