The International Commercial and Industrial Arbitration Association (ARICI) has decided to dissolve the International Commercial and Industrial Arbitration Court (CARICI) and to abrogate its Arbitration Rules effective December 31, 2011.

In agreement with the Geneva Chamber of Commerce, Industry and Services (CCIG), all arbitration proceedings based on arbitration clauses referring to the CARICI and filed as of January 1, 2012 shall be directed to CCIG, which will administer the procedure in accordance with the Swiss Rules of International Arbitration.

There are several reasons for ARICI’s decision.

CCIG was among the first institutions to provide services dealing with arbitration and has therefore developed an extensive expertise in this area.

CCIG is based in Geneva, a worldwide center for diplomacy which offers an internationally recognized neutral platform for the resolution of international disputes.

CCIG administers arbitrations under the Swiss Rules of International Arbitration, which unify the arbitration rules of seven Chambers of Commerce in Switzerland. These rules have been developed by leading experts in international arbitration to reflect current international arbitration practice and it is becoming increasingly successful.

It enables significant reductions on the length and the cost of the arbitration proceedings, in particular for the following reasons:

  • It provides an expedited procedure for a single arbitrator (instead of three) to issue an award within six months. The expedited procedure is automatically applied to cases where the value of the dispute does not exceed CHF 1 million (approx. USD 1.2 million). The parties may also choose this procedure for disputes of higher value.
  • No administrative costs are collected where the value in dispute is less than CHF 2 million (approx USD 2.4 million).
  • On average, arbitration cases are completed in less than one year.

ARICI believes that companies and legal counsels who put their trust in CARICI will greatly benefit from the services provided by CCIG. Therefore, ARICI encourages the use, as of now, of the following arbitration clause in contracts:

"Any dispute, controversy, or claim arising out of, or in relation to, this contract, including the validity, invalidity, breach, or termination thereof, shall be resolved by arbitration in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers’ Arbitration Institution in force on the date on which the Notice of Arbitration is submitted in accordance with these Rules.

The number of arbitrators shall be ... ["one", "three", "one or three"];
The seat of the arbitration shall be ... [name of city in Switzerland, unless the parties agree on a city in another country];
The arbitral proceedings shall be conducted in … [insert desired language]."

1 The arbitration clause may provide for “one” arbitrator or “three” arbitrators. The arbitration clause may also provide for “one or three” arbitrator(s). In the later case, the number of arbitrator(s) shall be determined at the outset of the arbitration proceedings.