ADC Rules For Domestic Arbitration 2015
ADC Rules For Domestic Arbitration 2015
ADC Rules For Domestic Arbitration 2015
Arbitration
Effective1May2015
RulesforDomesticArbitration2015
RulesforDomesticArbitration
Australian Disputes Centre (ADC) arbitrations are conducted in accordance with the
provisionsoftheCommercialArbitrationActineachState.Wherethepartieshaveprovided
thatarbitrationistobeconducted inaccordancewiththelaws ofaStateother thanNew
SouthWalesoranothercountry,theproceduremaybesubjecttolegislationgoverningthat
Stateorcountry.TheseRulesarenotnecessarilyappropriatewhenthecontractordispute
hasinternationalelements.Ifanarbitrationhasinternationalelementsthe partiesshould
seek their own professional advice regarding the appropriateness of these Rules to their
particulardispute.
Partiessubmitadisputetoanarbitratoroftheirchoiceandthearbitratormakesanaward
binding upon the parties. The parties may structure the conduct of the arbitration
themselves,althoughtherelevantActregulatescertainimportantaspectsofthearbitration.
TherearetimetableproceduresavailablefromADC,whichmayassisttheparties.
Parties may decide to attempt mediation or negotiation during the arbitration process.
Legalrepresentationisoptionalalthoughadvisablewheretherearelegalissuesinvolved.
FormoreinformationaboutADCArbitration,orotherdisputeresolutionmethods,please
contactADC(AustralianDisputesCentre)on(02)92390700.
Address:
AustralianDisputesCentre
Level16,1CastlereaghStreet
SydneyNSW2000
Email:info@disputescentre.com.au
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1.
NotificationofPartiestotheDispute
(a)
IfthepartiestoadisputehaveinvokedtheseRulesbyreferringthedisputetoADC
(either by consent of the parties, by way of an ADC (or Australian Commercial
DisputesCentre(ACDC),apriorregisterednameofADC)arbitrationclauseinthe
contract or otherwise), the party who alleges it has suffered loss or damage, or
seeksa declaration,orisotherwiseaggrieved,must,subject toanytermsofthe
contracttothecontrary,givewrittennoticetotheotherparty(orparties)setting
out:
(i) thenatureofthedispute,
(ii) howthedisputearose;and
(iii) theremedyitseeks,
ThereisnospecificformfortheNoticeofDispute,althoughitmustbeapparent
onthefaceofthedocumentthatitisanotificationofadispute.
(b)
Within seven (7) days of receipt of the Notice of Dispute, the other party (or
parties) to the dispute shall provide a written response stating its position in
relationtothedispute(theNoticeofResponse).Again,thereisnospecificform
for the Notice of Response, although it must be apparent on the face of the
documentthatitisanotificationofaresponse.
(c)
Withinseven(7)daysofreceiptoftheNoticeofResponsethepartiesmusttake
reasonablestepstoconferandtrytoresolvethedispute.
(d)
Ifthedisputeisnotresolvedwithinseven(7)daysorwithinsuchfurtherperiodas
thepartiesagree,thentheparties,oranyoneoftheparties,maynotifyADCthat
thedisputehasnotbeenresolved,thatthedisputeistobereferredtoarbitration
andeachpartyshallpayhalf(orsuchotherproportionasmaybeagreedbythe
partiesandADC)oftheADCregistrationfeesetoutinclause13andSchedule1in
forceonthedatethedisputeisreferredtoarbitration(orsuchothertimeasADC
initsabsolutediscretionconsidersappropriate).
2.
SelectinganArbitrator
(a)
Upon receiving the notice referred to in clause 1(d), the registration fee and a
copyoftheNoticeofDisputeandNoticeofResponse,ADCwillselecttwoormore
appropriately qualified arbitrators and provide the parties with details of the
qualifications and experience of each proposed arbitrator together with
informationconcerningthefeeschargedbyeachperson.
(b)
Withinseven(7)daysofreceivingthedetailsandinformationconcerningthefees
each party shall provide ADC with a list setting out its order of preference in
relation to the proposed arbitrator. If any party considers that a person whose
detailshavebeenprovidedisunsuitabletoactasthearbitratorofthedisputefor
(theNoticeofDispute).
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some reason (such as being well known by a party) they should notify ADC
accordingly.
(c)
Uponreceiptof thelistsofpreferences,ADCwilldeterminewhethertheparties
have identified a preferred arbitrator. If so, ADC will appoint the preferred
arbitrator.
(d)
If the parties have failed to identify a preferred arbitrator, and the parties have
agreed to invoke an alternative method of appointing the arbitrator, ADC will
followthatmethod.Ifthepartieshavenotspecifiedanalternativemethod,orthe
alternative method does not result in the appointment of an arbitrator within a
reasonabletime,ADCwillinitsabsolutediscretion,appointanarbitrator.
(e)
Uponappointmentofthearbitrator,ADCwillprovidethearbitratorwithacopyof
the Notice of Dispute and the Notice of Response provided by the parties in
accordancewithclause1oftheseRulesandrequestthearbitratortoadviseADC
ofanyconflictofinterestoranyreasonthataperceptionofbiasmayariseifthat
personactsasthearbitratorofthedispute.Ifsoadvised,ADCwillinformallthe
parties.Ifthepartiesstillwishtocontinuewiththatarbitratortheymustprovide
ADCwithastatement,inwriting,thattheyareawareoftheconflictofinterestor
facts that may give rise to a perception of bias but wish to proceed with the
appointment of that arbitrator (see also clause 3). If the parties do not wish to
continuewiththatarbitratorADCwill,initsdiscretion,appointanotherarbitrator.
3.
NeutralityofArbitrator
(a)
The arbitrator is independent and impartial and has no vested interest in the
outcomeofthearbitration.
(b)
If the arbitrator becomes aware at any stage of any circumstance that might
reasonably be considered to affect adversely the arbitrators capacity to act
independentlyorimpartially,thearbitratormustinformthepartiesimmediately.
Thearbitratormustinsuchcircumstancesterminatetheproceedings,unlessthe
partiesagreeotherwise.
4.
Date,TimeandPlaceofArbitration
(a)
Within seven (7) days of ADC notifying the parties of the appointment of the
arbitrator ADC shall provide the parties with an estimate of the fees and
disbursementsthatwillbeincurred bythearbitratorandADCinthearbitration.
Prior to commencement of the arbitration, and no later than fourteen (14) days
afterreceivingtheestimate,thepartiesshallprovideADCwithasecuritydeposit
intheamountoftheestimate.Thesecuritydepositmaybeutilisedinaccordance
withclause13oftheseRules.
(b)
The arbitrator will notify the parties of the date, time and place for holding a
preliminary conference so that the parties and the arbitrator can decide upon a
timetable for exchange of documents and statements of issues and other
proceduralmatters.Unlessthepartiesagreeotherwise,thismeetingistooccur
withinfourteen(14)daysofnotificationbythearbitrator.
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(c)
ThearbitrationshallcommenceassoonaspracticableafterADChasreceivedthe
security deposit. The arbitration shall be fixed for a time, date and place
agreeabletothepartiesandthearbitrator.
5.
AuthorityofArbitrator
If the parties are unable to agree upon a timetable, the arbitrator may give directions
stipulating the timetable the parties are to follow. These directions are binding upon the
parties.Ifthepartiesareunabletoagreeastothetermsofreferenceofthearbitration,the
arbitratormaymakeabindingdeterminationontheissue.
6.
StatementofIssues
UnlessotherwiseagreedbythepartiesandADC,withinfourteen(14)daysofADCnotifying
thepartiesoftheappointmentofthearbitrator,eachpartyshallprovidethearbitratorand
theotherparty(parties)withabriefstatementoutliningtheissueswhichthatparty
considersarerequiredtoberesolvedbythearbitratoranditspositionwithrespecttothose
issues.
7.
Hearing
(a)
Inreachingadeterminationonthemattersinissue,thearbitratoristoproceedto
ahearingunlessthepartiesagreetoproceedbydocumentsonly.Thearbitrator
maytakeoralevidenceandreceivedocumentaryevidenceonsubpoenasissuedat
therequestoftheparties.
(b)
Inordertoassistthearbitratortodeterminethematter(s)inissue,thearbitrator
mayviewthesubjectmatter(s)ofthedisputeoranysiteconnectedinwhatever
way with the dispute. The arbitrator may use his/her own observations to assist
him/her in understanding the evidence and then in applying that evidence to
determiningtheissuesthesubjectofthearbitration.
(c)
The parties are bound by any procedural direction which may be given by the
arbitratorbothinpreparationforandduringthecourseofthehearing.Subjectto
the requirements of any relevant Act, the arbitrator may determine the
submissionof,orthelimitationof:
(i)
pleadings;
(ii)
discovery;
(iii)
openingaddressandclosingaddresses;
(iv)
(v)
rightsofreplytodocumentstendered;
(vi)
attendanceofdeponentsforcrossexamination;
(vii)
expertwitnesses;
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(viii)
expertreports;
(ix)
calling,examining,crossexaminingorredirectingwitnessesandexperts;
(x)
proceduraldirections.
8.
Confidentiality
(a)
(b)
The parties agree not to call upon or seek to subpoena the arbitrator or any
officer, employee, servant or agent of ADC to give evidence or to rely on or
introduceasevidenceinjudicialproceedings:
(i)
(ii)
admissionsmadebyeitherparty;
(iii)
(c)
The parties agree not to seek to join the arbitrator or any officer, employee,
servantoragentofADCinanylegalproceedingsbroughtbythirdparties,whether
ornottheproceedingsrelatetothisdispute.
(d)
Nostatementsorcomments,whetherwrittenororal,madeorusedbytheparties
ortheirrepresentatives,thearbitratororanyofficer,employee,servantoragent
ofADCinpreparationfororinthecourseofthearbitrationshallberelieduponto
found or maintain any action for defamation, libel, slander or any related
compliant, andthisdocumentmayberelieduponasa completedefencetoany
suchaction.
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9.
MediationandArbitration
(a)
Ifduringthecourseofthearbitration,thearbitratorandthepartiesbelievethat
some direct negotiation, or some assisted negotiation or mediation would assist
resolutionofthedispute,thenthearbitrationwillbeadjournedforthatprocessto
occur.Unlessotherwiseagreedbytheparties,thisprocessmusttakeplacewithin
twentyone (21) days of the commencement of the adjournment and conclude
withintwentyeight(28)days.
(b)
If the parties wish to mediate (whether before or during the course of the
arbitration),themediatorshallbe:
(i)thesameasthearbitratoronlyifthepartieshavesoagreedinaccordancewith
theapplicablelegislativeprovisionsonarbitratorsactingasmediators;and
(ii)inallothercases,selectedbyADCinaccordancewiththeADCGuidelinesfor
Commercial Mediation in force at the time the matter is referred to mediation,
whichtermsshallbedeemedtobeincorporatedintotheseRules.
(c)
The same confidentiality requirements under these Rules apply to any such
mediationreferredtoinclause9(b)above.
10.
TerminationoftheArbitration
Thearbitrationisterminated:
(a)
after the handing down of a final award and an award to cost if any, by the
arbitrator;or
(b)
11.
AwardofArbitrator
(a)
Theawardofthearbitratorisbindingupontheparties.Unlessotherwiseagreed,
the parties have no right of appeal other than that provided in the Commercial
Arbitration Act or any other legislation which governs the conduct of the
arbitration.
(b)
Thearbitratorinproceedingtomakeanawardonthematter(s)inissueshall:
(i)
(ii)
determinewhetheraninspectionorsitevisitisrequired;
(iii)
notbeexpectedorrequiredtoobtainorrefertoanyotherdocuments,
informationormaterial,butmaydosoifhe/shedesires;
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(iv)
(v)
actwithallappropriateexpeditionsoastogiveanawardonthematter
inissueassoonaspracticable.
(c)
Should thesecuritydepositlodgedwithADCbeinsufficienttomeetthecostsof
the arbitration, the arbitrator may withhold his/her award until such costs as
specifiedbyADCinaccordancewithclause13oftheseRuleshavebeenpaid.
12.
Liability
Exceptinthecaseoffraud:
(a)
thepartiesreleaseADC,itsofficers,employees,servantsandagentsandthe
arbitratorfromanyliabilityofanykindwhatsoeverarisingoutoforinconnection
withthechoiceofthearbitratororthearbitration.
(b)
thepartiesjointlyandseverallyindemnify,andwillkeepindemnified,ADC,its
officers,employees,servantsandagentsandthearbitratorfromandagainstany
claimfornegligenceorbreachofanytradepracticesorfairtradinglegislation
whichmayariseinconnectionwithorresultingfromthearbitrator'sappointment
oranyactoromissionarisingoutoforinconnectionwiththearbitration.The
indemnityisexpresslygivenforthebenefitofthepartiesindicatedandmaybe
enforcedbythemindividuallyifnecessary.
Thisdocumentmaybeproducedandrelieduponasacompletedefencetoanysuchclaim.
13.
Fees
(a)
(b)
The parties shall forward to ADC their half share or other such proportion as
agreedtobythepartiesoftheamountasrequiredbytheseRules.
(c)
ThearbitratorandADCmaysubmitprogressivetaxinvoicestotheparties,which
canbedrawndownagainstthesecuritydeposit.
(d)
Intheeventthatthesecuritydepositisinsufficienttocovertheanticipatedfees
and disbursements of the arbitrator and / or ADC the parties agree to submit a
further security deposit in the amount reasonably requested by ADC or the
arbitratorfromtimetotime.
(e)
If the further security deposit is not received by ADC within seven (7) days of
ADC'sorthearbitrator'swrittenrequestthenthearbitratormay withholdhisor
herawardinaccordancewithclause11oftheseRules.
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(f)
Intheeventthattheawardiswithheldinaccordancewiththeaboveclausethe
parties agree that neither ADC, its officers, employees, servants and agents nor
thearbitratorshallhaveanyliabilitywhatsoevertothepartiesandthepartieswill
indemnify ADC, its officers, employees, servants and agents and the arbitrator
fromandagainstanysuchclaimbyanyperson.Thisdocumentmaybeproduced
andrelieduponasacompletedefencetoanysuchclaim.
(g)
NothingintheseRulesshallaffectthepowerofthearbitrator,underanyrelevant
Act,tomakedirectionsinrelationtothecostsofthearbitration.
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SCHEDULE1
1.
Foreacharbitration,ADCchargesaregistrationfeeasfollows:
2.
a.
$1,100(inclusiveofGST)whichcoversregistrationandthefirst5hoursof
administrationbyADC;or
b.
ADCmayinitsabsolutediscretionchargeafurtheradministrationfeeattherateof
$250.00(incl.GST)perhourafterthefirst5hoursofadministrationcoveredbythe
registrationfee.
Thisdocumentmaybecopied,butonlyiftheADC
Copyrightstatementbelowisincludedonthecopies:
AustralianDisputesCentre,2015
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