• Title/Summary/Keyword: Breach of an Arbitration Agreement

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Close Relations between Arbitration and State Court in each Procedural Stage -With an Emphasis on International Arbitration Agreement- (중재와 법원 사이의 역할분담과 절차협력 관계 -국제적 중재합의 효력에 관한 다툼과 중재합의관철 방안을 중심으로-)

  • Kim, Yong-Jin
    • Journal of Arbitration Studies
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    • v.27 no.1
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    • pp.85-106
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    • 2017
  • This article deals with the relationship between arbitration and state court in each procedural stage. As most legal systems over the world respect arbitration agreement, the relationship between arbitration and state courts puts emphasis on party autonomy and provides the independent power of arbitration agreement tribunal (Kompetenz-Kompetenz). Most institutional arbitration rules the arbitral tribunal to rule on its own jurisdiction. Modern national laws have similar provisions based on Art. 16 UNCITRAL Model Law. In this regards the author throws a question in Chapter II, whether the doctrine of Kompetenz-Kompetenz, namely the ability of the tribunal to decide upon its own jurisdiction is worth while persisting, and whether the Kompetenz-Kompetenz-agreement should be regarded as valid, with the conclusion, that this doctrine should concede to the power of state court and that Kompetenz-Kompetenz-Klausel is invalid. In Chapter III the author discusses the issue of whether the breach of an arbitration agreement could lead to the compensation of damage. Although the author stands for the procedural character of arbitration agreement, he offers a proposal that the breach of an arbitration agreement bring about the compensation of damage. The issue of anti-suit injunction is discussed also in this Chapter. He is against the approval of anti-suit injunction based on an arbitration agreement resisting the other party from pursuing a lawsuit in a foreign country.

A Study on the Measures against Risks m International Investment Agreement;Focusing on the Umbrella Clause and MIGA (국제투자계약에 따른 위험대처 방안에 관한 연구;Umbrella Clause와 MIGA를 중심으로)

  • Oh, Won-Suk;Kim, Yong-Il
    • Journal of Arbitration Studies
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    • v.18 no.2
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    • pp.149-171
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    • 2008
  • The purpose of this paper is to examine the Measures against Risks in International Investment Agreement: focusing on Umbrella Clause and MIGA. Umbrella Clauses have become a regular feature of international investment agreements and have been included to provide additional protection to investors by covering the contractual obligations in investment agreements between host countries and foreign investors. The meaning of umbrella clauses is one of the most controversial issues with which international arbitral tribunals have been recently confronted with while adjudicating investment disputes brought before them MIGA issues guarantees against non-commercial risks for investments, such as: currency transfer restrictions, expropriations, war and civil disturbances and breach of contract by host governments, and the case that the investor obtains an arbitration award or judical decision for damages and is unable to enforce it after a specified period. Furthermore, MIGA undertakes a wide range of mediation activities designed to remove obstacles to the flow of foreign direct investment in its developing member countries.

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Case Studies on Claim and Arbitration Clauses Using in Trade Contracts (무역계약에서 이용하는 클레임과 중재조항에 관한 사례연구)

  • 김상호
    • Journal of Arbitration Studies
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    • v.12 no.2
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    • pp.115-151
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    • 2003
  • As international trade and commerce increases among the nations in the world, it is inevitable fact that disputes rise as well. As these transactions grow more complex, it becomes increasingly important to resolve disputes and conflicts as quickly, efficiently and formatively as possible. In practical commercial affairs, we call a variety of international commercial troubles ‘trade claims’, Trade claims consist of disputes, controversies, or differences which may arise between the parties, out of, or in relation to, or in connection with their contracts, or for the breach thereof. Trade claim should be instituted promptly, otherwise it may be barred by prescription. Also, the other party will not accept the claim by reason of loss of evidence. In this connection, it should be noted that how long the claim prescription would continue. Trade claim should be settled reasonably and amicably between the parties concerned. And if both parties do not reach an agreement through their negotiation, then the claim shall be settled finally by binding arbitration. For the purpose of managing trade claim and arbitration, the trading parties insert in their contracts claim and arbitration clauses. This paper will examine some judicial precedents concerning claim clauses which are closely connected with a time limit of the claim It will also review some famous precedents rendered by the competent courts in connection with the wording, scope and implied renewal of arbitration clauses.

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The Problems and Countermeasures of the Investor-State Dispute Settlement Mechanism (투자자-국가간 분쟁해결제도의 문제점과 대응방안)

  • HONG, Sung-Kyu
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.68
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    • pp.89-121
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    • 2015
  • Investor-State Dispute Settlement(ISDS) grants a foreign investor the right to access an international arbitrator, if he believes actions taken by a host government are in breach of commitments made in an investment agreement or an investment treaty. The arbitration procedure of ICSID is made specifically to resolve investment disputes, so most of investment disputes have been settled in accordance with the procedure. Owing to limitation of dispute settlements through the ICSID arbitration procedure, several investment dispute conciliation schemes have been emerged as alternatives. In the case of a conciliation, the conciliation procedure will be in progress based on arbitrary agreement between parties, and if both parties agree on a conciliation program, then the arbitrary execution rate is relatively higher than that of arbitration procedures. In addition, it is evaluated that the time duration of conducting a conciliation procedure is in general rather short in 8 to 24months, and its incumbent cost is also rather inexpensive. Most of all, through amicable settlement of a dispute between a foreign investor and a host state, the foreign investor may continue his investment activities without a hitch, while the host state may invite more investment without any risk of losing its external credibility. In conclusion, it is desirable to lead any investment dispute between a foreign investor and a host state settle in accordance with the dispute settlement procedure as specified in the relevant investment agreement. In addition, to make the foreign investor continue his investment activities, it will be necessary to provide a separate investment dispute conciliation system aside from such arbitration procedures to cope any unexpected incident flexibly.

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The Arbitrability of the Subject-matter of a Dispute on the Antitrust Law (독점규제법 관련분쟁의 중재의 대상적격)

  • Kang, Su-Mi
    • Journal of Arbitration Studies
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    • v.20 no.1
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    • pp.41-65
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    • 2010
  • It is a matter for debate that which types of dispute may be resolved by arbitration. This problem is concerning the arbitrability of the subject-matter of a dispute. National laws establish the domain of arbitration. Each state decides which matters may or may not be resolved by arbitration in accordance with its own political, social and economic policy. In response to complexity and diversity of a social phenomenon, the dispute also is various, therefore can not be settled efficiently by means of court adjudication to which applies a law strictly. To overcome such problems we are going to seek to make use of arbitration. According to Korean Arbitration Act Art. 3 (1), any dispute in private laws would be the object of arbitral proceedings. For the promotion of fair and free competition, it is increasingly wide-ranging antitrust legislation across the world. It is matter for debate what can an arbitral tribunal do when confronted with an allegation that the contract under which the arbitration is brought is itself an illegal restraint of trade or in some other way a breach of antitrust law. The underlying question is how to accommodate the conflicting congressional policies favoring resolution of private controversies by arbitration and encouraging private suits to protect the public interests served by the antitrust laws. It is necessary to inquire into the arbitrability of antitrust issues on case-by-case basis, because the types of them are quite diverse. If antitrust issues are the dispute in private laws and the contracting parties agreed to submit to arbitration disputes which have arisen or which may arise between them in the antitrust issues, the antitrust disputes are arbitrable. Not only international antitrust disputes but also domestic antitrust disputes are capable of being resolved by arbitration. When the public interests in the enforcement of antitrust legislation are asserted, it is possible to justify the annulment or the refusal of the recognition or the enforcement of an arbitral award that ignores public policy as a matter of it.

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The International Arbitration System for the Settlement of Investor-State Disputes in the FTA (FTA(자유무역협정)에서 투자자 대 국가간 분쟁해결을 위한 국제중재제도)

  • Lee, Kang-Bin
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.38
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    • pp.181-226
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    • 2008
  • The purpose of this paper is to describe the settling procedures of the investor-state disputes in the FTA Investment Chapter, and to research on the international arbitration system for the settlement of the investor-state disputes under the ICSID Convention and UNCITRAL Arbitration Rules. The UNCTAD reports that the cumulative number of arbitration cases for the investor-state dispute settlement is 290 cases by March 2008. 182 cases of them have been brought before the ICSID, and 80 cases of them have been submitted under the UNCITRAL Arbitration Rules. The ICSID reports that the cumulative 263 cases of investor-state dispute settlement have been brought before the ICSID by March 2008. 136 cases of them have been concluded, but 127 cases of them have been pending up to now. The Chapter 11 Section B of the Korea-U.S. FTA provides for the Investor_State Dispute Settlement. Under the provisions of Section B, the claimant may submit to arbitration a claim that the respondent has breached and obligation under Section A, an investment authorization or an investment agreement and that the claimant has incurred loss or damage by reason of that breach. Provided that six months have elapsed since the events giving rise to the claim, a claimant may submit a claim referred to under the ICSID Convention and the ICSID Rules of Procedure for Arbitration Proceedings; under the ICSID Additional Facility Rules; or under the UNCITRAL Arbitration Rules. The ICSID Convention provides for the jurisdiction of the ICSID(Chapter 2), arbitration(Chapter 3), and replacement and disqualification of arbitrators(Chapter 5) as follows. The jurisdiction of the ICSID shall extend to any legal dispute arising directly out of an investment, between a Contracting State and a national of another Contracting State, which the parties to the dispute consent in writing to submit to the ICSID. Any Contracting State or any national of a Contracting State wishing to institute arbitration proceedings shall address a request to that effect in writing to the Secretary General who shall send a copy of the request to the other party. The tribunal shall consist of a sole arbitrator or any uneven number of arbitrators appointed as the parties shall agree. The tribunal shall be the judge of its own competence. The tribunal shall decide a dispute in accordance with such rules of law as may be agreed by the parties. Any arbitration proceeding shall be conducted in accordance with the provisions of the Convention Section 3 and in accordance with the Arbitration Rules in effect on the date on which the parties consented to arbitration. The award of the tribunal shall be in writing and shall be signed by members of the tribunal who voted for it. The award shall deal with every question submitted to the tribunal, and shall state the reason upon which it is based. Either party may request annulment of the award by an application in writing addressed to the Secretary General on one or more of the grounds under Article 52 of the ICSID Convention. The award shall be binding on the parties and shall not be subject to any appeal or to any other remedy except those provided for in this Convention. Each Contracting State shall recognize an award rendered pursuant to this convention as binding and enforce the pecuniary obligations imposed by that award within its territories as if it were a final judgment of a court in that State. In conclusion, there may be some issues on the international arbitration for the settlement of the investor-state disputes: for example, abuse of litigation, lack of an appeals process, and problem of transparency. Therefore, there have been active discussions to address such issues by the ICSID and UNCITRAL up to now.

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A Study of Domain Name Disputes Resolution with the Korea-U.S. FTA Agreement (한미자유무역협정(FTA)에 따른 도메인이름 분쟁해결의 개선방안에 관한 연구)

  • Park, Yu-Sun
    • Journal of Arbitration Studies
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    • v.17 no.2
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    • pp.167-187
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    • 2007
  • As Korea has reached a free trade agreement with the United States of America, it is required to provide an appropriate procedure to ".kr" domain name disputes based on the principles established in the Uniform Domain Name Dispute Resolution Policy(UDRP). Currently, Internet address Dispute Resolution Committee(IDRC) established under Article 16 of the Act on Internet Address Resources provides the dispute resolution proceedings to resolve ".kr" domain name disputes. While the IDRC's proceeding is similar to the UDRP administrative proceeding in procedural aspects, the Domain Name Dispute Mediation Policy that is established by the IDRC and that applies to disputes involving ".kr" domain names is very different from the UDRP for generic Top Level Domain (gTLD) in substantial aspects. Under the Korea-U.S. Free Trade Agreement(KORUS FTA), it is expected that either the Domain Name Dispute Mediation Policy to be amended to adopt the UDRP or the IDRC to examine the Domain Name Dispute Mediation Policy in order to harmonize it with the principles established in the UDRP. It is a common practice of cybersquatters to warehouse a number of domain names without any active use of these domain names after their registration. The Domain Name Dispute Mediation Policy provides that the complainant may request to transfer or delete the registration of the disputed domain name if the registrant registered, holds or uses the disputed domain name in bad faith. This provision lifts the complainant's burden of proof to show the respondent's bad faith because the complainant is only required to prove one of the three bad faiths which are registration in bad faith, holding in bad faith, or use in bad faith. The aforementioned resolution procedure is different from the UDRP regime which requires the complainant, in compliance with paragraph 4(b) of the UDRP, to prove that the disputed domain name has been registered in bad faith and is being used in bad faith. Therefore, the complainant carries heavy burden of proof under the UDRP. The IDRC should deny the complaint if the respondent has legitimate rights or interests in the domain names. Under the UDRP, the complainant must show that the respondent has no rights or legitimate interests in the disputed domain name. The UDRP sets out three illustrative circumstances, any one of which if proved by the respondent, shall be evidence of the respondent's rights to or legitimate interests in the domain name. As the Domain Name Dispute Mediation Policy provides only a general provision regarding the respondent's legitimate rights or interests, the respondent can be placed in a very week foundation to be protected under the Policy. It is therefore recommended for the IDRC to adopt the three UDRP circumstances to guide how the respondent can demonstrate his/her legitimate rights or interests in the disputed domain name. In accordance with the KORUS FTA, the Korean Government is required to provide online publication to a reliable and accurate database of contact information concerning domain name registrants. Cybersquatters often provide inaccurate contact information or willfully conceal their identity to avoid objection by trademark owners. It may cause unnecessary and unwarranted delay of the administrative proceedings. The respondent may loss the opportunity to assert his/her rights or legitimate interests in the domain name due to inability to submit the response effectively and timely. The respondent could breach a registration agreement with a registrar which requires the registrant to submit and update accurate contact information. The respondent who is reluctant to disclose his/her contact information on the Internet citing for privacy rights and protection. This is however debatable as the respondent may use the proxy registration service provided by the registrar to protect the respondent's privacy.

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Some New Problems of International Aviation Security- Considerations Forcused on its Legal Aspects (최근국제항공보안대책(最近國際航空保安対策)의 제간제(諸間題) -특히 법적측면(法的測面)을 중심(中心)으로-)

  • Choi, Wan-Sik
    • The Korean Journal of Air & Space Law and Policy
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    • v.5
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    • pp.53-75
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    • 1993
  • This article is concerned with the comment on "Some New Problems of International Aviation Security-Considerations Forcused on its Legal Aspects". Ever since 1970, in addition to the problem of failure to accept the Tokyo, Hague and Montreal Conventions, there has been also the problem of parties to them, failing to comply with their obligations under the respective treaties, in the form especially of nominal penalties or the lack of any effort to prosecute after blank refusals to extradite. There have also been cases of prolonged detention of aircraft, passengers and hostages. In this regard, all three conventions contain identical clauses which submit disputes between two or more contracting States concerning the interpretation or application of the respective conventions to arbitration or failing agreement on the organization of the arbitration, to the International Court of Justice. To the extent to which contracting States have not contracted out of this undertaking, as I fear they are expressly allowed to do, this promision can be used by contracting States to ensure compliance. But to date, this avenue does not appear to have been used. From this point of view, it may be worth mentioning that there appears to be an alarming trend towards the view that the defeat of terrorism is such an overriding imperative that all means of doing so become, in international law, automatically lawful. In addition, in as far as aviation security is concerned, as in fact it has long been suggested, what is required is the "application of the strictest security measures by all concerned."In this regard, mention should be made of Annex 17 to the Chicago Convention on Security-Safeguarding International Civil Aviation against Acts of Unlawful Intereference. ICAO has, moreover, compiled, for restricted distribution, a Security Manual for Safeguarding Civil Aviation Against Acts of Unlawful Interference, which is highly useful. In this regard, it may well be argued that, unless States members of ICAO notify the ICAO Council of their inability to comply with opecific standards in Annex 17 or any of the related Annexes in accordance with Article 38 of the 1944 Chicago Convention on International Civil Aviation, their failure to do so can involve State responsibility and, if damage were to insure, their liability. The same applies to breaches of any other treaty obligation. I hope to demonstrate that although modes of international violence may change, their underlying characteristics remain broadly similar, necessitating not simply the adoption of an adequate body of domestic legislation, firm in its content and fairly administered, but also an international network of communication, of cooperation and of coordination of policies. Afurther legal instrument is now being developed by the Legal Committee of ICAO with respect to unlawful acts at International airports. These instruments, however, are not very effective, because of the absence of universal acceptance and the deficiency I have already pointed out. Therefore, States, airports and international airlines have to concentrate on prevention. If the development of policies is important at the international level, it is equally important in the domestic setting. For example, the recent experiences of France have prompted many changes in the State's legislation and in its policies towards terrorism, with higher penalties for terrorist offences and incentives which encourage accused terrorists to pass informations to the authorities. And our government has to tighten furthermore security measures. Particularly, in the case an unarmed hijacker who boards having no instrument in his possession with which to promote the hoax, a plaintiff-passenger would be hard-pressed to show that the airline was negligent in screening the hijacker prior to boarding. In light of the airline's duty to exercise a high degree of care to provide for the safety of all the passengers on board, an acquiescence to a hijacker's demands on the part of the air carrier could constitute a breach of duty only when it is clearly shown that the carrier's employees knew or plainly should have known that the hijacker was unarmed. The general opinion is that the legal oystem could be sufficient, provided that the political will is there to use and apply it effectively. All agreed that the main responsibility for security has to be borne by the governments. A state that supports aviation terrorism is responsible for violation of International Aviation Law. Generally speaking, terrorism is a violation of international law. It violates the sovereign rights of states, and the human rights of the individuals. We have to contribute more to the creation of a general consensus amongst all states about the need to combat the threat of aviation terrorism. I think that aviation terrorism as becoming an ever more serious issue, has to be solved by internationally agreed and closely co - ordinated measures.

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