New ICC Dispute Board Rules emphasizing dispute avoidance enter into force on 1 October

The half-day global launch will provide an introduction to the nature, purpose and operation of the new Rules and offer a chance to discuss the role of dispute boards in preventing disputes and resolving them quickly as well as their costs and expenses.

Dispute boards are independent bodies designed to avoid and resolve disagreements between parties as they arise during the performance of an often long-term or mid-term contract. The event is open to anyone wishing to learn about or likely to use the ICC Dispute Board Rules, in particular, corporate counsel, and corporate managers, practicing lawyers, dispute resolution specialists and academics interested in ADR.

The new ICC Dispute Board Rules increase the emphasis on dispute avoidance. In fact one of the most valuable functions of a dispute board is to help the parties to avoid disputes, either by encouraging them to do so on their own or by providing them with informal assistance.

Peter Wolrich, Partner, Curtis, Mallet-Prevost, Colt and Mosle LLP; Co-Chair of Curtis’ Arbitration Practice and Chairman of the ICC Task Force revising the Rules, highlighted the importance of the new Rules, stating: “The new ICC Dispute Board Rules increase the emphasis on dispute avoidance. In fact one of the most valuable functions of a dispute board is to help the parties to avoid disputes, either by encouraging them to do so on their own or by providing them with informal assistance.”

The replacement of current Rules dating from 2004 follows three years of revision undertaken by the ICC Commission on Arbitration and ADR that started in 2012 and received broad input from the international dispute board community, including from the International Federation of Consulting Engineers (FIDIC) and members of other Dispute Resolution Board Associations.

Nael Bunni, Bunni & Associates, said: “Together with other ICC procedures, the new Rules form a complete scheme of dealing with most of the hurdles that may arise from the moment that a dispute board is sought to the end of its activities. This process may involve problems in choosing the most appropriate dispute board team for a particular contract; deciding on its remuneration; its appointment; challenges; rendering an opinion or a conclusion; and dealing with an allegation of lack of due process.”

What’s new?
The new Rules stress three distinct services of dispute boards: (1) Avoidance of Disagreements, (2) Informal Assistance with Disagreements and (3) Formal Referral for a Conclusion. In the revised Rules, all three functions are listed under a single heading entitled ‘The Three Services Provided by the Dispute Board’. The new Rules put particular emphasis on dispute avoidance with Article 16 providing,

inter alia, that at any time a dispute board believes that a potential disagreement may be arising between the parties, the dispute board may raise the matter with the parties and encourage them to try to avoid the disagreement on their own without any further involvement of the dispute board.