Overview of the GIAC Arbitration
If not agreed otherwise, under the GIAC Arbitration Rules, a sole arbitrator is appointed, unless due the complexity of the dispute it appears to the Arbitration Council of GIAC, that the case warrants the appointment of three arbitrators.
Where the dispute is to be resolved by a sole arbitrator, the parties may, by agreement, nominate a sole arbitrator for confirmation by the Arbitration Council. If the parties fail to nominate a sole arbitrator, the sole arbitrator shall be appointed by the Arbitration Council of GIAC from the list of arbitrators of GIAC.
Where the dispute is to be resolved by the tribunal of three arbitrators, each party shall appoint one arbitrator. The third arbitrator, who shall act as the president of the Arbitral Tribunal, shall be appointed by the two party appointed arbitrators, unless otherwise agreed by the parties. If the party-appointed arbitrators fail to appoint the President, The GIAC Arbitration Council shall make such appointment.
The parties are authorized to choose:
- Seat of the arbitration
- Law or rules of laws applicable to the merits of the dispute
- Language of the proceedings
The arbitrators act on the basis of presentations of the parties, both oral and writing provided by the parties.
The final award is rendered by the Arbitral Tribunal in 6 months and is binding on the parties.
- Claimant files its Request for Arbitration, appoints an arbitrator (When the dispute shall be decided by the tribunal of three arbitrators) and provides the Registration Fee.
The Request for Arbitration shall include:
- (a) Full names and contact details of the parties and their representatives (if available);
- (b) Facts and summary of the dispute giving rise to the claim;
- (c) Statement of the relief sought and the amount requested for each claim. If the relief sought cannot be reflected in a specific sum, an estimate of the monetary value of each claim at the time of submission of the Request for Arbitration;
- (d) The full terms of the Arbitration Agreement invoked by the Claimant to support its claim, together with a copy of any contractual or other documentation in which the Arbitration Agreement is contained or to which the Claimant’s claim relates;
- (e) The number of arbitrators pursuant to the Rules;
- (f) Nomination of the arbitrator and his/her contact details or the request for appointing the arbitrator, if applicable;
- (g) All relevant observations and comments regarding the arbitrators, place of arbitration, the applicable law and the language of proceedings.
The claimant may directly submit the Statement of Claim in such case, the Statement of Claim shall satisfy the requirements set for the Request of Arbitration.
The Request for Arbitration or the Statement of Claim shall be filed to the Secretariat of GIAC at the following address: 29 Berdznis St. Tbilisi, 0114, Georgia and additionally it can be also sent via email: firstname.lastname@example.org
The Request for the Arbitration shall be accompanied by the document certifying the payment of the registration fee by the claimant.
- The Secretariat of GIAC
The Secretariat of GIAC checks the compliance of the Request for Arbitration/Statement of Claim with the requirements of the Arbitration Rules. In the event, when the Request for Arbitration/Statement of Claim is in compliance with the Arbitration Rules and the registration fee is duly paid, the Secretariat notifies the respondent about the initiation of the arbitration case.
- Respondent submits its answer to the Request and appoints an arbitrator (When the dispute shall be decided by the tribunal of three arbitrators)
The respondent filed its Answer to the Request for Arbitration within [xx] days. The Answer shall include:
- Full names and contact details of the Respondent(s) and its representative(s);
- The Respondent’s comments and observations regarding the relief sought by the Claimant and the facts of the dispute giving rise to the claim, as well as specific relief sought by the Respondent, if applicable;
- Any objections concerning the existence, validity, applicability of the arbitration agreement, although the failure to do so shall not deprive the Respondent of the right to raise such objections at any time before submitting the Statement of Defense;
- The number of arbitrators pursuant to the Rules;
- Nomination of an arbitrator and his/her contact details or request for appointing an arbitrator if applicable;
- All relevant observations and comments regarding the arbitrators, place of arbitration, applicable law and language of the proceedings.
The Respondent may opt to file the Statement of Defense directly. In such event, the Statement of Defense shall satisfy the requirements of the Answer to the Request for Arbitration. The Answer to the Request for Arbitration or the Statement of Defense shall be filed to the Secretariat of GIAC at the following address: 29 Berdznis St. Tbilisi, 0114, Georgia and additionally, it can be also sent via email: email@example.com
The Respondent’s failure to submit the Answer shall not terminate the proceedings.
- Claimant and Respondent provides its part of the Advance on Costs
In order to proceed with the arbitration proceedings the parties shall make the payment of the Advance on Costs. The Secretariat fixes the advance on costs, which the parties shall pay in equal shares within 30 days from the date of constitution of the Arbitral Tribunal.
The case file shall be transmitted to the tribunal only after shall payment is made.
- Composition of the Tribunal
The composition of the arbitral tribunal can be carried out either in accordance with the parties’ agreement, if such agreement provides for the procedure of appointment of the tribunal; or if the parties have not stipulated such procedure, the GIAC Arbitration Rules shall apply by default. The procedure of the appointment of the arbitrator varies based on the number of arbitrators:
- (a) Appointment of the sole arbitrator
Where the dispute is to be resolved by a sole arbitrator, the parties may, by agreement, nominate a sole arbitrator, which is then confirmed by the GIAC Arbitration Council. If the parties fail to nominate the sole arbitrator within 30 (thirty) days from the date when the Claimant’s Request for Arbitration has been received by the Respondent, he/she shall be appointed by the Arbitration Council.
- (b) Appointment of the three-member tribunal
Where the dispute is to be resolved by the tribunal of three arbitrators, each party shall appoint one arbitrator. If a party fails to appoint an arbitrator, the Arbitration Council shall make the appointment.
The third arbitrator, who shall act as a president of the Arbitral Tribunal, shall be appointed by the two party-appointed arbitrators. If the arbitrators fail to appoint the President, the GIAC Arbitration Council shall make such an appointment, unless the parties have agreed otherwise.
- The Secretariat of GIAC transmits the case to Arbitral Tribunal
Once the Arbitral Tribunal has been constituted and the advance on costs has been paid, the Secretariat transmits the case file to the Arbitral Tribunal.
- The Arbitral Tribunal
The Arbitral Tribunal determines the manner of conducting the proceedings in compliance with the conditions set forth in the arbitration agreement and the GIAC Arbitration Rules.
The Arbitration Tribunal shall draw up its Terms of Reference, after the case is transferred to it by the Secretariat. The Terms of Reference shall contain:
- Names, descriptions, and addresses of the parties and their representatives
- Name, descriptions, and address of the sole arbitrator or each of the member of the Arbitral Tribunal
- Summary of parties’ claims and the relief sought, including the amount in dispute
- The place and the language of arbitration and the applicable law
- Particular procedural measures that shall govern the proceedings in addition to the Rules.
The Terms of Reference shall be signed by the parties and the Arbitral Tribunal. If the party fails to sign it without a valid reason, the Terms of Reference comes into force upon the signature of the other party and the sole arbitrator or the members of the Arbitral Tribunal.
The Arbitral Tribunal, upon consultation with the parties determines the time limits for submission of the Statement of Claim and Defense.
In any arbitration proceedings, the Arbitral Tribunal shall ensure that both parties are given equal and reasonable opportunity to present their case.
- Claimant submits its statement of Claim
The Claimant shall submit its Statement of Claim, which shall set out:
- Statement of facts supporting the claim;
- Statement of legal arguments supporting the claim;
- Evidence relied upon by the claimant;
- The relief sought.
- Respondent submits its statement of defense
The Respondent shall submit its Statement of Defense, which shall set out:Any objections to the jurisdiction of the Arbitral Tribunal or the admissibility of claim(s);
- Any objections to the jurisdiction of the Arbitral Tribunal or the admissibility of the claim(s);
- Statement of facts supporting the defense, and the counterclaim or request for set off (if any);
- Statement of legal arguments supporting the defense, and the counterclaim or request for set off (if any) ;
- Evidence relied upon by the Respondent.
- The Arbitral Hearing
The Arbitral Tribunal holds a hearing if it considers appropriate or either party requests it to do so. The tribunal shall fix the time and place for the hearing.
If any party fails to appear before the Arbitral Tribunal without valid reasons thereto, the Arbitral Tribunal shall be empowered to proceed with the hearing in the absence of this party and render an award.
- The Arbitral Tribunal renders an Award
The Arbitral Tribunal submits its draft Award to the Arbitration Council for approval.
Upon the approval of the Arbitration Council, The Arbitral Tribunal shall render its final award in 6 (six) months from the date of signing the Terms of Reference.
The arbitral award shall be binding on the parties. By submitting the dispute to arbitration under the Rules, the parties undertake the duty to comply with the award without delay. The award enters into force on the date when it is rendered.