regarding to the challenge of final award could be prevented by including some safeguards into the Article 9 of the Prague Rules, while it is evident from the wording of the same article

The abovementioned potential problems regarding
to
Remove the preposition
apply
show examples
the challenge of
f
Add an article
the
a
show examples
inal
award
could be prevented by including some safeguards into the
Article
9 of the Prague Rules, while it is evident from the wording of the same
article
that the Working Group did not have any intention or concern for eliminating those risks. One of the most efficient ways for avoiding these risks is to obtain the appropriate waivers from the disputing parties.
For instance
,
this
safeguard is already to be found in the International Bar Association Guidelines on Conflicts of Interest, General standard 4(d) which indicates that “an
arbitrator
may assist the parties in reaching a
settlement
of the dispute, through conciliation, mediation or
otherwise
, at any stage of the proceedings.
However
, before doing so, the
arbitrator
should receive an express agreement by the parties that acting in
such
a manner shall not disqualify the
arbitrator
from continuing to serve as
arbitrator
.
Such
express agreement shall be considered to be an effective waiver of any potential conflict of interest that may arise from the
arbitrator
’s participation in
such
a
process
, or from information that the
arbitrator
may learn in the
process
. If the assistance by the
arbitrator
does not lead to the final
settlement
of the case, the parties remain bound by their waiver”. CEDR
Settlement
Rules
also
define
this
safeguard in its
Article
3(3) as “the Parties agree that the Arbitral Tribunal’s facilitation of
settlement
in accordance with these Rules will not be asserted by any Party as grounds for disqualifying the Arbitral Tribunal (or any member of it) or for challenging any
award
rendered by the Arbitral Tribunal”.
Therefore
, the silence of the
Article
9 regarding the waiver instrument
also
increases the possibility of challenge procedure against the final
award
made under the Prague Rules.
Additionally
,
Article
9 of the Prague Rules do not give a chance to
arbitrator
to resign if the
rbitrator
Correct your spelling
arbitrator
has doubts to his
/
her ability to remain impartial or independent in the future stages of the arbitration proceedings.
Article
9.1 which refers to the other
settlement
facilitation methods does not even consider any possibility for termination of
arbitrator
’s mandate after unsuccessful facilitation
process
and,
therefore
, has not developed any procedure for
this
purpose. According to the
Article
9.3 of the Prague Rules, if the mediation does not result in a
settlement
within an agreed period of time the mediating
arbitrator
can terminate his
/
her mandate only when he
/
she cannot obtain written consent of the parties regarding his
/
her continuance as
arbitrator
.
However
, International Bar Association Guidelines on Conflict of Interest in General standard 4(d) give
this
chance to the
arbitrator
by stating that “
however
, consistent with General Standard 2(a) and notwithstanding
such
agreement, the
arbitrator
shall resign if, 11 as a consequence of his or her involvement in the
settlement
process
, the
arbitrator
develops doubts as to his or her ability to remain impartial or independent in the future course of the arbitration” and CEDR
Settlement
Rules in
Article
7
also
take the same approach with almost the same wording.
As a result
, in the absence of
this
safeguard, the Prague Rules have again lost another chance to ensure the enforceability of the final arbitral
award
by eliminating the risks of the hybrid procedure.
Submitted by zalovagunel1 on

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