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On 15 June 2009, the Arbitration Committee submitted a paper to the European Commission commenting on key aspects of the Commission’s Report and accompanying Green Paper concerning possible changes to the operation of Council Regulation (EC) No. 44/2001 on Jurisdiction and the Recognition and Enforcement of Judgments in Civil and Commercial Matters (the 'Regulation'). The paper addresses those aspects of the Report and Green Paper regarding the interface between the Regulation and arbitration and in particular the proposed deletion of the arbitration exclusion from the Regulation.
The Arbitration Committee’s paper offers a number of conclusions including:
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there seems to be no compelling reason for deleting the arbitration exclusion; such a deletion would actually adversely affect the effectiveness of arbitration agreements and the circulation of arbitral awards;
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were the Commission nevertheless to propose the deletion of the arbitration exclusion, the Regulation should include specific rules in order to preserve the effectiveness of arbitration agreements and the compatibility of the Regulation with the New York Convention.
The paper goes on to offer a series of suggestions for the Commission’s consideration in the event that the Commission proposes deleting the arbitration exclusion. A copy of the paper is available by clicking here.
The paper was prepared by a Working Group set up by the Arbitration Committee. Alexis Mourre served as the Working Group Chair. The members of the Working Group are listed in the annex to the paper.
We wish to take this opportunity to thank Alexis and the other members of the Working Group for their hard work and excellent contribution, which was completed in the short period of time available for public comment.
Pierre Bienvenu, Ogilvy Renault, Montreal
Guido Santiago Tawil, M&M Bomchil, Buenos Aires
Co-Chairs, IBA Arbitration Committee
Changes to Brussels Regulation - Dec 2010 update
Following the submission of the IBA's paper, three of the IBA Working Group's members were retained as members of the Group of Experts entrusted to advise the Commission on the interface between arbitration and the Regulation. The European Commission has now published its proposal for the reform of Regulation 44/2001.
The proposal released by the Commission on 14 December 2010 is substantially in line with the IBA's recommendations and retains the arbitration exception. The draft makes it clear that the Regulation does not apply to the form, existence, validity or effects of the arbitration agreement. It also includes a new rule aimed at enhancing the efficacy of arbitration agreements by providing that a court seized of a dispute should stay its proceedings if its jurisdiction is contested on the basis of an arbitration agreement and a court or an arbitral tribunal has been seized of the case. The draft Regulation clarifies that this new rule would not prevent courts from declining jurisdiction if required by the applicable national law, for example when there is prima facie an arbitration agreement in countries that admit the negative effect of competenz-competenz. Finally, the draft specifies that, under the Regulation, an arbitral tribunal is deemed seized when a party has nominated an arbitrator or when a party has requested the support of an institution, authority or a court for the tribunal's constitution.
If adopted, this proposal would be a major development in favour of arbitration.
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