Emergency interim measures may soon be available in SCC arbitration proceedings | Practical Law

Emergency interim measures may soon be available in SCC arbitration proceedings | Practical Law

Olof Ragmark (Partner), Delphi

Emergency interim measures may soon be available in SCC arbitration proceedings

Practical Law Legal Update 0-386-5103 (Approx. 3 pages)

Emergency interim measures may soon be available in SCC arbitration proceedings

Published on 29 Jun 2009International, Sweden
Olof Ragmark (Partner), Delphi
The Arbitration Institute of the Stockholm Chamber of Commerce (SCC) is considering the adoption of rules on emergency interim measures which will supplement the SCC Arbitration Rules currently in force. The proposed new rules would provide for the possibility of obtaining interim measures of protection prior to the constitution of the arbitral tribunal with the help of a so called "emergency arbitrator" specifically appointed for that purpose by the SCC Institute.
The Arbitration Institute of the Stockholm Chamber of Commerce (SCC) is considering the adoption of rules on emergency interim measures which will supplement the SCC Arbitration Rules currently in force. The proposed new rules would provide for the possibility of obtaining interim measures of protection prior to the constitution of the arbitral tribunal.
Having considered the findings of a survey of SCC arbitration users, the SCC Institute wishes to strengthen its arbitration rules by providing parties with an effective procedure for obtaining interim measures at the outset of arbitration. To this end, in March 2009 the SCC Institute’s Committee prepared Draft Rules on an Emergency Arbitrator on Interim Measures (see Legal update, SCC proposes amendments to arbitration rules). The proposed rules would enable a party to apply for interim measures prior to the constitution of an arbitral tribunal with the help of a so called "emergency arbitrator" specifically appointed for that purpose by the SCC Institute. Similar emergency proceedings are available, inter alia, at the ICC International Court of Arbitration and the International Centre for Dispute Resolution (ICDR).
The draft rules are designed as an opt-out solution, that is, they would apply to all SCC arbitrations unless the parties expressly agree otherwise. The procedure for obtaining interim measures would be made available both prior to and after the commencement of arbitration, but before the referral of the case to the tribunal. The draft rules require the Board of the SCC Institute to appoint an emergency arbitrator within 24 hours of the receipt of the application. The emergency arbitrator must then decide on interim measures within five days of the date upon which the application was referred to him or her. A decision on interim measures may take the form of an order or an award.
The emergency proceedings are not intended to be available on an ex parte basis, and the draft rules require notification of the opposing party. The powers of the emergency arbitrator are limited to decisions on interim measures which may be renewed or altered by the emergency arbitrator or later by the arbitral tribunal. An emergency decision on interim measures ceases to apply if an arbitration has not been initiated or the case has not been referred to an arbitral tribunal within a certain time.
The draft rules were presented to the international arbitration community and discussed at a meeting in Stockholm in April 2009. The discussion was mainly focused on the proposed opt-out solution and rules on entry into force, the imposition of short time-limits for the appointment of an emergency arbitrator and his or her challenge, requirements of due process and procedural safeguards for the parties, enforceability of the decisions on interim measures, and costs aspects. The comments made will be considered by the Committee and the final proposal is expected in September 2009. It is intended that the rules shall enter into force as from 1 October 2009.