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New Rules For Singapore Arbitration.

Article Excerpt
Companies throughout Asia Pacific grapple with choice of law and choice of forum issues in every contract. The prevailing view in China is that a foreign company is best served to move arbitration off-shore in hopes of a more level playing ground than might be found under the traditional Chinese arbitration body, the China International Economic and Trade Arbitration Commission (CIETAC), or some of the newer PRC local arbitration commissions. The preferred venues for arbitration currently are Singapore and Hong Kong. Thus, it is important for companies to be aware of changes to the Singapore International Arbitration Commission (SIAC) Rules and how those changes might influence the decision on venue in drafting the next contractual dispute resolution provision.

The SIAC has published its new, third edition Arbitration Rules (New Rules), effective July 1, 2007. The New Rules replace the second edition Arbitration Rules issued in 1997 (Old Rules). The New Rules revise the procedures for the appointment and challenge of arbitrators, add written submissions during the pre-hearing phase, and initiate a new fee structure. The New Rules also shift powers previously held by the Arbitral Tribunal and the Appointing Authority to the SIAC Registrar, giving the Registrar greater control over the administration of arbitration proceedings. In most instances, the changes tend to bring the SIAC Rules in closer accord with the widely recognized ICC Rules of Arbitration (ICC Rules). The New Rules aim to improve efficiency by employing the best practices available for resolving international commercial disputes.

Revised Procedure for Appointing and Selecting the Number of Arbitrators

The New Rules change the procedure for determining the number of arbitrators in an arbitration proceeding. Under the Old Rules, a sole arbitrator presided over the arbitration unless the parties agreed otherwise (Old Rule 6). The New Rules also provide for a default sole arbitrator, but afford the Registrar discretion to increase the size of the Tribunal to three arbitrators when warranted, based on quantum in...