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CAM-CCBC Arbitration Center Implemented the Emergency Arbitrator and Expedited Procedure
The Center for Arbitration and Mediation of the Chamber of Commerce Brazil-Canada (CAM-CCBC), the Brazil’s largest arbitration center has announced two resolutions that were regarded as an important development of arbitration: Resolution 44/2020 on emergency arbitrators and Resolution 46/2021 on the expedited procedure.
Emergency Arbitrator
Stipulated under Resolution 44, the emergency arbitrator is available as an “opt-out” option to parties subject to arbitration agreements entered into after November 25, 2020, meaning that an emergency arbitrator is applicable unless the parties mutually agree otherwise. While the parties that arbitration agreements entered into before November 25, 2020, will still have the option to “opt-in” the emergency arbitrator or meaning that the parties must agree to choose it jointly.
The president of CAM-CCBC will be the person who considers the request and assesses whether the procedure applies to the requested case or not. If applicable, the president will appoint the emergency arbitrator. The emergency arbitrator has 2 days to present the statement of independence and availability. The parties then can also challenge the emergency arbitrator within 2 days.
In principle, the emergency arbitrator has 15 days from the date of independence statement to deliberate and deliver the decision. The emergency arbitrator can also issue a provisory timeline with a different timeline. The emergency arbitrator enjoys broad discretion for conducting the procedures contingent upon the principle of equal treatment and full defence of the parties. Additionally, a hearing can be achieved via telephone or video conference.
The emergency arbitrator will deliver a decision in writing, containing the reasoning thereof. Anyway, the emergency arbitrator cannot hold the position of an arbitrator for the same arbitral proceeding.
Generally, the emergency arbitrator proceeding will cost R$75,000 in emergency arbitrator fees and R$20,000 in CAM-CCBC’s fees. The parties must put down the case deposit to cover the cost of R$5,000. The increase or reduction of such expense will be subjected to the complexity and disposition of the cases.
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Expedited Procedure
According to Resolution 46/202 that enacted an expedited procedure. An expedited procedure applies to CAM-CCBC’s arbitrations that the parties enter into arbitral agreements before January 2021 and whose value at stake is no more than R$3 Million.
Except when the parties have agreed otherwise, a sole arbitrator will conduct an expedited procedure, limit the size and number of submissions, and decide the case entirely on submitted documents. The method of hearing is preferably remote hearing.
A sole arbitrator will issue an arbitral award within 10 months from the date of signature of the terms of reference until the closing of the proceeding. An arbitral award must be issued within 30 days from the closing of the proceedings, with the possibility of extension for another 30 days.
The fees for an expedited procedure will be subjected to the terms of CAM-CCBC [1].
Conclusion
CAM-CCBC has expressed the efforts to operate its mission according to other internal institutions such as ICC, promote emergency arbitrations, and create simpler and cheaper procedures to meet the demand of arbitration users.
Reference:
For more information, please visit https://ccbc.org.br/cam-ccbc-centro-arbitragem-mediacao/en/arbitration/table-of-expenses-2019/
