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COMMERCIAL DISPUTE RESOLUTION www.cdr-news.com July-August 2013 E-DISCOVERY Litigation and Big Data THE UK & IRELAND Are whistleblower bounties on the cards? Commercial Dispute Resolution ARBITRATION CDR Reasoned awards and recast Regulations www.cdr-news.com Volume 4, Issue 4 July-August 2013 LATIN AMERICA: A NEW AGE THE RISE OF A DISPUTES SUPERPOWER JAMS_RedBus_CDR_Layout 1 08/04/2013 12:44 Page 1 ® TM Experts in Mediation & Arbitration Worldwide™ Experts in mediation and arbitration,from the UK to the US. One of the most trusted routes to successful mediation and arbitration is to make the journey with JAMS International. As part of JAMS, a world-leading dispute resolution provider, our 300+ expert panellists operate in over 40 countries. All seasoned professionals, with international experience and a thorough understanding of local cultures, customs, and languages, they handle over 12,000 disputes a year. With our talented people and sophisticated case management system, we can provide you and your clients with the most time-efficient and cost-effective dispute resolution service in any sector, anywhere in the world, at any time. For more information, talk to Matthew Rushton on +44 207 583 9808 or visit www.jamsinternational.com London G Amsterdam G Dublin G Milan G New York G Rome Commercial Dispute Resolution JULY-AUGUST 2013 03 BRICWALLS o recent demonstrations in Brazil, the biggest and Argentina now regularly grapple with complex questions there for more than two decades, point to a of arbitral law, while Colombia’s new statute also provides wider malaise in the country once seen as the much-needed provisions on international arbitration. BRICS’ wunderkind? Growth, at 3%, is hardly The continent’s influence is similarly to the fore at the World sluggish by Western standards. Yet the spectre Trade Organization, whose new head, Roberto Azevêdo, is the of inflation and flagging competitiveness first Latin American to lead the body in its 18-year history. Dcompound foreign investors’ concerns over corporate Besides dragging the Doha Round of trade talks from the governance and political corruption as Brazil gears up to host long grass, Azevêdo wants the WTO’s developing country the world’s two flagship sporting events, the first of which – members to have a greater say in its future policy direction the 2014 FIFA World Cup – kicks off in less than a year. – no easy task, given that the US and EU continue to dictate When it comes to dispute resolution, though, there’s little much of the agenda, including the filing of disputes, at the to protest. The Calvo Doctrine, which at one time permeated Geneva-headquartered institution. An in-depth look into the continent’s thinking, has largely lost its influence among the challenges facing Azevêdo can be found on page 23. both jurists and policy-makers in Latin America – save for Your feedback continues to prove invaluable. Is there recent denouncements of the World Bank arbitration system something you’d like to see us covering more? Do get by Bolivia, Ecuador and Venezuela. Indeed, courts in Brazil in touch; we’d be delighted to hear from you. Edward Machin Editor [email protected] CCommercialD DisputeR Resolution www.cdr-news.com Contents 04 THIS ISSUE NEWS EUROPE Debate rages on over whether the UK should adopt US-style class-actions; Europe’s top anti- 06 fraud watchdog under pressure NEWS AMERICAS US appeals court throws out Motiva’s IP claim against Nintendo’s Wii platform; ICC boosts 08 presence in the Americas with Canadian MOU NEWS AFRICA & MIDDLE EAST State-owned Kuwaiti firm pays Dow Chemical Company USD 2.2 billion; Libya to pay out USD 10 930 million under Arab League treaty NEWS ASIA-PACIFIC Panel constituted for the Philippine-China maritime boundary dispute; Australia’s two richest women win 12 royalties battle against mining titan Rio Tinto 14 PEOPLE & FIRMS 16 CONFERENCE DIARY Editor Distribution Manager Group Consulting Editor Edward Machin Mark Carroll Alan Falach [email protected] [email protected] [email protected] Consulting Editor Associate Publisher Group Publisher Ben Rigby Alex Fetrot Richard Firth [email protected] [email protected] [email protected] Staff Writer Account Manager Group Editor Tom Moore Kevin Byrne Fraser Allan ISSN: 2044-5121 [email protected] [email protected] [email protected] Staff Writer Dahlia Belloul [email protected] Published by © 2013 Global Legal Group Ltd. All rights reserved. Global Legal Group Ltd This publication is for general information purposes only. It does not purport to 59 Tanner Street provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors London SE1 3PL, UK accept no responsibility for losses that may arise from reliance upon information contained in this publication. This Tel: +44 20 7367 0720 publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be Fax: +44 20 7407 5255 taken from a qualified professional when dealing with specific situations. www.glgroup.co.uk Commercial Dispute Resolution JULY-AUGUST 2013 05 LATIN AMERICA Jorge Perez Vera of Total Raffinage Marketing considers the ramifications of Colombia’s new arbitration law; WTO’s new director-general faces tough challenges; Baker & McKenzie and Trench, Rossi e Watanabe Advogados look at recent regional 17 arbitration developments THE UK AND IRELAND Scotland and Ireland lay down the gauntlet to England’s arbitration dominance; Unlocking Disputes – the story so far; 31 US-style bounties for UK whistleblowers on the horizon? E-DISCOVERY AND COMPLIANCE Preparing for litigation and regulatory e-disclosure in the age of Big Data; Jackson Reforms narrow e-discovery in England; 45 FTI Consulting puts the Libor scandal under the microscope INTERNATIONAL ARBITRATION Vinge argues that arbitrators can do more to ensure high- quality awards through reasoned explanation; WilmerHale 61 looks at West Tankers and the Recast Brussels I Regulation FINANCIAL LITIGATION George Z. Georgiou of George Z. Georgiou & Associates examines the recent judgment by the Supreme Court of 70 Cyprus on the status of bailout Decrees 75 CROSS-BORDER LITIGATION 80 MEDIATION CDR Editorial Board Europe UK & Ireland USA Jean-François Bellis Van Bael & Bellis Juliet Blanch Weil, Gotshal & Manges Doak Bishop King & Spalding Martin Burkhardt Lenz & Staehelin Gary Born WilmerHale Peter Calamari Quinn Emanuel Gönenç Gürkaynak ELIG Richard East Quinn Emanuel Robert Giuffra Sullivan & Cromwell Daniel Hochstrasser Bär & Karrer Ted Greeno Herbert Smith Freehills Robert J Gunther Jr WilmerHale José-Miguel Judice PLMJ Graham Huntley Signature Litigation Grant Hanessian Baker & McKenzie Jes Anker Mikkelsen Bech-Bruun Rosemary Jackson QC Keating Chambers Chris Paparella Hughes Hubbard and Reed Harmen de Mol van Otterloo NautaDutilh Andrew Lenny Arthur Cox James Quinn Weil, Gotshal & Manges Michel Pitron Gide Loyrette Nouel Bruce Macaulay Skadden Tim Portwood Bredin Prat Penny Madden Skadden Asia-Pacific Jakob Ragnwaldh Mannheimer Swartling Jane Player King & Spalding Jonathan Leach Hogan Lovells Lee & Lee Benedikt Spiegelfeld CHSH Sue Prevezer QC Quinn Emanuel C Rashmikant Federal & Rashmikant Irene Welser CHSH Jeremy Sandelson Clifford Chance Kyle Wombolt Herbert Smith Freehills Gerold Zeiler schönherr Craig Tevendale Herbert Smith Freehills Russia & CIS Dmitry Dyakin Egorov Puginsky Afanasiev www.cdr-news.com News & analysis 06 EUROPE EUROPE UNITED KINGDOM The case for class-actions While a recent survey shows that more than half of UK consumers are against US-style class-actions, American lawyers say their costly system gives access to justice where regulators have been soft he US Chamber Institute for “We will resist any efforts to introduce US- Legal Reform, a business body style class-actions into consumer redress, aggrieved by frivolous and which risks fuelling a litigation culture excessive lawsuits in the US, and making the UK a worse place to found that Britons are against do business.” adopting American-style Almost 60% of British businesses were legal reforms. concerned that lawyers received too The UK government revealed its draft big a share of the damages in the US, Consumer Rights Bill in the Queen’s Speech and that a change in the law could cost Ton 8 May 2013. The Bill, which will enable billions of pounds in lawsuits, the ILR, opt-out collective actions where breaches which is affiliated with the US Chamber of of consumer or competition law are said to Commerce, found. have taken place, is seen as a cultural pivot “The introduction of opt-out class- towards the billion-dollar cases that are actions in the UK could open the floodgates commonplace in the US. to US-style collective action law suits, and Although the Bill focuses on the possibility of a burgeoning market in compensation for low-value products spurious litigation in Britain, driven by a fast- and services while disentangling eight expanding legal sector allied to a litigation overlapping laws for the digital age, CBI funding industry that is reaching maturity,” director-general John Cridland warned: said Lisa Rickard, president of the ILR. Commercial Dispute Resolution JULY-AUGUST 2013 07 However, despite the general public’s fear of a compensation EUROPEAN UNION culture, legal services firm Goal predicts non-US securities class- actions settlements to rise to USD 8.3 billion a year by 2020, up The case for class-actions from the USD 18 billion agreed between 2000 and 2012. EU loses fraud fight Goal’s CEO Stephen Everard says these financial fraud cases are “increasing rapidly” and believes “class-action growth outside of the OLAF, the European Anti-Fraud US will mirror the growth of the US class-action scene in the early part of the 21st century.” Office, remains under pressure to This international diversification follows the ruling in the NAB v prevent fraud eating away at the Morrison US Supreme Court case in June 2010, which barred all European economy federal securities fraud suits in the US for securities traded on a foreign stock exchange.