The Association Française d’Arbitrage is seized by means of a request for arbitration pursuant to an arbitration agreement or clause which refers to its intervention and the application of its Rules, in order to resolve disputes of the types set out in the arbitration agreement.

In all cases, the A.F.A.’s seisin automatically entails the application of the provisions set out in these Rules which are incorporated into the agreement between the parties.

The arbitration agreement contains the parties’ names, capacities and addresses, the subject matter of the arbitration and referral to the A.F.A. Rules for the organization and administration of the arbitration.

Upon receipt of the respondent’s response, or in any event eight days after expiry of the deadline for the respondent to send its response, the file is submitted to the Arbitration Committee, whose role is to ensure that these Rules are applied.

Unless otherwise stipulated by the parties, the Arbitration Committee decides on the number of arbitrators who will rule on the reference and, if there are several arbitrators, takes note of nominations made by the parties. The Arbitration Committee appoints the third arbitrator who shall preside over the arbitral tribunal or, where appropriate, the sole arbitrator.

In these Rules, the expression “arbitral tribunal” refers to a sole arbitrator or a body of arbitrators indifferently.

Where there is more than one arbitrator, and after noting either party’s failure to nominate an arbitrator, the Arbitration Committee shall appoint an arbitrator of its own motion.

If the parties have designated one or several foreign arbitrators, the Arbitration Committee, unless the parties should otherwise agree, shall designate a third arbitrator of a different nationality from that of the parties and of the arbitrators chosen by them.

The arbitrator undertakes to carry out, in accordance with the Arbitration Rules, the Terms of Reference which he has accepted.

The decisions of the Arbitration Committee relating to the composition of the arbitral tribunal cannot be subject to appeal or review. The reasons for its decisions are not provided to the parties. This is also the case for decisions relating to challenges to the appointment of arbitrators set out in Article 8 below.

In the event of the death or resignation (which is accepted) of an arbitrator, he shall be replaced in accordance with the foregoing terms and conditions.

An arbitrator shall also be replaced where the Arbitration Committee notes that he has ceased to exercise his functions in accordance with the Rules or abstains from exercising these even though his resignation has not been accepted. In such circumstances, where such replacement should occur when the arbitral proceedings are almost concluded, the Arbitration Committee may decide not to replace such arbitrator. In such a case the proceedings will continue up to the pronouncement of the award (inclusive) with the three arbitrators constituting the arbitral tribunal, each of these having the opportunity to participate in all meetings of the arbitral tribunal and in the deliberations on the draft award.

In the event of replacement, the arbitration deadline is automatically suspended from the date of the event justifying the replacement to the date of acceptance by the substitute arbitrator of his functions.

Where there are several parties and a dispute as to the nomination of arbitrators, the Arbitration Committee may designate all the arbitrators or the sole arbitrator.

The Arbitration Committee shall set the amount of the arbitration deposit necessary to enable it to pay from these funds the arbitration costs, without prejudice to the parties’ rights arising from the final award’s apportionment of these costs.

The arbitration deposit is received by the A.F.A. merely as deposit holder within the time limit set by the Arbitration Committee. Nevertheless, it is expressly stipulated that:

• For the payment of the arbitration costs below, the A.F.A. is authorised by the parties to debit from this deposit the appropriate sums in payment of its invoices;
• The party or parties found liable to pay the arbitration costs accept to reimburse the deposit paid by the other party or parties; such acceptance is binding without further formality.

The arbitration costs include the costs of any investigatory measures including the fees of experts, the operating expenses incurred by the arbitral tribunal, and, in general, all expenses incurred in the conduct of the arbitration proceedings as well as the administrative expenses of the A.F.A. and the arbitrators’ fees, the last two of which are determined in accordance with the Appendix to these Rules.

Where the claims made by the parties are not quantified, the Arbitration Committee shall set the amount of the deposit in accordance with what it considers to be appropriate.

If the respondent lodges a counterclaim, the Arbitration Committee, if one of the parties so requests, shall set distinct amounts for the deposits payable in respect of the principal claim and of the counterclaim.

The deposit, together with any additional amounts, shall be paid to the Association by each party in equal shares. Should a party default or refuse to pay its share, this may be paid by the other party(ies). Failing this, the arbitral proceedings shall be deemed to have been abandoned in relation to those claims for which the deposit has not been paid.

During the proceedings, the Committee may alter its decisions in the light of comments made by the parties, by the arbitrators or depending on the circumstances.

Any arbitrator selected by a party or by the Arbitration Committee shall provide to the latter, when he accepts his functions, a declaration as to his independence. This declaration must set out any circumstances which may, in the eyes of the parties, affect his independence.

In the latter case, the Arbitration Committee shall inform the parties of such circumstances, in order to obtain any comments they may have, before taking its decision as to whether or not to accept the designation of, or to appoint, such person as arbitrator.

The appointed arbitrator must be an active Member of the A.F.A. before he assumes his functions as arbitrator.

Before the arbitrators nominated by the parties or by the Committee begin their operations, their appointment may be challenged by the parties for reasons preceding their nomination. The parties may similarly challenge the appointment of arbitrators, for reasons subsequent to their nomination, within one month as of the date when the parties become aware of such reasons.

The challenge is submitted to the Committee which considers all the parties’ arguments together and renders a final decision.

Challenges shall cause arbitration deadlines to be suspended as from the date they are filed until the day following notification of the Committee’s decision.

If the challenge is allowed, a new arbitrator shall be appointed to replace the arbitrator thus dismissed in accordance with the provisions set out in Article 4.

The arbitral tribunal is seized by the Secretariat of such claims in relation to which the deposit [set by the Committee] has been paid.

If the Arbitration Committee subsequently sets an additional deposit and this is not paid by the parties within the deadline given to them, the proceedings shall be deemed to have been abandoned in accordance with and subject to the provisions of Article 6 § 8 above.

The arbitration is conducted by the arbitral tribunal thus constituted, which rules in its own name.

If no provision to this effect is made in the arbitration agreement, the arbitral tribunal determines the procedure to be adopted based on the nature of the dispute, with the aim of reaching the best possible solution, and taking into account, where appropriate, its international nature. It shall directly inform the parties thereof.

I. The arbitral tribunal shall have power to rule on its jurisdiction and on whether it has validly been seized.

In its proceedings, the arbitral tribunal is not compelled to comply with deadlines and formal requirements applicable to courts, save for those formal requirements specific to arbitration.

The arbitral tribunal shall rule as “amiable compositeur” if so empowered by the parties.

If there are several arbitrators, the arbitral tribunal deliberates, and decides by a majority of its members.

The arbitral tribunal acknowledges that it has been constituted, and notes the extent of its seisin as well as any challenges or protests made by the parties in this respect; it shall take the necessary steps to determine the applicable procedure and establish a timetable.

It shall invite the parties to sign the minutes of the above, a copy of which shall be forwarded to the Arbitration Committee.

II. The arbitral tribunal may issue any interim, provisional or partial awards, order any investigations and set conditions or deadlinesif appropriate.

It shall inform the Arbitration Committee of such decisions and of any modifications in this respect so that, if appropriate, the funding of measures taken may be covered by payment of an additional deposit.

The arbitral tribunal has bull powers to conduct enquiries, even of its own motion, on all matters for assessment and decision.

When interlocutory measures have been ordered, the arbitration deadline shall be suspended until such measures have been executed.

III. The arbitral tribunal sets the costs of the arbitration in its award and apportions these between the parties.

The arbitral tribunal, at the request of the parties, shall set and apportion the ordinary costs borne by them in the reference.

I - Emergency relief may always be requested by the parties.

a) If the arbitral tribunal has been constituted as stated above, the parties may make all requests for relief to the arbitral tribunal.

b) If a tribunal has not yet been constituted and the emergency relief requested seems likely to affect the substantive action, the Arbitration Committee may, without being bound by the deadlines set out in Articles 3 and 4, constitute the arbitral tribunal. The arbitral tribunal shall organise the process and rule in accordance with its own opinion as to the emergency arising in the case.

c) If a tribunal has not yet been constituted and the emergency relief requested does not seem likely to affect the substantive action, the Arbitration Committee may, without being bound by the deadlines set out in Articles 3 and 4, appoint a sole arbitrator for the purposes of calling an emergency meeting of the parties by appropriate rapid means of communication and taking immediately enforceable measures which do not affect the substantive action.

II - In the case of I a), b) and c) above, the arbitral tribunal shall render the award as quickly as possible in accordance with the nature of the decision requested.

III - In the case of I c) above, the arbitral tribunal shall determine the costs of arbitration. It shall allocate the costs between the parties unless it orders, upon an application to this effect, that the decision on this point shall be rendered in the award on the merits.

IV - In the case of I b) and c) above, referral to the arbitral tribunal or to the sole arbitrator does not require prior payment of the deposit. This deposit is nevertheless set by the Arbitration Committee. It must be paid by the most diligent party before the award is submitted to the Secretariat; the parties are notified of the award by the Secretariat only after the deposit has been paid.

Arbitration awards are final. Unless otherwise agreed by the parties, the application of these Rules entails the waiver of all forms of appeal or review insofar as the parties can validly waive these.

Awards are made within six months as of the date of the minutes wherein the arbitral tribunal acknowledges that it has been seized.

The Arbitration Committee may however, at the request of the arbitral tribunal, allow up to three extensions lasting six months each.

After articles 1 and 2 of the Appendix to the Rules relating to the arbitration costs have been applied, the award is dated and signed by the arbitral tribunal. It is submitted to the Secretariat by the arbitral tribunal or by the sole arbitrator. The Secretariat shall immediately notify the parties by registered letter with acknowledgement of receipt.

Where there is more than one arbitrator and if one of the arbitrators refuses to sign the award, this shall be mentioned by the other arbitrators at the time of signature and the award shall be deemed signed by all arbitrators.

The award shall be registered with the competent court registrar, at the petition of any party, by the Association’s Secretariat which shall thus act as agent of the arbitral tribunal.

The arbitral tribunal may, of its own motion or at the petition of either party and, in the latter case, if it may still be seized of this, correct material errors or omissions which may affect its award, depending on what the case may reveal or as reason may dictate. This procedure is only admissible if it is commenced within six months of notification of the final award.

Any party may request an interpretation of its award by the arbitral tribunal. To this end, the Arbitration Committee shall again seize the arbitral tribunal of the request if it is materially possible to do so. This request is only admissible if it is lodged within 6 months of notification of the final award.

The arbitral tribunal which fails to rule on part of a claim may also supplement its award. To this end, the Arbitration Committee again seizes the arbitral tribunal of the reference, at the petition of either party, if it is materially possible to do so and within six months of notification of the award in accordance with Article 17. Failing this, it shall be incumbent upon the parties to seize the competent court.

In the event that the arbitral tribunal should be seized in accordance with this Article or the two preceding Articles, it shall issue its ruling within three months of such seisin, unless this period is extended by the Arbitration Committee.

The parties alone shall attend to the enforcement of the award.

The Secretariat shall endeavour to assist the parties in carrying out any formalities required for the conduct of the arbitration.

Requests for arbitration shall be examined and judged in accordance with the A.F.A. Rules and the Appendix hereto as applicable on the date of commencement of the arbitration.

The present Rules shall apply to any request for arbitration lodged as from 1st January 2006.

1. The Arbitration Committee, upon receipt of a draft award, shall set the level of the arbitrators’ fees within the limit of the arbitration deposit or deposits which it will have set, in accordance with the scale set out hereunder, except where circumstances dictate the setting of a lower or higher figure.

2. In accordance with article 12 of the Rules, the arbitral tribunal shall thereafter calculate all the arbitration expenses as defined at article 6 of the Rules, including the administrative expenses appearing in the scale hereunder, and apportion these.

3. The provisions relating to the present scale may, if need be, be modified during the year by the Board, and in such a case the Board will account for this at the following General Meeting.

4. In the event that arbitral proceedings may come to an end without an award ruling on the parties’ claims being issued, the Arbitration Committee, taking into account all the information at its disposal, shall set, as it considers appropriate, the fees of the arbitrators and the administrative expenses. It shall order, if appropriate, the restitution of the surplus deposit.

The foregoing paragraph also applies if the arbitration comes to an end following an award rendered by consent of the parties.

If the arbitral proceedings come to an end before the payment of the deposit, the Arbitration Committee shall determine the amount of the administrative expenses to be paid by the party or parties to the dispute.