What is the International Chamber of Commerce?
The International Chamber of Commerce (ICC) Court of Arbitration is one of the most respected international arbitral institutions globally. The rules that govern ICC arbitrations are often considered the benchmark for international dispute resolution.
Brief History of the ICC Court
The ICC was established over a century ago in 1919. Its purpose was (and still is) to promote international trade and investment as a means of achieving growth and prosperity. It currently describes itself as “the voice of world businesses, championing the global economy as a force for economic growth, job creation, and prosperity.”
The ICC Court of Arbitration (the Court) was established a few years later in 1923 to deal with international commercial and business disputes.
Since its inception, the Court has administered more than 28,000 cases involving parties from all over the world and disputes from all sectors and of all sizes.[1]
It remains a popular choice for international business disputes, and in 2023 alone the Court registered a total of 890 new cases.[2] That makes 2023 the third best year in the Court’s history for the volume of cases it has handled.
The Role of the ICC Court
The Court ensures that the ICC Rules are properly applied and adhered to. Its role includes:
- Fixing the place of arbitration.
- Assessing whether there is an agreement to arbitrate, and if it agrees to ICC rules.
- Confirming, appointing, and replacing arbitrators.
- Scrutinising and approving arbitral awards.
- Managing costs of the arbitration.
- Overseeing emergency arbitrator proceedings.
The Court is based in Paris, but it has offices all over the world.
The Role of the ICC Secretariat
The ICC Secretariat (the Secretariat) assists the Court, and carries out the day-to-day administration of ICC arbitrations.
The Secretariat has case management teams based in: Paris, New York, Sao Paulo, Singapore, Hong Kong, and Abu Dhabi.
What disputes are referred to ICC arbitration?
The Court is truly international and it hears a range of commercial disputes from around the world, and in a variety of sectors.
Users of the Court in 2023 came from 141 countries or independent territories, which makes it one of the most global of all the arbitral institutions.
In terms of sectors, the construction and energy sectors generated the largest number of cases in 2021-2023. These sectors alone accounted for just over 45% of all new cases registered.
That is not to say that the Court only hears disputes in the construction and energy sectors. Its work spans sectors and it is not limited by focus in one particular area of expertise. In the 2023 statistics, the sectors representing 3% to 6% of new cases included
- Industrial equipment and services.
- Transportation.
- Health, pharmaceuticals and cosmetics.
- Metal and raw materials.
- General trade and distribution.
- Telecoms and specialised technologies.
- Business services.
- Financing and insurance.
- Leisure and entertainment.
What size cases are generally referred to ICC arbitration?
There’s no minimum or maximum value that must be in dispute for an ICC arbitration.
However, the disputes that are typically heard by the Court have large amounts in dispute. In 2023, the average amount in dispute was $65 million.
Note, that is the figure that is in dispute. It’s not necessarily the amount that is awarded at the end of the arbitration. It gives an indication of the size of disputes that the Court is geared up to accommodate
Does the ICC Court hear investor-state disputes?
The Court has handled investor-state disputes, but they are not a large proportion of the Court’s work. It has been used for 47 investor-state disputes since 1996. In 2023, two new cases were filed under the ICC arbitration rules pursuant to a bilateral investment treaty (BIT).
More commonly, investor-state disputes are referred to arbitration under the International Centre for Settlement of Investment Disputes (ICSID) rules or the United Nations Commission on International Trade Law (UNCITRAL) rules.
The Seat
Parties are free to choose a seat for the arbitration anywhere in the world.
According to the 2023 statistics, the top five most popular countries for the seat of the arbitration were (in descending order): France, UK, Switzerland, US, Brazil.
Unique Features of ICC Arbitrations
The ICC is particularly prestigious and often parties find that awards from the Court are more easily enforceable in different jurisdictions, as it carries significant sway.
It is the leading arbitral institution by volume of cases, and its users hail from more countries than any of the other leading global institutions.
One of the unique features of an ICC arbitration is the requirement to submit Terms of Reference. The parties must agree Terms of Reference immediately after the appointment of the tribunal. The document will summarise the parties’ claims and the relief they are seeking, and it may also include a list of issues.
Costs
Given the reputable nature of ICC arbitrations, it may come as no surprise that there is a tendency for their fees to be higher than those of other arbitral institutions.
The ICC charges by reference to a percentage of the sum in dispute, which is adjusted to take into account the complexity of the matter. The non-refundable filing fee (at the time of writing) is US $5,000, payable by the claimant when it files its Request for Arbitration.
You can use the ICC Costs Calculator to estimate the costs of your dispute.
Language
English and French are the official working languages of the Court.
English is the predominant language for awards published by the ICC, but often awards are translated into other languages too. In 2023, 77% of awards were published in English and many of the 520 awards rendered were drafted in 12 other languages.
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