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| Newsletter | August 2014, Issue 3 | |
SIMC will closely collaborate with the Singapore International Arbitration Center (SIAC) to promote mediation for cases commenced under arbitration. SIMC and SIAC have developed the so called “Arb-Med-Arb” procedure which enables parties to an international arbitration to engage in a separate mediation procedure during the early stages of the arbitral proceeding, if they agree to do so. Under SIMC Rules, a separate mediator will be appointed to ensure the neutrality of the mediation procedure. Even if the mediation turns out to be unsuccessful, the contents of the mediation will remain confidential and not be disclosed to the arbitral tribunal. The main perceived benefit of the “Arb-Med-Arb” procedure is that it will provide the parties with an opportunity to settle their disputes early without unduly delaying the pending international arbitration proceeding.
On the other hand, SICC, while a part of the Singaporean judicial system, will be a new form of judicial organization which will have exclusive jurisdiction over matters of commercial dispute between parties of different nationalities. SICC will be handling cases where the parties have agreed to its jurisdiction or cases that have been removed to SICC from the state courts in Singapore by the Supreme Court of Singapore. As the decisions of the SICC can be appealed and third-party participation is possible just as in general litigation, demand is expected to be high from parties who prefer litigation over arbitration. Another notable point is that lawyers from different countries will be allowed to represent parties in SICC cases where the governing law is the law of a country other than Singapore, or where the case has no actual connection to Singapore. This makes it possible to appoint Korean counsel in SICC cases where the governing law is the law of Korea.
The introduction of these new types of international dispute resolution institutions provides a wider range of options in drafting dispute resolution clauses in various contracts. Yet, as the rules and procedures of these institutions have not been finalized and it will take some time before the institutions gain sufficient experience through a trial-and-error process, users of these new institutional options should beware of unexpected complications. When drafting contractual dispute resolution clauses, we recommend that an expert in dispute resolution is involved from the early stages to ensure that the most appropriate choice is made under the circumstances.
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Byung-Chol (BC) Yoon bcyoon@kimchang.com |
Byung-Woo Im bwim@kimchang.com |
Harold Hyunshik Noh hyunshik.noh@kimchang.com |
| www.kimchang.com | International Arbitration & Cross-Border Litigation Practice Group |