Questions and Answers
What is the purpose of the Payment Order Procedure (POP)?
*To provide access to the BAT for Claimants in low-value disputes who cannot afford arbitration costs
What happens if the Respondent does not object to the issuance of the payment order?
*The BAT will issue the payment order without examining the merits of the claim
What is the outcome of an uncontested POP?
*The BAT issues the Final Payment Order (FPO)
What happens if the Respondent fails to honour the Final Payment Order (FPO)?
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In what circumstances can a Claimant use the POP?
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How is the POP comparable to other procedures?
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Study Notes
Payment Order Procedure (POP)
- Comparable to default judgments before state courts, e.g. European order for payment procedure
- First of its kind in international (sports) arbitration
Key Features of POP
- Claimant can request BAT to issue a payment order for a specific monetary claim against a Respondent
- BAT issues payment order without examining the merits of the claim if basic requirements are fulfilled and Respondent does not object
Purpose of POP
- Provides access to BAT for Claimants in low-value disputes who cannot afford arbitration costs
- Response to the fact that many Respondents do not participate in BAT proceedings
Final Payment Order (FPO)
- Issued by BAT at the end of an uncontested POP if all necessary requirements are fulfilled
- Has the effects of a final and binding arbitral award between the parties
- Qualifies as a "decision" under Article 3-335 of FIBA Internal Regulations
- Failure to honour the FPO may lead to disciplinary proceedings
Conditions for Using POP
- Claimant can only use POP if parties have agreed to its application to their dispute
- Parties should include the new alternative BAT clause under Article 0.3 of the BAT Rules in their contract
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