Article 9 of the Prague Rules contains three clauses which aim to regulate the whole settlement facilitation process during the arbitration proceedings. The wording of the article has left a considerable amount of the settlement facilitation relations unregulated and by doing so, in my opinion, the Working Group intended to maintain those ambiguities under the discretion of Arbitral Tribunal in order to increase its proactive role in dispute settlement.
If we analyze each clause separately, in Article 9. 1 Prague Rules define that “unless one of the parties’ objects, the arbitral tribunal may assist the parties in reaching an amicable settlement of the dispute at any stage of the arbitration”. From the wording it is clear that the article intended to formulate general rule for the assistance of Arbitral Tribunal in settlement facilitation. However, the same article carries some harmful ambiguities which will be addressed by following paragraphs of this memorandum accompanied by respective potential practical problems caused by them.
Articles 9. 2 and 9. 3 regulate, respectively, the use of mediation during the arbitration proceedings as settlement facilitation method and the procedure for the continuance of mediating arbitrator’s mandate after unsuccessful mediation process. Article 9. 2 states that “upon the prior written consent of all parties, any member of the arbitral tribunal may also act as a mediator to assist in the amicable settlement of the case” and, according to the Article 9. 3, the same arbitrator may continue to act as arbitrator only subject to further written consent from all parties if the mediation does not result in settlement. One of the main uncertainties is the reason why the Prague Rules have defined “prior written consent of all parties” requirement for mediation on the one hand, while confining itself to the “unless one of the parties’ objects” criteria for other facilitation methods under Article 9. 1 on the other hand. The potential problematic issues arising out of Articles 9. 2 and 9. 3 are mostly related to reducing the efficiency of arbitral proceedings and endangering the enforceability of the final arbitral award, especially by not regulating the conflict between the main principles of arbitration and mediation methods.
Article
9 of the Prague
Rules
contains three clauses which aim to regulate the whole
settlement
facilitation process during the
arbitration
proceedings. The wording of the
article
has
left
a considerable amount of the
settlement
facilitation relations unregulated and by doing
so
, in my opinion, the Working Group intended to maintain those ambiguities under the discretion of
Arbitral
Tribunal
in order to increase its proactive role in dispute settlement.
If we analyze each clause
separately
, in
Article
9. 1 Prague
Rules
define that “unless one of the
parties’
objects, the
arbitral
tribunal
may assist the
parties
in reaching an amicable
settlement
of the dispute at any stage of the
arbitration”
. From the wording it is
clear
that the
article
intended to formulate general
rule
for the assistance of
Arbitral
Tribunal
in
settlement
facilitation.
However
, the same
article
carries
some
harmful ambiguities which will
be addressed
by following paragraphs of this memorandum accompanied by respective potential practical problems caused by them.
Articles 9. 2 and 9. 3 regulate,
respectively
, the
use
of
mediation
during the
arbitration
proceedings as
settlement
facilitation method and the procedure for the continuance of mediating arbitrator’s mandate after unsuccessful
mediation
process.
Article
9. 2 states that “upon the prior written consent of all
parties
, any member of the
arbitral
tribunal
may
also
act as a mediator to assist in the amicable
settlement
of the case” and, according to the
Article
9. 3, the same arbitrator may continue to act as arbitrator
only
subject to
further
written consent from all
parties
if the
mediation
does not result in
settlement
. One of the main uncertainties is the reason why the Prague
Rules
have defined “prior written consent of all
parties”
requirement for
mediation
on the one hand, while confining itself to the “unless one of the
parties’
objects” criteria for other facilitation methods under
Article
9. 1
on the other hand
. The potential problematic issues arising out of
Articles
9. 2 and 9. 3 are
mostly
related to reducing the efficiency of
arbitral
proceedings and endangering the
enforceability
of the final
arbitral
award,
especially
by not regulating the conflict between the main principles of
arbitration
and
mediation
methods.