Domestic Commercial Arbitration Shorter Rules of Procedure
DOMESTIC COMMERCIAL ARBITRATION
Shorter Rules of Procedure
(As amended June 1, 1998)
as printed August 1998
The Centre encourages the use of these Shorter Rules in as many disputes as possible, and especially where the amount of the claim or counterclaim is under $50,000.
These Rules are intended to provide a just, speedy, and binding resolution at the lowest possible cost. By using the Shorter Rules, parties make a commitment to minimize the length, complexity and expense of the proceedings. See Rule 3(1).
TheShorter Rules provide for a proceeding conducted by a single arbitrator on the basis of documents and written submissions. However, the parties may agree, or the arbitrator may find it necessary to hold a short hearing to receive oral evidence and/or submissions.
1. Commencement of Arbitration
(1) Arbitration is commenced
with a Notice delivered to the Respondent and the Centre.
(2) The Notice shall be in
the form of the “Notice to Commence an Arbitration under the Shorter Rules”
found at the end of these Shorter Rules, or shall contain the information
required by that form.
(3) Together with the
Notice, the Claimant shall provide the Centre with:
(a) a copy of the parties’ written agreement to
arbitrate under the Shorter Rules;
(b) the name, address, telephone and fax numbers of
the single arbitrator if the parties have appointed one; and
(c) payment of the Commencement Fee plus GST (see
the current Fee Schedule for Domestic Commercial Arbitration).
2. Appointment of Arbitrator
(1) If the parties have not
appointed an arbitrator, the Centre shall promptly appoint a single arbitrator
upon receipt of a Notice to Commence. In order to facilitate appointment of the
most suitable arbitrator, the Centre may consult with the parties to further
ascertain the nature of the dispute.
(2) The arbitrator shall
have the authority to modify these Rules and the time limits stipulated in
these Rules.
3. Procedure
(1) These Rules are intended
to provide a just, speedy and binding determination of the dispute at the
lowest possible cost by minimizing the length, complexity and expense of the
arbitration proceeding. The arbitrator shall conduct the proceeding
accordingly.
(2) The arbitrator shall
arrange a preliminary meeting, preferably by telephone conference call, within
seven days of appointment. The agenda of the meeting shall include:
(a) content and timetable of
the parties’ statements of case;
(b) documents;
(c) evidence, including
whether a hearing is necessary, and if so, dates and venue;
(d) whether, having regard
to potential additional cost, the parties require the award to include
reasons;
(e) the fees of the
arbitrator;
(f) deposits, if any, to be
made by the parties to secure the costs of the arbitration; and
(g) any other matter raised
by either party or the arbitrator.
(3) In the event the
arbitrator determines that the procedures or time limits set out in these Rules
are to be varied, the arbitrator shall set out these variations in written
directions to the parties.
4. Statements of Case
(1) A statement of case
shall consist of a concise narrative summary of the facts alleged, the evidence
and law on which the party relies, and the relief or result sought. Every
statement of case and reply delivered under these Rules shall be as brief as
possible given the issues between the parties.
(2) Unless otherwise agreed
or directed:
(a) the Claimant shall
deliver its statement of case setting out its claims within 14 days of the
preliminary meeting;
(b) the Respondent shall
deliver its statement of case setting out its defense and counterclaim, if any,
within 14 days of receiving the Claimant’s statement of case;
(c) the Claimant shall deliver
its reply, if any, and defense to counterclaim, if any, within 7 days of
receiving the Defendant’s statement of case; and
(d) if the Respondent wishes
to reply to the Claimant’s defense to a counterclaim, it shall do so within 7
days.
5. Documents
(1) Unless otherwise agreed or directed, each party
shall deliver copies of the documents on which it relies with its statement of
case.
(2) The arbitrator may, upon the application of a
party, direct the disclosure of specific documents in the possession or control
of the other party.
6. Evidence
(1) Within 14 days of
delivery of the concluding statement of case, unless otherwise agreed or
directed, each party shall
(a) provide written notice
identifying its witnesses of fact and opinion; and
(b) deliver a separate
written narrative statement of the evidence of each of its witnesses in summary
form.
(2) Upon application, the
arbitrator may allow a party to deliver further written statements of evidence.
(3) Unless the parties agree
or the arbitrator directs that a witness shall be required to attend a hearing
for oral examination, the arbitrator shall have the authority to receive
statements of evidence as evidence in the proceeding. Whether or not there is
an oral hearing, the arbitrator shall have the discretion to determine the
relevance, weight or utility of any evidence and limit or refuse to receive the
evidence of any witness.
(4) If the parties have
agreed or the arbitrator has directed that an oral hearing is required for the
reception of oral evidence, the arbitrator shall:
(a) endeavour to hold any
hearing at a venue which does not entail unnecessary expense to the parties;
(b) determine and arrange
the venue, date and time of the hearing after consulting with the parties;
(c) give the parties not
less than 7 days notice of the hearing;
(d) endeavour to complete
the hearing, including argument, within one day; and
(e) endeavour to conclude
the hearing within seven days if an additional hearing day is required.
7. Arguments
(1) Unless otherwise agreed
or directed, if there is no oral hearing the parties shall submit written
arguments to the arbitrator within seven days of submission of statements. The
arbitrator may hear oral argument if the arbitrator determines it will expedite
the proceeding.
(2) Unless otherwise agreed,
if there is an oral hearing it shall include oral arguments. The arbitrator
may direct the parties to submit written arguments within a specified period of
time if it will expedite the proceeding.
8. Default
(1) The arbitrator is
entitled to proceed with the arbitration notwithstanding the failure or refusal
of a party to comply with these Rules or with the arbitrator’s written orders
or directions.
(2) If a party is properly
notified but fails to attend a hearing, the arbitrator may dismiss any claim
made by that party.
(3) If a party fails to
deliver its statement of defense or is properly notified but fails to attend a
hearing, the arbitrator may proceed to conduct a hearing and/or render an award
in relation to the claim(s) against that party on the evidence received.
9. Costs
Unless otherwise agreed, the parties shall bear
their own costs. The arbitrator shall determine liability for costs of the
arbitration. Costs of the arbitration are the arbitrator’s fees and expenses
and any other administrative fees.
10. Award
Unless otherwise agreed, the award shall include
very brief written reasons. Subject to any extension which may be granted by
the Centre in extraordinary circumstances, the arbitrator shall render the
award within 21 days of the close of argument.
