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JAIAC Arbitration Rules

Part 1

(In force as from 1 January 2017)

JAIAC Arbitration Rules

Rule 1 - General

  1. Where parties have agreed in writing to arbitrate their disputes in accordance with the JAIAC Arbitration Rules, then:
      1. such disputes shall be settled or resolved by arbitration in accordance with the JAIAC Arbitration Rules;
      2. the arbitration shall be conducted and administered by the Jamaica International Arbitration Centre Limited (hereinafter referred to as “JAIAC”) in accordance with the JAIAC Rules; and
  2. The JAIAC Rules applicable to the arbitration shall be those in force at the time of commencement of the arbitration, unless otherwise agreed by the parties.
  3. Where there is any conflict between Part I and Part II of the Rules, the provisions in Part I shall prevail.

Rule 2 - Commencement of Arbitration

  1. The party or parties initiating recours e to arbitration under the JAIAC Rules shall be required to submit a request in writing to commence the arbitration [hereinafter referred to as the “Commencement Request”]. The Commencement Request shall be made to the Secretary General pursuant to Article 3, and shall be accompanied by the following:
    1. a copy of the written arbitration agreement or clause; a copy of the contractual documentation in which the arbitration clause is contained or in respect of which the arbitration arises;
    2. a copy of the Notice of Arbitration accompanied by confirmation that is has been served on all other parties by one or more of the means of service to be identified in such confirmation; and
    3. a non-refundable registration fee amounting to USD500.00 in international arbitration (as defined in Rule 4(4)(c) of the Rules) and JMD50,000.00 in domestic arbitration, which registration fee is to be paid by the person initiating the arbitration proceedings.
  2. The date of receipt by the Secretary General of the Confirmation Request together with all of the accompanying documentation and non-refundable registration fee shall be treated as the date on which the arbitration has commenced.
  3. The JAIAC will notify the parties of the date of commencement of the arbitration.

Rule 3 - Notification and Pleadings

All documents served on any party pursuant to Articles 3, 4, 20, 21, 22, 23 and 24 shall be served on the Secretary General at the same as such service or immediately thereafter.

Rule 4 - Appointment

  1. Where the parties have agreed to the JAIAC Arbitration Rules, the Secretary General shall be the appointing authority.
  2. Parties are free to determine the number of arbitrators.
  3. If he parties fail to determine the number of arbitrators and the Secretary General does not determine the number having regard having regard to the circumstances of the case, the arbitral tribunal shall:
    1. in the case of an international arbitration, consist of 3 arbitrators; and
    2. in the case of a domestic arbitration, consist of a sole arbitrator;
  4. If the parties have agreed that a sole arbitrator is to be appointed, unless the parties agree otherwise, the procedure for the appointment shall be:
    1. the parties are free to mutually agree on the sole arbitrator; or
    2. if within 30 days of the other party’s receipt of the notice of arbitration, the parties have not reached an agreement on the appointment of the sole arbitrator, either party may request that the sole arbitrator to be appointed by the Secretary General.
  5. If the parties have agreed that three arbitrators are to be appointed, unless the parties have agreed otherwise, the procedure for the appointment shall be:
    1. each party shall appoint one arbitrator, and the tow arbitrators so appointed shall choose the third arbitrator, who will act as the presiding arbitrator of the arbitral tribunal;
    2. if within 30 days after the receipt of a party’s notification of the appointment of an arbitrator the other party has not notified the first party of the arbitrator it has appointed, the first party may request that the Secretary General appoint the second arbitrator; and
    3. if within 30 days after the appointment of the second arbitrator the two arbitrators have not agreed on the choice of the presiding arbitrator, the presiding arbitrator, the presiding arbitrator shall be appointed by the Secretary General.
  6. If the JAIAC upon the request of a party is to appoint a sole, presiding, second, substitute or emergency arbitrator, the Secretary General shall appoint such arbitrator in accordance with the JAIAC Arbitration Rules. In so doing, the Secretary General may seek such information from the parties as the Secretary General deems appropriate and exercise all powers and discretions as are vested in the Secretary General under the JAIAC Arbitration Rules.
  7. Where the parties have agreed that any arbitrator is to be appointed by one or more parties, or by any authority agreed by the parties, or by any authority agreed by the parties, including where the arbitrators have already been appointed, that agreement shall be treated as an agreement to nominate an arbitrator under the JAIAC Arbitration Rules and shall be subject to confirmation by the Secretary General in his discretion.

Rule 5 - Challenge to the Arbitrators

  1. An arbitrator may be challenged if circumstances exists that give rise to justifiable doubts as to the arbitrator’s impartiality or independence, or if the arbitrator does not possess any requisite qualification on which the parties agreed.
  2. A party may challenge the arbitrator nominated by him only for reasons of which the party becomes aware of after the appointment has been made.
  3. A challenge to an arbitrator shall be made by sending a Notice of Challenge within 15 days after the receipt of the notice of appointment of the challenged arbitrator or within 15 days after the circumstances mentioned in Rule 5(1) or Rule 5(2) became known to the party making the challenge.
  4. The Notice of Challenge shall be sent simultaneously to the other Parties, to the arbitrator who is challenged, to the other members of the arbitral tribunal, if any, and copied to the Secretary General. The notice shall be in writing and shall state the grounds for the challenge. The Notice of Challenge shall be accompanied by a non-refundable fee of USD5,000.00 in international arbitration and JMD350,000.00 in domestic arbitration.
  5. The Secretary General may order suspension of the arbitration until the challenge is resolved.
  6. If an arbitrator is challenged by one party, the other party may agree to the challenge. The challenged arbitrator may also withdraw from his office. In neither case does this imply acceptance of the validity of the grounds of the challenge.
  7. If within 15 days of the receipt of the Notice of Challenge, the other party does not agree to the challenge and the arbitrator who is being challenged does not withdraw voluntarily, the Secretary General shall decide on the challenge and shall in writing state reasons for the decision.
  8. If required pursuant to Rule 5(6) or Rule 5(7), the substitute arbitrator to be so appointed shall be appointed in accordance with the procedure established in Rule 4.

Rule 6 - Powers of the Arbitral Tribunal

The arbitral tribunal may conduct the arbitration in such manner as it deems appropriate. In particular, the arbitral tribunal may, unless otherwise agreed by the parties:

  1. limit or extend the time available for each party to present its case;
  2. conduct such enquiries as may appear to the tribunal to be necessary or expedient, including whether and to what extent the arbitral tribunal should itself take the initiative in identifying relevant issues applicable to the dispute;
  3. conduct enquires by inviting parties to make their respective submissions on such issues;
  4. order the parties to make any property, goods or sites in their possession or under their control, which the arbitral tribunal deems relevant to the case, available for inspection;
  5. order any party to produce any documents in its possession or under its control, which the arbitral tribunal deems relevant to the case, and to supply these documents and/or their copies to the tribunal and to the other parties; and
  6. decide whether or not to apply any rules of evidence as to admissibility, relevance or weight of any information or material tendered by a party on any issue of fact or expert opinion, and to decide the time, manner and form in which such information or material should be exchanged between the parties and presented to the arbitral tribunal.

Rule 7 - Seat of Arbitration

  1. The parties may agree on the seat of arbitration. Failing such agreement, the seat of arbitration shall be Kingston, Jamaica unless the arbitral tribunal determines, having regard to all the circumstances of the case, that another seat is more appropriate.
  2. Unless otherwise agreed by the parties, the arbitral tribunal may also meet at any location it deems appropriate for any purpose, including for hearings.
  3. Unless otherwise agreed by parties, if any hearing, meeting, or deliberation is held elsewhere than at the seat of the arbitration, the arbitration, including any such hearing, meeting or deliberation, shall be deemed to have taken place at eh seat of the arbitration.

Rule 8 - Interim Measures

  1. The arbitral tribunal may, at the request of a party, grant interim measures pursuant to Article 26.
  2. A party in need of urgent interim measures prior to the constitution of the arbitral tribunal may submit a request to the Secretary General for the appointment of an emergency arbitrator pursuant to Schedule 3.

Rule 9 - Joinder of Parties

  1. Any party to an arbitration or any third party [hereinafter the “Additional Party”] may request that one or more Additional Party be joined to the arbitration [hereinafter referred to as ‘Request for Joinder”], if all parties to the arbitration and the Additional Party give their consent in writing to the joinder, or if such Additional Party is prima facie bound by the arbitration agreement. The Request for Joinder will be determined by the arbitral tribunal or, prior to the constitution of the arbitral tribunal, by the Secretary General.
  2. If a Request for Joinder is granted, the date on which the complete Request for Joinder is received by the arbitral tribunal or, prior to the constitution of the arbitral tribunal, by the Director, shall be deemed the date of the commencement of the arbitration in respect of the Additional Party.
  3. A Request for Joinder shall be submitted to the arbitral tribunal or, prior to the constitution of the arbitral tribunal, to the Secretary General. The Request for Joinder shall include: the name and contact details of the Additional Party; whether the Additional Party is to be joined as a Claimant or a Respondent; a copy of the relevant agreements, in particular of any written arbitration clause; a brief description of the legal and factual basis supporting such joinder; and confirmation that the Request for Joinder has been or is being served on all parties to the arbitration and the Additional Party, by one or more means of service to be identified in such confirmation.
  4. Any party and any Additional Party that receives a Request for Joinder shall, within 15 days of receipt, submit to the arbitral tribunal or, prior to the constitution of the arbitral tribunal, to the Secretary General, a Response to the Request for Joinder indicating their consent or objection to the Request for Joinder.
  5. In deciding whether to grant, in whole or in part, the \Request for Joinder, the arbitral tribunal shall consult all parties and any Additional Party, and shall have regard to any relevant circumstances.
  6. If the Secretary General receives the Request for Joinder prior to the constitution of the arbitral tribunal, the Secretary General shall decide whether to grant, in whole or in part, the Request for Joinder. In deciding whether to grant the Request for Joinder, the Secretary General shall consult all parties and any Additional Party, and shall have regard to any relevant circumstances.
  7. Not with standing a decision by the Secretary General pursuant to Rule 9(6), the tribunal may decide on any Request for Joinder, either on its own initiative or upon the application of any party or Additional Party pursuant to Rule 9(1).
  8. If the Additional Party is joined to the arbitration before the date on which the arbitral tribunal is constituted, the Secretary General shall appoint the arbitral tribunal and may release any arbitrators already appointed. In these circumstances, all parties shall be deemed to have waived their right to nominate an arbitrator.
  9. The parties irrevocably waive their rights to any appeal, review or recourse to any court or other judicial authority, on the basis of any decision to join the Additional Party to the arbitration, to the validity and/or enforcement of any award made by the arbitral tribunal, insofar as such waiver can validly be made.

Rule 10 - Consolidation of Proceedings and Concurrent Hearings

  1. Upon the request of any party to an arbitration or, if the Secretary General deems it appropriate, the Secretary General may consolidate two or more arbitrations into one arbitration if:
    1. the parties have agreed to consolidations;
    2. all claims in the arbitration are made under the same arbitration agreement; or
    3. the claims are made under more than one arbitration agreement, the dispute arises in connection with the same legal relationship, and the Secretary General deems the arbitration agreements to be compatible.
  2. In deciding whether to consolidate, the Secretary General shall consult all parties and any appointed arbitrators, and shall have regard to any relevant circumstances, including:
    1. the stage of the pending arbitrations and whether any arbitrators have been nominated or appointed.
    2. any prejudice that may be caused to any of the parties; and
    3. the efficiency and expeditiousness of the proceedings.
  3. Unless otherwise agreed by the parties, where there is consolidation, the arbitrations shall be consolidated into the arbitration that commenced first.
  4. Within 15 days of being notified of a decision by the Secretary General to consolidate two or more arbitrations, all parties may agree on the arbitrators to be appointed, if any, to the consolidated arbitration or the process of such appointment. Failing such agreement, any party may request that the Secretary General appoints the tribunal, in which case, the Secretary General may release any arbitrators appointed prior to the decision to consolidate. In these circumstances, all parties shall be deemed to have waived their right to nominate an arbitrator.
  5. The parties irrevocably waive their rights to any appeal, review or recourse to the court or any other judicial authority, on the basis of any decision to consolidate arbitrations pursuant to this Rule, to the validity and/or enforcement of any award made by the arbitral tribunal, in so far as such waiver can validly be made.

Rule 11 - Facilities

The Secretary General shall, at the request of the arbitral tribunal or any party, make available, or arrange for, such facilities and assistance for the conduct of the arbitral proceedings as may be required, including suitable accommodation for sittings of the arbitral tribunal, secretarial assistance, transcription services, video or tele conferencing and interpretation facilities. Unless otherwise agreed by the parties, the costs of such additional facilities shall be borne in equal share by the parties.

Rule 12 - Technical Review and Award

  1. Following the final oral or written submissions, the arbitral tribunal shall declare the proceedings closed. The arbitral tribunal’s declaration and the date on which the proceedings are closed shall be communicated in writing to the parties and to the Secretary General. After this date, the parties shall not submit any further evidence or make any further submission with respect to the matters to be decided in the award.
  2. The arbitral tribunal shall within three months of the proceedings having been declared closed pursuant to Rule 12(1), and before signing the award, submit its draft of the final award (hereinafter referred to as the ‘Draft Final Award”) to the Secretary General for technical review.
  3. The time limit for submitting the Draft Final Award may be extended by the arbitral tribunal with the consent of the parties and upon consultation with the Secretary General. The Secretary General may further extend the time limit in the absence of consent between the parties notwithstanding if deemed necessary.
  4. The Secretary General may, as soon as practicable and without affecting he tribunal’s liberty of decision, draw the tribunal’s attention to any perceived irregularity as to the form of the award and any errors in the calculation of interest and costs.
  5. If there are no perceived irregularities pursuant to Rule 12(4), the Secretary General shall notify the tribunal in writing that the technical review has been completed.
  6. If there are perceived irregularities pursuant to Rule 12(4), the Secretary General shall notify the arbitral tribunal in writing and the arbitral tribunal shall within 10 days from the date on which notice of perceived irregularities was given resubmit the Final Draft Award to the Secretary General. The time limit for arbitral tribunal to consider any irregularities under Rule 12(4) may be extended by the Secretary General. Upon completion of the technical review after resubmission, the Secretary General shall notify the arbitral tribunal in writing.
  7. The arbitral tribunal shall deliver sufficient copies of the award to the Secretary General. The award shall only be released to the parties by the Secretary General upon full settlement of the costs of arbitration.
  8. The Secretary General shall notify the parties of its receipt of the award from the arbitral tribunal. The award shall be deemed to have been received by the parties upon collection by hand by an authorised representative or upon delivery by registered post.
  9. If the parties reach a settlement after the arbitration has commenced, the arbitral tribunal shall, if so requested by the parties, record the settlement in the form of an award made by consent of the parties. If the parties do not require a consent award, the parties shall inform the Secretary General that a settlement has been reached. The arbitration shall only be deemed concluded and the arbitral tribunal discharged upon full settlement of the costs of arbitration.
  10. By agreeing to arbitration under these JAIAC Arbitration Rules, the parties undertake to carry out the award immediately and without delay, and they also irrevocably waive their rights to any appeal, review or recourse to any court or other judicial authority insofar as such waiver may be validly made, and the parties further agree that an award shall be final and binding on the parties from the date it is made.

Rule 13 - Costs

  1. The term “costs” as specified in Article 40 shall include the expenses reasonably incurred by JAIAC in connection with the arbitration, the administrative costs of JAIAC as well as the costs of the facilities made available by JAIAC under Rule 11.
  2. Unless otherwise agreed by the parties and the arbitral tribunal pursuant to Rule 13(4), the fees of the arbitral tribunal shall be fixed by the Secretary General in accordance with Schedule 1.
  3. Unless otherwise agreed by the parties in writing, Schedule 1(A) shall apply to international arbitrations (USD scale) and Schedule 1(B) shall apply to domestic arbitrations (JMD scale).
  4. Not with standing the above, all parties and the arbitral tribunal are at liberty to agree on the fees and expenses of the arbitral tribunal within the period of 30 days from the appointment of the arbitral tribunal and the arbitral tribunal (hereinafter referred to as the “Fee Agreement”). The arbitral tribunal shall inform the Secretary General where a Fee Agreement has been executed. If the Fee Agreement is executed after the 30 days period has expired, the Fee Agreement shall be subject to approval by the Secretary General.
  5. The JAIAC administrative fees shall be fixed by the Secretary General in accordance with Schedule 1. Unless otherwise agreed by the parties, Schedule 1(A) shall apply to international arbitrations and Schedule 1(B) shall apply to domestic arbitrations.
  6. The costs of the arbitration may, in exceptional, unusual or unforeseen circumstances, be adjusted from time to time at the discretion of the Secretary General.
  7. The fees of the arbitral tribunal and the administrative costs of the JAIAC under Schedule 1 are determined based on the amount in dispute. For the purpose of calculating the amount in dispute, the value of any counterclaim and/or set-off will be taken into account.
  8. Where a claim or counterclaim does not state a monetary amount, an appropriate value for the claim or counterclaim shall be settled by the Secretary General in consultation with the arbitral tribunal and the parties for the purpose of computing the arbitrator’s fees and the administrative costs of the JAIAC.
  9. Not with standing the above, the arbitral tribunal may determine the proportion of costs to be borne by the parties.

Rule 14 - Deposits

In lieu of the provisions of Article 43, the following provisions shall apply:

  1. After the arbitration has commenced in accordance with Rule 2, the Secretary General shall fix a provisional advance deposit in an amount intended to cover the costs of the arbitration. Any such provisional advance deposit shall be paid by the parties in equal shares and will be considered as a partial payment by the parties of any deposits of costs fixed by the Secretary General under Rule 13.
  2. Such provisional advance deposit shall be payable within 21 days of receiving the request from JAIAC.
  3. In the event that any of the parties fails to pay such deposit, the Secretary General shall give the other party and opportunity to make the required payment within a specified time. The arbitral tribunal shall not proceed with the arbitral proceedings until such provisional advance deposit is paid in full.
  4. Upon fixing of the fees of the arbitral tribunal and administrative costs of arbitration by the Secretary General pursuant to Rule 13, including the fees and expenses of the arbitral tribunal, if any, pursuant to Rule 13(4), the Secretary General shall prepare an estimate of the fees and expenses of the arbitral tribunal and the administrative costs of the arbitration which the parties shall bear in equal shares. Within 21 days of written notification by the Secretary General of such estimate, each party shall deposit its share of the estimate with JAIAC.
  5. During the course of the arbitral proceedings the Secretary General may request further deposits from the parties which shall be paid by the parties in equal shares within 21 days of such request.
  6. Notwithstanding Rule 14(4), where counterclaims are submitted by the Respondent, the Secretary General may fix separate advance preliminary deposits on costs for the claims and counterclaims. When the Secretary General has fixed separate advance preliminary deposits on costs, each of the parties shall pay the advance preliminary deposit corresponding to its claims.
  7. If the required deposits are not paid in full by any party, the Secretary General shall give the other party an opportunity to make the required payment within a specified time. If such payment is not made, the arbitral tribunal may, after consultation with the Secretary General, order the suspension or termination of the arbitral proceedings or any part thereof.
  8. Notwithstanding the above, the Secretary General shall have the discretion to determine the proportion of deposits required to be paid by the parties.
  9. The Secretary General may apply the deposits towards the administrative costs of JAIAC, fees of the arbitrator and the arbitrator’s out-of-pocket and per diem expenses in such manner and at such times as the Secretary General deems appropriate.
  10. After the award has been made, the Secretary General shall render an accounting to the parties for the deposits received and return any unexpended balance to the parties based on the parties’ respective contributions.

Rule 15 - Mediation to Arbitration

If the parties have referred their dispute to mediation under the JAIAC Mediation Rules and they have failed to reach a settlement and thereafter proceed to arbitration under the JAIAC Arbitration Rules, then half of the administrative costs paid to JAIAC for the mediation shall be credited towards the administrative costs of the arbitration.

Rule 16 - Confidentiality

  1. The arbitral tribunal, the parties, all experts, all witnesses and the JAIAC shall keep confidential all matters relating to the arbitral proceedings, except where disclosure is necessary for implementation and enforcement of the award or to the extent that disclosure may be required of a party by a legal duty, to protect or pursue a legal right or to challenge an award in bona fides legal proceedings before a court or other judicial authority.
  2. In this Rule, “matters relating to the arbitral proceedings” means the existence of the proceedings, and the pleadings, evidence and other materials in the arbitration proceedings and all other documents produced by another party in the proceedings or the award arising from the proceedings, but excludes any matter that is otherwise in the public domain.

Rule 17 - No Liability

Neither JAIAC nor the arbitral tribunal shall be liable for any act or omission related to the conduct of the arbitral proceedings.

Rule 18 - Non-Reliance

The parties and the arbitral tribunal agree that statements or comments whether written or oral made in the course of the arbitral proceedings shall not be relied upon to institute or commence or maintain any action for defamation, libel, slander or any other complaint.