ICC Rules 2021: Legal Framework for International Arbitration

Sometimes, when companies such as yours conduct their business, you may not be able to agree on the terms of this with other companies. For example, you may have a contract to provide a service to another, but once providing this, you may disagree on the meaning of a new provision. Disagreeing with other businesses can lead to a commercial dispute. A commercial disagreement could also arise between your business and another company if the latter fails to pay you as per the invoice terms you requested. When a business disagreement occurs, the different parties need to resolve it as soon as possible to allow you to carry on with business.

One way to do so is through arbitration using arbitral tribunals of a sole arbitrator or more to make a final award. For example, through emergency arbitration or ICC arbitration at the ICC court using the 2021 ICC rules. This article will explain the 2021 Rules for the ICC regarding the legal framework for International Arbitration, such as the arbitral procedure. 

What are Arbitration Proceedings for my Commercial Dispute?

When you choose arbitration procedures for your commercial dispute, you are choosing to use an alternative dispute resolution (ADR) process to try to resolve the commercial disagreement. This means that it is a private and confidential out-of-court process. 

When using arbitration to resolve your commercial dispute, you and the other party agree to do so. For example, you may have an arbitration clause in your commercial contract or an arbitration agreement that says you will appoint an expert arbitrator or more to make an arbitral panel.

What Is the ICC?

The ICC stands for the International Chamber of Commerce. Globally, it is the largest business organisation. The ICC:

• represents 45 million companies;
• has more than 1 billion employees, and
• has employees in over 170 countries.

The ICC works with international institutions such as the United Nations and governments in different countries. In the United Kingdom, the ICC represents them and allows businesses in the UK to have a say in contributing to international:

• policy;
• standards; and
• rules. 

Guide to Resolving UK Business Disputes

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What Are the ICC Rules 2021?  

The ICC Rules of Arbitration regulate and define how cases in the International Court of Arbitration are managed. The ICC Rules 2021 are the latest and most up-to-date rules and are currently applied. They are the legal framework for arbitration that takes place in court. 

The ICC rules are made up of Articles, of which there are 43 in total. They are also made up of six Appendices, which contain further articles. The main 43 Articles are divided into the following areas and set out in this order:

• Introductory Provisions;
• Commencing the Arbitration;
• Multiple Parties, Multiple Contracts and Consolidation;
• The Arbitral Tribunal;
• The Arbitral Proceedings;
• Awards;
• Costs; and
• Miscellaneous

To explain what is in each section of the ICC Rules 2021 is beyond the scope of this article. However, we glimpse what ‘The Arbitral Proceedings’ contain to give you a better idea of what happens in arbitration using the ICC Rules 2021. 

The Arbitral Proceedings

The section of the ICC Rules 2021 titled ‘The Arbitral Proceedings’ contains 15 Articles. These include, for example:

• Article 16 – Transmission of the File to the Arbitral Tribunal;
• Article 18 – Place of Arbitration;
• Article 19 – Rules Governing the Proceedings;
• Article 20 – Language of the Arbitration;
• Article 26 – Hearings; and
• Article 20 – Expedited procedure.

In terms of Article 20, for example, states that the parties can determine the language of the arbitration but says what applies where they have not done so. In this case, the arbitral tribunal will decide the language or languages and consider what language the contract is in any other circumstances deemed relevant. 

Article 18, however, deals with the place of arbitration. This can also be agreed upon by the parties to the arbitration, but where it is not, it is up to the court to decide this. The arbitral tribunal will consult the parties on this but unless they have agreed otherwise, it can in theory choose anywhere for the hearing and meetings to occur. It can also deliberate at any location it deems appropriate. 

Key Takeaways

If you fall into a commercial dispute, you may use the alternative dispute resolution (ADR) method known as arbitration. This is a private out-of-court method to resolve a dispute. Parties must both consent to the use of this method and will appoint a neutral arbitrator panel to make a binding decision for the parties in conflict. The International Chamber of Commerce is the largest global business organisation and works with other large international organisations. The ICC provides the ICC Rules 2021 to help manage cases in the International Court of Arbitration. They consist of 43 Articles and six appendices with further articles. The articles contain, for example, The Arbitral Proceedings. These detail the rules of the arbitration, such as the language of the arbitration and where it takes place. 

If you need help understanding the ICC Rules 2021, our experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.

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