Lex Mundi Global Arbitration Institutions Guide |
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Bahrain |
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(Middle East)
Firm
Hassan Radhi & Associates
Contributors Updated 29 Oct 2018 |
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| Name of Arbitral Institution; with abbreviation, if any. | The Bahrain Chamber for Dispute Resolution (“BCDR-AAA”) |
| Where is the seat of the Arbitral Institution? | Manama – Bahrain |
| Is there an umbrella organization for the Arbitral Institution? | The Bahrain Chamber for Dispute Resolution (BCDR) was established by Legislative Decree No. 30 of 2009. It operates in partnership with the American Arbitration Association (AAA). |
| How is the Arbitral Institution structured? | BCDR-AAA is constituted of a Board of Trustees, a Chief Executive Officer (CEO) and staff. |
| Is there a compulsory list of arbitrators that parties are required to choose from? | The parties are free to agree on the procedure of appointing the arbitrator(s). However, the BCDR-AAA shall send to the parties a list of arbitrators should the parties fail to submit a response for appointing the arbitrator(s) within the prescribed period of time. The BCDR-AAA may also send a list based on the parties' agreement or request. The parties may nominate the BCDR-AAA to administratively appoint an arbitrator. |
| Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | The parties are free to agree on the place of arbitration. If they do not agree, the place of arbitration may initially be determined by the BCDR-AAA, subject to the power of the arbitral tribunal, once appointed, to determine the place of arbitration. |
| What is the amount of the registration fee? | A non-refundable filing fee of USD 3,000. |
| What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | The average cost (case management cost) of arbitration in the given case is USD12,000 in addition to the filing fee of USD 3,000. This is excluding the arbitrator compensation which is paid for based on the arbitrator’s hourly rate (hourly rate is capped to 500USD per hour and 4,000USD per day, in exceptional cases higher rates may be applied). |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | The average cost (case management cost) of arbitration in the given case is USD 25,000 in addition to the filing fee of USD 3,000. This is excluding the arbitrator compensation which is paid for based on the arbitrator’s hourly rate (hourly rate is capped to 500USD per hour and USD 4,000 per day, in exceptional cases higher rates may be applied). |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | The average cost (case management cost) of arbitration in the given case is USD 25,000 plus 0.15% of the amount claimed over USD 10,000,000 (Capped at USD 100,000), in addition to the filing fee of USD 3,000. Therefore, a claim amount of 100 million based on the formula stipulated in the rules and mentioned above is USD 25,000 + USD 135,000 (0.15% of 90 million, the amount claimed above USD 10 million) = USD 160,000. Since this figure exceeds the cap, then the filing fee will be USD 103,000. This is excluding the arbitrator compensation which is paid for based on the arbitrator’s hourly rate (hourly rate is capped to USD 500 per hour and USD 4,000 per day, in exceptional cases higher rates may be applied). |
| Who pays advances on costs? What happens in the event of default? | The BCDR-AAA shall direct the parties to pay appropriate amounts as an advance for the costs of the arbitration. In case one party defaults on payment, the BCDR-AAA shall so inform the other party to make the required payment. If such payment is not made, the arbitral tribunal may, after consultation with the BCDR-AAA, order the suspension or termination of the proceedings. It is to be noted that failure of the party initiating the claim or counter-claim to make the required payments may be deemed by the arbitral tribunal as withdrawal from the claim or counter-claim. After the final award has been made, the BCDR-AAA shall render an accounting to the parties for the payments made and shall return any unexpended balance to the parties in the proportions in which the payments were made. |
| Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | Yes, the formalistic procedures that must be complied with are outlined in Article 17 of the BCDR-AAA 2017 Arbitration Rules. |
| Which languages can be used for communication with the Arbitral Institution? | Communicating with the BCDR-AAA may be in Arabic, English or French. The BCDR-AAA has issued its rules in Arabic, English, and French all of which can be used for communication at any given time. Nevertheless, any party may contact the BCDR-AAA in any other language, and the BCDR-AAA may accept the communication and reply accordingly either in the same language or another. |
| Who is the main point of contact for the parties within the Arbitral Institution? | Nassib G. Ziadé, the Chief Executive Officer of the BCDR-AAA (E: nziade@bcdr-aaa.org) |
| Are there restrictions on the language that the arbitration may be conducted in? | No, the parties are free to choose the language of arbitration. The language or languages of the arbitration shall be the language, languages or prevailing language of the Arbitration Agreement, unless the parties agree otherwise in writing, subject to determination by the arbitral tribunal once appointed. The arbitral tribunal may order that any documents delivered in another language shall be accompanied by a translation into the language(s) of the arbitration and shall determine the arrangements for such translations. |
| Who appoints substitute arbitrators? | When an arbitrator is to be replaced, or in the event of the death of an arbitrator, the BCDR-AAA may, but is not required to, follow the original nominating procedure. |
| Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | Yes, such rules are highlighted under Articles 28 and 29 of the BCDR-AAA 2017 Arbitration Rules. |
| Are oral hearings compulsory? | The BCDR-AAA 2017 Arbitration Rules are silent as to whether or not the tribunal must conduct hearings. However, as per Article 6 thereof, under the expedited procedures, the tribunal is given the discretion to decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of written documents. |
| What are common evidence-taking practices? | The BCDR-AAA or a party with the approval of the BCDR-AAA may request from the courts of Bahrain assistance in taking evidence. The common practices of taking evidence of the civil courts of Bahrain are appointing a mandated expert to produce an expert report and witness statements. In addition, the arbitral tribunal is entitled to appoint one or more independent experts to report to the arbitral tribunal, in writing, on issues designated by the arbitral tribunal and to be communicated to the parties. Evidence may be submitting in forms of documents, witnesses, and experts. The arbitral tribunal shall determine the admissibility, relevance, materiality, and weight of any evidence. |
| What is the average duration of arbitration proceedings? | The duration of arbitration proceedings may differ based on the size of the dispute, the number of parties involved, interim measures, duration agreed upon by the parties and other factors which may affect the complexity of the dispute, therefore it is difficult to assess the average duration of arbitration proceedings. |
| What is the timeframe for rendering the award? | The arbitral tribunal shall deliberate and issue its final award as soon as possible after the close of proceedings, and, unless otherwise agreed by the parties or determined by the BCDR-AAA, the final award shall be made no later than 60 days from the date of the close of proceedings. |
| Are extensions to time limits permissible? | Yes, the BCDR-AAA may extend the time limit for the submission of any response if it considers such extension justified. |
| Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | Both the arbitral tribunal and the courts have the power to impose interim measures. Any application for interim measures made to the courts will be deemed compatible with the arbitration, and shall not constitute a waiver to the right to arbitrate. |
| Do the institutional rules provide for an emergency arbitrator? | Yes, under Article 14 of the BCDR-AAA 2017 Arbitration Rules, an emergency arbitrator may appointed by a request by either parties to grant emergency measures, such request shall set out the nature of the measures sought; the reasons why such measures are required on an emergency basis; and the legal basis of the applicant party’s entitlement to such measures. The application must be accompanied by the Emergency Arbitrator Fee prescribed by the fee Schedule, otherwise, the request will be treated as not having been received. |
| Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | Expedited proceedings shall apply if the parties have not agreed in writing otherwise, and provided that the claim and any counterclaim in the arbitration are quantified monetary claims and the total amount in dispute does not exceed USD1 million. Expedited proceedings shall also apply if the parties have agreed in writing that the relevant article thereto shall apply irrespective of the value of any claim or counterclaim. The deadline for rendering the final award shall be issued by the arbitral tribunal no later than 30 days after the date of the close of proceedings unless otherwise agreed by the parties or determined by the BCDR-AAA. |
| Are arbitral awards submitted for scrutiny? If so, to whom? | No. Nevertheless, the BCDR-AAA does review the award in terms of layout and double-checking for any typographical errors or inaccuracy in case information such as parties names or representatives or claim amount or the deposits on advances and financials of the case (e.g. filing fees). All notes and remarks made by the BCDR-AAA are subject to the discretion of the arbitral tribunal whether to accept and incorporate or reject. |
| Do costs necessarily follow the event? | The arbitral tribunal will fix the costs of the arbitration in its final award and may allocate such costs among the parties if it determines that allocation is reasonable. |
| Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes. The grounds for annulment in Bahrain are the set-aside application grounds according to the UNCITRAL Model Arbitration Law and New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). |
| Link to institutional rules | BCDR-AAA: http://www.bcdr-aaa.org/2017-arbitration-rules/#18 |
| Link to model clause | BCDR-AAA: http://www.bcdr-aaa.org/model-arbitration-clause/ |
Lex Mundi Global Arbitration Institutions Guide
The Bahrain Chamber for Dispute Resolution (“BCDR-AAA”)
Manama – Bahrain
The Bahrain Chamber for Dispute Resolution (BCDR) was established by Legislative Decree No. 30 of 2009. It operates in partnership with the American Arbitration Association (AAA).
BCDR-AAA is constituted of a Board of Trustees, a Chief Executive Officer (CEO) and staff.
The parties are free to agree on the procedure of appointing the arbitrator(s). However, the BCDR-AAA shall send to the parties a list of arbitrators should the parties fail to submit a response for appointing the arbitrator(s) within the prescribed period of time. The BCDR-AAA may also send a list based on the parties' agreement or request. The parties may nominate the BCDR-AAA to administratively appoint an arbitrator.
The parties are free to agree on the place of arbitration. If they do not agree, the place of arbitration may initially be determined by the BCDR-AAA, subject to the power of the arbitral tribunal, once appointed, to determine the place of arbitration.
A non-refundable filing fee of USD 3,000.
The average cost (case management cost) of arbitration in the given case is USD12,000 in addition to the filing fee of USD 3,000. This is excluding the arbitrator compensation which is paid for based on the arbitrator’s hourly rate (hourly rate is capped to 500USD per hour and 4,000USD per day, in exceptional cases higher rates may be applied).
The average cost (case management cost) of arbitration in the given case is USD 25,000 in addition to the filing fee of USD 3,000. This is excluding the arbitrator compensation which is paid for based on the arbitrator’s hourly rate (hourly rate is capped to 500USD per hour and USD 4,000 per day, in exceptional cases higher rates may be applied).
The average cost (case management cost) of arbitration in the given case is USD 25,000 plus 0.15% of the amount claimed over USD 10,000,000 (Capped at USD 100,000), in addition to the filing fee of USD 3,000. Therefore, a claim amount of 100 million based on the formula stipulated in the rules and mentioned above is USD 25,000 + USD 135,000 (0.15% of 90 million, the amount claimed above USD 10 million) = USD 160,000. Since this figure exceeds the cap, then the filing fee will be USD 103,000. This is excluding the arbitrator compensation which is paid for based on the arbitrator’s hourly rate (hourly rate is capped to USD 500 per hour and USD 4,000 per day, in exceptional cases higher rates may be applied).
The BCDR-AAA shall direct the parties to pay appropriate amounts as an advance for the costs of the arbitration. In case one party defaults on payment, the BCDR-AAA shall so inform the other party to make the required payment. If such payment is not made, the arbitral tribunal may, after consultation with the BCDR-AAA, order the suspension or termination of the proceedings. It is to be noted that failure of the party initiating the claim or counter-claim to make the required payments may be deemed by the arbitral tribunal as withdrawal from the claim or counter-claim. After the final award has been made, the BCDR-AAA shall render an accounting to the parties for the payments made and shall return any unexpended balance to the parties in the proportions in which the payments were made.
Yes, the formalistic procedures that must be complied with are outlined in Article 17 of the BCDR-AAA 2017 Arbitration Rules.
Communicating with the BCDR-AAA may be in Arabic, English or French. The BCDR-AAA has issued its rules in Arabic, English, and French all of which can be used for communication at any given time. Nevertheless, any party may contact the BCDR-AAA in any other language, and the BCDR-AAA may accept the communication and reply accordingly either in the same language or another.
Nassib G. Ziadé, the Chief Executive Officer of the BCDR-AAA (E: nziade@bcdr-aaa.org)
Case Management Team: Ahmed Husain (E: ahusain@bcdr-aaa.org)
Khaled Al Khayat (E: kalkhayat@bcdr-aaa.org)
Noof Ajaji (E: najaji@bcdr-aaa.org)
Salman Ahmed (E: sahmed@bcdr-aaa.org)
No, the parties are free to choose the language of arbitration. The language or languages of the arbitration shall be the language, languages or prevailing language of the Arbitration Agreement, unless the parties agree otherwise in writing, subject to determination by the arbitral tribunal once appointed. The arbitral tribunal may order that any documents delivered in another language shall be accompanied by a translation into the language(s) of the arbitration and shall determine the arrangements for such translations.
When an arbitrator is to be replaced, or in the event of the death of an arbitrator, the BCDR-AAA may, but is not required to, follow the original nominating procedure.
Yes, such rules are highlighted under Articles 28 and 29 of the BCDR-AAA 2017 Arbitration Rules.
The BCDR-AAA 2017 Arbitration Rules are silent as to whether or not the tribunal must conduct hearings. However, as per Article 6 thereof, under the expedited procedures, the tribunal is given the discretion to decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of written documents.
The BCDR-AAA or a party with the approval of the BCDR-AAA may request from the courts of Bahrain assistance in taking evidence. The common practices of taking evidence of the civil courts of Bahrain are appointing a mandated expert to produce an expert report and witness statements. In addition, the arbitral tribunal is entitled to appoint one or more independent experts to report to the arbitral tribunal, in writing, on issues designated by the arbitral tribunal and to be communicated to the parties. Evidence may be submitting in forms of documents, witnesses, and experts. The arbitral tribunal shall determine the admissibility, relevance, materiality, and weight of any evidence.
The duration of arbitration proceedings may differ based on the size of the dispute, the number of parties involved, interim measures, duration agreed upon by the parties and other factors which may affect the complexity of the dispute, therefore it is difficult to assess the average duration of arbitration proceedings.
The arbitral tribunal shall deliberate and issue its final award as soon as possible after the close of proceedings, and, unless otherwise agreed by the parties or determined by the BCDR-AAA, the final award shall be made no later than 60 days from the date of the close of proceedings.
Yes, the BCDR-AAA may extend the time limit for the submission of any response if it considers such extension justified.
Both the arbitral tribunal and the courts have the power to impose interim measures. Any application for interim measures made to the courts will be deemed compatible with the arbitration, and shall not constitute a waiver to the right to arbitrate.
Yes, under Article 14 of the BCDR-AAA 2017 Arbitration Rules, an emergency arbitrator may appointed by a request by either parties to grant emergency measures, such request shall set out the nature of the measures sought; the reasons why such measures are required on an emergency basis; and the legal basis of the applicant party’s entitlement to such measures. The application must be accompanied by the Emergency Arbitrator Fee prescribed by the fee Schedule, otherwise, the request will be treated as not having been received.
Expedited proceedings shall apply if the parties have not agreed in writing otherwise, and provided that the claim and any counterclaim in the arbitration are quantified monetary claims and the total amount in dispute does not exceed USD1 million. Expedited proceedings shall also apply if the parties have agreed in writing that the relevant article thereto shall apply irrespective of the value of any claim or counterclaim. The deadline for rendering the final award shall be issued by the arbitral tribunal no later than 30 days after the date of the close of proceedings unless otherwise agreed by the parties or determined by the BCDR-AAA.
No. Nevertheless, the BCDR-AAA does review the award in terms of layout and double-checking for any typographical errors or inaccuracy in case information such as parties names or representatives or claim amount or the deposits on advances and financials of the case (e.g. filing fees). All notes and remarks made by the BCDR-AAA are subject to the discretion of the arbitral tribunal whether to accept and incorporate or reject.
The arbitral tribunal will fix the costs of the arbitration in its final award and may allocate such costs among the parties if it determines that allocation is reasonable.
Yes. The grounds for annulment in Bahrain are the set-aside application grounds according to the UNCITRAL Model Arbitration Law and New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958).
BCDR-AAA: http://www.bcdr-aaa.org/2017-arbitration-rules/#18
English: http://www.bcdr-aaa.org/downloads/2017_BCDR-AAA_Arbitration_Rules_-_English.pdf
Arabic: http://www.bcdr-aaa.org/downloads/2017_BCDR-AAA_Arbitration_Rules_-_Arabic.pdf
French: http://www.bcdr-aaa.org/downloads/2017_BCDR-AAA_Arbitration_Rules_-_French.pdf
BCDR-AAA: http://www.bcdr-aaa.org/model-arbitration-clause/
English: http://www.bcdr-aaa.org/wp-content/uploads/Model-Arbitration-Clause-English.pdf
Arabic: http://www.bcdr-aaa.org/wp-content/uploads/Model-Arbitration-Clause-Arabic.pdf
French: http://www.bcdr-aaa.org/wp-content/uploads/Model-Arbitration-Clause-French.pdf