The Hong Kong International Arbitration Centre (HKIAC) has recently announced the release of its 2024 Administered Arbitration Rules, which will come into effect on 1 June 2024. These rules represent a continuation and refinement of the 2018 Administered Arbitration Rules. The newly introduced provisions in the 2024 Rules aim to further expedite the resolution of disputes and reduce the associated costs while adapting to evolving social norms and technological advancements.
Key changes include: –
Conflict of Interest and Arbitrator Removal
- The tribunal can exclude a party’s proposed new legal representatives to avoid conflicts of interest (Article 13.9)
- The HKIAC can take measures to preserve the efficiency or integrity of the arbitration, including revoking an arbitrator’s appointment in exceptional circumstances (Article 13.10)
Cost Deposits and Fees
- If deposits for costs are not paid in full, the HKIAC has the power, before the constitution of the tribunal, to suspend or cease to administer the arbitration (Article 41.4)
- The HKIAC has new powers to determine, review, and adjust the tribunal’s fees and expenses (paragraph 5 of Schedules 2 and 3)
Diversity in Appointments
- The HKIAC must consider the diversity of arbitrators appointed. Parties or co-arbitrators are encouraged to do the same (Article 9A)
Integrating Technology and Sustainability
- Tribunals must consider environmental impact and information security when adopting procedures (Article 13.1)
- Tribunals have new powers regarding information security protection (Article 45A)
Efficiency Measures
- Tribunals can bifurcate proceedings, conduct arbitration in stages, and adopt efficient procedures (Article 13.6)
- There is a new 45-day time limit for tribunals to declare the close of proceedings, i.e. 45 days from the last directed submissions (Article 31.1)
Emergency Arbitration
- Emergency arbitrators’ power to make preliminary/interim orders is expressly confirmed (Schedule 4)
Overall, these changes provide a comprehensive update to the HKIAC Administered Arbitration Rules, with a clear emphasis on enhancing the powers and duties of the tribunal. This focuses on addressing key issues that are important priorities for the arbitration community. How these and the other new provisions actually function in practice, as well as how users respond to the new rules, will undoubtedly be closely monitored by the HKIAC and the broader Hong Kong arbitration community.
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