ARB 1 : Applicable Laws in Arbitration

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Questions and Answers

In the context of international arbitration seated in Singapore, and assuming no explicit choice of law by the parties, which of the following legal frameworks primarily governs the procedural aspects of the arbitration?

  • The Arbitration Act (AA) of Singapore, irrespective of the international nature of the arbitration.
  • The Singapore International Arbitration Act (IAA), incorporating the Model Law with modifications. (correct)
  • The UNCITRAL Model Law on International Commercial Arbitration, as directly enacted.
  • The lex arbitri, which in this scenario is autonomously determined by the arbitral tribunal.

Under Singapore law, an arbitration agreement referring to institutional arbitration rules inherently excludes the application of the mandatory provisions of the International Arbitration Act (IAA).

False (B)

Explain the doctrine of 'competence-competence' in international arbitration and briefly outline its significance for arbitral tribunals in managing jurisdictional challenges.

The doctrine of competence-competence, or Kompetenz-Kompetenz, empowers an arbitral tribunal to rule on its own jurisdiction, including objections to the existence or validity of the arbitration agreement. This principle is crucial as it allows tribunals to address jurisdictional challenges efficiently at the outset, promoting party autonomy and potentially avoiding delays associated with preliminary court interventions. However, this is subject to later court review.

In Singapore, for domestic arbitrations, the court, when considering a stay of proceedings in favor of arbitration, retains discretion to refuse a stay if there is a '_________ reason' why the matter should not be referred to arbitration.

<p>sufficient</p> Signup and view all the answers

Match the following concepts with their corresponding descriptions in the context of international arbitration:

<p>Lex Arbitri = The procedural law governing the conduct of the arbitration, typically the law of the seat. Seat of Arbitration = The juridical place of arbitration, determining the supervisory jurisdiction of courts and the lex arbitri. UNCITRAL Model Law = A globally recognized framework for international commercial arbitration, incorporated into many national laws. New York Convention = An international treaty facilitating the recognition and enforcement of foreign arbitral awards.</p> Signup and view all the answers

Parties A and B, based in different countries, enter into a contract for the supply of specialized industrial machinery. The arbitration clause in their contract ambiguously states, 'Disputes shall be resolved under Singapore arbitration rules.' Considering Singapore law, which of the following interpretations is MOST accurate regarding the applicable arbitration rules?

<p>The clause will likely be interpreted as a reference to the rules of the Singapore International Arbitration Centre (SIAC) as the most prominent institution in Singapore. (A)</p> Signup and view all the answers

Under the separability doctrine, if a contract containing an arbitration clause is deemed invalid ab initio due to fundamental flaws in contract formation, the arbitration clause within it automatically becomes invalid as well.

<p>False (B)</p> Signup and view all the answers

Describe the 'composite approach' adopted by the Singapore Court of Appeal in Anupam Mittal v Westbridge Ventures [2023] SGCA 1 concerning objective arbitrability, and explain its implications for disputes with cross-border elements.

<p>The 'composite approach' in <em>Anupam Mittal</em> involves a two-tiered assessment of objective arbitrability. First, arbitrability is determined by the law governing the arbitration agreement. If this law deems the dispute non-arbitrable, Singapore courts will not permit arbitration. Second, even if arbitrable under the governing law, Singapore law, as <em>lex fori</em>, must also find the dispute objectively arbitrable. This approach acknowledges the relevance of foreign public policy and ensures disputes align with Singapore's fundamental principles, especially in cross-border contexts.</p> Signup and view all the answers

According to the Singapore Court of Appeal in Tomolugen v Silica Investors, when considering a stay application under the IAA, the court conducts a _________ facie review to determine if a valid arbitration agreement exists and if the dispute falls within its scope.

<p>prima</p> Signup and view all the answers

Company X, incorporated in Hong Kong, and Company Y, incorporated in Singapore, enter into a contract with the seat of arbitration designated as London. If a dispute arises and Company X applies to the Singapore courts for a stay of proceedings, which arbitration legislation would the Singapore court primarily consider to determine whether to grant the stay?

<p>The Singapore International Arbitration Act (IAA), due to Company Y's incorporation in Singapore. (D)</p> Signup and view all the answers

In Singapore, if parties fail to specify the seat of arbitration, the arbitral institution chosen by the parties automatically determines the seat.

<p>False (B)</p> Signup and view all the answers

Explain the concept of a 'pathological arbitration clause' and discuss whether, under Singapore law, such a clause automatically invalidates the arbitration agreement.

<p>A 'pathological arbitration clause' refers to an ambiguously or defectively drafted arbitration clause that may impede the smooth progress of arbitration. Under Singapore law, as clarified in <em>Insigma Technology v Alstom Technology</em>, a pathological clause does not automatically invalidate the arbitration agreement. Singapore courts adopt a principle of effective interpretation to salvage such clauses, striving to give effect to the parties' intention to arbitrate unless the defect is so fundamental that no coherent intention can be discerned.</p> Signup and view all the answers

Under Singapore law, in the absence of an express choice of law governing the arbitration agreement, there is a rebuttable presumption that parties have impliedly chosen the law governing the _________ contract to also govern the arbitration agreement.

<p>main</p> Signup and view all the answers

An arbitral tribunal seated in Singapore issues a preliminary ruling asserting jurisdiction. Under the Singapore International Arbitration Act (IAA), what is the immediate recourse available to a party contesting this jurisdictional ruling?

<p>The party can apply to the Singapore High Court within 30 days to review the tribunal's jurisdictional decision. (B)</p> Signup and view all the answers

Commencing court proceedings for interim relief in support of arbitration constitutes a waiver of the right to arbitrate under Singapore law.

<p>False (B)</p> Signup and view all the answers

Explain the distinction between 'subjective arbitrability' and 'objective arbitrability' in the context of Singapore arbitration law, and give an example of an issue that might be considered objectively non-arbitrable.

<p>Subjective arbitrability concerns whether parties have actually agreed to submit a particular dispute to arbitration, focusing on the scope of the arbitration agreement. Objective arbitrability, on the other hand, concerns whether the law permits certain types of disputes to be resolved through arbitration, regardless of party agreement. In Singapore, issues involving public interest elements, such as citizenship or criminal matters, are generally considered objectively non-arbitrable.</p> Signup and view all the answers

In Singapore, the test for incorporation by reference of an arbitration clause is whether the parties intended to incorporate the arbitration agreement, which is ultimately a question of _________.

<p>construction</p> Signup and view all the answers

A contract between two Singaporean companies specifies 'arbitration in Singapore'. In the absence of further details, which law is MOST likely to govern a domestic arbitration arising from this contract?

<p>The Arbitration Act (AA) of Singapore, specifically designed for domestic arbitrations. (D)</p> Signup and view all the answers

Under Singapore law, a non-signatory to an arbitration agreement can never be bound by it, irrespective of legal doctrines such as agency or estoppel.

<p>False (B)</p> Signup and view all the answers

Outline the key factors Singapore courts consider when determining whether to grant a stay of court proceedings in favor of arbitration, particularly focusing on the concept of 'sufficient reason' in domestic arbitrations.

<p>In domestic arbitrations under the AA, Singapore courts consider a broad range of factors to determine 'sufficient reason' not to grant a stay, as articulated in <em>CSY v CSZ</em>. These factors include the existence of related actions, overlap of issues potentially leading to inconsistent findings, the shape of the dispute resolution process, likelihood of injustice or disrepute to justice, and prejudice to parties. These factors are weighed against the fundamental principle that parties should be held to their arbitration agreements.</p> Signup and view all the answers

In the context of challenging an arbitral tribunal's jurisdiction, the doctrine of - empowers tribunals to rule on their own jurisdiction.

<p>competence-competence</p> Signup and view all the answers

Parties in an international commercial contract agree to 'ICC arbitration, proceedings in Singapore'. Which of the following BEST describes this arbitration clause?

<p>A potentially hybrid or pathological clause due to the combination of ICC rules and Singapore proceedings, requiring further interpretation. (C)</p> Signup and view all the answers

Once the seat of arbitration is determined in an arbitration agreement, it can be unilaterally changed by one party if circumstances significantly alter.

<p>False (B)</p> Signup and view all the answers

Differentiate between 'institutional arbitration' and 'ad hoc arbitration', highlighting the key practical differences in their administration and procedural framework.

<p>Institutional arbitration is administered by an arbitral institution (e.g., SIAC, ICC), which provides rules, administrative support, and often appoints arbitrators. It offers a structured framework and established procedures. Ad hoc arbitration, conversely, is not institutionally administered; parties themselves, or through an appointing authority, arrange all aspects of the arbitration, often using rules like the UNCITRAL Arbitration Rules. It offers greater flexibility but requires more organizational effort from the parties.</p> Signup and view all the answers

The procedural law governing the conduct of arbitration, determined by the seat of arbitration, is also known as the _________ _________.

<p>lex arbitri</p> Signup and view all the answers

In a scenario where parties have not chosen the law governing the substance of the dispute, and the arbitral tribunal must determine it, which approach is MOST consistent with Article 28(2) of the UNCITRAL Model Law?

<p>Applying the law determined by the conflict of laws rules which the tribunal considers applicable. (C)</p> Signup and view all the answers

Under Singapore law, a provision in arbitration rules that is silent on a matter covered by the IAA is considered inconsistent with the IAA.

<p>False (B)</p> Signup and view all the answers

Explain the practical significance of choosing a seat of arbitration that is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

<p>Choosing a seat in a New York Convention (NYC) signatory state is crucial for the enforceability of arbitral awards internationally. The NYC facilitates the recognition and enforcement of foreign arbitral awards in over 170 signatory countries. An award issued in an NYC state is more easily enforceable in other NYC states, significantly enhancing the practical value of international arbitration.</p> Signup and view all the answers

In Singapore, the appellate review of a jurisdictional ruling by the High Court under Section 10(3) IAA requires _________ of the appellate court.

<p>leave</p> Signup and view all the answers

Which of the following best describes the 'doctrine of separability' in international arbitration?

<p>The concept that an arbitration clause within a contract is treated as a distinct agreement, independent of the validity of the main contract. (C)</p> Signup and view all the answers

Under the Singapore IAA, if an arbitral tribunal rules that it lacks jurisdiction as a preliminary matter, this decision is subject to immediate appeal to the Singapore High Court.

<p>False (B)</p> Signup and view all the answers

Describe the concept of 'de novo' review in the context of Singapore courts reviewing an arbitral tribunal's decision on jurisdiction. What implications does this have for the court's approach?

<p>'De novo' review means the court reviews the jurisdictional issue afresh, from the beginning, without being bound by the arbitral tribunal's findings or reasoning. The court exercises original jurisdiction, independently assessing the facts and law relevant to jurisdiction. This implies the court is at liberty to form its own judgment and is not deferential to the tribunal's conclusion on jurisdiction.</p> Signup and view all the answers

According to Section 8(1) of the Model Law and Section 6(1) of the IAA, the application to stay court proceedings in favor of arbitration must be made no later than the submission of the first statement on the _________ of the dispute.

<p>substance</p> Signup and view all the answers

Which of the following factors is LEAST likely to be considered by Singapore courts when deciding whether to grant a stay of court proceedings in favor of arbitration in a domestic arbitration under the Arbitration Act (AA)?

<p>The complexity and anticipated length of the arbitration proceedings. (D)</p> Signup and view all the answers

In Singapore, for an arbitration agreement to be considered 'in writing', it must be formally signed by all parties in physical form.

<p>False (B)</p> Signup and view all the answers

Explain the concept of 'implied consent' in the context of binding non-signatories to an arbitration agreement. What is the key determinant for establishing implied consent?

<p>'Implied consent' is a doctrine under which a non-signatory can be bound to an arbitration agreement through their conduct, such as negotiation or performance of contractual obligations. The key determinant is whether the parties' objective intention, assessed from their conduct and the circumstances, was for the non-signatory to be bound by the agreement, including the arbitration clause.</p> Signup and view all the answers

In Singapore, the courts have considered, but not yet fully endorsed, a _________ approach to applying equitable estoppel to bind non-signatories to arbitration agreements.

<p>wider</p> Signup and view all the answers

A Singapore-seated arbitral tribunal renders an award. If a party seeks to set aside this award in the Singapore courts based on jurisdictional grounds, what is the scope of the court's review of the tribunal's jurisdictional findings?

<p>The court conducts a 'de novo' review, independently assessing jurisdiction without being bound by the tribunal's findings. (A)</p> Signup and view all the answers

According to Singapore law, if parties choose 'arbitration as per Singapore Contract Rules' in their agreement, this clause is automatically considered sufficiently certain and enforceable.

<p>False (B)</p> Signup and view all the answers

Explain the rationale behind the rule that courts generally conduct a 'prima facie' review of jurisdiction during stay applications, as opposed to a 'definitive ruling' based on balance of probabilities.

<p>The 'prima facie' review during stay applications is grounded in the principle of competence-competence. Courts defer to the arbitral tribunal's primary competence to determine its own jurisdiction. A 'prima facie' review efficiently checks for obvious jurisdictional defects at the outset, while reserving a more in-depth jurisdictional assessment for the arbitral tribunal itself, and later potential court review after the award.</p> Signup and view all the answers

In the case of HKL Group v Rizq, the Singapore High Court upheld an arbitration agreement that referred to settlement by 'Arbitration Committee' even though no such entity existed in Singapore, on the condition that parties obtain agreement from _________ or another arbitral institution in Singapore to administer the arbitration.

<p>SIAC</p> Signup and view all the answers

If parties agree to 'arbitration in Singapore under UNCITRAL Rules', and a dispute arises concerning the interpretation of the contract's substantive obligations, which law will MOST likely govern the substance of the dispute in the absence of a choice of law clause?

<p>The law most closely connected to the contract and the dispute, as determined by conflict of laws rules. (D)</p> Signup and view all the answers

In the context of international arbitration seated in Singapore and governed by the International Arbitration Act (IAA), which scenario unequivocally qualifies an arbitration as 'international' under Section 5(2)(b)(ii) IAA, assuming no express agreement on internationality under Section 5(2)(c) IAA?

<p>The place of arbitration is Singapore, but a substantial portion of the contractual obligations, specifically the construction of a manufacturing plant, is to be performed in Johor Bahru, Malaysia, by a Singaporean company for a Malaysian entity. (D)</p> Signup and view all the answers

Under Singapore law, and specifically Section 15A(1) of the International Arbitration Act (IAA) as interpreted in Dermajaya Properties, provisions within party-selected arbitration rules will be deemed applicable unless they exhibit inconsistency with a provision of the Model Law or the IAA from which parties ______.

<p>cannot derogate</p> Signup and view all the answers

In a complex international arbitration seated in Singapore, governed by the IAA and SIAC Rules, a conflict arises between a provision of the SIAC Rules and Article 28(3) of the UNCITRAL Model Law concerning the determination of the applicable law to the substance of the dispute. Considering the principles articulated in Insigma Technology v Alstom Technology, which approach would a Singapore court most likely endorse regarding the resolution of this conflict?

<p>A harmonious interpretation should be sought, potentially involving the application of a conflict of laws methodology as a practical approach to ascertain the appropriate governing law, consistent with both SIAC Rule 31 and Article 28(3) MAL. (D)</p> Signup and view all the answers

Under Singapore arbitration law, if parties to an arbitration agreement fail to explicitly stipulate the seat of arbitration, the resulting arbitration agreement is automatically rendered void ab initio due to fundamental uncertainty.

<p>False (B)</p> Signup and view all the answers

Elaborate on the 'composite approach' adopted by the Singapore Court of Appeal in Anupam Mittal v Westbridge Ventures [2023] SGCA 1 concerning objective arbitrability, and critically assess its implications for disputes with a foreign governing law clause.

<p>The 'composite approach' in <em>Anupam Mittal</em> dictates a two-tiered assessment of objective arbitrability. First, arbitrability is assessed under the law governing the arbitration agreement. If this law deems the subject matter non-arbitrable, Singapore courts will not compel arbitration. Second, even if arbitrable under the governing law, Singapore law as the seat's law can still deem it non-arbitrable based on Singapore public policy. This approach introduces a dual-layered scrutiny, potentially hindering arbitration if either legal system prohibits it, even if the foreign law is chosen by parties. This can create uncertainty and limit party autonomy, particularly when disputes are governed by foreign laws with differing arbitrability thresholds compared to Singapore.</p> Signup and view all the answers

Match the following scenarios related to pathological arbitration clauses with the most appropriate legal principle or Singapore case law that addresses them:

<p>An arbitration clause refers to the 'International Commercial Arbitration Center', a non-existent institution. = Principle of Effective Interpretation; <em>Re Shanghai Xinan Screenwall Building &amp; Decoration Co Ltd</em> [2022] SGHC 58 An arbitration clause mandates arbitration 'as per Singapore Contract Rules' without specifying procedural rules or an appointing authority. = Statutory Appointing Authority under IAA; <em>KVC Rice Intertrade Co Ltd v Asian Mineral Resources</em> [2017] SGHC 32 An arbitration clause designates 'Singapore International Arbitration Centre' as the administering institution but specifies 'Rules of Arbitration of the International Chamber of Commerce' as the procedural rules. = Hybrid Arbitration; <em>Insigma Technology v Alstom Technology</em> [2009] SGCA 24</p> Signup and view all the answers

In the context of stay of court proceedings in favor of arbitration under Singapore law, which factor, if demonstrably present, would most decisively sway a Singapore court towards refusing a stay application in a domestic arbitration?

<p>There exists a significant overlap in factual and legal issues with related court proceedings that are not subject to arbitration, creating a substantial risk of inconsistent judgments. (D)</p> Signup and view all the answers

According to the Singapore Court of Appeal in Tomolugen v Silica Investors, when considering a stay application under the IAA, a court's examination of arbitral tribunal jurisdiction is confined to a ______ review, deferring actual jurisdictional determination to the arbitral tribunal itself.

<p>prima facie</p> Signup and view all the answers

Under the UNCITRAL Model Law as adopted in Singapore, a negative jurisdictional ruling by an arbitral tribunal (i.e., a decision that it lacks jurisdiction) is subject to immediate recourse or appeal to the Singapore High Court.

<p>False (B)</p> Signup and view all the answers

Critically analyze the doctrine of separability in international arbitration, particularly in the context of allegations challenging the very formation of the contract containing the arbitration clause, and discuss the divergence in approach between English and Singaporean jurisprudence as alluded to in the provided text.

<p>The doctrine of separability posits that an arbitration clause is a distinct agreement separable from the main contract. Challenges to the main contract's validity generally do not automatically invalidate the arbitration clause. However, a debate exists regarding contract formation challenges. English courts, as hinted in the text, lean towards the doctrine's inapplicability when contract formation itself is disputed (e.g., no consensus ad idem). Singaporean jurisprudence, while applying separability broadly, hasn't explicitly endorsed or rejected this nuanced English position, leaving the precise scope of separability in formation challenges somewhat ambiguous under Singapore law. This divergence highlights ongoing tensions between upholding arbitration agreements and ensuring fundamental contractual validity.</p> Signup and view all the answers

Flashcards

Lex Arbitri

Laws governing the seat of the arbitration.

Applicable laws in arbitration

Includes arbitration rules, law of the seat, law governing dispute substance and arbitration agreement, non-contractual claims, and party's capacity.

Arbitration Act (Singapore)

Governs domestic arbitrations in Singapore.

International Arbitration Act (IAA)

Applies to international arbitrations or when parties agree.

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International Arbitration (IAA Definition)

When a party has a business place in another state, the arbitration place is outside, a substantial part of obligations are performed outside, the subject matter is closely connected outside, or parties agree is relates to more than one country.

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UNCITRAL

UN body to harmonize and modernize international trade law

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UNCITRAL Model Law

Has force of law in Singapore, with exception of Chapter VIII (Section 3(1) IAA).

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Arbitration agreement requirement

Requires valid arbitration agreement for tribunal jurisdiction.

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Institutional Arbitration

Use arbitral institution to administer.

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Lex Arbitri

Procedural law governing arbitration conduct

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Seat of Arbitration

Provides procedural law governing arbitration conduct.

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Ad Hoc Arbitration

No arbitral institution involvement.

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Choice of Seat

Dictates procedural law governing arbitration conduct.

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Rules of Arbitration

provisions of rules of Arbitration apply when provision is not inconsistent with provision of the Model Law or the IAA from which the parties cannot derogate.

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Choice of Arbitration Rules

Freedom to adopt arbitration rules.

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Arbitration Rules vs. Model Law

Rules prevail unless in conflict with a mandatory provision of Model Law.

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Choice of Law

Parties free to choose rules of substantive dispute law.

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Absent Choice of Law

Law the tribunal deems appropriate.

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Law applicable to arbitration agreement

Determines formal validity of agreement and arbitrator's authority.

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Absent an express choice

Rebuttable presumption that it is the law governing the main contract.

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Construction of clauses in arbitration

Broad approach as the assumption is that the parties, as rational businessmen, are likely to have intended any dispute arising out the relationship into which they have entered to be decided by the same tribunal

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Subject-Matter Arbitrability

Concerns whether dispute subject matter is capable of arbitration.

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How can non-Signatories be bounded to arbitration agreement

Consent implied, or agency.

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Incorporate by reference

Incorporation by reference refers to a situation where parties have not included an arbitration agreement in their own contract, but merely include a reference to another document which contains the arbitration agreement. The test is whether the parties had intended to incorporate the arbitration agreement - A question of construction.

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Arbitration Agreement Requirement

Agreement must be in writing.

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Pathological clause

They contain defects liable to disrupt the smooth progress of the arbitration.

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Tribunals or courts will rely on

Principle of effective interpretation to salvage the arbitration clause by restoring the true intention of the parties.

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Jurisdictional Objectives

Jurisdictional objections can be absolute (e.g. no capacity, illegal, incapable of being performed) or partial (e.g. issue falls outside scope of arbitration clause).

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domestic arbitration

Court has power to decline stay of proceedings (Section 6(2) AA), unlike under IAA (i.e. no discretion).

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What is the question being asked by the SGCA

Has there been a denial of liability or of quantum claimed (i.e. a prima facie)? would allow the Court to find a dispute in accordnace with Section 6 IAA.

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Tribunal's jurisdiction

Under the MAL, a tribunal’s decision that it possesses jurisdiction is always subject to review by the courts, at two stages. The first stage is after the tribunal decides the jurisdiction as a preliminary issue. The second stage is after the tribunal releases its final award.

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Appeal against tribunals ruling on jurisdiction

if the tribunal makes a ruling on jurisdiction as a preliminary issue, then regardless of whether the arbitral tribunal makes a positive or negative jurisdictional ruling, any party may, within 30 days after receiving notice of that ruling, apply to the SGHC to decide the matter (s 10(3) IAA)

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Arbtitration

Tribual or arbitration or ad-hoc.

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Doctrine of separability

96 The validity of the arbitration clause does not depend upon the validity of the other parts of the contract in which it is contained. This allows a tribunal to declare a contract invalid and yet retain its jurisdiction to decide a dispute as to the consequences of such invalidity

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Seat of arbitration and the procedural Law

The law governing the conduct of the arbitration, also known as the lex arbitri. also note that the choice of a particular institution does not dictate the choice of the seat.

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applying any rules of an arbitral institution

to exclude the application of the Model Law or selected by parties will apply, is not inconsistent with a provision of the Model Law or the IAA from which the parties cannot derogate

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Study Notes

Applicable Laws in Arbitration

  • Arbitration rules, the law of the seat of arbitration (lex arbitri), the substance of the dispute, the arbitration agreement, laws applicable to non-contractual claims, and a party's legal capacity to contract all concern applicable laws in arbitration.
  • Per s 5(1) IAA, the International Arbitration Act applies to an international arbitration if the parties agree.
  • According to s 5(2) IAA, an arbitration is considered international if:
    • At least one party to the arbitration agreement has a place of business in a state other than Singapore at the time of the agreement's conclusion.
    • The place of arbitration is outside the state where the parties have their businesses.
    • A substantial part of the obligations of the commercial relationship is performed outside the state where the parties have their businesses.
    • The subject-matter of the dispute is most closely connected to a place outside the state where the parties have their businesses.
    • The subject matter of the arbitration agreement relates to more than one country, as expressly agreed by the parties.
  • The UNCITRAL Model Law on International Commercial Arbitration (1985), excluding Chapter VIII, has the force of law in Singapore, per s 3(1) IAA.
  • Jurisdictions with legislation influenced by the Model Law include Germany, Hong Kong, New Zealand, Australia, and Canada.
  • The Model Law applies to international commercial arbitration, as stated in Art 1(1) MAL.
  • A valid arbitration agreement between the parties is required for an arbitral tribunal to have jurisdiction.

Types of Arbitration

  • Parties can choose between ad hoc or institutional arbitration
  • Institutional arbitration involves designating an arbitral institution to administer the arbitration, typically following its rules; examples include SIAC, ICC, HKIAC, and LCIA
  • Institutions publish model arbitration agreements for parties to insert into their contracts, which can cause jurisdictional issues if altered.
  • Ad hoc arbitration involves no arbitral institution administration; parties may adopt the UNCITRAL Arbitration Rules, which should not be confused with the UNCITRAL Model Law.
  • An arbitration agreement typically designates the seat of arbitration, such as Singapore, with its procedural law governing the conduct, known as the lex arbitri; the choice of institution does not dictate the seat.

Seat of Arbitration

  • The seat selection holds consequences, including procedural conduct dictated by the lex arbitri.
  • When parties opt for institutional arbitration and its rules, the institutional rules' extent of overriding the lex arbitri arises.
  • Under Singapore law, referring to or adopting an arbitral institution's rules does not exclude the Model Law's application, per s 15(2) IAA, overruling John Holland v Toyo.
  • Per s 15A(1) IAA, overruling Dermajaya Properties, the selected rules of arbitration apply unless inconsistent with the Model Law or the IAA rules from which parties cannot derogate.
  • Provisions of rules of arbitration are not inconsistent if the Model Law and the IAA are silent, or if rules allow parties to make their own arrangements where the Model Law/IAA applies in absence of such agreement, per s 15A(3)(4)(5) IAA.
  • In Insigma Technology v Alstom Technology [2009] SGCA 24, the rights of parties in Singapore to choose the arbitration rules were affirmed, and those rules chosen by the parties will prevail, unless in conflict with a mandatory provision of the Model Law.
  • If parties fail to agree on rules, the law of the seat of arbitration arbitral procedure, per Art 21-27 MAL.
  • Any seat must be freely agreed, per Art 20(1) MAL
  • If absent a specified seat, arbitral rules may regulate determination of where that should be
  • An agreed upon seat can only be changed by agreement by all of the parties and is the juridical concept

Governing Law

  • Per Art 28(1) MAL, parties can choose the applicable rule of law. Parties are generally not restricted in this applicable law
  • Should there be a lack of choice, the arbitral tribunal shall apply whatever is determined by conflict of rules that the tribunal in question considers appropriate, per Art 28(2) MAL
  • Courts prefer effective interpretation so as to salvage any existing arbitration dispute

Arbitration Agreements

  • A party must have the capacity to enter into an arbitration agreement.
  • Per Art 34(2)(a)(i) MAL and Art V(1)(a) NYC, issues of legal incapacity before or during can be grounds to set aside awards or resist their enforcement
  • Legal capacity is often the law of legal personality (e.g. lex personam), incorporation, or business
  • It is a fundamental principal of resolving disputes, consensual means of resolving disputes
  • Arbitration is only possible between parties to the agreement
  • 40 According to 38 Did the contracting party have the capcity to enter into the arbitration agreement in accordance with the governing law?

Key Requirements

  • It is a fundamental principal of resolving disputes, consensual means of resolving disputes
  • According to 38 Did the contracting party have the capcity to enter into the arbitration agreement in accordance with the governing law?
  • Must be in writing per (Art 7(2) MAL 1985; s 2A(3) IAA). or recorded in any way shape or form following the other sections mentioned above

Binding Parties

  • Implied consent: Is whether the parties' objective intention was for the non-signatory to be a party to the agreement and its arbitration clause
  • Agency Can be bound so long as an agent signs acting on behalf of their principal

Joinder

  • It is a fundamental principal of resolving disputes, consensual means of resolving disputes

66 Try as much as possible to stick to the model clauses

  • This is to get the most effective outcome
  • As well as include the key aspects mentioned.

Drafting effective and well structured clauses

  • Provide an express choice in the applicable dispute per article 32 and 33.
  • That the dispute be settled by negotiation
  • Set by the Abritration agreement mentioned above
  • So there is a clear route and goal for when the negotiations reach stalemate, and what steps and processes must be followed

Actions for parties to consider

  • Parties are free to agree on which disputes fall under an lex arbitri Article 48

Defective Clauses

Follow those highlighted in ""Effective"" and follow good arbitration clauses

Key Requirements to be met

A. There is a valid arbitration agreement between the parties to the court proceedings; B. Whether the dispute in court falls under the existing scope or nature of the arbitration C. And there is a way to resolve or effectively proceed

The appeal process in short

  • Parties have 30 days to appeal or declare a need to seek a reversal to the decision

Processes or issues with challenging decisions

Process is with the best chance of success before starting

  • ** NOTE: The output above contains information that was extracted, summarized and re-presented from the document you provided. All steps were taken to ensure accuracy and completeness of the information, but this document should NOT be treated as a source of legal or other professional advice.
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