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ARBITRATION
RULES FOR THE ADDIS ABABA CHAMBER OF COMMERCE
Arbitration Rules For AACC ARBITRATION INSTITUTE
I. PRELIMINARY PROVISIONS
Article 1. Submission for Arbitration
- Where the
parties to a contract have agreed in writing
that disputes in relation to that contract
shall be settled by Arbitration in accordance
with the Rules of the Addis Ababa Chamber
of Commerce Arbitration Institute (hereinafter
referred to as the " Institute"),
then such disputes shall be settled in accordance
with these rules and amendments thereof.
- The Rules
applicable to the arbitration shall be those
in force at the time of the commencement of
the arbitration unless the parties have agreed
otherwise.
Article 2.
Provision of facilities
The Institute
shall, at the request of either party, make
available or arrange for such facilities and
assistance for the conduct of arbitration proceedings
as may be required, including suitable accommodation
for sittings of the arbitral tribunal, secretarial
assistance and other facilities within the capability
of the Institute.
Where the parties have designated the institute
as an appointing authority of arbitrators for
an ad-hoc arbitration, the Institute shall fix
the fees for such service.
II. INITIATION
OF PROCEEDINGS
Article 3.
Request for Arbitration
- Parties who
may wish to make use of the facilities provided
by the Institute should make a written request
to it that the parties have entered into a
written arbitration agreement. In such written
arbitration agreement, the parties shall indicate
to submit to arbitration all or certain disputes
which have arisen or which may arise between
them in respect of a defined legal relationship,
whether contractual or not. This arbitration
agreement may be in the form of an arbitration
clause in a contract or in the form of a separate
agreement.
- The arbitration
clause may be stated as "any disputes,
controversies or claim arising out of or relating
to this contract, or the breach, termination
or invalidity or any subsequent amendment
of this contract thereof, shall be settled
by arbitration in accordance with the Arbitration
rules of AACC Arbitration Institute as at
present in force. In addition, parties may
wish to consider: a) appointing authority,
b) number of arbitrators, c) place of arbitration
and d) language of arbitration.
- Such an agreement
may be incorporated in a contract between
the parties out of which the dispute has arisen
or by a separate agreement, which the parties
enter into.
Article 4. Statement of claim
1. The
claimant shall satisfy the following requirements
when submitting his applications for arbitration:
i. an application for arbitration in
writing shall be submitted and the following
shall be specified in the application for
arbitration:
- the name and
address of the claimant and those of the respondent,
including the telephone, fax, email or other
communication means, if any;
- the arbitration
agreement relied upon by the claimant;
the facts of the case and the main points
of dispute;
the claimant's claim and the facts and reasons
on which his claim is based.
- the name and
address of the arbitrator designated by the
claimant where more than one arbitrator is
to be appointed, and
- name and address
of an attorney, if any while attaching at
the same time power of attorney.
- The application
for arbitration shall be signed and/or stamped
by the claimant and/or the attorney authorized
by the claimant.
ii. when an application
for arbitration is submitted to the Institute,
the relevant documentary evidence on which the
claimant's claim is based shall accompany the
application for arbitration.
iii. the claimant shall pay in advance the fee
specified under Article __ and Annex ___ of
this rule.
2. When the
Secretariat of the Institute, after examination
of the application for arbitration, deems
that the claimant has not completed the formalities
required for arbitration, it shall demand
the claimant to complete them, and when the
secretariat deems that the claimant has completed
the formalities, it shall immediately send
to the respondent a notice of arbitration
together with one copy each of the claimant's
application for arbitration and its attachment
as well as the arbitration rules, the list
of arbitrators and the arbitration fee schedule
of the arbitration commission, and shall simultaneously
send to the claimant one copy each of the
notice of arbitration, the arbitration rules,
the list of arbitrators and arbitration fee
schedule.
Article 5. Statement of defense and of counterclaim
- The respondent
shall, within 45 days from the date of receipt
of the notice of arbitration, submit his written
defense, appoint his arbitrator if more than
one arbitrator is to be designated, and attach
relevant documentary evidence to the secretariat.
- The Institute
may extend that the time limit if it deems
that there are justified reasons.
- When lodging
a counterclaim, the respondent must state
in his written statement of counterclaim his
specific claim, the facts and reasons upon
which his claim is based, and attach to his
written statement of counterclaim, the arbitration
agreement and other relevant documentary evidence.
When lodging a counterclaim, the respondent
shall pay the required fee in advance according
to the arbitration fee schedule of the arbitration
institute.
Article
6. Amendments to Claims and Counterclaims.
- The claimant
may request to amend his claim and the respondent
may request to amend his counterclaim. Yet
the arbitration tribunal may refuse such an
amendment if it considers that it is too late
to raise the request and the amendment may
affect the arbitration proceedings.
- The arbitration
proceedings shall not be affected in case
the respondent fails to file his defense in
writing or the claimant fails to submit his
written defense against the respondent's counterclaim.
III. COMPOSITION OF THE ARBITRAL TRIBUNAL
Article 7. Number of Arbitrators and manner
of their Appointment
- The parties
are free to determine the number of arbitrators.
Where the parties have not agreed on the number
of arbitrators, the arbitral tribunal shall
consist of three arbitrators, unless the Institute,
taking into account, inter alia, the complexity
of the case, the amount in dispute and other
circumstances, decides that the dispute is
to be settled by a sole arbitrator.
- Where the
arbitral tribunal shall consist of more than
one arbitrator, each party shall appoint an
arbitrator. Where a party fails to appoint
an arbitrator within the period of time stipulated
by the Institute, the Institute may make the
appointment.
- Where there
are multiple parties on either side and the
dispute is to be decided by more than one
arbitrator, the multiple claimants, jointly,
and the multiple respondents, jointly shall
appoint an equal number of arbitrators. If
either side fails to make such joint appointment,
the Institute shall make the appointment for
that side. If the circumstances so warrant
the Institute may appoint the entire arbitral
tribunal, unless otherwise agreed by the parties.
- Where the
dispute is to be decided by sole arbitrator,
the parties are to appoint jointly the said
arbitrator. If they fail to do so within 20
days from filing of the statement of defense,
the Institute shall make the appointment,
unless otherwise agreed by the parties.
Article 8. Nationality of Arbitrators
If the parties
are of different nationalities, the Institute
shall appoint a sole arbitrator or Chairman
of a nationality other than of the parties,
unless the parties have agreed differently
or if otherwise deemed appropriate by the
Institute.
Article 9. Impartiality and Independence
of Arbitrators
An arbitrator
must be impartial and independent.
Before appointment or confirmation, a prospective
arbitrator shall sign a statement of independence
and disclose in writing to the Secretariat
any facts or circumstances which might be
of such a nature as to call into question
the arbitrator's independence in the eyes
of the parties. The Secretariat shall provide
such information to the parties in writing
and fix a time limit for any comments from
them.
An arbitrator who becomes aware of any circumstances,
which may disqualify him, must immediately,
in writing, inform the parties and the other
arbitrators thereof.
Article 10. Challenge of Arbitrator
- Where a party
wishes to challenge an arbitrator that party
shall send a written statement to the institute
stating the reasons for the challenge.
- Notification
of a challenge must be made within 15 days
as from the date on which the arbitrator is
appointed or the allegedly disqualifying circumstance
became known to the party. Failure by a party
to notify the Institute of a challenge within
the stipulated period of time will be considered
a waiver of the right to initiate such a challenge.
- The Institute
shall provide the parties and the arbitrators
the opportunity to comment on the challenge.
- The Institute
shall make the final decision on the challenge.
If the Institute finds an arbitrator disqualified,
it shall challenge the arbitrator.
- A party may
challenge the arbitrator appointed by him
only for reasons of which he becomes aware
after the appointment has been made.
Article
11. Removal of Arbitrator
- Where an arbitrator
is prevented from de facto fulfilling his
duties or fails to perform his functions in
adequate manner, the Institute shall remove
the arbitrator
- Before removing
an arbitrator, the Institute shall request
the views of the parties and the arbitrators.
Article 12.
Replacement of Arbitrators
- Where an arbitrator
appointed by a party dies, the party in question
shall appoint another arbitrator. Where an
arbitrator appointed by the Institute dies,
the Institute shall appoint another arbitrator.
- Where an arbitrator
resigns or is removed, the Institute shall
appoint another arbitrator. If the arbitrator
had been appointed by a party, the Institute
shall request the views of the appointing
party. Where the Arbitral Tribunal consists
of three or more arbitrators, the Institute
may decide that the remaining arbitrators
shall proceed with the case. Prior to making
such a decision, the views of the parties
and the arbitrators shall be requested.
- An Arbitrator
shall be replaced upon his death, upon the
acceptance by the court of Arbitrator's resignation,
upon acceptance by the Court of a challenge
or upon the request of all the parties.
- An arbitrator
shall also be replaced on the Court's own
initiative when it decides that he is prevented
de jure or de facto from fulfilling his functions,
or that he is not fulfilling his functions,
or that he is not fulfilling functions in
accordance with the Rules or within the prescribed
time limits.
- When, on the
basis of information that has come to its
attention, the Court considers applying Article
12(2), it shall decide on the matter after
the arbitrator concerned, the parties and
any other members of the Arbitral Tribunal
have had an opportunity to comment in writing
within a suitable period of time. Such comments
shall be communicated to the parties and to
the arbitrators.
- When an arbitrator
is to be replaced, the Court has discretion
to decide whether or not to follow the original
nominating process. Once reconstituted, and
after having invited the parties to comment,
the Arbitral Tribunal shall determine if and
to what extent prior proceedings shall be
repeated before the reconstituted Arbitral
Tribunal.
- Subsequent
to the closing of the proceedings, instead
of replacing an arbitrator who has died or
been removed by the Court pursuant to paragraph
3 and 4 of this Article, the Court may decide,
when it considers it appropriate, that the
remaining arbitrators shall continue the arbitration.
In making such determination, the Court shall
take into account the views of the remaining
arbitrators and of the parties and such other
matters that it considers appropriate in the
circumstances
IV. ARBITRAL PROCEEDINGS
Article 13.
General Provisions
- Subject to
these Rules, the arbitral tribunal may conduct
the arbitration in such manner as it considers
appropriate, provided that the parties are
treated with equality and that at any stage
of the proceedings each party is given a full
opportunity of presenting his case.
- If either
party so requests at any stage of the proceedings,
the arbitral tribunal shall hold hearings
for the presentation of evidence by witnesses,
including expert witness, or for oral argument.
In the absence of such a request, the arbitral
tribunal shall decide whether to hold such
hearings or whether the proceedings shall
be conducted on the basis of documents and
other materials.
- All documents
or information supplied to the arbitral tribunal
by one party shall at the same time be communicated
by that party to the other party.
- The Secretariat
shall transmit the file to the Arbitral Tribunal
as soon as it has been constituted, provided
the advance on costs requested by the Secretariat
at this stage has been paid.
Article 14.
Place of Arbitration
- Unless the
parties have agreed upon the place where the
arbitration is to be held, such place shall
be determined by the arbitral tribunal, having
regard to the circumstances of the arbitration.
- The arbitral
tribunal may determine the locale of the arbitration
within the country agreed upon by the parties.
It may hear witness and hold meetings for
consultation among its members at any place
it deems appropriate, having regard to the
circumstances of the arbitration.
- The arbitral
tribunal may meet at any place it deems appropriate
for the inspection of goods, other property
or documents. The parties shall be given sufficient
notice to enable them to be present at such
inspection.
The award shall be made at the place of arbitration.
Article
15. Language of Arbitration
In the absence
of an agreement by the parties, the Arbitral
Tribunal shall determine the language or languages
of the arbitration, due regard being given to
all relevant circumstances, including the language
of the contract.
Article 16.
Establishing the Facts of the Case
- The Arbitral
Tribunal shall proceed within as short a time
as possible to establish the facts of the
case by all appropriate means.
- After studying
the written submissions of the parties and
all documents relied upon, the Arbitral Tribunal
shall hear the parties together in person
if any of them so requests or, failing such
a request, it may of its own motion decide
to hear them.
- The Arbitral
Tribunal may decide to hear witnesses, experts
appointed by the parties or any other person,
in the presence of the parties, or in their
absence provided they have been duly summoned.
- The Arbitral
Tribunal, after having consulted the parties,
may appoint one or more experts, define their
terms of reference and receive their reports.
At the request of a party, the parties shall
be given the opportunity by the Tribunal
- At any time
during the proceedings, the Arbitral Tribunal
may summon any party to provide additional
evidence.
- The Arbitral
Tribunal may decide the case solely on the
documents submitted by the parties unless
any of the parties requests a hearing.
- The Arbitral
Tribunal may take measures for protecting
trade secrets and confidential information.
Article 17.
Hearings
- When a hearing
is to be held, the Arbitral Tribunal, giving
reasonable notice, shall summon the parties
to appear before it on the day and at the
place fixed by it.
- If any of
the parties, although duly summoned, fails
to appear without valid excuse, the Arbitral
Tribunal shall have the power to proceed with
the hearing.
- The Arbitral
Tribunal shall be in full charge of the hearings,
at which all the parties shall be entitled
to be present. Save with the approval of the
Arbitral Tribunal and the parties, persons
not involved in the proceedings shall not
be admitted.
- The parties
may appear in person or through duly authorized
representatives. In addition, they may be
assisted by advisers.
Article 18.
Closing of the Proceedings
- When it is
satisfied that the parties have had a reasonable
opportunity to present their cases, the Arbitral
Tribunal shall declare the proceedings closed.
Thereafter, no further submissions or arguments
may be made, or evidence produced, unless
requested or authorized by the Arbitral Tribunal.
- When the Arbitral
Tribunal has declared the proceedings closed,
it shall indicate to the Secretariat an approximate
date by which the draft Award will be submitted
to the Institute for approval pursuant to
Article 20. Any postponement of that date
shall be communicated to the Secretariat by
the Arbitral Tribunal.
V. THE
AWARD
Article 19.
Decisions
- When there
are three arbitrators, any order or other
decision of the arbitral tribunal shall be
made by a majority of the arbitrators.
- In the case
of questions of procedures, when there is
no majority or when the arbitral tribunal
so authorizes, the presiding arbitrator may
decide on his own move, subject to revision,
if any, by the arbitral tribunal.
Article 20. Form and Effect of the Award
- In addition
to making a final award, the arbitral tribunal
shall be entitled to make interim, interlocutory,
or partial awards.
- The award
shall be made in writing and shall be final
and binding to the parties. The parties waive
their right to appeal against the award.
- The arbitral
tribunal shall state the reasons upon which
the award is based unless the parties have
agreed that no reasons are to be given.
- An award shall
be signed by the arbitrators and it shall
contain the date on which and the place where
the award was made. Where there are three
arbitrators and one of them fails to sign,
the award shall state the reason for the absence
of the signature.
- The award
may be made public only with the consent of
both parties.
- Copies of
the award signed by the arbitrators shall
be communicated to the parties by the arbitral
tribunal.
If the arbitration law of the country where
the award is made requires that the award
be filed or registered by the arbitral tribunal,
the tribunal shall comply with this requirement
with in the period of time required by law.
Article 21.
Applicable Law, and Amiable Compositeur
- In international
arbitration, the arbitral tribunal shall apply
the law designated by the parties as applicable
to the substance of the dispute. Failing such
designation by the parties, the arbitral tribunal
shall apply the rules of law which it determines
to be appropriate.
- The arbitral
tribunal shall decide as amiable compositeur
or ex aequo et bono only if the parties have
expressly authorized the arbitral tribunal
to do so.
- In all cases,
the arbitral tribunal shall decide in accordance
with the terms of the contract and shall take
into account the usages of the trade applicable
to the transaction.
Article 22.
Settlement or other grounds for termination
- If, before
the award is made, the parties agree on a
settlement of the dispute, the arbitral tribunal
shall either issue an order for the termination
of the arbitral proceedings or, if requested
by both parties and accepted by the tribunal,
record the settlement in the form of an arbitral
award on agreed terms. The arbitral tribunal
is not obliged to give reasons for such an
award.
- If, before
the award is made, the continuation of the
arbitral proceedings becomes unnecessary or
impossible for any reason not mentioned in
paragraph 1, the arbitral tribunal shall inform
the parties of its intention to issue an order
for the termination of the proceedings. The
arbitral tribunal shall have the power to
issue such an order unless a party raises
justifiable grounds for objection.
- Copies of
the order for termination of the arbitral
proceedings or of the arbitral award on agreed
terms, signed by the arbitrators, shall be
communicated by the arbitral tribunal to the
parties. Where an arbitral award on agreed
terms is made, the provisions of this rule
stated under Article 20, paragraphs 2 and
4 to 7, shall apply.
Article
23. Interpretation of the Award
- Within thirty
days after the receipt of the award, either
party, with notice to the other party, may
request that the arbitral tribunal give an
interpretation of the award.
- The interpretation
shall be given in writing within forty-five
days after the receipt of the request. The
interpretation shall form part of the award
and the provisions of article 20, paragraphs
2 to 7, shall apply.
Article 24.
Correction of the Award
- Within thirty
days after the receipt of the award, either
party, with notice to the other party, may
request the arbitral tribunal to correct in
the award any errors in computation, any clerical
or typographical errors, or any errors of
similar nature. The arbitral tribunal may
within thirty days after the communication
of the award make such corrections on its
own initiative.
- Such corrections
shall be in writing, and the provisions of
Article 20, paragraphs 2 to 7 shall apply.
Article 25. Additional Award
- Within thirty
days after the receipt of the award, either
party, with notice to the other party, may
request the arbitral tribunal to make an additional
award as to claims presented in the arbitral
proceedings but omitted from the award.
- If the arbitral
tribunal considers the request for an additional
award to be justified and considers that the
omission can be rectified without any further
hearings or evidence, it shall complete its
award within sixty days after the receipt
of the request.
- When any additional
award is made, the provisions of article 20,
paragraphs 2 to 7, shall apply.
VI. COSTS
OF ARBITRATION
Article 26.
Costs of Arbitration
- After receipt
of the Request, the Secretary General may
request the Claimant to pay a provisional
advance in an amount intended to cover the
costs of arbitration until the Terms of Reference
have been drawn up.
- As soon as
practicable, the Institute shall fix the advance
on costs in am amount likely to cover the
fees and expenses of the arbitrators and the
Institute's administrative costs for the claims
and counterclaims which have been referred
to it by the parties. This amount may be subject
to readjustment at any time during the arbitration.
Where, apart from the claims, counterclaims
are submitted, the Institute may fix separate
advances on costs for the claims and the counterclaims.
- The advance
on costs fixed by the Institute shall be payable
in equal shares by the claimant and the Respondent.
Any provisional advance paid on the basis
of Article 26(1) will be considered as a partial
payment thereof. However, any party shall
be free to pay the whole of the advance on
costs in respect of the principal claim or
the counterclaim should the other party fail
to pay its share. When the Institute has set
separate advances on costs in accordance with
Article 26(2), each of the parties shall pay
the advance on costs corresponding to its
claims.
- When a request
for an advance on costs has not been complied
with, and after consultation with the Arbitral
Tribunal, the Secretary General may direct
the Arbitral Tribunal to suspend its work
and set a time limit, which must be not less
than 15 days, on the expiry of which the relevant
claims, or counterclaims, shall be considered
as withdrawn. Should the party in question
wish to object to this measure it must take
a request within the aforementioned period
for the matter to be decided by the Institute.
Such party shall not be prevented on the ground
of such withdrawal from reintroducing the
same claims or counterclaims at a later date
in another proceeding.
- If one of
the parties claims a right to a set-off with
regard to either claims or counterclaims,
such set-off shall be taken into account in
determining the advance to cover the costs
of arbitration in the same way as a separate
claim insofar as it may require the Arbitral
Tribunal to consider additional matters.
Article 27.
Decisions as to the Costs of the Arbitration
- The costs
of the arbitration shall include the fees
and expenses of the arbitrators and the Institute's
administrative expenses fixed by the Institute,
in accordance with the scale in force at the
time of the commencement of the arbitral proceedings,
as well as the fees and expenses of any experts
appointed by the Arbitral Tribunal and the
reasonable legal and other costs incurred
by the parties for the arbitration.
The Institute may fix the fees of the arbitrators
at a figure higher or lower than that which
would result from the application of the relevant
scale should this be deemed necessary due
to the exceptional circumstances of the case.
Decisions on costs other than those fixed
by the Institute may be taken by the Arbitral
Tribunal at any time during the proceedings.
- The final
Award shall fix the costs of the arbitration
and decide which of the parties shall bear
them or in what proportion they shall bear
them or in what proportion they shall be borne
by the parties.
Article 28.
Fees of Arbitrators
- The Arbitration
Institute shall fix its fees in accordance
with the scale hereinafter set out as Annex
3. Where the sum is not set out the fees shall
be fixed by taking in to consideration such
factors as the complexity of the case, the
diligence of the Arbitrators, the nature of
the dispute, length of hearings, and eminence
and standing of the Arbitrators themselves.
Article 29. Advance to cover costs of the
arbitration
- The Institute
shall prepare an estimate of the costs of
Arbitration and may request each party to
deposit an equal amount as an advance for
those costs.
- During the
course of the arbitral proceedings the Institute
may request supplementary deposits from the
parties as it is found important and appropriate.
- If the required
deposits are not paid in full within thirty
days after the receipt of the request, the
Institute shall so inform the parties in order
that one or another of them may make the required
payment.
- If such payment
is not made, the arbitral tribunal, after
consultation with the Institute, may order
the suspension or termination of the arbitral
proceedings.
The Institute may apply the deposits towards
disbursements for the costs of the Arbitration.
- After the
award has been made, the Institute shall render
an accounting to the parties of the deposits
received and return any unexpended balance
to the parties
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