Make a Submission
Vol. 35 (2015)
General Articles

Non-State Law in International Commercial Arbitration

PDF
  • Michał König

Published 2016-06-30

Keywords

  • arbitration,
  • Rome I,
  • rules of law,
  • lex mercatoria,
  • non-state law,
  • applicable law,
  • UNIDROIT,
  • lex arbitrii
    • ...More
    Less

Copyright (c) 2016 ILS PAS

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Non-State Law in International Commercial Arbitration. (2016). Polish Yearbook of International Law, 35, 265-292. https://doi.org/10.7420/pyil2015j

Abstract

The feature that most attracts private parties from different states to referring their dispute to an arbitral tribunal is the flexibility of the procedure. However, the differences between arbitration and court litigation are not only procedural, but they concern the substance of the parties’ cases. This is because in the realm of international arbitration the law applicable to the merits of the case is determined according to other provisions than the statutory conflict of laws rules. Depending on the arbitration law of the seat, the entire private international law statute can be captured in a single provision – “absent the parties’ choice, the arbitral tribunal shall apply the rules of law which it determines to be appropriate”. It follows that arbitral tribunals, unlike state courts, are not bound by the conflict of laws rules of the forum. What’s more, the merits of a dispute submitted to arbitration may be governed not only by some national body of law (e.g. the Polish Civil Code) but also by a non-state, nonnational set of provisions – “rules of law” (e.g. the UNIDROIT Principles of International Commercial Contracts).
The aim of this article is to analyze how the parties and tribunals may make use of their autonomy in determining the law applicable to a dispute. Furthermore it examines whether there are any limits thereto in light of the Rome I Regulation.

PDF

References

  1. Ad hoc tribunal award, British Petroleum v. Libya (Merits), dated 10 October 1973 and 1 August 1974, “International Law Reports” 1979, vol. 53.
  2. Award of Arbitration and Mediation Centre of Paris, case No. 9246 of 1996, “Yearbook Commercial Arbitration” 1997, vol. 22.
  3. Award of International Court of Arbitration, case No. 2291 of 1975 [in:] Collection of ICC Arbitral Awards 1974-1985, Kluwer Law International, The Hague 1994.
  4. Award of International Court of Arbitration, case No. 2879 of 1978 [in:] Collection of ICC Arbitral Awards 1974-1985, Kluwer Law International, The Hague 1994.
  5. Award of International Court of Arbitration, case no. 3131 of 1979, Yearbook Commercial Arbitration” 1984, vol. 9.
  6. Award of International Court of Arbitration, case No. 3894 of 1981 [in:] Collection of ICC Arbitral Awards 1974-1985, Kluwer Law International, The Hague 1994.
  7. Award of International Court of Arbitration, case No. 4237 of 1985, “Yearbook Commercial Arbitration” 1985, vol. 52.
  8. Award of International Court of Arbitration, case No. 5713 of 1989, “Yearbook Commercial Arbitration” 1990, vol. 15.
  9. Award of International Court of Arbitration, case No. 7331 of 1994, http://www.unilex.info/case.cfm?pid=1&do=case&id=140&step=FullText [access: 20.04.2016].
  10. Award of International Court of Arbitration, case No. 8113 of 1995, “Yearbook Commercial Arbitration” 2000, vol. 25.
  11. Award of International Court of Arbitration, case no. 8547 of 1999, “Yearbook Commercial Arbitration” 2003, vol. 28.
  12. Award of International Court of Arbitration, case No. 8672 of 200112(1), ICC Ct. Bull. 117 (2001).
  13. Award of International Court of Arbitration, case No. 8962 of 1997, http://cisgw3.law.pace.edu/cases/978962i1.html [access: 20.04.2016].
  14. Award of International Court of Arbitration, case No. 9771 of 2001, “Yearbook Commercial Arbitration” 2004, vol. 29.
  15. Award of International Court of Arbitration, case No. 9797 of 2000, Mealey’s International Arbitration Report, vol. 15, pp. 515–633.
  16. Award of Iran-U.S. Claims Tribunal, case No. 370 of 1989, “Yearbook Commercial Arbitration” 1990.
  17. Bell K., The sphere of application of the Vienna Convention on Contracts for the international sale of goods, “Pace International Law Review” 1996, vol. 8, no. 1.
  18. Black’s Law Dictionary, WestlawNext, New York 2009.
  19. Blackaby N., Partasides C., Redfern A., Hunter M., Redfern and Hunter on International Arbitration, Oxford University Press, Oxford 2009.
  20. Blessing M., Choice of substantive law in international arbitration, “Journal of International Arbitration” 1997, vol. 14, no. 2, pp. 39–65.
  21. Blessing M., Regulations in arbitration rules on choice of law [in:] A.J. van den Berg (ed.), ICCA Congress Series No. 7, Kluwer Law International, The Hague 1996, pp. 391–446.
  22. Böckstiegel K., Kröll S., Nacimiento P., Arbitration in Germany: The Model Law in Practice, Kluwer Law International, The Hague 2007.
  23. Born G., International Commercial Arbitration, Kluwer Law International, The Hague 2014.
  24. Bundesgesetz über das Internationale Privatrecht (Private International Law Act), AS 1988 1776.
  25. Case C-126/97, Eco Swiss China Time Ltd v. Benetton Int’l NV [1999], ECR I-3055.
  26. Code de Procedure Civil (Code of Civil Procedure), J.O. du 9.12.1975, (France).
  27. Convention on the law applicable to contractual obligations (adopted 19 June 1980, entered into force 1 April 1991) 1605 UNTS 59.
  28. Court of Arbitration Attached to the Hungarian Chamber of Commerce & Industry, case No. VB 99144 of 2000, http://cisgw3.law.pace.edu/cases/000000h1.html [access: 20.04.2016].
  29. Craig W., Park W., Paulsson J., International Chamber of Commerce Arbitration, Oceana Publications, New York 2000.
  30. Croff C., The applicable law in an International Commercial Arbitration: Is it still a conflict of laws problem?, “International Lawyer” 1982, vol. 16, no. 4, pp. 613–645.
  31. Danilowicz V., The choice of applicable law in international arbitration, “Hastings International & Comparative Law Review” 1986, vol. 9, pp. 235–284.
  32. Delvolvé J., Rouche J., Pointon G., French Arbitration Law and Practice: A Dynamic Civil Law Approach to International Arbitration, Kluwer Law International, The Hague 2009.
  33. Derains Y., Possible conflict of laws rules and the rules applicable to the substance of the dispute [in:] P. Sanders (ed.), ICCA Congress Series No. 2, Kluwer Law International, The Hague 1984.
  34. Derains Y., Schwartz E., A Guide to the ICC Rules of Arbitration, Kluwer Law International, The Hague 2005.
  35. Duval P., English and French Law: The search for common principles, “International Business Lawyer” 1997, vol. 25, no. 4, pp. 181–182.
  36. Ereciński T., Kodeks postępowania cywilnego. Komentarz. Tom V. Międzynarodowe postępowanie cywilne. Sąd polubowny (arbitrażowy) [Code of civil procedure. Commentary. Part V. International civil procedure. Arbitral tribunal], LexisNexis, Warszawa 2012.
  37. European Convention on International Commercial Arbitration (adopted 21 April 1961, entered into force 7 January 1964) 484 UNTS 349.
  38. Ferrari F., ‘Forum shopping’ despite international uniform Contract Law Conventions, “International and Comparative Law Quarterly” 2002, vol. 51, no. 3, pp. 689–708.
  39. Ferrari F., Silberman L., Getting to the law applicable to the merits [in:] F. Ferrari, S. Kröll (eds.), Conflict of Law in International Commercial Arbitration, Sellier, Munich 2010.
  40. Gaillard E., Savage J. (eds.), Fouchard Gaillard Goldman on International Commercial Arbitration, Wolters Kluwer Law and Business, The Hague 1999.
  41. Geisinger E., Voser N. (eds.), International Arbitration in Switzerland: A Handbook for Practitioners, Volume Second, Kluwer Law International, The Hague 2013.
  42. Giardina A., International conventions on conflict of laws and substantive law [in:] A.J. van den Berg (ed.), Planning Efficient Arbitration Proceedings: The Law Applicable in International Arbitration, ICCA Congress Series No. 7, Kluwer Law International, The Hague 1996, pp. 459–470.
  43. Greenberg S., The law applicable to the merits in international arbitration, “Vindobona Journal of International Commercial Law & Arbitration” 2004, vol. 8.
  44. Grigera Naon H., Choice-of-law problems in International Commercial Arbitration, “Recueil des Cours” 2001, vol. 289, pp. 9–395.
  45. Holtzman H., Neuhaus J., A Guide to UNCITRAL Model Law on International Commercial Arbitration: Legislative History and Commentary, Wolters Kluwer Law and Business, The Hague 1989.
  46. Houtte H. van, The UNIDROIT Principles of International Commercial Contracts, “Arbitration International” 1995, vol. 11, no. 4, pp. 373–390.
  47. ICC International Court of Arbitration, case No. 8331 of 1996, http://www.unilex.info/case.cfm?pid=2&do=case&id=647&step=FullText [access: 20.04.2016].
  48. International Court of Arbitration, case No. 7319 of 1992, “Yearbook Commercial Arbitration” 1999, vol. 24.
  49. Judgment of Austrian Supreme Court, dated 18 November 1982, Norsolor SA v. Pabalk, http://bit.ly/1NnG0mI [access: 20.04.2016].
  50. Judgment of Court of Appeal of England and Wales dated 17 February, 1992, Channel Tunnel Group Ltd. v. Balfour Beatty Construction Ltd. [1992], Q.B. 656.
  51. Judgment of French Cour de Cassation, dated 9 October 1984, Société Pabalk Ticaret Limited Sirketi v. Norsolor S.A., 3 ASA Bulletin 1984, po. 198.
  52. Judgment of the House of Lords dated 21 January 1993, Channel Tunnel Group Ltd. v. Balfour Beatty Construction Ltd. [1993], A.C. 334.
  53. Judgment of the United States District Court for the Southern District of California, dated 7 December 1998, Ministry of Defense & Support for the Armed Forces of the Islamic Republic of Iran v. Cubic Defense Sys.
  54. Judgment of Tribunale di Padova, dated 25 February 2004, SO. M. AGRI s.a.s di Ardina Alessandro & C. v. Erzeugerorganisation Marchfeldgemüse GmbH & Co. KG, http://cisgw3.law.pace.edu/cases/040225i3.html#cabc [access: 20.04.2016].
  55. Kodeks postępowania cywilnego (Code of Civil Procedure), O.J. 1964, no. 43, item 296.
  56. Lalive P., Les règles de conflits de lois appliquées au fond du litige par l’arbitre international siégant en Suisse, “Revue de L’arbitrage” 1976, vol. 1.
  57. Lew J., Mistelis L., Kröll S., Comparative International Commercial Arbitration, Kluwer Law International, The Hague 2003.
  58. Lopez-Rodriguez A., New arbitration acts in Denmark and Spain. The application of transnational rules to the merits of the dispute, “Journal of International Arbitration” 2006, vol. 23, no. 2, pp. 125–144.
  59. Mankowski P., Die Rom I-Verordnung, “Zeitschrift für Europarecht” 2009, vol. 1.
  60. Mankowski P., Rom I-VO und Schiedsverfahren, “Recht der Internationalen Wirtschaft” 2011, vol. 57, no. 1–2, pp. 30–43.
  61. Mann F., Lex Facit Arbitrum, “Arbitration International” 1986, vol. 2, no. 3, pp. 241–261.
  62. Oberhammer P., Entwurf eines neuen Schiedsverfahrensrechts, MANZ’sche, Wien 2002.
  63. Pilich M., Prawo właściwe dla meritum sporu zawisłego przed sądem arbitrażowym w braku wyboru prawa [Law applicable to the merits of a dispute before an arbitral tribunal in case of a lack of choice of law] [in:] J. Gudowski, K. Weitz (eds.), Aurea praxis, aurea theoria. Księga pamiątkowa ku czci Profesora Tadeusza Erecińskiego, LexisNexis, Warszawa 2011, pp. 1777–1798.
  64. Redfern A., Hunter M., Blackby N., Partasides C., Law and Practice of International Commercial Arbitration, Sweet & Maxwell, London 2004.
  65. Regulation 593/2008/EC of 17 June 2008 on the law applicable to contractual obligations (Rome I), [2008] OJ L 177.
  66. Report on the Convention on the law applicable to contractual obligations, O.J. C 282/1.
  67. Sauser-Hall G., Annuaire de l’Institut de droit international, L’institut de droit international, Paris 1957.
  68. Schmidt-Ahrends N., CISG and arbitration, “Belgrade Law Review” 2011, vol. 49, no. 3, pp. 2111–2223.
  69. Schwarz F., Konrad Ch.W., The Vienna Rules: A Commentary on International Arbitration in Austria, Kluwer Law International, The Hague 2009.
  70. Sen R., I’m an arbitration lawyer… Get me out of here! A practitioner’s guide to the complexities of International Commercial Arbitration Under the Indian Arbitration and Conciliation Act 1996, “Vindobona Journal of International Commercial Law & Arbitration” 2009, vol. 13.
  71. Shackleton S., The applicable law in international arbitration under the New English Arbitration Act 1996, “Arbitration International” 1997, vol. 13, no. 4, pp. 375–389.
  72. Teubner G., Global Bukowina: Legal pluralism in the world society [in:] G. Teubner (ed.), Global Law without a State, Ashgate Publishing Company, Burlington 1997.
  73. United Nations Convention on Contracts for the International Sale of Goods (adopted 11 April 1980, entered into force 1 January 1988), 1489 UNTS 58.
  74. Vogenauer S., Kleinheisterkamp J., Commentary on the UNIDROIT Principles of International Commercial Contracts (PICC), Oxford University Press, Oxford 2009.
  75. Wortmann B., Choice of law by arbitrators: The applicable conflict of laws system, “Arbitration International” 1998, vol. 14, no. 2, pp. 97–113.
  76. Zivilprozessordnung (Code of Civil Procedure), 2005 BGBl. I S. 3202, (Germany).
  77. Zumbansen P., Piercing the legal veil: Commercial arbitration and Transnational Law, “European Law Journal” 2002, vol. 8, no. 3, pp. 400–432.

Similar Articles

You may also start an advanced similarity search for this article.