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Rules & Decisions

Practice Note on the Administration of Arbitration

Table of Contents
  • Objectives, Scope of Application and Interpretation
  • Preliminary Decisions on Procedural Issues Before the Constitution of Arbitral Tribunal
  • Appointment of Arbitrators
  • Challenges to and Withdrawal of Arbitrators
  • Removal and Replacement of Arbitrators
  • Determination of Amount in Dispute and Arbitration Fees 
  • Scrutiny of Arbitral Awards
  • Decisions on Arbitrator’s Contravention of CAA Code of Ethics
  • Arbitration Fees Management
  • Miscellaneous Provision
 
  • Objectives, Scope of Application and Interpretation
    • The CAA Practice Note on the Administration of Arbitration Cases (the “Practice Note) is designed to assist parties and arbitral tribunals to conduct arbitration in accordance with the parties’ agreement, relevant arbitration laws, and the CAA Arbitration Rules.
    • The Practice Note applies to arbitrations administered by the Chinese Arbitration Association, Taipei (CAA) under the CAA Arbitration Rules.
    • Definitions:
      • references to the “CAA” mean the Chinese Arbitration Association, Taipei, including the CAA Secretariat and the CAA Secretary General;
      • references to “administration of arbitration” mean arbitrations administered by CAA or under the CAA Arbitration Rules;
      • references to “the Court”, “the CAA Court” or “the CAA Court of Arbitration” mean the independent organ established pursuant to Article 25 of the Articles of CAA to provide guidance in arbitration and other relevant tasks.
      • references to “arbitrator”, unless otherwise provided, include co-arbitrator, presiding arbitrator and sole arbitrator.
      • references to the “tribunal” mean a panel composed of arbitrators or a sole arbitrator; 
      • references to “arbitration fees” include arbitration fees provided under Articles 25-26, and necessary arbitration-related expenses under Articles 29-33 of the Regulation Governing Organization, Mediation Procedures and Fees of Arbitration Institution (“the Regulations”).

  • Preliminary Decisions on Procedural Issues before the Constitution of Tribunal
    • When a request for arbitration is submitted, the CAA Secretariat may determine, prima facie, on the CAA’s competence to administer the arbitration.
    • If, before the constitution of the tribunal, the parties have dispute(s) over procedural matters such as the CAA’s competence to administer the arbitration, the language of arbitration, the number of arbitrators or the seat of arbitration, the CAA shall, with the parties’ consent, refer the disputes(s) to the CAA Court of Arbitration for preliminary decision. The Court's decision, with its reasons, shall be promptly delivered to the parties.
    • The CAA Court shall give the parties a reasonable opportunity to express their views during the Court’s hearings.
    • The CAA Court’s decisions are without prejudice to the tribunal’s authority to decide otherwise in a later stage of the arbitration.

  • Appointment of Arbitrators
    • The parties may agree on the choice of arbitrators. Where the parties have not agreed on the choice of arbitrator(s) and procedure for appointment of arbitrators, each party shall appoint one arbitrator respectively, and the party-appointed arbitrators shall jointly appoint the third arbitrator to act as the presiding arbitrator.
    • A party that has appointed arbitrator may request in writing the opposing party to appoint an arbitrator within fourteen days after receiving the request. Failing such appointment, the requesting party may apply to the CAA to appoint the arbitrator on behalf of the opposing party.
    • A party may apply for CAA’s appointment of an arbitrator in any of the following circumstances:
      • the party-appointed arbitrators fail to appoint the presiding arbitrator within thirty days after their appointments;
      • the arbitration agreement provides for a sole arbitrator, and the opposing party fails to confirm the choice of arbitrator within thirty days after receiving the requesting party’s written nomination.
    • The parties or arbitrators may request the CAA to appoint arbitrator(s).
    • Upon CAA’s receipt of the application to appoint arbitrator(s) made pursuant to Paragraphs 2 to 4, the CAA Court will make the appointment within fourteen days. The parties and arbitrators will be notified of the appointment. 
    • The CAA Court shall appoint arbitrators in accordance with the following principles:
      • A CAA Court member or person having a business relationship with any attending CAA Court member shall not be appointed.
      • Before the appointment of arbitrator(s), the attending CAA Court members shall familiarize themselves with the identities of the disputing parties, their representatives and the nature of the dispute(s).
      • When appointing a presiding or sole arbitrator, the CAA shall invite the arbitrators and parties to provide any list of nominees not approved previously. The CAA Court shall avoid appointing individuals on such list.
      • When appointing an arbitrator, the attending CAA Court members, having considered the nature of the dispute, shall decide the required area of expertise, then select three or more eligible candidates, among which the panel chair will decide the order by sortition.
      • Unless the parties agree otherwise in writing, appointments shall be made from the CAA’s lists of registered arbitrators, presiding arbitrators in construction arbitrations, and arbitrators in financial arbitrations.

  • Challenge and Withdrawal of Arbitrators
    • Where parties agree that challenges to arbitrator(s) are to be decided by the CAA Court, the challenging party shall, within fourteen days after becoming aware of the ground(s) for challenge, submit a written statement of the reasons for the challenge to the CAA Court.
    • When deciding on arbitrator challenges, the CAA Court shall give the parties and challenged arbitrator(s) a reasonable opportunity to express their views on the challenge. Unless the parties agree otherwise, the CAA Court shall, within ten days after receiving the request, issue a reasoned decision which will then be delivered to the parties, the challenged arbitrator(s) and the other arbitrators.
    • Where the parties do not agree to submit arbitrator challenges to the CAA Court, the challenging party shall, within fourteen days after becoming aware of the ground(s) for challenge, submit a written statement of the reasons for the challenge to the tribunal. The tribunal shall decide within ten days after receiving the request. If the tribunal has not yet been constituted, the time limit for the challenge shall commence from the date that the tribunal is constituted.
    • A party who is unsatisfied with the decision of the tribunal or the CAA Court may apply for a ruling in a competent court within fourteen days after receiving such decision.

  • Removal and Replacement of Arbitrators
    • If an arbitrator becomes unable to perform his functions de jure or de facto, or for other reasons fails to act without undue delay, the arbitrator may voluntarily resign or be removed with the parities’ agreement. Alternatively, the parties may agree to request the CAA Court for decision.
    • Where the mandate of an arbitrator terminates under the preceding Paragraph, a substitute arbitrator shall be appointed pursuant to the same procedure of the original appointment. The other party may, in writing, request the party which made the original appointment to appoint a substitute arbitrator within fourteen days after receiving such request. 
    • Where the party receiving the request to appoint a substitute arbitrator fails to do so in time, the requesting party may request the CAA to appoint the substitute arbitrator. The CAA Court shall make the appointment pursuant to Articles 5 and 6, Chapter III of the Practice Note. 
    • Unless the CAA Court decides otherwise after consulting with the parties, the arbitral proceedings shall resume at the stage where the arbitrator is replaced or removed. 

  • Determination of Amount in Dispute and Arbitration Fees
    • The tribunal shall determine the amount in dispute and arbitration fees, and shall deliver its written decisions to the parties.
    • A party who objects to the tribunal’s determination shall submit to CAA a request for review together with reasons within five days after receiving the tribunal’s determination. The CAA Court will conduct the review.
    • The CAA Court shall give the arbitrator(s) and parties a reasonable opportunity to express their views during the hearings.
    • Where there are three or more opinions on the amount in the dispute and the CAA Court cannot reach a majority decision during its session, the number of votes for the highest figure shall be added into the votes for the second highest figure, and so forth, until a majority is reached.
    • The CAA Court shall deliver its decision on the request for review and reasons to the tribunal and the parties within fifteen days after receiving such request.
    • The tribunal shall then re-assess the amount in dispute in light of the CAA Court’s decision, render and deliver its final determination within five days of receiving the CAA Court’s decision. The parties shall neither object to the tribunal’s final determination, nor request for refund of the arbitration fees paid pursuant to the tribunal’s final determination.

  • Scrutiny of the Arbitral Award
    • At the closure of the hearings, CAA will provide the tribunal with a checklist and template for drafting the arbitral award for reference.
    • After the tribunal has made its draft award, the CAA will review the form of the draft award and may recommend modifications.
    • After consulting with the CAA Court, CAA may draw the tribunal’s attention to the substantive issues in the draft award, without affecting the tribunal’s decision-making. 

  • Decisions on Arbitrator’s Contravention of CAA Code of Ethics
    • A party or its representative may submit to CAA a written complaint of an arbitrator’s contravention of the CAA Code of Ethics. The CAA Board may also refer cases to the CAA Court. 
    • Complaints made under the preceding Paragraph may be withdrawn before the CAA Court renders a final decision. Complaints on the same grounds shall not be resubmitted after such withdrawal.
    • When reviewing a complaint, the CAA Court shall avoid causing undue harm to the reputation and rights of the complainee(s) and interested parties.
    • The hearings and proceedings of the CAA Court are confidential.
    • During the hearings, the CAA Court shall give the complainant(s) and the complainee(s) a reasonable opportunity to express their views. The CAA Court may conduct investigations, hearings and cross-examinations that are necessary for decision-making. It shall provide its decision and reasons.
    • The complainant or complainee may attend the CAA Court’s hearings with their counsel or appoint representatives to attend on their behalf. The CAA Court may, if it considers necessary, request a complainant or complainee to attend in-person. 
    • The complainant or complainee may, within seven days after receiving the CAA Court’s decision, apply to the CAA Court for review of its decision. Such written request should be based on new facts or new evidence that were not previously provided for reasons not attributed to the requesting party. 
    • If the CAA Court finds the request for review to be without merit, it may dismiss such request without any hearing. If it finds such request to have merits, it shall revoke or revise its original decision
    • The review decision shall be final and made once only.

  • Arbitration Fees Management
    • The claimant shall make advance payment of arbitration fees in accordance with the Regulations. If the claimant fails to do so, the CAA will notify it to pay within a specified period. The CAA may decline to administer the arbitration if the claimant fails to comply.
    • If the claimant fails to make supplemental payments of arbitration fees in accordance with the amount in dispute as determined by the tribunal, the tribunal may dismiss the claimant’s claim pertaining to the unpaid arbitration fees. 
    • The allocation of arbitration fees between the arbitrators and CAA shall be made pursuant to the percentages prescribed by Article 28 of the Regulations.
    • The parties and arbitrator(s) may agree to submit their dispute over arbitrator’s fees to the CAA Court for resolution. When deliberating, the CAA Court shall give the parties and arbitrator(s) a reasonable opportunity to express their views. CAA will allocate the arbitration fees in accordance with the CAA Court’s decision.
    • Necessary arbitration-related expenses, including transcription, translation, postage, transportation, newspaper publication; as well as costs incurred by witnesses, expert witnesses, translators and arbitrators in relation to transportation, attendance, food, accommodation and investigation, shall be charged on a reimbursement basis. The CAA may notify the parties to make supplement payments should the advance payments become insufficient to cover these expenses. 
    • If the claimant withdraws its request for arbitration, the allocation of arbitration fees and refundable amount shall be handled pursuant to Article 35 of the Regulations. 

  • Miscellaneous Provision The Practice Note shall enter into force upon adoption by the CAA Board. The same shall apply to future amendments.
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