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International ADR News
November 2011 |
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Upcoming Events |
International Center for Conflict Management is coming Winter 2011! November 16, 2011 CIArb's flagship Alexander Lecture by Lord Phillips For more information, November 22, 2011 Dissenting Opinions in Arbitration - The Debate For more information, December 2-4th, 2011 From talk to action- progressing beyond the typical conference towards strategic action collaborations to advance mediation, conflict transformation and peacebuilding processes in Asia Pacific Bangkok, Thailand April 18, 2012 International Academy of Mediators American Bar Association Section on Dispute Resolution Washington, DC April 18-21, 2012 International Academy of Mediators American Bar Association Section on Dispute Resolution Washington, DC |
Someone You Should
Have Known... | Wangari Muta Mary Jo Maathai
(1 April 1940 - 25 September 2011) was a Kenyan environmental and political activist. She was educated in the United States at Mount St. Scholastica and the University of Pittsburgh, as well as the University of Nairobi in Kenya. In the 1970s, Maathai founded the Green Belt Movement, an environmental non-governmental organization focused on the planting of trees, environmental conservation, and women's rights. In 1986, she was awarded the Right Livelihood Award, and in 2004, she became the first African woman to receive the Nobel Peace Prize for "her contribution to sustainable development, democracy and peace." Maathai was an elected member of Parliament and served as assistant minister for Environment and Natural Resources in the government of President Mwai Kibaki between January 2003 and November 2005. In 2011, she died of complications from ovarian cancer. |
Affymax, Inc. vs. Ortho-McNeil-Janssen |
Affymax, Inc. v. Ortho-McNeil-Janssen Pharmaceutical Research and Development, LLC,
No. 11-2070 (October 3, 2011) N.D. Ill., E. Div. Reversed and remanded
Dist. Ct. erred in vacating portion of arbitration award that found that defendant had solely invented and owned certain foreign patents, after finding that arbitration panel had disregarded law when finding in favor of defendant as to ownership of foreign patents. Dist. Ct.'s rationale is not contained in any of four areas that arbitration award may be vacated under Federal Arbitration Act, and Dist. Ct.'s conclusion that arbitrators disregarded law by failing to discuss foreign patents separately from domestic patents did not justify vacatur of award. Ct. further noted that Dist. Ct. had failed to identify law that arbitrators had violated. The 7th Circuit stated:
"Affymax believes that the arbitrators erred in resolving
the questions put to them. But "the question for decision
by a federal court asked to set aside an arbitration
award . . . is not whether the arbitrator or arbitrators
erred in interpreting the contract; it is not whether they
clearly erred in interpreting the contract; it is not
whether they grossly erred in interpreting the contract;
it is whether they interpreted the contract."
Hill v.Norfolk & Western Ry., 814 F.2d 1192, 1194-95 (7th Cir.1987).
This panel applied the 1992 contract, and its award must be enforced." |
The Implementation of the European Mediation
Directive into UK Practice |

On 23 April 2008, the European Parliament formally approved the Council's common position on the EU Mediation Directive (the "Directive"). It was adopted by the Parliament and Council on 21 May 2008 and entered into force on 13 June of that year.
The Directive had to be implemented into the national law of member states within three years of adoption, so by 20 May 2011. The Ministry of Justice considered that law and practice in England and Wales already complied in large part with the Directive, but additional legislation was needed to bring particular aspects into force, including the enforceability of agreements reached through mediation and certain confidentiality aspects.
Changes have therefore been made to Part 78 of the Civil Procedure Rules ("CPR") which introduce provisions relating to these two aspects and which came into effect for cross-border mediations commenced on or after 6 April 2011.
For the complete article, CLICK HERE! |
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Jivraj vs. Hashwani |
Arbitrators Are Not Employees for the Purposes of Employment Equality

In a seminal decision very recently published in the case of Jivraj v Hashwani [2011] UKSC 40, the English Supreme Court (formerly the House of Lords) dismissed a challenge to the parties' hitherto undoubted right to determine the composition of their arbitral tribunal, and reaffirmed its support for the "breadth of discretion left to the parties and the arbitrator to structure the process for resolution of" their disputes in arbitration.
Background
The case arose from a lengthy dispute between two former partners, who in 1981 entered an agreement which contained an arbitration clause stating that any disputes between them would be resolved by an arbitral tribunal comprising of "respected members of the Ismaili community and holders of high office within the community". However, in 2008 Hashwani, one of the parties to the contract, sought through his lawyers to appoint a respected retired English Judge who was not a member of the Ismaili community. That party claimed that the provision requiring the arbitrators to be members of the Ismaili community was void under the Employment Equality (Religion or Belief) Regulations 2003 (the "Regulations"), because it constituted unlawful discrimination on the grounds of religion in respect of the employment of arbitrators.
The Regulations did not apply, because in English law an arbitrator is not an employed person under "a contract personally to do any work."
An arbitrator is, instead, an "independent provider of services", a "quasi-judicial adjudicator" [whose] "functions and duties require him to rise above the partisan interests of the parties and not to act in, or so as to further, the particular interests of either party...he must determine how to resolve their competing interests. He is in no sense in a position of subordination to the parties; rather the contrary." No-one who has served as an arbitrator, appeared before one or submitted a dispute to arbitration could argue credibly with any of this. Lord Clarke's summation indicates, in diplomatic and veiled terms, just how badly the Court of Appeal missed the mark: "it is in my opinion plain that the arbitrators' role is not one of employment under a contract personally to do work."
As for the judgment itself, it will not be easy to find an arbitration practitioner or client who believes that the Supreme Court got it wrong on either point, but any contrary views would be very welcome.
There are a number of reasons why parties would wish to appoint an arbitrator of a specific nationality, not least to ensure the neutrality of the Chairperson in an international dispute. Furthermore, requiring the arbitrator to be of a particular number of years' call could risk being discriminatory on the grounds of age. By restricting that discretion in the UK, there was concern that parties would choose to pitch their arbitral seat elsewhere. However, following this Supreme Court decision, the autonomy of the parties in their choice of how to structure the resolution process has been confirmed. |
CEDR Running the Master Skills Mediation
Training Program |
European Commission supports CEDR programme to build consistency of mediation training in Europe, The Centre for Effective Dispute Resolution (CEDR), with the support of the European Commission, is running the Master Skills Mediation Training Program to build a consistently high quality of standard in commercial mediation training provision across the EU. This is to complement the measures being undertaken to implement the EU Mediation Directive (2008/52/EC); to use mediation to resolve business disputes as an alternative to costly litigation, and seeks to enhance and assist the on-going development of knowledge, uptake and use of mediation across Europe.
James South, Director of Training at CEDR, said "As mediation develops across the EU, it is crucial that the training of mediators is of the highest quality to ensure that those mediating commercial disputes do the very best job for disputants. With over 20 years of experience in training mediators we are delighted to be supported by the European Commission to help bring our knowledge and methodology to provide the most effective training for mediators in new jurisdictions."
Organisations wishing to qualify for this programme, must be:
· from an EU member state or accession country
· focussed on commercial mediation and ADR
· active in training in ADR in their local jurisdiction
· able to offer support for the delivery of the training including, up to 8 ADR trainers as participants, logistical support, the training venue and refreshments, at no cost, to host the training which would require a plenary room big enough to host the full group and two trainers and one smaller room which can accommodate 6 persons.
Those ADR organisations interested in taking up the free 3-day Train-the-Trainer course from CEDR should email dkershen@cedr.com with a short background of your organisation and its activities. Note this project is limited to one organisation per country and is limited to 10 countries only. About CEDR:
CEDR (the Centre for Effective Dispute Resolution) is the leader in the development of neutral-assisted dispute resolution. It is a non-profit organisation and its mission is to encourage and develop cost effective dispute prevention and dispute resolution in commercial and public sector disputes and in civil litigation. CEDR operates in the UK and internationally and has been instrumental in helping to bring mediation into the heart of business practice and into the judicial system. CEDR Mediator Accreditation is recognised as an international standard.
For further information please contact: Daniel Kershen CEDR Foundation Project Co-ordinator Dkershen@cedr.com The project will run until spring 2012 and will look at enhancing the ability and skill of mediation trainers in 10 different countries across the European Union. |
Beyond Adjudication: Resolving International Resource Disputes in an Era of Climate Change
By: Anna Spain |
International dispute resolution has evolved in response to crises. It emerged in response to the international community's need to prevent inter-state conflict by providing states with peaceful alternatives to war for addressing their differences.
The proliferation of courts and tribunals in recent decades further underscores this point. While adjudication works well as a means to settle legal disputes between states that arise under international law, it is not as effective at resolving complex disputes over shared resources that involve non-state actors and fundamental human interests. Furthermore, adjudication promotes a win-lose paradigm. Whether by judges or arbitrators, matters are decided in favor of and against participating parties.
Given the the need to promote cooperation in order to address global crises facing the world today, it is time to rethink this paradigm.
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Arbitrations in the Freezer
By: Salvador Fonseca and Chadbourne & Park LLP |
Are Arbitrators expected to wait just like Penelope?
In keeping with the popular saying that 'a bad settlement is better than a good lawsuit,' it is not unusual for parties in an arbitration to suspend the proceedings and explore a settlement.
Any arbitrator will understand such a move and assume that the parties know best what works for them to achieve a satisfying resolution of their dispute. Amicable negotiations should always be an option. The period for which the proceedings were originally suspended may turn out to be too short, so the parties extend the timeframe, sometimes more than once. But what if the parties keep suspending the proceedings beyond what is considered to be reasonable? Are arbitrators expected to remain available for the parties for the duration of the suspension, no matter how long the suspension lasts?
These questions go to the very heart of the arbitrators' duties after their appointment.
For more information, Click Here! |
In an effort to recognize the specialization in the ADR community, we are creating 3 separate newsletters broadly covering these areas: Mediation - Arbitration - International ADR.
A newsletter focused in one of those areas will be sent out bi-monthly. In order for you to subscribe to as many types of newsletters that fit your particular practice/interests, please click on the Update Profile/Email Address link at the bottom of this email. From there you will be able to select which newsletters you wish to receive or if you would like to opt out all together.
Thank you for reading my newsletter, and as always, if you have any questions on any of the articles listed, do not hesitate to contact me.
Sincerely,
Thomas Valenti Thomas P. Valenti, P.C.
300 N. LaSalle St., Suite 4925
Chicago, IL 60654-3406
T: 312-803-0472
F: 888-667-2485
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fmp
free mediation project
The Free Mediation Project is a new, innovative idea of Jonathon Dingle and will be launched in Yorkshire and the Humber in December 2011, with aspirations to spread UK wide and beyond. An FMP website will go live in the next few weeks. The points below highlight current ideas.
- Free mediation service to the end user.
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It is anticipated that the users will include individuals, organisations and small to medium-sized enterprises, that do not presently use a mediation service, for whatever reasons. - A bank of mediators, who are locally available and who are recently qualified through an accredited provider.
- Expenses, at least, to be paid to mediators.
- Provide CPD for mediators
- Not seeking to dislodge community projects
- A volunteer council/governing body
- Possibly a company limited by guarantee
- To be led by people with energy, enthusiasm and high ethical values
We will require finance to ensure that the referral and administrative systems work properly, the quality is monitored and that mediators adhere to an acceptable code of conduct. We also need to ensure that mediators are adequately reimbursed for their expenses, at least. In this respect, we are approaching several corporate social responsibility funding schemes and although we know competition is keen, we are confident there is a high level of support for this exciting project. For more information contact, Steve Scarre at stevescarre@btinternet.com. | |
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