BAC Newsletter Issue 21
 
 
   
   
   
   
   
BAC News
Information
Comment
Focus
New Laws
 
 
Information
 
   
 

1. China International Economic and Trade Arbitration Commission (“CIETAC”) and Vienna International Arbitral Centre (“VIAC”) jointly held an arbitration workshop on February 14, 2011. The Sino-Austral arbitration workshop was held in the Beijing Kempinski Hotel. With increased trade between China and Central and Eastern Europe in recent years, inter-company relationship between China and Austria have become more important, as Chinese and Austrian enterprises and counselors choose to settle the disputes through arbitration;_a highly efficient, fast and convenient option. Both China and Austria hope to deepen the mutual understanding through cooperatively holding workshops such as this, so as to lay a solid foundation for mutual help and cooperation in the future. The speakers in the workshop touched on a wide range of topics, including the current global economic environment, Austrian arbitration laws, and CIETAC and VIAC arbitration rules. The speakers combined characteristics of arbitration types in international economic and trade events and identified the core legal issues of commercial arbitration, before answering questions raised by the participants.
http://cn.cietac.org/NewsFiles/NewsDetail.asp?NewsID=1018

2. Supreme Court issues regulations to regulate procedures for judicial confirmation of people’s mediation
The Supreme People’s Court called a press conference on March 29 and released Some Provisions of the Supreme People's Court on Procedures for Judicial Confirmation of People’s Mediation Agreements. The Provisions have further made clear and subdivided the procedures for judicial confirmation, conditions and scope of judicial confirmation, legal rights and interests that are good for ensuring the national and social public interests, and legal interests of parties involved and outsiders. Regulating the review and confirmation forms of mediation agreement is good for encouraging the parties involved to choose the People’s Mediation to settle the disputes, and further exerting the role of People’s Mediation in settling disputes and protecting social harmony and stability. Additionally, it is likely to exert significant influence on further improving dispute settlement mechanism linking lawsuits and non-lawsuits.
http://www.chinacourt.org/html/article/201103/30/446443.shtml

3. Professor Liang Huixing put forward the proposal on implementing favorable tax policies for arbitration commissions
Deputy to the National People's Congress, member of Chinese Academy of Social Sciences, Professor Liang Huixing raised the proposal of implementing favorable tax policies (tax exemption and reduction) for arbitration commissions in National People's Congress. Professor Liang said that since the adoption of arbitration law in 1995, over 200 arbitration commissions have been established successively all over the country which have made unique contributions to developing the economy and maintaining social stability. Since 1990s, many developed countries and moderately developed countries and regions with rapidly developed economies have revised their arbitration laws, greatly supported the development of arbitration and tried to attract the international investment and trade disputes to be solved in their own arbitration commissions. With the adoption of Notice on Relevant Issues concerning Adjusting Arbitration Charges Management and Policies issued by Ministry of Finance and State Development Reform Commission, more and more arbitration commissions have adopted the financial policy, namely charging as per operation services charges and implementing self-controlled revenue and expenditure. After adopting the policy of self-controlling the revenue and expenditure, the first issue faced by the arbitration commissions is tax. In case we could adopt favorable tax policies (tax exemption) for arbitration commission with reference to international practice, it shall have greater significant to the development of arbitration commissions.
http://www.cssn.cn/news/147761.htm

4. 8th “Willem C. Vis (East)” Simulation International Commercial Arbitration Debate was held in Hong Kong
The 2011 8th “Willem C. Vis (East)” Simulation International Commercial Arbitration Debate was held in City University of Hong Kong from April 3 to 10. This debate is an international contest in memory of Austrian jurist William B. Davis with the intention of popularizing and studying international commercial arbitration and training the future legal talents in the dispute settlement field. The debate has been held for 18 years since its first inception in Vienna in 1993, and it is the largest international commercial arbitration professional debate, which has attracted well-known legal schools and colleges from all over the world to participate in. About 85 varsity teams from over 20 countries and regions including China, America, Germany, Austria, Japan and Korea etc. and more than 200 arbitrators from more than 30 countries and regions have participated in the debate; therefore, it is a very important gathering for the international commercial legal circle. The BAC dispatched Mr. Chen Cong, the Division Chief of the Secretariat, to act as arbitrator in four competitions.
http://fxy.whu.edu.cn/html/2/focus/201104/11/474.html

5. Laws Applicable to Foreign-related Civil Relations shall become effective on April 1
Laws Applicable to Foreign-related Civil Relations, adopted at the 17th Session of the Standing Committee of the 11th National People’s Congress of the People’s Republic of China on October 28, 2010, is hereby promulgated, and shall come into force on April 1. Laws Applicable to Foreign-related Civil Relations are the basic civil laws for regulating the foreign related property relationship and personal relations, mainly concerning various foreign related relations including foreign related civil subjects, foreign related relationship of property right, foreign related marriage and family relation, foreign related inheritance relation, foreign related intellectual property relation, foreign related contractual relation and foreign related right of credit. The Laws are mainly for solving applicability of law issues on foregoing foreign related civil relationships and provide clear specifications on who investigates the foreign laws.
http://www.law-star.com/cacnew/201104/l845069402.htm

1. Client Alert—U.S. Court Confirms Arbitration Award to Subcontractor Accused of Kickbacks
08 April 2011
Corruption is a topical issue globally, whether because there is more of it as a result of the global economic downturn or it is being uncovered more readily. Regardless, given the reality of corruption, it is churlish to believe that it does not at times impact international dispute resolution. One example of this is the recent decision of the U.S. District Court, Southern District of Texas in Tamimi Global Company Limited v. Kellogg Brown & Root LLC, 2011 WL 1157634 (S.D. Tex), March 24, 2011. There the Court confirmed an international arbitration award in favor of Tamimi issued by a Tribunal sitting in London under LCIA Rules, in the face of accusations that the underlying contract may have been procured by kickbacks.
http://www.pillsburylaw.com/index.cfm?pageid=34&itemid=40113

2. International Patent System Marks Two Millionth Filing – U.S. Mobile Technology Innovator, Qualcomm, files Landmark Application
Geneva, April 14, 2011
The two millionth international patent application under WIPO’s Patent Cooperation Treaty (PCT) was filed recently1 by U.S.-based mobile technology company Qualcomm.
The PCT makes it easier for companies and inventors to seek patent rights in multiple countries. A single international patent application under the PCT has legal effect in all 142 countries bound by the treaty. PCT applicants receive valuable information about the potential patentability of their inventions and have more time than under the traditional patent system to decide in which of the PCT countries to continue pursuing patent protection. The PCT system consolidates and streamlines patenting procedures, postponing the payment of sizeable costs and providing applicants with a sound basis for important decision-making.
http://www.wipo.int/pressroom/en/articles/2011/article_0013.html

3. Second Circuit Decision Puts in Doubt Enforceability of Class Action Waivers in Arbitration Provisions
March 22, 2011
Many consumer-facing companies use arbitration provisions in their standard contracts to avoid the costs and burdens of the judicial process. But some go further, requiring customers to not only arbitrate, but to forego any class action remedy. The Second Circuit’s decision last week in In Re: American Express Merchants’ Litigation casts doubt on this strategy – holding such provisions unenforceable in a wide swath of cases – and thereby reinforcing a Circuit split that may ultimately need to be resolved by the Supreme Court.
http://www.proskauer.com/publications/client-alert/second-circuit-decision-puts-in-doubt-enforceability/

4. The New Australian International Arbitration Regime in Practice - Less Court Intervention, Greater Enforceability, Lower Costs
25 March 2011
The 2010 amendments to Australia’s international arbitration regime have already seen a reduction in costs and court intervention in 2011. This update highlights four key developments in international arbitration in Australia for the first quarter of 2011…
http://www.nortonrose.com/knowledge/publications/2011/pub36031.aspx?&page=all

5. Hungary's highest court reverses award, finding link between counsel and arbitrators
16 March 2011
Hungary’s Highest Court has reversed an arbitration award because of a professional connection between two of the arbitrators and counsel for the claimant. 
Both the arbitration award and the judgment of the Highest Court have attracted significant attention in Hungary, partly because of the size of the sum in dispute (about US $25 million plus interest, a considerable amount by Hungarian standards) and partly because of the nature of the parties.  The defendant, BVM épelem Kft., is a Hungarian company owned by its own employees, while the claimant, the property developer Global Center Kft., is a company belonging to the Guernsey holding company Ablon Group Limited, a leading property owner and developer in central and eastern Europe
http://www.dlapiper.com/hungarys-highest-court-reverses-award-finding-link-between-counsel-and-arbitrators/

6. Important Reform on Commercial Arbitration in Mexico
February 25, 2011
On January 27, 2011, an important reform on commercial arbitration was published in Mexico in order to improve the Mexican regulations regarding judicial intervention in arbitration. The reform has a wide scope. Among the several aspects that it covers are the referral of the parties to arbitration, the enforcement of interim measures ordered by the arbitral tribunal, and a new proceeding in order to enforce (or to vacate) an arbitral award. Several provisions, which created uncertainty in the past, have been derogated.
http://www.chadbourne.com/files/Publication/d42207e5-4163-4e91-8604-3c70c5f61ebb/Presentation/PublicationAttachment/734af99e-33e8-481a-8bfc-43fb8fb02fea/ArbitrationReformsinMexico_caCombined.pdf

7. New French Arbitration Law Reflects a Boldly Liberal Approach
February 24, 2011
The new arbitration law of France - a complete reworking of the law that has attracted much attention - will come into force on May 1, 2011. It is acknowledged by commentators that France, traditionally an arbitration-friendly jurisdiction, will, as a result of adopting Decree No. 2011-48 (the "Decree"), have one of the most liberal arbitration laws in the world. Such a liberal approach can only reinforce the position of Paris as a seat of choice for international commercial arbitration.
This overhaul of the Code of Civil Procedure ("CCP") covers the titles of the code that pertain to both domestic and international arbitration, consolidating numerous jurisprudential trends and incorporating a number of innovations.
http://www.ogilvyrenault.com/en/resourceCentre_11062.htm

 

 
 
 
 
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