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CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY...

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CONFLICT MANAGEMENT OPTIONS FOR CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER INTERNATIONAL ENERGY/POWER DISPUTES DISPUTES 2 2 ND ND NATIONAL SEMINAR ON NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES ENERGY AND NATURAL RESOURCES 18 18 TH TH AND 19 AND 19 TH TH NOVEMBER 2003 NOVEMBER 2003
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Page 1: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

CONFLICT MANAGEMENT OPTIONS CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL FOR INTERNATIONAL

ENERGY/POWER DISPUTESENERGY/POWER DISPUTES

22NDND NATIONAL SEMINAR ON NATIONAL SEMINAR ON ENERGY AND NATURAL ENERGY AND NATURAL

RESOURCESRESOURCES

1818THTH AND 19 AND 19THTH NOVEMBER 2003 NOVEMBER 2003

Page 2: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

INTRODUCTIONINTRODUCTION

CONFLICT MANAGEMENT – THE CONFLICT MANAGEMENT – THE PROCESS OF DEALING WITH OR PROCESS OF DEALING WITH OR CONTROLLING A GIVEN CONFLICT CONTROLLING A GIVEN CONFLICT

Page 3: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

TYPES OF DISPUTESTYPES OF DISPUTES

MARITIME BOUNDARY DISPUTESMARITIME BOUNDARY DISPUTES OIL AND GAS TRADING CONTRACT OIL AND GAS TRADING CONTRACT

DISPUTESDISPUTES OFFSHORE CONSTRUCTION OFFSHORE CONSTRUCTION

DISPUTESDISPUTES PIPELINE DISPUTESPIPELINE DISPUTES EQUIPMENT DISPUTESEQUIPMENT DISPUTES QUALITY DISPUTESQUALITY DISPUTES MATTERS OF JURISDICTIONMATTERS OF JURISDICTION

Page 4: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

NOTENOTE

NEED OF THE CLIENT IS OF THE NEED OF THE CLIENT IS OF THE UTMOST IMPORTANCEUTMOST IMPORTANCE

CONTRACTUAL TERMS MAY BE CONTRACTUAL TERMS MAY BE RENEGOTIATED RENEGOTIATED

WHERE RENEGOTIATION PROVIDED WHERE RENEGOTIATION PROVIDED FOR IN THE CONTRACT THE TERMS FOR IN THE CONTRACT THE TERMS NEED TO BE PRECISENEED TO BE PRECISE

Page 5: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

AVAILABLE OPTIONSAVAILABLE OPTIONS

LITIGATIONLITIGATION ARBITRATIONARBITRATION ALTERNATIVE DISPUTE RESOLUTIONALTERNATIVE DISPUTE RESOLUTION

MEDIATIONMEDIATION CONCILIATIONCONCILIATION MINI-TRIALMINI-TRIAL EXPERT DETERMINATIONEXPERT DETERMINATION WATCH OUT FOR LIMITATION PERIODSWATCH OUT FOR LIMITATION PERIODS

Page 6: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

LITIGATIONLITIGATION

QUICKLY BEING OVERSHADOWED BY QUICKLY BEING OVERSHADOWED BY ARBITRATION AS A VIABLE OPTIONARBITRATION AS A VIABLE OPTION

NO PROVISION IN CONTRACT FOR NO PROVISION IN CONTRACT FOR CONFLICT MANAGEMENTCONFLICT MANAGEMENT

PARTIES AGREE TO LITIGATEPARTIES AGREE TO LITIGATE ONE PARTY INSISTS ON LITIGATIONONE PARTY INSISTS ON LITIGATION UNDERTAKEN AT EITHER FEDERAL UNDERTAKEN AT EITHER FEDERAL

OR STATE COURTSOR STATE COURTS

Page 7: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

THE FEDERAL HIGH COURTTHE FEDERAL HIGH COURT

ONE JURISDICTIONONE JURISDICTION CIVIL PROCEDURE RULES 2000CIVIL PROCEDURE RULES 2000 ACTION COMMENCED IN DIVISION WHERE ACTION COMMENCED IN DIVISION WHERE

CONTRACT PERFORMED OR DEFENDANT CONTRACT PERFORMED OR DEFENDANT RESIDES OR CARRIES ON BUSINESSRESIDES OR CARRIES ON BUSINESS

ACTION COMMENCED BY ISSUANCE OFACTION COMMENCED BY ISSUANCE OF WRIT OF SUMMONSWRIT OF SUMMONS ORIGINATING SUMMONSORIGINATING SUMMONS ORIGINATING MOTION ORIGINATING MOTION PETITIONPETITION

Page 8: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

STATE HIGH COURTSSTATE HIGH COURTS

TERRITORIAL AND JURISDICTIONAL TERRITORIAL AND JURISDICTIONAL LIMITSLIMITS

JUDICIAL DIVISIONS IN EACH STATEJUDICIAL DIVISIONS IN EACH STATE LAGOS – COMMERCIAL NERVE LAGOS – COMMERCIAL NERVE

CENTERCENTER CURRENT RULES OF COURT IN CURRENT RULES OF COURT IN

LAGOS STATELAGOS STATE HIGH COURT OF LAGOS STATE CIVIL HIGH COURT OF LAGOS STATE CIVIL

PROCEDURE RULES 1994PROCEDURE RULES 1994

Page 9: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

HIGH COURT OF LAGOS STATE CIVIL HIGH COURT OF LAGOS STATE CIVIL PROCEDURE RULES 1994PROCEDURE RULES 1994

ACTION COMMENCED IN DIVISION WHERE CAUSE ACTION COMMENCED IN DIVISION WHERE CAUSE OF ACTION AROSE OR DEFENDANT RESIDES OR OF ACTION AROSE OR DEFENDANT RESIDES OR CARRIES ON BUSINESSCARRIES ON BUSINESS

FOUR JUDICIAL DIVISIONSFOUR JUDICIAL DIVISIONS LAGOSLAGOS IKEJAIKEJA IKORODUIKORODU BADAGRYBADAGRY

ACTION COMMENCED BYACTION COMMENCED BY WRIT OF SUMMONSWRIT OF SUMMONS ORIGINATING SUMMONSORIGINATING SUMMONS ORIGINATING MOTIONORIGINATING MOTION PETITIONPETITION

Page 10: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

HIGH COURT OF LAGOS STATE CIVIL HIGH COURT OF LAGOS STATE CIVIL PROCEDURE RULES 2003PROCEDURE RULES 2003

ACTION COMMENCED BYACTION COMMENCED BY WRIT OF SUMMONSWRIT OF SUMMONS ORIGINATING SUMMONSORIGINATING SUMMONS

ORIGINATING PROCESS MUST CONTAINORIGINATING PROCESS MUST CONTAIN STATEMENT OF CLAIM OR AFFIDAVITSTATEMENT OF CLAIM OR AFFIDAVIT ALL DOCUMENTS TO BE RELIED UPONALL DOCUMENTS TO BE RELIED UPON LIST OF WITNESSES TO BE CALLEDLIST OF WITNESSES TO BE CALLED SWORN DEPOSITIONS BY ALL WITNESSESSWORN DEPOSITIONS BY ALL WITNESSES WRITTEN ADDRESS IN SUPPORT OF WRITTEN ADDRESS IN SUPPORT OF

ORIGINATING SUMMONSORIGINATING SUMMONS

Page 11: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

2003 RULES2003 RULES

PRE-TRIAL CONFERENCESPRE-TRIAL CONFERENCES SCHEDULINGSCHEDULING STRICTER RULES CONCERNING STRICTER RULES CONCERNING

AMENDMENTS OF PLEADINGS AND AMENDMENTS OF PLEADINGS AND ADJOURNMENTSADJOURNMENTS

IMPLEMENTATION THE DECIDING IMPLEMENTATION THE DECIDING FACTOR AS TO ITS SUCCESS FACTOR AS TO ITS SUCCESS

Page 12: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

LITIGATIONLITIGATION

FOREIGN DEFENDANTS CAN BE FOREIGN DEFENDANTS CAN BE SERVED OUTSIDE NIGERIA IF CAUSE SERVED OUTSIDE NIGERIA IF CAUSE OF ACTION FALLS UNDER OF ACTION FALLS UNDER SITUATIONS SET OUT IN FEDERAL SITUATIONS SET OUT IN FEDERAL AND STATE HIGH COURT RULESAND STATE HIGH COURT RULES

THE LOSING PARTY CAN APPEAL ALL THE LOSING PARTY CAN APPEAL ALL DECISIONS OF THE COURT ALL THE DECISIONS OF THE COURT ALL THE WAY TO THE SUPREME COURTWAY TO THE SUPREME COURT

APPEAL MAY BE EITHER BY RIGHT OR APPEAL MAY BE EITHER BY RIGHT OR WITH THE LEAVE OF THE COURTWITH THE LEAVE OF THE COURT

Page 13: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

ARBITRATIONARBITRATION

PARTIES UNWILLING TO LITIGATE IN PARTIES UNWILLING TO LITIGATE IN EACH OTHERS’ COURTSEACH OTHERS’ COURTS

OFFERS A LOT MORE PROCEDURAL OFFERS A LOT MORE PROCEDURAL FLEXIBILITY THAN LITIGATIONFLEXIBILITY THAN LITIGATION

CONCEPTION THAT ARBITRATION IS CONCEPTION THAT ARBITRATION IS LESS EXPENSIVE THAN LITIGATIONLESS EXPENSIVE THAN LITIGATION

ARBITRATORS FEESARBITRATORS FEES VENUE RENTALSVENUE RENTALS EXPERT FEESEXPERT FEES SOLICITORS AND BARRISTERS FEESSOLICITORS AND BARRISTERS FEES

Page 14: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

PLUSES FOR ARBITRATIONPLUSES FOR ARBITRATION

ARBITRATION PROCEEDINGS ARE ARBITRATION PROCEEDINGS ARE CONFIDENTIALCONFIDENTIAL

NOT PUBLIC DOCUMENTS AND CAN NOT PUBLIC DOCUMENTS AND CAN ONLY BE USED IN PROCEEDINGS ONLY BE USED IN PROCEEDINGS BETWEEN THE SAME PARTIES IN BETWEEN THE SAME PARTIES IN VERY FEW INSTANCESVERY FEW INSTANCES

THE RIGHT TO CHALLENGE AWARDS THE RIGHT TO CHALLENGE AWARDS NOT AS OPEN ENDED AS IN COURT NOT AS OPEN ENDED AS IN COURT JUDGMENTSJUDGMENTS

Page 15: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

ARBITRAL INSTITUTIONSARBITRAL INSTITUTIONS

ARBITRATION CLAUSE OUGHT TO ARBITRATION CLAUSE OUGHT TO STATE IF ARBITRATION TO BE STATE IF ARBITRATION TO BE CONDUCTED UNDER PLATFORM OF CONDUCTED UNDER PLATFORM OF ANY INSTITUTIONANY INSTITUTION

SOME INSTITUTIONS ARESOME INSTITUTIONS ARE INTERNATIONAL CHAMBER OF COMMERCEINTERNATIONAL CHAMBER OF COMMERCE LONDON COURT OF INTERNATIONAL LONDON COURT OF INTERNATIONAL

ARBITRATIONARBITRATION AMERICAN ARBITRATION ASSOCIATIONAMERICAN ARBITRATION ASSOCIATION

PROCEDURAL RULES OF INSTITUTION PROCEDURAL RULES OF INSTITUTION TO GOVERN THE PROCEEDINGSTO GOVERN THE PROCEEDINGS

Page 16: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

NOTENOTE

IF NO PROVISION IN THE ARBITRATION IF NO PROVISION IN THE ARBITRATION CLAUSE FOR AN INSTITUTION THEN THE CLAUSE FOR AN INSTITUTION THEN THE PROVISIONS OF THE ARBITRATION AND PROVISIONS OF THE ARBITRATION AND CONCILIATION ACT WILL APPLYCONCILIATION ACT WILL APPLY

PARTIES MAY REFER DISPUTES TO PARTIES MAY REFER DISPUTES TO ARBITRATION EVEN WHERE NO SUCH ARBITRATION EVEN WHERE NO SUCH PROVISION IN THE CONTRACT DOCUMENTPROVISION IN THE CONTRACT DOCUMENT

RULES OF EACH INSTITUTION PROVIDE RULES OF EACH INSTITUTION PROVIDE FOR HOW THE PROCEEDINGS ARE FOR HOW THE PROCEEDINGS ARE COMMENCEDCOMMENCED

Page 17: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

ARBITRATION AND CONCILIATION ACTARBITRATION AND CONCILIATION ACT

SECTION 17 – COMMENCEMENT ON SECTION 17 – COMMENCEMENT ON DATE REQUEST IS RECEIVED BY THE DATE REQUEST IS RECEIVED BY THE OTHER PARTYOTHER PARTY

SECTION 54 – 1958 NEW YORK SECTION 54 – 1958 NEW YORK CONVENTION FOR ENFORCEMENT OF CONVENTION FOR ENFORCEMENT OF FOREIGN AWARDSFOREIGN AWARDS

METHODS OF AWARD ENFORCEMENTMETHODS OF AWARD ENFORCEMENT GROUNDS FOR REFUSING GROUNDS FOR REFUSING

RECOGNITION OR ENFORCEMENTRECOGNITION OR ENFORCEMENT

Page 18: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

ALTERNATIVE DISPUTE RESOLUTIONALTERNATIVE DISPUTE RESOLUTION

THE LAGOS MULTI-DOOR COURT THE LAGOS MULTI-DOOR COURT HOUSEHOUSE

NEGOTIATION AND CONFLICT NEGOTIATION AND CONFLICT MANAGEMENT GROUPMANAGEMENT GROUP

LMDC AND NCMG WORK TOGETHER LMDC AND NCMG WORK TOGETHER TO PROVIDETO PROVIDE

MEDIATION SERVICESMEDIATION SERVICES ARBITRATION SERVICESARBITRATION SERVICES EARLY NEUTRAL EVALUATION SERVICESEARLY NEUTRAL EVALUATION SERVICES

Page 19: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

MEDIATIONMEDIATION

TO FIND AN AGREEMENT OR TO FIND AN AGREEMENT OR SOLUTION BY TALKING TO TWO SOLUTION BY TALKING TO TWO PEOPLE OR GROUPS IN CONFLICTPEOPLE OR GROUPS IN CONFLICT

CHARTERED INSTITUTE OF CHARTERED INSTITUTE OF ARBITRATION HAS GUIDELINES FOR ARBITRATION HAS GUIDELINES FOR CONCILIATION AND MEDIATIONCONCILIATION AND MEDIATION

Page 20: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

WHERE VIABLE OPTIONWHERE VIABLE OPTION

DESIRE TO MAINTAIN COMMERCIAL DESIRE TO MAINTAIN COMMERCIAL RELATIONSHIPRELATIONSHIP

PUBLICITY SHYPUBLICITY SHY REALIZATION THAT LITIGATION CAN BE REALIZATION THAT LITIGATION CAN BE

A DRAIN ON TIME AND RESOURCESA DRAIN ON TIME AND RESOURCES REALIZATION THAT LITIGATION REALIZATION THAT LITIGATION

UNPREDICTABLEUNPREDICTABLE MUTUAL INTEREST IN A QUICK MUTUAL INTEREST IN A QUICK

RESOLUTION OF THE CONFLICTRESOLUTION OF THE CONFLICT

Page 21: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

OPTION NOT VIABLEOPTION NOT VIABLE

DISPUTE LAW BASED DISPUTE LAW BASED PRECEDENT IN FAVOUR OF ONE PARTYPRECEDENT IN FAVOUR OF ONE PARTY LACK OF COMMITMENT TO RESOLUTIONLACK OF COMMITMENT TO RESOLUTION WISH TO DELAY THE RESOLUTIONWISH TO DELAY THE RESOLUTION UNEQUAL BARGAINING POSITIONSUNEQUAL BARGAINING POSITIONS CREATION OF LEGAL PRECEDENT CREATION OF LEGAL PRECEDENT

DESIRABLEDESIRABLE BELIEVE THAT LITIGATION WILL BRING BELIEVE THAT LITIGATION WILL BRING

ABOUT A COMPLETE VINDICATIONABOUT A COMPLETE VINDICATION

Page 22: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

UTILISING MEDIATIONUTILISING MEDIATION

CLAUSE IN THE CONTRACT CLAUSE IN THE CONTRACT DOCUMENT PRECLUDING LITIGATION DOCUMENT PRECLUDING LITIGATION OR ARBITRATION UNTIL ADR OR ARBITRATION UNTIL ADR EXPLOREDEXPLORED

AGREEMENT TO SEEK MEDIATION AGREEMENT TO SEEK MEDIATION AFTER CONFLICTAFTER CONFLICT

AGREEMENT TO SEEK MEDIATION AGREEMENT TO SEEK MEDIATION DURING ARBITRATION OR LITIGATION DURING ARBITRATION OR LITIGATION PROCEEDINGSPROCEEDINGS

Page 23: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

ENFORCING MEDIATION CLAUSESENFORCING MEDIATION CLAUSES

DIFFICULT IF ONE PARTY OPTS FOR DIFFICULT IF ONE PARTY OPTS FOR LITIGATIONLITIGATION

ACCESS TO COURTS A ACCESS TO COURTS A CONSTITUTIONAL RIGHTCONSTITUTIONAL RIGHT

PARTY HAS RIGHT OF ELECTIONPARTY HAS RIGHT OF ELECTION GARBA V UNIVERSITY OF MAIDUGURIGARBA V UNIVERSITY OF MAIDUGURI ADEKUNLE V UNIVERSITY OF PORT ADEKUNLE V UNIVERSITY OF PORT

HARCOURTHARCOURT

Page 24: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

CONCILIATIONCONCILIATION

THE PROCESS OF TRYING TO GET THE PROCESS OF TRYING TO GET PEOPLE TO AGREEPEOPLE TO AGREE

ARBITRATION AND CONCILIATION ACT ARBITRATION AND CONCILIATION ACT HAS PROVISIONS FOR CONCILIATIONHAS PROVISIONS FOR CONCILIATION

SOME INSTITUTIONS HAVE RULES FOR SOME INSTITUTIONS HAVE RULES FOR CONCILIATIONCONCILIATION

THE INTERNATIONAL CHAMBER OF COMMERCE THE INTERNATIONAL CHAMBER OF COMMERCE RULES OF CONCILIATIONRULES OF CONCILIATION

THE UNCITRAL CONCILIATION RULESTHE UNCITRAL CONCILIATION RULES

Page 25: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

ARBITRATION AND CONCILIATION ACTARBITRATION AND CONCILIATION ACT

PROCESS INITIATED BY SENDING PROCESS INITIATED BY SENDING REQUEST TO THE OTHER PARTYREQUEST TO THE OTHER PARTY

DATE OF COMMENCEMENT IS WHEN DATE OF COMMENCEMENT IS WHEN THE REQUEST IS ACCEPTEDTHE REQUEST IS ACCEPTED

PARTIES TO REFER CONFLICT TO PARTIES TO REFER CONFLICT TO CONCILIATION BODYCONCILIATION BODY

PROCEEDINGS OR RECORD OF PROCEEDINGS OR RECORD OF SETTLEMENT NOT A BAR TO SETTLEMENT NOT A BAR TO LITIGATION OR ARBITRATIONLITIGATION OR ARBITRATION

Page 26: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

ICC RULES OF CONCILIATIONICC RULES OF CONCILIATION

SINGLE CONCILIATORSINGLE CONCILIATOR REQUEST IS MADE BY APPLYING TO THE ICC REQUEST IS MADE BY APPLYING TO THE ICC

SECRETARIATSECRETARIAT OTHER PARTY HAS FIFTEEN DAYS TO OTHER PARTY HAS FIFTEEN DAYS TO

DECIDEDECIDE PARTIES RESPONSIBLE FOR FEES IN EQUAL PARTIES RESPONSIBLE FOR FEES IN EQUAL

SHARESSHARES TERMINATIONTERMINATION

SETTLEMENT AGREEMENTSETTLEMENT AGREEMENT REPORT BY CONCILIATOR THAT CONCILIATION HAS REPORT BY CONCILIATOR THAT CONCILIATION HAS

FAILEDFAILED PARTY PULLING OUT OF THE PROCESSPARTY PULLING OUT OF THE PROCESS

Page 27: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

UNCITRAL CONCILIATION RULESUNCITRAL CONCILIATION RULES

WRITTEN REQUEST SENT BY A PARTY TO WRITTEN REQUEST SENT BY A PARTY TO ANOTHERANOTHER

ACCEPTANCE REQUIRED WITHIN THIRTY DAYSACCEPTANCE REQUIRED WITHIN THIRTY DAYS SINGLE OR THREE CONCILIATORSSINGLE OR THREE CONCILIATORS SUSPENSION OF RIGHT TO ARBITRATE OR SUSPENSION OF RIGHT TO ARBITRATE OR

LITIGATE DURING PROCESSLITIGATE DURING PROCESS PARTIES RESPONSIBLE JOINTLY AND SEVERALLY PARTIES RESPONSIBLE JOINTLY AND SEVERALLY

FOR FEESFOR FEES TERMINATIONTERMINATION

SETTLEMENT AGREEMENTSETTLEMENT AGREEMENT FAILURE OF AND INABILITY TO REVIVE PROCESSFAILURE OF AND INABILITY TO REVIVE PROCESS WRITTEN DECLARATION TO CONCILIATOR THAT PROCESS WRITTEN DECLARATION TO CONCILIATOR THAT PROCESS

TERMINATEDTERMINATED CONFIRMATION BY ONE PARTY TO CONCILIATOR THAT CONFIRMATION BY ONE PARTY TO CONCILIATOR THAT

PROCESS HAS TERMINATED PROCESS HAS TERMINATED

Page 28: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

MINI-TRIAL OR EXECUTIVE TRIBUNALMINI-TRIAL OR EXECUTIVE TRIBUNAL

PARTIES PRESENT ISSUES IN DISPUTE PARTIES PRESENT ISSUES IN DISPUTE TO EXECUTIVES OF BOTH PARTIESTO EXECUTIVES OF BOTH PARTIES

NEUTRAL CHAIRMANNEUTRAL CHAIRMAN LEGALLY ENFORCEABLE DOCUMENT LEGALLY ENFORCEABLE DOCUMENT

PREPAREDPREPARED PROCESS NOT APPROPRIATE FOR PROCESS NOT APPROPRIATE FOR

DISPUTES INVOLVING CREDIBILITY DISPUTES INVOLVING CREDIBILITY OF PERSONNELOF PERSONNEL

Page 29: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

TEXACO V BORDENTEXACO V BORDEN $200 MILLION ANTI-TRUST SUIT OVER $200 MILLION ANTI-TRUST SUIT OVER

NATURAL GAS CONTRACTNATURAL GAS CONTRACT 300,000 DOCUMENTS IN DISCOVERY FROM 300,000 DOCUMENTS IN DISCOVERY FROM

DEFENDANTDEFENDANT EACH LAWYER ALLOWED ONE HOUR TO EACH LAWYER ALLOWED ONE HOUR TO

PRESENT HIS CASE BEFORE VICE – PRESENT HIS CASE BEFORE VICE – PRESIDENTS OF EACH COMPANYPRESIDENTS OF EACH COMPANY

TECHNICAL ADVISERS ASSISTED BY THIRD TECHNICAL ADVISERS ASSISTED BY THIRD PARTY NEUTRALPARTY NEUTRAL

ISSUES RESOLVED IN TWO WEEKS WITH ISSUES RESOLVED IN TWO WEEKS WITH NEW GAS SUPPLY CONTRACT NEGOTIATED NEW GAS SUPPLY CONTRACT NEGOTIATED AS A BONUSAS A BONUS

Page 30: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

WISCONSIN ELECTRIC POWER WISCONSIN ELECTRIC POWER COMPANY AND AMERICAN CANCOMPANY AND AMERICAN CAN

$41 M CLAIM WITH $20 M $41 M CLAIM WITH $20 M COUNTERCLAIMCOUNTERCLAIM

JUDGE - THIRD PARY NEUTRAL GAVE JUDGE - THIRD PARY NEUTRAL GAVE VIEWS ON LIKELY OUTCOMEVIEWS ON LIKELY OUTCOME

SETTLEMENT WITHIN THREE MONTHSSETTLEMENT WITHIN THREE MONTHS 75 DAYS OF TRIAL AND MONTHS OF 75 DAYS OF TRIAL AND MONTHS OF

DISCOVERY AND INSPECTION AND DISCOVERY AND INSPECTION AND ADVISERS FEES SAVED ADVISERS FEES SAVED

Page 31: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

EXPERT DETERMINATIONEXPERT DETERMINATION

USE OF EXPERTS TO SETTLE USE OF EXPERTS TO SETTLE TECHNICAL AND VALUATION DISPUTESTECHNICAL AND VALUATION DISPUTES

PARTIES AGREE TO INSTRUCT A THIRD PARTIES AGREE TO INSTRUCT A THIRD PARTY ON SPECIFIC ISSUEPARTY ON SPECIFIC ISSUE

DECISION OF EXPERT ONLY DECISION OF EXPERT ONLY ENFORCEABLE AS A MATTER OF ENFORCEABLE AS A MATTER OF CONTRACTCONTRACT

SERVICE OFFERED BY LCIA, ICC AND SERVICE OFFERED BY LCIA, ICC AND CEDRCEDR

Page 32: CONFLICT MANAGEMENT OPTIONS FOR INTERNATIONAL ENERGY/POWER DISPUTES 2 ND NATIONAL SEMINAR ON ENERGY AND NATURAL RESOURCES 18 TH AND 19 TH NOVEMBER 2003.

CONCLUSIONCONCLUSION

ADR CLAUSES NOT LEGALLY ADR CLAUSES NOT LEGALLY ENFORCEABLEENFORCEABLE

SETTLEMENT REACHED NOT SETTLEMENT REACHED NOT ENFORCEABLE IF ONE PARTY BALKSENFORCEABLE IF ONE PARTY BALKS

NEED TO COUCH SETTLEMENTS IN NEED TO COUCH SETTLEMENTS IN CONTRACTUAL TERMS AND THEN CONTRACTUAL TERMS AND THEN EXECUTE EXECUTE

WOULD REQUIRE FRESH LEGAL WOULD REQUIRE FRESH LEGAL ACTION TO ENFORCEACTION TO ENFORCE


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