THE SCOTTISH

ARBITRATION CODE 1999 ©

FOR USE IN DOMESTIC AND INTERNATIONAL ARBITRATION

PREPARED BY THE SCOTTISH COUNCIL FOR INTERNATIONAL ARBITRATION

THE CHARTERED INSTITUTE OF ARBITRATORS (SCOTTISH BRANCH)
THE SCOTTISH BUILDING CONTRACT COMMITTEE
Arbitration has long played an important role in settling disputes in Scotland.
The Scottish courts always recognised the right of parties to agree to
exclude the jurisdiction of the courts and to refer any problems to arbitration.
So, in many ways, Scotland should have been an ideal place to arbitrate.
There was one drawback, however. The ancient lineage of our domestic law
meant that its rules tended to be found scattered in various places – some in
old cases and others in various statutes. The result was that it was
sometimes difficult to obtain a clear picture of what was involved.

It is the aim of this Code, which the Scottish Branch of the Chartered
Institute and the Scottish Council for International Arbitration have drawn up,
to remove any difficulties of that kind. And they have achieved their aim: the
Code sets out clearly and concisely all the provisions which would apply to an
arbitration, whether domestic or international. They contain a judicious
mixture of firm rules and flexibility. With the aid of the Code it should be easy
for parties to devise the precise form of arbitration which best suits their
needs. The preparation of the Code has inevitably involved a great deal of
hard work on the part of the members of the Institute and Council. Their
reward is that their members in Scotland can now offer a modern and
convenient service to parties from all over the world.

The right Honourable Lord Rodger of Earlsferry

Lord President of the Court of Session
Contents

page
article 1 COMMENCEMENT OF ARBITRATION 1.
2 NOTICES AND COMMUNICATIONS 3.
3 CONSTITUTION OF THE ARBITRAL TRIBUNAL,
NUMBER OF ARBITRATORS AND PROCEDURE FOR APPOINTMENT 3.
4 QUALIFICATIONS OF ARBITRATORS 5.
5 CHALLENGE OF ARBITRATORS 6.
6 REPLACEMENT OF ARBITRATORS 7.
7 TRUNCATED TRIBUNAL 7.
8 FEES AND EXPENSES 8.
9 COMMUNICATIONS BETWEEN PARTIES AND ARBITRATORS 8.
10 EXCLUSION OF LIABILITY 8.
11 PRELIMINARY ISSUES 9.
12 SEAT OF ARBITRATION 9.
13 LANGUAGE OF ARBITRATION 9.
14 SUBSTANTIVE LAW APPLICABLE 10.
15 CONDUCT OF PROCEEDINGS GENERALLY 10.
16 ADDITIONAL POWERS OF ARBITRATORS 11.
17 EVIDENCE, HEARINGS AND PLEADINGS 12.
18 EVIDENCE OF WITNESSES 13.
19 EXPERTS 14.
20 INTERIM MEASURES 15.
21 CLOSURE OF PROCEEDINGS 15.
22 THE AWARD 16.
23 CORRECTION OF AWARDS AND ADDITIONAL AWARDS 17.
24 EXPENSES 17.
25 SETTLEMENT 18.
Commencement of Arbitration article 1
1:1 The party commencing arbitration (the Claimant) shall give to the
other party (the Respondent) a Notice of Arbitration.

1:2 Arbitral proceedings shall be deemed to commence on the date on

which the Notice of Arbitration is received by the Respondent.

1:3 The Notice of Arbitration shall include the following:

(a) The full names and addresses of the parties (including telephone,
facsimile, telex numbers and e-mail addresses if known).

(b) A reference to the arbitration clause or the separate arbitration

agreement that is involved.

(c) A short statement of the Claimant’s claim, including the nature of the
claim, the sum or sums claimed, and the Respondent’s defence if
known to the Claimant.

(d) The relief or remedy sought.

(e) A demand that the matter be referred to arbitration.

(f) If the arbitration agreement calls for each party to appoint an

Arbitrator, the name and address (and telephone, facsimile, telex
number and e-mail address if known) of the Arbitrator nominated by
the Claimant.

(g) If the arbitration agreement does not call for each party to appoint an
Arbitrator, a proposal by the Claimant of the name of an Arbitrator
with his full name and address (and his telephone, facsimile, telex
number and e-mail address if known).

(h) Within thirty days after receipt of the Notice of Arbitration the
Respondent shall deliver to the Claimant a Notice of Defence. Failure
to deliver a Notice of Defence shall not delay the arbitration. If there
is such a failure all claims set forth in the Notice of Arbitration shall be
deemed to be denied.

1:4 The Notice of Defence shall include:-

(a) Any comment on article 1.3(a) (b) or (e) that the Respondent
considers appropriate.

(b) A short statement of the Respondent’s defence.

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Commencement of Arbitration article 1
(c) If the arbitration agreement calls for each party to appoint an
Arbitrator the name and address (and telephone, facsimile, telex and
e-mail address if known) of the Arbitrator nominated by the
Respondent.

(d) If the arbitration agreement does not call for each party to appoint an
Arbitrator, then the Respondent shall intimate whether he accepts the
Arbitrator nominated by the Claimant and, if he does not accept him,
the names and addresses of the candidates whom the Respondent
proposes.

1:6 The Respondent may include in the Notice of Defence any

counterclaim within the scope of the arbitration clause. If so, the
counterclaim in the Notice of Defence shall include those matters in
Article 1.3. (b)(c)(d) and (e).

1:7 If a counterclaim is asserted in the Notice of Defence, within 30 days

after its receipt, the Claimant shall deliver to the Respondent a reply
to the counterclaim which shall include the same matters as provided
for in the Notice of Defence in Article 1.5.

1:8 Failure by the Respondent to include a counterclaim in the Notice of

Defence shall not preclude the Respondent from making a
counterclaim at a later stage of the proceedings, if the arbitral tribunal
in its absolute discretion is prepared to permit it. Any such
counterclaim shall include those matters in Article 1.3. (b)(c)(d) and
(e).

1:9 If any party has been served with a Notice of Arbitration he may, at
any time before the arbitral tribunal has been appointed, give Notice
of Arbitration in respect of any other disputes which fall under the
same arbitration agreement. All disputes identified in such Notice of
Arbitration shall be consolidated within the same arbitral proceedings.

1:10 After an arbitral tribunal has been appointed, either party may give a
further Notice of Arbitration to the other, and to the arbitral tribunal,
referring any additional dispute which falls under the same arbitration
agreement to the arbitral tribunal proceedings and, whether or not
the other party consents to that other dispute being referred to the
proceedings, the arbitral tribunal may in its absolute discretion order
that the additional dispute should be referred to and consolidated
within those same proceedings or that it should not be so referred
and consolidated.

1:11 Where the same arbitral tribunal is appointed in two or more arbitral
proceedings relating to the same project, each of which involves
some common issue whether or not involving the same parties, the
arbitral tribunal may if it considers it appropriate order
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Commencement of Arbitration article 1
1:11 the concurrent hearing of any such proceedings, or of any claim or
issue arising in such proceedings upon such term or terms as it
considers appropriate in all the circumstances.

Notices and Communications article 2

2:1 All notices or other communications between the parties and the
arbitral tribunal shall be in writing and may be delivered by courier or
by registered/recorded post, or transmitted by facsimile, telex, e-mail
or any other means of telecommunication which provides a record of
its transmission.

2:2 A party’s last known residence or place of business during the

arbitration shall be a valid address for the purposes of any notices or
other communications in the absence of any notification of a change
of address by that party to the other party and to the arbitral
tribunal.

2:3 For the purpose of determining the date of the commencement of a

time limit, a notice or other communication shall be treated as having
been received on the day it is delivered, or in the case of a
telecommunication, transmitted in accordance with Article 2.1.

2:4 For the purpose of determining compliance with a time limit, a notice
or other communication shall be treated as having been sent made
or transmitted if it is dispatched in accordance with Article 2.1 and 2.2
prior to or on the date of expiration of the time limit.

2:5 All correspondence with, and other documents sent to the arbitral
tribunal by one party shall at the same time be communicated to the
other party.

Constitution of the Arbitral Tribunal, Number

of Arbitrators and Procedure for Appointmentarticle 3
3:1 The expression “the Arbitral Tribunal” in this Code includes a sole
Arbitrator or all Arbitrators where more than one. All references to an
Arbitrator shall include the

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Constitution of the Arbitral Tribunal, Number
of Arbitrators and Procedure for Appointmentarticle 3
3:1 masculine and the feminine, and Arbitrator shall include Arbiter.

3:2 The parties are free to agree on the number of Arbitrators. If they
have not agreed, a single Arbitrator shall be appointed.

3:3 If the parties have agreed that there shall be more than one
Arbitrator and the Claimant has nominated an Arbitrator in
accordance with Article 1.3(f) but the Respondent fails within thirty
days of receipt of the Notice of Arbitration either to deliver a Notice
of Defence at all, or to include in the Notice of Defence the name and
address of another Arbitrator, the parties shall be deemed to have
agreed on a single Arbitrator and the Arbitrator nominated by the
Claimant shall be appointed as the sole Arbitrator.

3:4 If the parties have agreed that there shall be a single Arbitrator and
the Claimant has proposed an Arbitrator under Article 1.3(g), and the
Respondent does not intimate non-acceptance of that Arbitrator
within thirty days of the Notice of Arbitration, then the Arbitrator
proposed by the Claimant shall be appointed as the sole Arbitrator.

3:5 Where the parties have agreed a single Arbitrator be appointed and
each has nominated an Arbitrator, they shall endeavour to agree on
the single Arbitrator within thirty days of delivery of the Notice of
Defence. If they cannot agree within that period either party may
apply, in the case of a domestic dispute to the Chairman of the
Chartered Institute of Arbitrators (Scottish Branch), and in the case
of an international dispute to the Chairman of the Scottish Council for
International Arbitration, to appoint the Arbitrator.

3:6 Where parties have agreed on an arbitral tribunal of three and each
has appointed an Arbitrator then unless the parties have agreed on
another method of appointment the party-appointed Arbitrators shall
endeavour within thirty days of the delivery of the Notice of Defence
to agree upon a third Arbitrator who shall be the chairman of the
arbitral tribunal, or if the parties have so agreed shall act as
oversman. If the party-appointed Arbitrators do not reach agreement
within that time either party may apply in the case of a domestic
dispute to the Chairman of the Chartered Institute of Arbitrators
(Scottish Branch) and in the case of an international dispute to the
Chairman of the Scottish Council for International Arbitration, to
appoint that third Arbitrator or oversman.

3:7 Where application has been made to the Chairman of the appropriate
body to appoint an Arbitrator and that Chairman refuses or fails to
make an appointment within thirty days of the application, either
party may apply to the Court of Session, Scotland to

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Constitution of the Arbitral Tribunal, Number
of Arbitrators and Procedure for Appointmentarticle 3
3:7 appoint the Arbitrator.

3:8 Where the Chairman of the appropriate body is unavailable or unable

to act, a Vice-Chairman may act in his place.

3:9 For the purposes of this Article the parties prorogate the exclusive
jurisdiction of the Court of Session, Scotland.

Qualifications of Arbitrators article 4

4:1 Any natural person of whatever nationality who is of full age and
capacity may be an Arbitrator.

4:2 Each Arbitrator shall be and remain at all times independent and
impartial.

4:3 Before nominating or proposing an Arbitrator the party seeking to

nominate or propose that Arbitrator shall ascertain that that person is
willing and able to accept appointment.

4:4 On being approached to act as Arbitrator, the prospective Arbitrator

shall disclose in writing to the parties any circumstances likely to give
rise to justifiable doubts as to the Arbitrator’s impartiality or
independence or confirm in writing that no such circumstances exist.
If at any stage in the arbitration circumstances arise that may give
rise to such doubts, the Arbitrator shall promptly disclose those
circumstances to the parties. Such circumstances include but are not
limited to bias, interest in the result of the arbitration and past or
present relationships with a party.

4:5 By accepting appointment the Arbitrator shall be deemed to have

undertaken to make available sufficient time to enable the arbitration
to be conducted and completed expeditiously.

4:6 Where parties are of different nationality a sole Arbitrator (or

chairman or oversman) shall not have the same nationality as any of
the parties unless they agree otherwise in writing. The nationality of a
party shall be understood to include that of controlling shareholders
or interests. Citizens of the European Union shall be treated for this
purpose as nationals of the different Member States and shall not be
treated as having the same nationality.

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Qualifications of Arbitrators article 4
4:7 Article 4.6 shall not apply in the case of an Arbitrator appointed as
sole Arbitrator under Article 3.3.

4:8 By accepting appointment the Arbitrator shall be deemed to be bound

by this Code.

Challenge of Arbitrators article 5

5:1 A party may challenge an Arbitrator if circumstances exist or arise
giving rise to justifiable doubts as to the Arbitrator’s impartiality or
independence.

5:2 Such challenge may only be made within fifteen days after the party
challenging became aware of the circumstances it considers give rise
to justifiable doubt as to an Arbitrator’s impartiality or independence.

5:3 The challenge shall be in writing and shall be delivered to the other
party and to the arbitral tribunal.

5:4 The other party may agree to the challenge (in which case the
Arbitrator shall withdraw from the arbitration) or the challenged
Arbitrator may decide to withdraw. In neither case does the
withdrawal imply acceptance by the Arbitrator of the validity of the
grounds stated for the challenge.

5:5 If the challenged Arbitrator does not withdraw, the arbitral tribunal
shall in the first instance decide upon the challenge. In the event that
it rejects the challenge the party making the challenge shall have the
right to apply to a tribunal of three persons to be selected by the
Chairman of the Scottish Council for International Arbitration and the
Chairman of the Chartered Institute of Arbitrators (Scottish Branch)
acting jointly to decide the challenge, and the decision of that tribunal
shall be final.

5:6 If the challenge is upheld by either the arbitral tribunal or the tribunal
referred to in Article 5.5 the challenged Arbitrator shall be deemed to
have resigned upon the date of the decision upholding the challenge.

5:7 Pending the decision of such a tribunal the arbitral tribunal may in its
discretion continue with the arbitration.

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Replacement of Arbitrators article 6
6:1 An Arbitrator shall not be entitled to resign or withdraw (except under
Article 5) without the consent in writing of the parties, except upon
the provision of a certificate from a registered doctor justifying
resignation upon grounds of health.

6:2 When an Arbitrator has died, withdrawn, resigned or been removed

from office the position left vacant shall be filled, unless the parties
otherwise agree, by appointment by the Chairman of the body
designated in Article 3.5.

6:3 When a replacement Arbitrator is appointed in the course of an

arbitration, it shall be for the arbitral tribunal to determine in its
discretion whether any hearings held previously shall be repeated.

6:4 If in the view of a party an Arbitrator becomes incapacitated or

unable to perform the duties of his office the procedure in respect of
Challenge of Arbitrators set out in Article 5 shall apply.

6:5 Pending replacement of an Arbitrator, the arbitral proceedings shall be

suspended unless otherwise agreed by the parties.

Truncated Tribunal article 7

7:1 If an Arbitrator in a three person tribunal, although duly notified fails
without good cause to participate in the work of the tribunal, the two
other Arbitrators shall have the power in their sole discretion to
continue the arbitration and to make any award, order or other
decision despite the failure of the third Arbitrator to participate. In
making this decision the two other Arbitrators shall have regard to all
matters they consider appropriate in the circumstances of the case.
The two Arbitrators shall notify the parties and the third Arbitrator
that the arbitral tribunal has become a tribunal of two and that the
arbitration shall continue to its conclusion.

7:2 If the two other Arbitrators determine that the arbitration should not
proceed without the participation of a third Arbitrator, they shall
declare in writing that the office of the third Arbitrator has been
vacated, and the procedure for replacing that Arbitrator shall be
carried through as if he had resigned in accordance with Article 6.2.

7:3 Upon the appointment of a replacement Arbitrator in the

circumstances of Article 7.2 the

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Truncated Tribunal article 7
7:3 provision of Article 6.3 shall apply in relation to the repetition of
previous proceedings.

Fees and Expenses article 8

8.1 Each Arbitrator shall be compensated on a reasonable basis
determined at the time of appointment for serving as an Arbitrator,
and shall be reimbursed for his time, travelling and other expenses
incurred in the course of the arbitration.

8.2 Provided there is agreement in writing in advance by the parties the

Arbitrator’s fees may include a charge for time reserved but not used
as a result of late postponement or cancellation.

8.3 In the event of failure to agree at the time of appointment on an

arbitrator’s fees, they shall be fixed upon the application of a party or
the Arbitrator by the Auditor of the Court of Session, Scotland.

8.4 Where the arbitral tribunal has appointed a clerk, the fees and
expenses of the clerk, if not agreed, shall be fixed by the Auditor of
the Court of Session upon the application of a party or the arbitral
tribunal.

Communications between Parties

and Arbitrators article 9
9.1 Except as otherwise provided in these Articles or permitted by the
arbitral tribunal no party or anyone acting on its behalf shall have any
ex parte communications with any Arbitrator with regard to any
matter of substance relating to the proceedings.

Exclusion of Liability article 10

10.1 No Arbitrator, clerk or nominating body shall be liable to any party for
any act or omission in connection with any arbitration conducted
under these Articles, except that he may be liable for the
consequences of conscious and deliberate wrongdoing.

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Preliminary Issues article 11
11.1 The Tribunal shall have the power to hear and determine challenges
to its own jurisdiction, including any objections with regard to the
existence or validity of the arbitration clause or of the separate
arbitration agreement.

11.2 The Tribunal shall have the power to determine the existence, validity
and scope of the contract of which an arbitration clause forms part.
For the purposes of this Article an arbitration clause which forms part
of a contract shall be treated as an agreement independent of the
other terms of the contract. A decision by the tribunal that the
arbitration clause is null and void shall not for that reason alone
render the arbitration clause invalid.

11.3 Any challenge to the jurisdiction of the tribunal or as to the

arbitrability of a claim or counterclaim must be made to the tribunal
not later than the date of issue of the Notice of Defence or reply to
the counterclaim as the case may be, provided that if a claim or
counterclaim is later amended such a challenge may be made in
relation to the amended matter not later than the date of reply to
such amended claims or counterclaim. If no such challenge is made
then the right to make it shall be treated as having been irrevocably
waived.

Seat of Arbitration article 12

12:1 Unless the parties have agreed upon the seat of the arbitration the
tribunal shall fix the seat of arbitration. Any award by the tribunal shall
be deemed made at such place. Notwithstanding the above the
tribunal may hold hearings whenever it deems appropriate. In addition
it may hold meetings with or without the parties being present
wherever it deems appropriate.

Language of Arbitration article 13

13:1 In the absence of an agreement by the parties the arbitral tribunal
shall determine the language or languages of the arbitration, due
regard being given to all relevant circumstances including the
language of the contract.

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Language of Arbitration article 13
13:2 If any document is expressed in a language other than the
language(s) of the arbitration and no translation is provided by the
party seeking to rely upon the document the tribunal may order that
party to submit a translation in the language of the arbitration.

Substantive Law Applicable article 14

14.1 The tribunal shall apply the substantive law agreed by the parties as
applicable to the dispute. Failing such agreement, the tribunal shall
apply such law or laws as it determines to be appropriate.

14.2 In all cases the tribunal shall take account of the provisions of the
contract and usage of the trade applicable to the contract.

14.3 The tribunal shall not decide as amiable compositeur nor ex bono et
aequo unless the parties have expressly authorised it to do so.

Conduct of Proceedings Generally article 15

15.1 Subject to this Code, the tribunal may conduct the arbitration in
whatever manner it considers appropriate, provided that the parties
are treated with equality and that each party is given a fair
opportunity to present its case.

15.2 Unless the parties have agreed otherwise the tribunal shall determine
to what extent, if any, written pleadings are to be provided by the
parties in addition to those contained in the Notice of Arbitration and
Notice of Defence, and shall set out the timetable according to which
such pleadings shall be prepared and lodged with the tribunal.

15.3 The tribunal in the exercise of the widest discretion shall conduct the
proceedings with a view to the fair, speedy, and efficient resolution of
the dispute. It may conduct preliminary conference(s) with the
parties for the purpose of organising, scheduling and agreeing
procedures to expedite the subsequent proceedings.

15.4 The tribunal may in its discretion direct the order of proof, split
proceedings, exclude

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Conduct of Proceedings Generally article 15
15.4 cumulative or irrelevant witness testimony or other evidence and
direct parties to focus their presentation on issues the decision of
which may dispose of all or part of the case.

15.5 In the case of a three member tribunal the chairman may after
consulting the other members make procedural rulings which need
only be signed by the chairman.

Additional Powers of Arbitrators article 16

16.1 In addition to the powers conferred generally or specifically on
Arbitrators elsewhere in this Code, the Arbitrator shall have the
following powers (unless the parties otherwise agree):-

16.2 power to make interim or partial awards;

16.3 power to award damages;

16.4 power to rectify the terms of any contract to the extent permitted by
the law applicable to that contract;

16.5 power to order that simple or compound interest shall be paid by any
party on any sum awarded at such rate or rates as the Arbitrator
determines to be appropriate without being bound by legal rates of
interest imposed by any state, court or any agreement between the
parties in respect of any period which the Arbitrator determines to be
appropriate including a date prior to the appointment of the Arbitrator
and ending not later than the date upon which the award is complied
with;

16.6 power to vary time limits whether imposed by the Arbitrator or this
Code or the parties whenever it seems appropriate to so do;

16.7 power in the event that a party is unduly dilatory in presenting its
claim, counterclaim or defence to the prejudice of the other party to
dismiss the claim or counterclaim or exclude the defences as the case
may be;

16.8 power to appoint a clerk, whose fees, outlays and expenses shall be
included in the expenses of the arbitration

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Evidence, Hearings and Pleadings article 17
17.1 The tribunal shall determine the manner in which the parties shall
present their cases. Unless otherwise agreed by the parties or
determined by the tribunal under Article 15, the presentation of a
party’s case shall include the submission of a pre-hearing
memorandum including the following matters:

(a) A statement of facts.

(b) A statement of each claim being asserted.

(c) A statement of the applicable law on which the party relies.

(d) A statement of the relief requested, including the basis for any
damages claimed and;

(e) An outline of the evidence to be presented including the name,

capacity and subject of testimony of any witness proposed to be
called, the language in which the witness will testify and an estimate
of the amount of time required for that witness’s direct testimony if it
were to be given orally.

17.2 In order to define the issues to be heard and determined the tribunal
may make pre-hearing orders in relation to the arbitration and
instruct parties within such time limits as it thinks fit to file more
detailed statements of claim and defence and pre-hearing
memoranda.

17.3 The tribunal may impose such time limits as it considers reasonable
for each stage of the proceedings including the time allocated to each
party for presentation of its case or for rebuttal.

17.4 At any time during the arbitration the tribunal may at the request of a
party or of its own motion order a party to deliver to the tribunal and
to the other party such documents or other evidence as it considers
necessary or appropriate and may order a party to make available to
the tribunal (or to an expert appointed by it) or to the other party or
its expert any property in its control for inspection or testing.

17.5 Any party which expresses a desire to that effect in reasonable time
shall be heard orally before the tribunal unless the parties have
agreed in writing on a documents only arbitration.

17.6 The tribunal shall fix the date, times and place of any meetings and
hearings in the

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Evidence, Hearings and Pleadings article 17
17.6 arbitration and shall give the parties reasonable notice thereof.

17.7 The tribunal may in advance of any hearing submit to the parties a list
of questions which it wishes them to answer with special attention.

17.8 If any of the parties although duly notified in accordance with Article
16.6 fails to appear at a meeting or hearing without valid excuse the
tribunal shall have the power to proceed with the hearing in its
absence.

17.9 At any hearing each party shall be entitled to be present. All meetings
and hearings shall be in private unless the tribunal decides otherwise.
Except with the approval of the tribunal and the parties, persons not
involved in the proceedings shall not be admitted. The tribunal may
require the retirement of any witness during the testimony of other
witnesses.

17.10 The parties may appear in person or through duly authorised

representatives. In addition they may be assisted by advisers.

Evidence of Witnesses article 18

18.1 The tribunal is not required to apply rules of evidence used in judicial
proceedings. It shall determine the applicability of any privilege or
immunity, and the admissibility, relevance, materiality and weight of
the evidence offered.

18.2 Before any hearing the tribunal may require any party to give notice
of the identity of each witness that party wishes to call as well as the
subject matter of that witness’ testimony, its contents and relevance
to the issues in the arbitration.

18.3 The tribunal may also determine the times, manner and form in which
such material should be exchanged between parties and presented to
the tribunal. It has discretion to allow refuse or limit the appearances
of witnesses.

18.4 If the tribunal so determines, the evidence of witnesses may be

presented in the form of witness statements signed by them.

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Evidence of Witnesses article 18
18.5 Any party may request that a witness on whose witness testimony
another party seeks to rely should attend for oral questioning at a
hearing before the tribunal. If the tribunal orders this other party to
produce the witness, and the witness fails to attend the hearing
without good cause, the tribunal may place such weight on the
witness testimony (or exclude it altogether) as it considers
appropriate in the circumstances of the case.

Experts article 19
19.1 The tribunal may appoint one or more experts to report to it in
writing on specific issues to be determined by the tribunal. A copy of
the expert’s draft terms of reference shall be communicated to the
parties and they be given a period of time to comment thereon
before the terms of the reference are finally established by the
tribunal, and copied to the parties.

19.2 The parties shall give the expert any relevant information or produce
for inspection any property that the expert may require. In the event
of disputes between the expert and a party as to the material to be
produced or inspected the tribunal shall determine the issue.

19.3 Upon receipt of the expert’s report the tribunal shall communicate a
copy to the parties who shall be entitled to express in writing their
opinion on that report. A party shall be entitled to examine any
material upon which the expert has relied in the report.

19.4 Upon receipt of the expert’s report a party may request a hearing
thereon which the tribunal shall be bound to grant. At such a hearing
the expert shall be present and may be questioned on his report on
behalf of a party, and expert witnesses may testify on behalf of a
party on the points at issue.

19.5 The fees and expenses of such tribunal appointed experts shall be
part of the costs and expenses of the arbitration.

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Interim Measures article 20
20.1 At the request of a party the tribunal may take such interim
measures as it deems necessary:-

(a) To order any respondent party to a claim or counterclaim to provide

security for all or part of the amount in dispute in such manner and
upon such terms as it considers appropriate. Such terms may include
the provision by the party claiming security of a cross indemnity itself
secured in whichever manner the tribunal considers appropriate for
any expenses or losses incurred by the party ordered to provide
security in doing so. The amount of such expenses or losses may be
determined by the tribunal in one or more awards.

(b) To order the preservation, storage, sale or other disposal of any

property or thing under the control of a party and relating to the
subject matter of the arbitration.

(c) To order, on a provisional basis, subject to final determination in an

award any relief which the tribunal would have power to grant in an
award including interdicts and provisional orders for the payment of
money or the disposition of property as between any parties.

20.2 The tribunal shall have power at the request of a party to order any
other party to provide security for the expenses of that party in such
manner and on such terms and for such amount as the tribunal
considers appropriate.

20.3 In the event that a party does not comply with an interim measure
ordered by the tribunal under Article 20.1 or 20.2 within a time limit
fixed by the tribunal, the tribunal may sist or dismiss any claim or
counterclaim made by that party, or refuse to allow it to present a
defence as may seem appropriate.

20.4 The power of the tribunal under Article 20.1 shall not prejudice any
party’s right to apply to any state court for interim or conservatory
measures either before or after the tribunal has been constituted.

Closure of Proceedings article 21

21.1 The tribunal shall declare the proceedings closed when it is satisfied
that the parties have had adequate opportunity to present their
cases. Once it has done so the parties

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Closure of Proceedings article 21
21.1 may not present any further material to the tribunal.

21.2 The tribunal may in its discretion on its own motion or on the
application of a party re-open the hearing at any time before the
award is made.

21.3 The arbitral tribunal shall use its best endeavours to make its award
within forty-five days of the closure of the proceedings or such other
period as the parties and the arbitral tribunal shall agree.

The Award article 22

22.1 The tribunal may make separate awards on different issues at
different times. Such awards shall have the same status and effect as
any other award made by the tribunal.

22.2 Where there are three Arbitrators and the tribunal fails to agree on
any issue, the Arbitrators shall decide that issue by a majority. Failing
a majority decision on any issue, the chairman of the tribunal shall
decide that issue.

22.3 If any Arbitrator refuses or fails to sign the award, the signatures of
the majority shall be sufficient provided that the reason for the
omitted signature is stated in the award. In a case falling under Article
7.1, the signature of the chairman alone shall suffice.

22.4 The tribunal shall make its award in writing and unless the parties
agree otherwise shall state the reasons upon which its award is
based. The award shall also state the date when the award was
made and the seat of the arbitration and shall be signed by the
Arbitrators (or the majority of them assenting to it).

22.5 The sole Arbitrator or the Chairman shall be responsible for delivering
copies of the award to the parties. The tribunal shall be entitled to
withhold the delivering of the award until the fees and expenses due
to the tribunal have been met in full.

22.6 An award may be expressed in any currency.

22.7 Any award interim or final shall be binding on the parties from the
date on which it is made, subject to Article 2.3. By agreeing to
arbitration under the Code,

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The Award article 22
22.7 the parties undertake to carry out any award immediately and
without delay subject to Article 23 and the parties irrevocably waive
their right to any form of appeal review or recourse to any state
court or other judicial authority.

22.8 Without prejudice to the foregoing generality all recourse to the Court
of Session under Section 3 of the Administration of Justice (Scotland)
Act 1972 is expressly excluded.

Correction of Awards and Additional Awardsarticle 23

23.1 Within 30 days of receipt of any award a party may, with notice to
the other party, request the tribunal in writing to correct in an award
any errors in computation, clerical or typographical errors or any
errors of a similar nature or make an additional award as to claims
presented but omitted from the award. If the tribunal considers the
request justified it shall make the corrections or addition within 30
days of receipt of the request. Any addition or correction shall take
the form of a separate memorandum dated and signed by the
tribunal (or by the majority assenting to it) and shall become part of
the award for all purposes.

23.2 The tribunal may likewise on its own initiative within 30 days of the
date of the award correct any error of the nature described in Article
23.1 in the same manner and to the same effect.

Expenses article 24
24.1 The tribunal shall in its award and subject to any agreement between
the parties, fix the costs of the arbitration and apportion them
between the parties as it considers reasonable in the whole
circumstances.

24.2 For the purposes of Article 24.1 costs include:-

(a) The fees and expenses of the arbitral tribunal.

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Expenses article 24
(b) The costs of any assistance required by the tribunal in the course of
the arbitration process including the fees and expenses of its experts.

(c) The costs of meeting and hearing facilities.

(d) Any other costs incurred by the arbitral tribunal in the conduct of the
arbitration.

24.3 The tribunal shall also have power, unless the parties otherwise
agree, to order in its award that all or part of the legal or other
expenses incurred by a party in the course of the proceedings shall be
paid by another party. The tribunal shall have power to determine and
fix the amount of such expenses on such reasonable basis it thinks fit
or to order taxation by the Auditor of the Court of Session. It may
also make an award of expenses from time to time in the course of
the proceedings.

24.4 If the arbitration is abandoned, suspended or concluded by

agreement or otherwise before the final award is made, the parties
shall remain jointly and severally liable to pay to the tribunal the costs
of the arbitration as fixed by the tribunal under Article 24.1.

24.5 The Tribunal shall have power in the course of the proceedings and
from time to time to order the parties to make payments in advance
in respect of the costs mentioned in Article 24.1 in such sums as to
the tribunal appears reasonable.

Settlement article 25
25.1 In the event of a settlement of the parties’ dispute the tribunal may
render an award recording the settlement if the parties so request in
writing, provided that such an award (which need not contain
reasons) expressly states that it is an award made by the parties’
consent.

25.2 If a settlement is reached and the parties do not require an award,

then on written confirmation to the tribunal that a settlement has
been reached, the tribunal shall be discharged and the arbitration
proceedings concluded subject to payment by the parties of any
outstanding costs of the arbitration under Article 24.

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