On 22 August 2023, the Singapore International Arbitration Centre ("SIAC") released its much-awaited Draft 7th Edition of the SIAC Rules (the "Draft Rules") as part of its "Public Consultation" process with regard to the Draft Rules. The Draft Rules aim to incorporate significant improvements to the already robust and effective SIAC Arbitration Rules (6th Edition, 1 August 2016), with a focus on addressing users' need for greater "efficiency, expedition and cost-effectiveness" in arbitration.
One of the major revisions to this end is the introduction of an
innovative Streamlined Procedure for the conduct
of arbitration, which is intended to be an additional, alternative
framework to the existing standard SIAC arbitration procedure and
the Expedited Procedure ("EP") under the
current Rules. In this newsflash, we highlight and discuss the key
features of this proposed mechanism.
While the EP was introduced in 2010 as a "special,
'fast-track' procedure" for a speedier resolution of
disputes under the SIAC Rules, the Streamlined
Procedure aims to be an even 'faster-track'
procedure to cater to disputes which require that added degree of
time and cost efficiency.
In this regard, the Streamlined Procedure sets a
default rule for the issuance of the final Award within
three months from the constitution of the
Tribunal, half the duration of the EP, which is six months. To
achieve this goal, the Streamlined Procedure
envisages, amongst other things:
- The conduct of the arbitration by a Sole Arbitrator only, whereas the EP provides for a default rule of having a Sole Arbitrator unless the SIAC President determines otherwise;
- The joint nomination of a Sole Arbitrator by the parties within 3 days from the SIAC President's grant of the Streamlined Procedure, failing which, the SIAC President's appointment of the same within 3 days; and
- The holding of the first case management conference within 3 days from the date the Parties are notified of the Sole Arbitrator's appointment, whereas there is no fixed timeline for a case management conference under the EP.
Furthermore, the Streamlined Procedure offers a
substantial "discount" on the Tribunal's fees and
SIAC fees, which shall not exceed 50 percent of the maximum amounts
calculated in accordance with the SIAC Schedule of Fees, unless the
Registrar determines otherwise. This does not apply to the
EP.
The Streamlined Procedure is primarily intended
for cases with an amount in dispute not exceeding S$1,000,000 (as
opposed to the revised threshold of S$10,000,000 under the amended
EP in the Draft Rules). The Streamlined Procedure
therefore aims to provide a type of "faster-track"
procedure for (generally) smaller value disputes, though it may
still apply if parties agree or if the circumstances
"warrant" the Streamlined Procedure. For example,
disputes over short-term supply contracts may require a quick and
final determination of the parties' rights within three months,
rather than in six months or even years, so that parties may better
plan for pressing downstream or upstream obligations. Users with
strict cost requirements (such as small or medium enterprises) will
also appreciate the shorter procedure which translates into lower
legal costs, as well as the discount on SIAC's and the
arbitrator's fees.
A further objective of the Streamlined Procedure
is to promote the development of younger arbitration practitioners
in the role of Arbitrator. As discussed at the recent SIAC
Symposium on 28 August 2023, the nature of disputes that would come
under the Streamlined Procedure would likely allow
more opportunities for younger practitioners to be appointed as
arbitrators. This is another commendable step by SIAC towards
greater (age) diversity in international arbitration.
The introduction of the Streamlined Procedure is
therefore to be welcomed as a promising, innovative mechanism which
addresses the specific needs arising from some types of disputes
and/or users and the recurring calls by users for more time and
cost efficiency in international arbitration.
The public may submit feedback on the Draft Rules directly to SIAC
during the Public Consultation period from 22 August to 21 November
2023.
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