Part 1 General and Special Reports, 7 International Commercial Arbitration: Perspective on the Hague Principles in International Commercial Arbitration

Author(s):  
Gama Lauro ◽  
Girsberger Daniel ◽  
Rodríguez José Antonio Moreno

This chapter studies how the private international law rules of most jurisdictions have traditionally addressed State court litigation, without considering the specificities of international arbitration. Many nations have now created their own legislation for international arbitration or adopted the UNCITRAL Model Law on International Commercial Arbitration. These laws regularly contain their own rules dealing with parties’ choice of law on the merits. The chapter then explores choice of law in international arbitration with a particular view on the Hague Principles which are, as paragraph 4 of their Preamble discloses, intended to apply equally to courts and arbitral tribunals. It analyses the approach arbitral tribunals have taken when confronted with choice of law issues, and particularly a party choice of the law applicable to the merits of the dispute. The chapter also assesses whether it is correct and if so, for which reasons, and in which way, that commercial parties have a larger autonomy in arbitration, compared to litigation, to choose non-State rules of law, and which types of rules they may choose. Finally, it demonstrates why, how, and to what extent the Hague Principles can contribute to define, delineate, interpret, and supplement existing (conflict of law) regimes in the field of international arbitration.

Author(s):  
Hyun Suk Kwang

This chapter studies South Korean perspectives on the Hague Principles. Korea has enacted choice of law rules for courts in litigation and choice of law rules for arbitral tribunals. The former are set forth in the Private International Law Act of Korea (KPILA) and the latter in the Arbitration Act of Korea (KAA). The single most important Korean legislation on private international law is the KPILA, which mainly consists of provisions on applicable law and on international jurisdiction in civil and commercial matters. As for the KAA, it was modelled on the 1985 Model Law on International Commercial Arbitration of United Nations Commission on International Trade Law (UNCITRAL), and further amended in 2016 in order to reflect the amendments adopted in 2006 to the UNCITRAL Model Arbitration Law. Since Korea has detailed choice of law rules for courts and arbitral tribunals, the role which could be played by the Hague Principles in Korea will be very limited. Korean courts could use them for reference in the interpretation, supplementation, and/or development of applicable rules of choice of law regarding matters not covered by the choice of law rules of the KPILA.


Author(s):  
Girsberger Daniel ◽  
Graziano Thomas Kadner ◽  
Neels Jan L

This chapter presents the General Comparative Report, which addresses, article by article, the Hague (or HCCH) Principles on Choice of Law in International Commercial Contracts of 2015 (the Hague Principles). The General Comparative Report compares the Hague Principles with the state of the law in over sixty jurisdictions worldwide and with supranational rules and soft law principles. It aims to encourage legislators, courts, practitioners, and academics to further develop their domestic private international law systems and possibly benefit hereby from the Hague Principles by consistently and adequately applying, interpreting, and amending domestic, supranational, and regional private international law (PIL) in the context of party choice of law. The chapter then details the structure of the Report and the questionnaire used to address the issues covered by the Hague Principles. It also provides an introduction and a comparative overview of each of the Articles of the Hague Principles.


Author(s):  
Yassari Nadjma

This chapter presents Iranian perspectives on the Hague Principles. Generally, private international law is not very developed in Iran, neither in theory nor in practice. This is for diverse reasons: the history and the legacy of the capitulations systems, according to which foreign citizen and entities were exempted from Iranian jurisdiction, is still vividly felt, as is the fear of potential foreign domination. This has nurtured a general suspicion towards the application of foreign law as a gateway for political intervention of foreign powers. Following the revolution of 1979, the political situation and the instability and insecurity of foreign investments have been major impediments to the spread of international commerce between Iran and the rest of the world, diminishing the need to establish efficient private international law tools. This factual situation is mirrored by a poor engagement with international contract law in scholarly writings, which often remain hypothetical and abstract due to the lack of case law. Nowhere in the literature is any reference made to the Hague Principles. Only in the field of international arbitration has there been some movement: in 1997, the Law on International Commercial Arbitration (LICA) was enacted, a code that relies greatly on the United Nations Commission on International Trade Law (UNCITRAL) Model Law.


Author(s):  
Takasugi Naoshi ◽  
Elbalti Béligh

This chapter looks at the relationship between the Asian Principles of Private International Law (APPIL) and the Hague Principles. The APPIL are intended to be a non-binding instrument which includes a comprehensive set of principles on private international law (PIL) generally recognized among the different Asian jurisdictions. The main purpose of the APPIL is to provide guidance to possible future harmonization of PIL rules and principles in Asia. Compared to the Hague Principles which are limited only to the issue of choice law in international contracts based on the express or tacit will of the parties, the APPIL have much broader scope, including choice of law, international jurisdiction, the recognition and enforcement of foreign judgments, and judicial support to international arbitration. The chapter then outlines the history and the driving force behind the APPIL.


Author(s):  
Giuditta Cordero-Moss ◽  
Diego P. Fernández Arroyo

This chapter reproduces a keynote debate that took place at one of the conferences in Edinburgh in the context of the PILIM project. Diego Fernandez Arroyo and Giuditta Cordero-Moss discussed the role of private international law in international commercial arbitration. They discuss the usefulness of conflict rules in arbitration proceedings, among other things where the parties have made a choice of law, examining also the limitations of choice of law clauses.


2021 ◽  
Vol 138 (1) ◽  
pp. 40-57
Author(s):  
Dusty-Lee Donnelly ◽  
Seshni Govindasamy

The decision in Atakas Ticaret Ve Nakliyat AS v Glencore International AG 2019 (5) SA 379 (SCA) made important remarks to the effect that the discretion to effect a joinder to admiralty proceedings under s 5(1) of the Admiralty Jurisdiction Regulation Act 105 of 1983, and the discretion to refuse a stay of proceedings under s 7(1)(b) of the Act, are ‘untouched’ by art 8 of the UNCITRAL Model Law on International Arbitration that is incorporated under the International Arbitration Act 15 of 2017. The court reached this decision on the basis that, in terms of art 1(5), the Model Law does not affect other laws of the Republic under which matters may not be referred to arbitration, or may only be so referred subject to conditions. This case note analyses the nature and extent of the court’s discretion under art 8(1) of the Model Law, the argument for an implied repeal of s 7(1)(b) of the Admiralty Jurisdiction Regulation Act, the interpretation of art 1(5) of the Model Law, and the questions left unanswered by the judgment. It argues that although the Model Law does not automatically oust the jurisdiction of the high court exercising admiralty jurisdiction to hear a maritime claim, the court only retains a narrow discretion to refuse a stay of those proceedings when an international commercial arbitration agreement exists in respect of the dispute.


Author(s):  
Chan Anayansy Rojas ◽  
París Mauricio

This chapter assesses Costa Rican perspectives on the Hague Principles. Costa Rica does not have a systematic and codified system that regulates conflicts of law, usually known in Costa Rica as private international law (PIL). Instead, the main sources of PIL in Costa Rica are: (i) international treaties; (ii) the Civil Code, the Code of Civil Procedures, and other domestic laws; and (iii) the Law on International Commercial Arbitration. In general, Costa Rica’s private international law regime, applicable to international commercial contracts, allows for parties to select the law of their choice as long as it does not breach public policy or harm a third party’s interest. According to Article 5 of the Organizational Law of the Judiciary, courts cannot excuse themselves from exercising their authority or from ruling in matters of their competence for lack of a rule to apply and they must do so in accordance with the written and unwritten rules. Unwritten rules refer to the general principles of law, usages and practices, and case law, according to the hierarchical order of their legal sources. Such rules serve to interpret, integrate, and delimit the field of application of law. Therefore, the local courts have limited themselves to only apply domestic law and have consequently restrained themselves from applying the Hague Principles or other soft law instruments as a persuasive authority source.


Author(s):  
Hook Maria

This chapter examines the choice of law rules that determine the law applicable to international contracts in New Zealand, comparing them to the Hague Principles. Private international law in New Zealand is still largely a common law subject, and the choice of law rules on international commercial contracts are no exception. The general position, which has been inherited from English common law, is that parties may choose the law applicable to their contract, and that the law with the closest and most real connection applies in the absence of choice. There are currently no plans in New Zealand for legislative reform, so the task of interpreting and developing the choice of law rules continues to fall to the courts. When performing this task, New Zealand courts have traditionally turned to English case law for assistance. But they may be willing, in future, to widen their scope of inquiry, given that the English rules have long since been Europeanized. It is conceivable, in this context, that the Hague Principles may be treated as a source of persuasive authority, provided they are consistent with the general principles or policies underlying the New Zealand rules.


Author(s):  
Heiss Helmut

This chapter looks at Liechtenstein perspectives on the Hague Principles. Rules on choice of law, including international commercial contract law, have been codified by virtue of the Act on Private International Law 1996 (Liechtenstein PILA). The Liechtenstein PILA does not expressly state that conventions will take precedence over national laws. However, it has been held by the Liechtenstein Constitutional Court that international treaties are of at least equal status to regular national laws and that national law must be interpreted in line with public international law. Moreover, an international convention will often be considered to be a lex specialis and be given precedence over national rules on that ground. Liechtenstein courts will refer first of all to (old) Austrian case law and legal literature when dealing with matters pertaining to the parties’ choice of law. Whenever these sources leave ambiguity to a specific question, Liechtenstein courts may and most likely will consider other persuasive authorities. The Hague Principles may constitute such persuasive authority.


Author(s):  
Yeo Tiong Min

This chapter describes Singaporean perspectives on the Hague Principles. Party autonomy is recognized as a very important principle in the private international law of Singapore. The primacy given to the role of party autonomy is evidenced by the adoption of the New York Convention and UNCITRAL Model Law for international arbitration, the adoption of the Convention on Choice of Court Agreements for international litigation, and the palpable support of the UNCITRAL Convention on International Settlement Agreements Resulting from Mediation. Most of private international law in Singapore is sourced in judge-made law. In the absence of direct Singapore authority, Singapore courts have traditionally looked to English case law for guidance, but increasingly, the courts have looked to the laws of other jurisdictions, and indeed international instruments which do not have binding force in Singapore law. Given the level of sophistication of existing common law contract choice of law rules, it is unlikely that Singapore will engage in radical law reform. However, it is likely that the Singapore courts will continue to look to the Hague Principles for guidance in areas where the common law is unclear or where there is a gap or strong imperative for change.


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