Attention! Errors in determining the arbitration competence!

Dear partners and parties to commercial disputes!

In order to illustrate some of the main mistakes that are made by parties to disputes when determining the competence of the arbitral institution, we would like to show you the official response of the AICAC to the statement of claim submitted to our Court with violation of its terms of reference.

Dear xxxx,
Please, accept our sincere gratitude for requesting the consideration of an international commercial dispute in the AICAC (http://court-inter.us/) under the IUCI (http://iuci.eu/). At the same time, having briefly analyzed the copies of documents provided by you, we’ve made the following conclusions:

1. Among the submitted documents we didn’t find the original contract between the companies "xxxxxx" (Poland) and "xxxxxx" (xxxxxx), according to which the subject matter of the dispute had occurred – debt of “xxxxxx”. In this regard, it is impossible to establish the existence and scope of the arbitration competence of the AICAC in relation to consideration of this dispute. Traditionally, international contracts include arbitration clauses. In these clauses they define the institution authorized to administer arbitration. It will also be impossible to establish the competence of the AICAC if the money were transferred by “xxxxxx” to “xxxxxx” solely on the basis of Invoice No. xxxxxx dated xxxxxx xx, 20xx. This fact will indicate that the parties have not agreed on the mechanism for considering the disputes, which may arise on the basis of such a transaction before commencing the commercial transaction at all.

2. In order to create the legal grounds for consideration of an arbitration dispute arising from the abovementioned commercial transaction in the AICAC, the "xxxxxx" xxxxxx xxxxxx (xxxxxx) must harmonize with "xxxxxx" the terms of arbitration of the dispute on the basis of the Assignment Agreement of xxxxxx xx, 20xx (concluded between “xxxxxx” and xxxxxx xxxxxx). For this, the parties must conclude the corresponding arbitration agreement.

3. If xxxxxx xxxxxx fails to agree on competence of a particular arbitration institution and the conditions for arbitration (place, time, language, applicable law, number of arbitrators, etc.) with “xxxxxx”, we recommend the interested (injured) party to refer to the Federal U.S. District Court at the location of the defendant or the United States Court of International Trade.

4. It should be noted that if the AICAC accepted the dispute initiated by you, its settlement would be hampered by the lack of necessary conflict of law rules and by the neglect of the arbitration process by the defendant. In this case the legitimacy of the award made would be questionable due to the lack of competence of the AICAC to consider the relevant dispute.