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University of Helsinki Faculty of Law JURA NOVIT CURIA IN University of Helsinki Faculty of Law JURA NOVIT CURIA IN INTERNATIONAL COMMERCIAL ARBITRATION Master’s Thesis Procedural Law September 2013 Supervisor: Dan Frände Author: Marta Viegas de Freitas Monteiro TABLE OF CONTENTS BIBLIOGRAPHY .............................................................................................................. III Literature .................................................................................................................................... III Case Law .................................................................................................................................. VIII Miscellaneous ............................................................................................................................ XII ABBREVIATIONS .......................................................................................................... XIV 1. INTRODUCTION ........................................................................................................ 1 1.1 Background ........................................................................................................................ 1 1.2 Subject and Research Questions....................................................................................... 4 1.3 Methodology and Sources ................................................................................................. 5 1.4 Structure ............................................................................................................................. 8 2. CONDUCT OF INTERNATIONAL ARBITRAL PROCEEDINGS – GENERAL FEATURES ........................................................................................................................ 10 2.1 Leading Theories of Arbitration ..................................................................................... 10 2.2 Applicable Texts and Principles ..................................................................................... 13 2.2.1 Priority of Party Autonomy ........................................................................................ 13 2.2.2 Texts and Materials Guiding the Conduct of International Arbitral Proceedings....... 14 2.2.3 Principles Affecting the Conduct of International Arbitral Proceedings .................... 22 2.3 Analogy From Court Proceedings .................................................................................. 27 2.3.1 Divergences Between Common Law and Civil Law Systems.................................... 27 2.3.2 Court Approaches to Ascertaining and Applying the Law ......................................... 29 2.3.3 Ambiguous Utility of the Analogy ............................................................................. 33 3. ARBITRATOR’S ROLE IN ASCERTAINING AND APPLYING THE LAW .. 35 3.1 Lack of Consensus in Legal Literature .......................................................................... 35 3.1.1 Arguments Against Application of the Principle ........................................................ 35 3.1.2 Arguments Supporting Strict Application of the Principle ......................................... 38 3.1.3 Arguments Supporting Partial Application of the Principle ....................................... 39 3.2 Examination of Rules on Arbitral Tribunal’s Conduct ............................................... 42 3.2.1 Duty to Base the Decision on Law.............................................................................. 43 3.2.2 Possibility of Independently Evaluating Parties’ Pleadings........................................ 45 3.2.3 Possibility of Requesting Additional Information ...................................................... 46 3.3 Consolidating the Principle Into International Arbitration ........................................ 46 3.3.1 Proposals for Adapting the Principle with the Characteristics of Arbitration............. 47 3.3.2 Recent Tendencies in Case Law Suggesting Approval of the Principle in International Arbitration ............................................................................................................................... 49 3.3.3 Proposed Limits to the Application of the Principle ................................................... 50 4. SCOPE OF AN ARBITRATOR’S FREEDOM IN ASCERTAINING AND APPLYING THE LAW .................................................................................................... 53 4.1 Duty to Render a Valid Arbitral Award ........................................................................ 53 4.1.1 Legal Basis of Examination ........................................................................................ 53 4.1.2 Prerequisites for the Validity of an Arbitral Award .................................................... 54 4.1.3 Judicial Control on the Validity of an Arbitral Award ............................................... 56 4.2 Duty Not to Exceed Mandate – Ne Ultra Petita ............................................................. 57 4.2.1 General Features – Applicable Provisions .................................................................. 57 4.2.2 Restrictive Interpretation as Common Approach ........................................................ 58 4.2.3 Common Reluctance to Set Aside Arbitral Awards for Excess of Mandate .............. 63 4.3 Duty to Ensure Due Process ............................................................................................ 65 4.3.1 General Features – Applicable Provisions .................................................................. 65 4.3.2 National Standards as the Common Approach ........................................................... 67 4.3.3 Lack of Common Approaches .................................................................................... 75 5. CONCLUSIONS......................................................................................................... 80 II BIBLIOGRAPHY Literature Alberti, Christian P.: Part I: International Commercial Arbitration, Chapter 1: Iura Novit Curia in International Arbitration : How Much Justice Do You Want? in Stefan Michael Kröll, Stefan Michael – Mistelis, Loukas A., et al. (eds), International Commercial Law : Synergy, Convergence and Evolution. Kluwer Law International 2011. pp. 3–32. (Alberti 2011) Aarnio, Aulis: Laintulkinnan teoria. WSOY. Juva 1989. (Aarnio 1989) Beeley, Mark – Stockley, Sarah: Spare the rod and spoil the party: how procedurally robust should a tribunal be? Arbitration 2009. Volume 75. Issue 3. pp. 349–359. (Beeley and Stockley 2009) Bensaude, Denis: Recommandations de l’association de droit international sur la détermination du contenu du droit applicable en matière d’arbitrage commercial international. Revue de l’Arbitrage. Comité Français de l’Arbitrage 2009. Volume 2009. Issue 2. pp. 445–453. (Bensaude 2009) Born, Gary B.: International Arbitration: Law and Practice. Kluwer Law International 2012. (Born 2012) Born, Gary B.: International Commercial Arbitration. Kluwer Law International 2009. (Born 2009) Brekoulakis, Stavros L. – Shore, Laurence: UNICTRAL Model Law, Chapter V, Article 18 [Equal treatment of parties] in Mistelis, Loukas A. (ed): Concise International Arbitration. Kluwer Law International 2010. pp. 623–624. (Brekoulakis and Shore 2010) Brooker, Douglas: Va Savoir! - The Adage ”Jura Novit Curia” in Contemporary France. The Berkeley Electronic Press 2005. Paper 845. (Brooker 2005) Cairns, David J. A.: Advocacy and the Functions of Lawyers in International Arbitration in Fernández-Ballesteros, Miguel Ángel – Arias, David (eds): Liber Amicorum Bernardo Cremades. La Ley 2010. pp. 291–307. (Cairns 2010) Chainais, Cécile: L’arbitre, le droit et la contradiction : l’office du juge arbitral à la recherche de son point d’équilibre. Revue de l’Arbitrage. Comité Français de l’Arbitrage 2010. Volume 2010. Issue 1. pp. 3–44. (Chainais 2010) Cordero-Moss, Giuditta: International arbitration is not only international in Cordero- Moss, Giuditta (ed): International Commercial Arbitration. Cambridge University Press. 2013. pp. 7–39. (Cordero-Moss 2013) Available at http://folk.uio.no/giudittm/GCM_List%20of%20Publications.htm [Last entry 19.8.2013]. III Cordero-Moss, Giuditta: Is the arbitral tribunal bound by the parties’ factual and legal pleadings? Stockholm International Arbitration Review. Volume 2006. Issue 3. pp. 1–31. (Cordero-Moss 2006) Delvolvé, Jean-Louis – Pointon, Gerald H. – Rouche, Jean: French Arbitration Law and Practice: A Dynamic Civil Law Approach to International Arbitration. Second Edition. Kluwer Law International 2009. (Delvolvé, Pointon, et al. 2009) Derains, Yves – Schwartz, Eric A.: Chapter 5 The Arbitral Proceedings (Articles 13–23) in Guide to the ICC Rules of Arbitration. Second Edition. Kluwer Law International 2005. pp. 209–302. (Derains and Schwartz 2005) Dimolitsa, Antonias: The equivocal power of the arbitrators to introduce ex officio new issues of law. ASA Bulletin. Kluwer Law International 2009. Volume 27. Issue 3. pp. 426– 440. (Dimolitsa 2009) El Kosheri, Ahmed S.: The Different Types of Experts with Special Emphasis on Legal Experts (Jura Novit Curia) in Berg, Albert Jan van den (ed): International Arbitration 2006: Back to Basics?. ICCA Congress Series 2006 Montreal. Volume 13. Kluwer Law International 2007. pp. 797–800. (El Kosheri 2006) Elsing, Siegfried H. – Townsend, John M.: Bridging the Common Law-Civil Law Divide in Arbitration. Arbitration International. Kluwer Law International 2002. Volume 18. Issue 1. pp. 59–66. (Elsing
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