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Law360 (August 12, 2020, 6:29 PM EDT ) The London Court of International Arbitration has updated its rules, including provisions making it clear that tribunals have "broad discretion" to expeditiously conduct arbitrations, while also addressing issues that have become increasingly top of mind as the COVID-19 pandemic rages on.
The rules update, which will take effect Oct. 1, was made in an effort to streamline and clarify the arbitral and mediation processes, the LCIA said Tuesday.
Although the updates were already being finalized while the pandemic took hold and it did not obligate the LCIA to change its direction or focus, the institution said the circumstances nevertheless allowed it to explicitly address the changes that were being increasingly utilized as quarantines became a way of life throughout the world.
As a result, the rules update now refines and expands provisions accommodating the use of virtual hearings and makes clear that electronic communications with the LCIA and in the arbitration are preferred. The rules also facilitate electronically signed awards.
"Updating rules requires careful balancing — a stable rules framework is important for users, while equally periodic review ensures that rules continue to reflect best practice," said LCIA Director General Jacomijn van Haersolte-van Hof in a statement. "In this case, the timing of the rules update allowed us to incorporate a number of topical and important issues, such as an explicit reference to data protection and enhancing the references to electronic communication and virtual hearings."
The updated rules include provisions aimed at improving the efficiency of LCIA-administered arbitrations. For instance, the rules will now give arbitrators additional tools to expedite proceedings, including by introducing an explicit reference to the possibility of dismissing claims early. They will also broaden the power of the LCIA and tribunals to consolidate proceedings.
Other updates include explicit provisions addressing the role of tribunal secretaries and a new section relating specifically to data protection.
The update also increases the maximum hourly rate for arbitrators, mediators and the LCIA Secretariat from £450 ($586.54) to £500 ($651.72), "to better reflect the demands of users in certain cases involving complex and significant disputes," according to the LCIA.
The update incorporates input from a large number of users who weighed in during the project, along with a working group including both LCIA staff and external users, the LCIA said.
--Editing by Orlando Lorenzo.
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