Article 5. 1. (b) of New York Convention defines that the recognition and enforcement of the award may be refused on the ground that the party against

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Article 5. 1. (b) of New York Convention defines that the recognition and enforcement of the
award
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may be refused on the ground that the
party
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against whom the
award
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is invoked was not given proper notice of the appointment of the arbitrator or of the arbitration proceedings or was
otherwise
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unable to present his case.
However
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, the main thrust of
this
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provision of the Convention is directed at ensuring that the requirements of “due process” are observed and that the parties are given a fair hearing. Obviously, parties’ right to be heard is of particular concern in regard to caucusing. If the Arbitral Tribunal holds private sessions and listens to what one
party
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has to say in the absence of the other, that
party
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may reveal facts to the members of the tribunal the other
party
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is unable to rebut.
Such
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an ex parte conversation is a textbook example for a violation of the right to be heard and usually constitutes a ground to vacate the
award
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.
Nevertheless
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, there is
also
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one strong contra-argument which is against the abovementioned “right to be heard” principle when the mediating arbitrator uses caucusing technique. The argument is “confidentiality of
information
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gained through caucusing” principle. During caucusing
party
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is able to provide the mediator with confidential
information
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that is
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not shared with the other
party
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and mediator’s possession of
such
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confidential
information
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from both parties usually allows the mediator to guide the parties to an amicable
settlement
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. In order to avoid from the conflict of mentioned principles,
for example
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, Centre for Effective Dispute Resolution Rules for the Facilitation of
Settlement
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in International Arbitration (hereinafter “CEDR
Settlement
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Rules”), in its Article 3 (General principles) states that: “4. Nothing said or done by any
Party
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or its counsel in the course of any
settlement
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discussions, or in the course of any other steps taken by the Arbitral Tribunal to facilitate
settlement
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, shall be used against a
Party
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in the event that the arbitration resumes (save as regards the allocation of costs in accordance with Article [6] of these Rules). 5. The tribunal shall not take into account for the purpose of making an
Award
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, any substantive matters discussed in
settlement
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meetings or communications, unless
such
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matter has already been introduced in the arbitration”. Unfortunately, while the Prague Rules do not prohibit the use of caucusing during the hybrid process of mediation during arbitration and have not formulated any general principles
such
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as in CEDR
Settlement
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Rules, the basic principles “right to be heard in arbitration” and “confidentiality of
information
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obtained in mediation” are more likely to collide and risk the final
award
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under the “due process” ground.

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    • Sentence 3 - Thesis
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    • Sentence 1 - Topic sentence
    • Sentence 2 - Example
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    • Sentence 1 - Topic sentence
    • Sentence 2 - Example
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