On November 29 2000 a new Section 30a on interim measures was added to the Central Chamber of Commerce's Board of Arbitration Rules. The section is influenced by Article 26 of the United Nations Commission on International Trade Law Arbitration Rules. According to Section 30a:
"the arbitral tribunal may, during the course of the proceedings and at the request of a party, issue an injunction or order another interim measure for the purpose of securing the claim which is to be tried by the arbitral tribunal."(1)
Section 30a also states that:
"the arbitral tribunal may order the requesting party to provide reasonable security for damage which the opposing party may suffer as a result of the specific performance in question."(2)
Interim measures taken by an arbitral tribunal are not enforceable, because only public authorities may take enforcement measures. This implies that Section 30a has no practical meaning and that the rights of a party may thus be compromised. However, according to Section 30a(2):
"an existing arbitration agreement notwithstanding, a court of law or another appropriate authority may before or during the course of arbitral proceedings, grant such interim, including protective, measures which such authority has the power to grant."(3)
Therefore, in accordance with Section 5 of the Arbitration Act (967/1992), the courts may take any of the regular interim measures prescribed in Chapter 7 of the Procedural Code (4/1734), even when a dispute is to be settled by way of arbitration.
Consequently, if a party does not comply with interim measures taken by an arbitral tribunal, the other party may request a district court to order such measures. Alternatively, if interim measures are necessary a party may be inclined to go directly to a district court.
Further, if an arbitral tribunal decides to take interim measures (eg, if it issues an injunction prohibiting a licensee from manufacturing a licensed product or orders goods to be deposited with a third party), a party's failure to comply with these measures is likely to affect the tribunal's assessment of the case.
For further information on this topic please contact Jouko Huhtala or Marko Hentunen at Castrén & Snellman by telephone (+358 9 228 581) or by fax (+358 9 601 961) or by email ([email protected] or [email protected]).
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