The decision to consolidate arbitrations rests with CRCICA, subject to the approval of the CRCICA Advisory Committee, following comments from non-requesting parties and any appointed arbitrators in the arbitrations requested to be consolidated. This power to accept or reject a ‘request for consolidation’ is subject to Article 50(1) of the 2024 Rules. CRCICA will generally approve a consolidation request if it satisfies one of the criteria under Article 50. Although the wording of Article 50 suggests that CRCICA retains the discretion to reject an application even where the parties have agreed to consolidate, such an occurrence would be rare and subject to the circumstances of the arbitrations.

(ii) Multi-contract disputes

A new Article 51 permits parties to commence a single arbitration in respect of claims arising out of or in connection with more than one contract. CRCICA decides whether the claims should proceed in a single arbitration. In doing so, it will consider whether the arbitration agreements under which the claims are made are the same or compatible, and whether the relief sought arises out of the same transaction or series of transactions.

(iii) Joinder

Article 17.5 of the 2024 Rules, retained from the 2011 version, permits a tribunal to order that a third party be joined to an arbitration as a party, provided that it is a party to the arbitration agreement, and the joinder does not prejudice any party or the third party. The 2024 Rules have introduced one additional specification into Article 17.5: where joinder is permitted, the constitution of the tribunal shall remain unaffected.

B. How are third-party funding arrangements regulated in arbitration proceedings conducted under the 2024 Rules?

The 2024 Rules mandate that parties benefiting from third-party funding disclose such arrangements. Article 53 of the 2024 Rules requires a funded party to disclose the existence of funding and identify the funder at the commencement of the arbitration, with an ongoing obligation to disclosure throughout the arbitration. This reflects the increased use of third-party funding and prevailing attitude that such use should be disclosed. Parties who receive third-party funding should be aware of this disclosure requirement.

C. What provisions are in place for the early dismissal of claims under the 2024 Rules?

The 2024 Rules confer tribunals with the authority to summarily dismiss claims deemed “manifestly without legal merit”, after “hearing all parties’” views (Article 52). However, this provision operates on an ‘opt-in’ basis: it is only available to a tribunal if the parties so agree.

Several arbitration institutions have introduced such provisions, intended to address users’ complaints that tribunals are unable or unwilling to dismiss early plainly unmeritorious or vexatious claims, unlike certain national courts. It remains to be seen how willing tribunals are to exercise the power to dismiss claims summarily.

D. How will the use of technology reshape arbitrations conducted under the 2024 Rules?

(i) Online arbitration filing

Unlike the position under the 2011 Rules, the 2024 Rules permit parties to electronically submit a notice of arbitration and a response to a notice of arbitration, eliminating the previous requirement to send hard copies.

The 2024 Rules also state that the parties “may” use electronic communications (Article 2(6)). Although this is welcome, it appears a somewhat lukewarm adoption of electronic communication compared to certain other arbitration institutions, which mandate that communications and submissions must be in electronic form only, unless the tribunal or the institution permits the relevant non-electronic communication or submission.

While the 2024 Rules make no mention of this requirement, when filing a notice of arbitration as a company, the online form on CRCICA’s website imposes a mandatory condition for corporate claimants to upload a copy of their commercial registry certificate. Corporate parties that intend to file a notice of arbitration using the online form should be aware of this condition and have available the relevant commercial registry certificate.

The 2024 Rules also change when the arbitration is deemed to commence. Pursuant to Article 3(2) “the arbitral proceedings shall be deemed to commence on the date on which the notice of arbitration is received by the Centre”. In contrast, the 2011 Rules provided that an arbitration was deemed commenced upon the respondent’s receipt of the notice of arbitration.

(ii) Remote hearings

The 2024 Rules have also introduced the ability to hold remote hearings. Article 28(2) expressly allows hearings to take place “remotely by videoconference or other suitable means, or in a hybrid format, as determined by the arbitral tribunal following consultation with the parties”.

This grants parties and the tribunal the flexibility to select the most suitable format (or formats) for hearings, to reflect the circumstances of a given arbitration, including environmental and technological considerations.

E. What emergency and expedited procedures are outlined in the recent changes to the CRCICA Arbitration Rules?

The 2024 Rules have introduced, for the first time, two mechanisms where emergency and/or expedited relief is required.

(i) Expedited Arbitration Rules

Annex 3 of the 2024 Rules has introduced an expedited arbitration procedure. This provides for the rapid determination of less complex disputes and/or those disputes where speed is key. Unless otherwise agreed by the parties, a tribunal constituted under the Expedited Arbitration Rules should deliver its final award within six months from its constitution. Cases determined on an expedited basis will be decided by a jointly appointed sole arbitrator unless the parties agree otherwise.

Delays are often cited as one of the principal complaints about arbitration. The Expedited Arbitration Rules are therefore welcome. However, the Expedited Arbitration Rules are not automatically available. They are only available “where the parties so agree”; like the early dismissal process described above, the expedited procedure therefore operates on an ‘opt-in’ basis only. This is different to the position under the rules of certain other arbitration institutions, where expedited procedures are automatically available for claims below a defined monetary threshold and/or apply unless the parties agree otherwise in respect of arbitration agreements entered into after a cut-off date.

(ii) Emergency Arbitrator Rules

Annex 2 of the 2024 Rules introduces emergency arbitration provisions, to be used where a party requires urgent relief prior to the appointment of a tribunal. A party can apply for emergency relief “[p]rior to, concurrent with or following the filing of a notice of arbitration, but before the constitution of the arbitral tribunal”. This provides more flexibility to a party seeking emergency relief than the rules of certain other arbitration institutions, some of which require a claimant seeking emergency relief to file its request for arbitration contemporaneously with its request for emergency relief.

Upon receipt of an application to appoint an emergency arbitrator, CRCICA “shall appoint an emergency arbitrator within as short a time as possible, normally within 2 days from the Centre’s acceptance of the Urgent Application”. The emergency arbitrator must render a decision within 15 days of their appointment.

The decision of an emergency arbitrator has the same effect as an interim measure granted by a tribunal under Article 26 of the 2024 Rules. However, the emergency arbitrator’s decision ceases to be binding in certain circumstances, including a failure by the claimant to commence the substantive arbitration within 10 days of the emergency arbitrator’s decision.

Notwithstanding the emergency arbitration provisions, parties are permitted to request urgent relief from national courts (Article 10 of the Emergency Arbitrator Rules).

F.  What do the 2024 Rules provide regarding the law applicable to the arbitration agreement?

The 2024 Rules introduce a default position regarding the law applicable to the arbitration agreement: it shall be the law of the place (or seat) of arbitration unless the parties agree otherwise (Article 36(4)).

This should prevent potential ambiguity or disputes concerning the determination of the law governing the arbitration agreement. Such disputes have the potential to be costly and time-consuming and have recently led to a number of high-profile decisions by national courts, particularly in situations where parties do not reach a consensus on this matter.

G. How has the fee structure changed following the recent update?

Annex 1 of the 2024 Rules contains tables presenting the administrative and arbitral tribunal fees applicable to arbitral proceedings. The revised fee structure includes different brackets based on the claim value. According to CRCICA’s website, the fee structure has “been modified to respond to a decade of economic developments, taking into consideration the importance of striking a balance between cost effectiveness and maintaining high quality services to best serve the interests of users”. Arbitrator fees have increased (by approximately 15%) as a result.

Parties can estimate the anticipated fees for commencing an arbitration by using the CRCICA Costs Calculator, which is aimed at enhancing transparency in the fee arrangement and provides a clear understanding of the foreseeable fees involved. Access the CRCICA Costs Calculator.

For parties seeking to compare fees of arbitral institutions, Reed Smith’s Arbitration Pricing Calculator app provides real-time cost forecasts for dispute resolution. It uses selected institutions’ fee schedules and practice notes and converts the forecasts into the user’s chosen currency, with exchange rates updated daily. Additionally, it offers insights into institutional rules to help users select the most suitable dispute resolution method. The app also identifies optimal dispute resolution strategies, enabling effective cost management and risk mitigation. Access Reed Smith’s Arbitration Pricing Calculator.

III. Key takeaway for clients

Clients with projects or business in MENA and Africa often include arbitration agreements in their contracts providing for CRCICA arbitration. The 2024 Rules have modernised CRCICA’s 2011 Rules, bringing CRCICA into line with international best practice among arbitration institutions. This should secure CRCICA’s leading role in the arbitration landscape in Africa and the MENA region.

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