Arbitral proceedings

The procedure of arbitration in the AICAC is regulated by the AICAC Regulations. Along with containing all the modern dispute resolution mechanisms developed by international arbitration practice, the procedure of arbitration in the AICAC has the following important and innovative, in our opinion, features:

1. Regulatory variability

The AICAC Arbitration Regulations provides for resolution of corresponding disputes both in accordance with the AICAC Arbitration Regulations directly, and in accordance with the provisions of UNCITRAL Arbitration Rules.

2.  The AICAC is entitled to consider a wide range of disputes of general and special (specific) character:

  •  disputes arising from commercial, economic and trade contracts and agreements;
  •  disputes arising from civil legal relations;
  •  disputes arising from investment contracts and agreements, including corporate assets purchase agreements;
  •  disputes arising from agreements and contracts, signed in professional sport;;
  •  disputes arising from labor contracts.

3. Multifunctionality of the AICAC

The AICAC is empowered to consider disputes:

  •  between residents of different countries, if at least one of the parties is a resident of the USA,
  •  between residents of different countries, when none of the parties is a resident of the USA (but the parties represent different countries);
  •  between residents of the USA.

The AICAC considers disputes arising from commercial, economic and trade agreements and contracts, when at least one of the disputing parties is not a resident of the USA - a legal entity of foreign jurisdiction or an individual - a citizen of a foreign state.

The Court also considers disputes arising from civil legal and labor relations, as well as disputes arising from agreements and contracts signed in professional sport, if the disputing parties or at least one of the parties is a resident of the USA.

In addition, the Court considers disputes between non-residents of the USA, arising from civil legal and labor relations, as well as disputes arising from agreements and contracts signed in professional sport, if it isn't contrary to the legislation of the countries, which residents  are the disputing parties.

The Court, under the standards of international law, the federal legislation and the legislation of the relevant states of the USA, as well as on the basis of its Regulations, acts as court of arbitration when considering disputes between the residents of the USA.

4. Development of other alternative dispute resolution mechanisms

Based on the will of the interested parties, the Court assists in the organization of ad hoc arbitration in accordance with the Regulation "On the procedure of organization and conduct of "ad hoc" arbitral proceedings".

The Court, based on the will of the interested parties, organizes and participates in the mediation procedure in accordance with the rules of "Regulations of the mediation procedure in Joint Mediation Council of International Union of Commerce and Industry (London, UK) and  American International Commercial Arbitration Court".

5. Efficiency of disputes consideration

Directly in the Regulations of the AICAC (p. 6 of art. 3) the orientation of the Court for maximum efficiency in resolving disputes is fixed. In particular the Regulations stipulates that all necessary actions that the Arbitration Court and its officials or the arbitral tribunal considering a particular dispute are required to take in accordance with the AICAC Regulations,  shall  be performed in the shortest terms allowed by these Regulations.

6. High level of communicativeness of arbitration procedure

The AICAC Regulations allows the exchange of legally significant information between participants of the arbitration process in various forms, which can provide convenience and efficiency of transmission and reception of data, as well as their comprehensive protection.

In accordance with the AICAC Regulations, a notice is understood to be  any  well-known and common way of transmitting correspondence - a written information on paper medium, including a notification, a report  (including telegraph and teletype messages) and a proposal.

A notice may also be delivered to an addressee by sending an electronic document certified with sender's digital signature to an officially known e-mail address publicly disclosed or repeatedly used before by the corresponding person. An electronic notice shall be considered received by an addressee and acquire evidential validity in terms of these Regulations, in the event of counter sending of electronic message confirming the reception of the notice, certified with the addressee's electronic signature confirmed with a certificate from a digital signature certification body.

In addition, a notice may be delivered to an addressee by fax. In this case a facsimile notice shall be considered received by an addressee in the event of counter sending of facsimile or other message specified in art. 3 of these Regulations confirming the reception, duly certified by the addressee.

7. The use of electronic technologies providing data protection and reliable confirmation of the will of the arbitration process participants

The AICAC seeks to provide such organization of the arbitration process, in which low cost, objectivity, effectiveness and efficiency of proceedings will be organically combined with the comprehensive protection of information associated with a dispute under consideration.

In particular, in the practice of the Court the modern electronic signature technology is actively used, which allows to provide documentary legitimacy and protection of electronic correspondence.

In the course of the AICAC arbitral proceedings, a notice may also be delivered to an addressee by fax. In this case a facsimile notice shall be considered received by an addressee in the event of counter sending of facsimile or other message specified in art. 3 of Regulations confirming the reception, duly certified by the addressee.

8. The extended spectrum of addressees, the transmission of information to whom by participants of the arbitration process will be a legal fact

Notices in any form, as well as other legally significant reports and correspondence sent by parties to the arbitral tribunal, except those for which these Regulations provide for a special mechanism for sending, may be addressed:

  •  in the event of a dispute considered by an arbitral tribunal consisting of a sole arbitrator - either to the Secretariat  of the Arbitration Court or to the sole arbitrator;
  • in the event of a dispute considered by an arbitral tribunal consisting of three arbitrators - either to the Secretariat  of the Arbitration Court (addressed to the Secretary General of the Arbitration Court), or to the address of an arbitrator, who is a chairman of the arbitral tribunal.

In this case, if the parties send notices or other legally significant reports and correspondence addressed to the arbitration tribunal directly to the Secretariat of the Arbitration Court, the latter shall in the shortest terms take the necessary actions to copy such documents and deliver them to arbitrators of the arbitral tribunal considering a particular dispute and, if necessary - to other parties and other persons officially involved in the arbitration.

If the parties send notices or other legally significant reports and correspondence addressed to the arbitration tribunal composed of a sole arbitrator directly to the arbitrator, the latter shall in the shortest terms take the necessary actions to copy such documents and deliver them to the Secretariat  of the Arbitration Court which, if necessary, sends the copies of such documents to other parties and other persons officially involved in the arbitration.

If the parties send notices or other legally significant reports and correspondence addressed to the arbitration tribunal composed of three arbitrators directly to the chairman of the tribunal, the latter shall in the shortest terms take the necessary actions to copy such documents and deliver them to the Secretariat of the Arbitration Court which sends the copies of such documents to other judges of the tribunal and, if necessary - to other parties and other persons officially involved in the arbitration.

All notices and other legally significant reports and correspondence officially coming from an arbitral tribunal considering a particular dispute, are sent on behalf of  the Arbitration Court by the Secretariat  of the Arbitration Court.

If the parties send notices or other legally significant reports and correspondence addressed to the arbitration tribunal out of the time specified by these Regulations, as well as 7 days before the expiration of such time periods, such notices, reports and correspondence shall be addressed directly to the Secretariat  of the Arbitration Court.

In accordance with paragraphs 11.6 of article 4, the date of receipt of official notices, as well as other legally significant reports and correspondence, by an arbitral tribunal shall be the date of receipt of such notices, reports and correspondence by one of the authorized persons specified in p. 6 of this article.

To all notices, as well as other legally significant reports and correspondence addressed to an arbitral tribunal and parties to a dispute, a sender must attach duly certified copies of documents (or, if such documents are especially  large in volume, summaries or lists of documents), as well as samples of material objects, or documented samples of substances (or their copies), which are referred to or indicated in such notices, reports or correspondence.

9. Appointment of the most professionally trained and competent arbitrators as members of arbitral tribunals considering particular disputes

In the case of formation of an arbitral tribunal consisting of one arbitrator, when the parties could not agree on a candidate, a sole arbitrator shall be appointed by the competent person chosen by the parties (the President of the Court or the President of the International Union of Commerce and Industry (London, UK)) - based on an objective assessment of individual competencies of corresponding candidates and the convenience of organization and conduct of an effective, independent and impartial arbitration.

The chairman of an arbitral tribunal consisting of three arbitrators shall be the one who has higher legal education and, with respect to the merits of the dispute, is characterized by maximum knowledge and experience in the field of international economic (commercial, trade) law, international private law, international commercial arbitration, civil, economic (commercial, trade), labor legislation of individual states (of particular importance may be knowledge of the laws of those countries, whose residents the parties to the dispute are or whose legislation is the applicable substantive law in resolving the dispute), and has impeccable personal reputation.

10. Training and testing of arbitrators

The Court, together with the International Academy of Science and Higher Education (London, UK), carries out remote training and testing programs for persons applying for the status of an arbitrator of the AICAC. In addition, the priority for the Court in the election of applicants to obtain the status of an arbitrator of the AICAC are professional and experienced lawyers, who have necessary knowledge in the following areas:

  • General Theory of Law;
  • Fundamentals of Civil Law (unified projection of international experience);
  • Standard rules and concepts of conduct of a judicial arbitration process;
  • Features of the dispute consideration procedure in the AICAC;
  • International law in the sphere of arbitration process;
  • Private international law.

In addition, the AICAC regularly conducts full-time and remote training programs for professional development and certification of arbitrators.

11. Operational procedure for replacing an arbitrator who is unable, for whatever reason, to conduct arbitral proceedings objectively and effectively

In case of death or resignation (or withdrawal from office on his own initiative) of an arbitrator in the process of arbitration, a new arbitrator shall be selected or appointed in accordance with the procedure specified in paragraphs 5 and 6 of art. 13 of the AICAC Regulations.

In the case of inaction of an arbitrator, or his de jure or de facto inability to perform his functions, on the initiative of the Secretariat of the Arbitration Court, the procedure of compulsory withdrawal of an arbitrator from participating in arbitration as a member of the arbitral tribunal considering a particular dispute shall apply, which may last no longer than 15 days. In this case, by the Order of the President of the Arbitration Court, the person shall be withdrawn from participating in arbitration, and a new arbitrator shall be selected or appointed in accordance with the procedure specified in  paragraphs 5 and 6 of art. 13 of the AICAC Regulations.

12. The principal goal of arbitration is fairness and objectivity in resolving a dispute

All actions and decisions made by the arbitral tribunal of the Court considering a particular dispute shall comply with the standards of international law, as well as be grounded on generally accepted standards of legal regulation and understanding of social justice, taking into account the experience of effective resolution of such legal issues, known in the world legal practice.

13. Capability to consider a dispute anywhere in the world

Unless the parties agree on the place of arbitration, such place is determined, upon the recommendation of the arbitrators of the arbitral tribunal considering the corresponding dispute, by the President of the Arbitration Court with respect to the actual circumstances of the arbitration and the criteria of suitability, as well as taking into account the need to ensure the objectivity and effectiveness of arbitration.

The arbitral tribunal considering a particular dispute has the right to determine the actual place of arbitration, by agreement with the President of the Arbitration Court, within the country or the city agreed upon by the parties. The arbitral tribunal may also, by agreement with the President of the Arbitration Court, hear witnesses and meet for consultation among its members at any place it considers appropriate, with regard to the circumstances of the case.

The arbitral tribunal may, if necessary, meet at any place it considers appropriate to examine items of property or documents, if such examination is impossible without misrepresentation of the circumstances relevant to the dispute under consideration, damage of the property or documents or other harm to legitimate rights and interests of individuals, at the main place of proceedings. In this case, the parties shall be notified in advance of time and place of examination of items of property or documents in order to enable them to attend such examination and, if necessary, to give appropriate explanations.

Award on the dispute under consideration of the arbitral tribunal shall be made in the place of arbitration.

14. Using the mechanisms of remote resolution of disputes

The parties, taking into account the factual circumstances of their relations and opportunities, as well as other factors important for them, in addition to the arbitration clause or arbitration agreement they have previously approved, may conclude an agreement to refer their dispute to the Court for a remote consideration - without actually holding the hearings with the physical attendance (presence) of the parties, their representatives and witnesses at the place of such hearings.

Remote consideration of a dispute in accordance with the agreement of the parties, may be conducted by means of the provision of the arbitral tribunal with documents supporting their position in the dispute or containing information relevant to a objective and fair consideration of the dispute, as well as the documents requested by the arbitral tribunal considering the particular dispute.

Remote consideration of a dispute by the Court, in accordance with the agreement of the parties, may be conducted in two forms:

  •  remote consideration of a dispute on the basis of actually submitted documents, and
  •  remote consideration of a dispute in interactive mode.

15. Remote consideration of a dispute in interactive mode

Remote consideration of a dispute in interactive mode consists of the following steps:

a) the parties send via e-mail to the electronic address of the Arbitration Court, which is registered on the private and protected from illegal and unauthorized interference website of the Court the documents specified in paragraph 2  of art. 45  of the AICAC Regulations.

b) the arbitral tribunal considering the particular dispute, objectively analyses and legally evaluates the received documents.

Remote consideration of the dispute in an interactive mode allows the parties to draw up and send to necessary addressee all notices, including the notice of arbitration, the statement of claims, the statement of defense and agreements made by the parties on the formation of the arbitral tribunal, using software tools  and electronic mail.

All notices sent by the parties in electronic form to each other and to the arbitral tribunal, shall be certified by their protected electronic signatures, accompanied by a public key and the key certificate from the certification body.

If necessary and technically available, to resolve some issues important for the arbitration the arbitral tribunal considering the particular dispute may arrange interactive hearings using visual communication, which may involve the parties, witnesses, experts and other persons whose participation in hearings should be deemed appropriate by the arbitral tribunal.  Interactive hearings are conducted in accordance with the requirements established by the  AICAC Regulations.

16. Transparency and logicality of arbitration expenses formation procedure

Within 7 days after the Order of the President of the Arbitration Court approving the personal composition of the arbitral tribunal considering a particular dispute enters into force, the approved arbitral tribunal shall issue Act of expenses, which is signed by the President of the Arbitration Court and establishes the preliminary amounts of arbitration fees payable by the parties, specifies the proportions of distribution of these expenses between the parties, as well as the manner and terms of payment of arbitration fees by the parties.

The preliminary amounts of arbitration fees paid by the parties in accordance with the Act of expenses shall be taken into account by the arbitral tribunal in making the final award on the dispute, which records the final amounts of all kinds of arbitration fees, the parties bound to pay them and the manner and terms of such payments.

In the event that the final award of the arbitral tribunal established arbitration fees of smaller amount than was previously prescribed by the Act of expenses and paid by the parties, the overpaid amounts shall be returned  by the Arbitration Court in favor of the parties having made excessive payments. 

In the event that the final award of the arbitral tribunal established arbitration fees of larger amount than was previously prescribed by the Act of expenses and paid by the parties, the bound party, having paid arbitration fees in amounts smaller than established by the final award shall be bound to pay the deficient amounts in proportions and in terms established by the the arbitral tribunal.

17. Fair differentiation of arbitration fees amounts depending on the status and capacities of the parties

Administrative and remuneration fees are established by an arbitral tribunal by agreement with the Secretariat of the Court, and their amounts are determined selectively.

Actual amounts of the Administrative and Remuneration fees are determined within variative limits expressed in percentage ranges, depending on the sum in dispute in accordance with the rules specified in "Table A: "Administrative fees"" of "Regulation "On the amounts of arbitration fees of the American International Commercial Arbitration Court", "Table B: "Remuneration fees for a one-arbitrator tribunal" and "Table C "Remuneration fees for a three-arbitrators tribunal" of "Regulation "On the amounts of arbitration fees of the American International Commercial Arbitration Court". "

The particular amounts of administrative and remuneration fees, in respect of each dispute shall be established on the basis of the sum in dispute (claim), with the arbitral tribunal taking into account, by agreement with the Secretariat of the Arbitration Court, the following circumstances (in descending order of their legal significance):

  •  the actual financial and economic state of the respondent at the time of consideration of the dispute;
  •  the economic situation in the country of residence of the respondent;
  •  the actual financial and economic state of the claimant at the time of consideration of of the dispute;
  •  the economic situation in the country of residence of the claimant;
  •  the economic damage caused by each party, as a result of the circumstances forming the subject-matter of the dispute;
  • the content and nature of the transaction, within fulfillment of the obligations under which the disputed controversies between the parties have arisen;
  •  the legal and economic characteristics of subject of the transaction (in particular - its assignment to consumer commodities, durable commodities or luxury goods);
  •  the expected economic consequences of the transaction execution by the parties, within fulfillment of obligations under which the disputed controversies between the parties have arisen;
  • business reputation of the parties.

18. Reduction of administrative expenses for remote disputes consideration

If the parties select the remote form of arbitration, the amounts of administrative and remuneration fees shall be adjusted by the arbitral tribunal considering the particular dispute,  subject to the rules established in Table D: "Adjusted calculation of administrative and remuneration fees for remote disputes consideration" of Regulation "On the amounts  of arbitration fees of the American International Commercial  Arbitration Court".

19. Fair determination of the final amounts of remuneration fees taking into account objective socio-economic factors

When determining the final size of remuneration collection, the arbitral tribunal applies the factors specified in Table F: "Remuneration fees calculation factors depending on the economic development level of the countries whose residents are payers of the arbitration fees" of Regulation "On the amounts of arbitration fees of the American International Commercial Arbitration Court".

20. Rewards for contributing to the development of arbitral proceedings in the Arbitration Court

Individuals who are not parties to a dispute, their owners or persons legally dependent on them in any way or their close relatives, as well as individuals who are not officials of the Arbitration Court or arbitrators, involved as members of an arbitral tribunal in the consideration of a dispute (hereinafter - interested persons), may receive a reward for the promotion of arbitration clause of the Court.