Updated Rules of ICDR: An overview
The International Centre for Dispute Resolution (ICDR), the international division of the American Arbitration Association (AAA) and a global leader of dispute settlement services to businesses in issues about cross-border transactions, published the 2021 update to its international arbitration and mediation rules (the'2021 ICDR Rules') on March 1, 2021. The 2021 change is significant because it is the first time the ICDR's arbitration and mediation rules have been updated since 2014 and 2008, respectively. It is of particular interest to the construction sector in the US and worldwide.
The construction sector has increasingly favoured arbitration over alternative kinds of conflict resolution in the last decade, as many construction dispute practitioners would agree. This is especially true in international construction projects. International arbitration is almost a need to provide a reasonable and enforceable settlement of disputes due to the various jurisdictions and nationalities involved.
Data support this tendency. According to statistics from almost all of the world's top international arbitration centres, construction conflicts are becoming increasingly prevalent, including the ICDR. The ICDR oversees a large number of construction disputes. Therefore international construction practitioners should be informed of the ICDR's rule modifications. While many US construction corporations and businesses are likely aware of the AAA's Construction Industry Arbitration Rules, the ICDR's arbitration rules differ infrequently small but significant ways to reflect practices more commonly seen in international arbitration proceedings.
The ICDR's arbitration rule changes are sensible and practical attempts to inform users about anticipating and handling an ICDR arbitration procedure. Following are some changes:
International Administrative Review Council (Article 5)
The updated ICDR Rules for 2021 include a new Article 5 that outlines the International Administrative Review Counsel's function at the ICDR (IARC).
Joinder (Article 8) and Consolidation (Article 9)
The joinder and consolidation rules in articles 8 and 9 of the 2021 ICDR Rules have been updated (formerly articles 7 and 8). These changes simplify the ICDR Rules' joinder and consolidation procedures, which are especially important in construction disputes involving numerous owner/employer, designer, contractor, and subcontractor/supplier connections.
Third-party Funding (Article 14)
The 2021 ICDR Rules feature a new Article 14(7) to address issues about third-party funding arrangements, which is consistent with more significant developments in many other international arbitration rules.
Arbitral Jurisdiction (Article 21)
The revised Article 21(1) of the 2021 ICDR Rules confirms the arbitral tribunal's power to determine on its jurisdiction "without the requirement to report such matters first to a court," mainly due to a peculiar US Supreme Court precedent.
While several other minor modifications in the ICDR Procedures for 2021, the main message is that the ICDR has effectively improved and clarified its already well-known international arbitration rules. The 2021 revisions to the ICDR regulations are welcomed news for construction sector leaders and international construction dispute practitioners.
(This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, or Religion, Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre Foundation shall not be responsible for any errors caused due to human error or otherwise.)