Means of solving conflicts without recourse to State Courts.

Arbitration and Mediation are the most important ADR.

These words can apply to :

• the contract or the situation that is the object of the dispute,
• the ability of a party (especially the ability to compromise),
• the procedure.

Contract : where the parties have expressed in the contract what is the applicable law or where they agree to decide it, the arbitrator shall respect their will.

Ability : the applicable law is the national law of the person.

For example :

• in England : English law does not restrict the groups of persons which can enter into a compromissory clause (see below).
• in France : under French law such a clause is enforceable only if entered into between French parties who are "commerçants", or shareholders in a limited company which carries on a business coming within the category of "commerce", or under certain of the French Codes.

  On the other hand :

  • this clause is always enforceable in France when the contract involves a French party and one resident in another country;
  • a "non-commerçant" may sign a compromise (see below).

Proceedings : The Caren Rules apply ; the Rules have been established by an international group of jurists so as to be in conformity with all the most important national laws.

A compromise is an agreement entered into by parties after a dispute has arisen , to submit the dispute to arbitration.

Draft :

Agreement to arbitrate :

A dispute has arisen between the parties hereto relative to the following points (Here summarise the matters in issue).
The parties have agreed to go to arbitration for the matter to be decided under the CAREN rules.

Now this agreement witnesses

• The Claimant appoints as arbitrator .....
  The Respondent appoints as Arbitrator .....
  CAREN shall nominate and appoint the third arbitrator to chair the tribunal.
  (Alternatively) The parties jointly appoint as sole arbitrator ..... subject to the approval of his appointment by CAREN.
• The arbitrator(s) shall be required to answer the points of claim set out in the claim and reply.
• (Optional) The arbitrator(s) may act in the role of Amiable compositeur (ex aequo et bono).
• The award shall be made within ... months of the date hereof.

This agreement is made the day of .... between (The Claimant) and (The Respondent).

Clause included in a contract or in General Conditions of Sales by which the parties agree that their (future , eventual) disputes should be settled by arbitration.
Draft in english :

a) in a contract :
The parties hereby agree that any dispute arising from or out of the present contract shall be settled by arbitration under the supervision of CAREN.

b) in General Conditions :
The parties hereby agree that all disputes relating to the interpretation or execution of all future contracts and business dealings between them shall be settled by arbitration under the supervision of CAREN.

( in french : Acte de mission).

Statement established and undersigned by the arbitrator(s) and parties at the time of their first meeting.

contents : see RULES cl.16.

Model form :

To the Secretary
CAREN

Dear Sir,

x copies (one for each party and one copy for CAREN)

Please take notice that this company, ROBERTS OF ORMSKIRK LTD, whose registered office is at Altys Lane Ormskirk Lancs. (GB) wishes to have a dispute resolved by Arbitration under the CAREN rules.

The dispute is with CAMPHIN TEXTILE Sarl of Rue Nationale 59133 CAMPHIN (F).

You will find herewith :

copy of the agreement to submit to arbitration,
a summary of the matters in issue,
our list of documents and copies thereof,
a summary of our demands.

As the agreement to arbitrate allows us to nominate one of/the sole arbitrator(s) we wish to appoint the President of the Lancashire Law Society or his nominee.

or

Please would you let us have sight of the approved list of CAREN arbitrators.

or

We request CAREN to appoint an arbitrator(s) with the necessary experience from its approved list.

Yours faithfully

ROBERTS OF ORMSKIRK LIMITED.