federation

©FCC

1

Issued:2015

DISPUTERESOLUTIONSERVICE:

AGUIDETOFCCARBITRATION

TheFCCprovidesaninternationallyrecogniddisputeresolutionrvice.

PartiesthatincorporatetheFCCRulesforCocoaBeansorCocoaProductsintotheir

owncontractsuthisrvicetoresolvetradedisputesinafastandefficientmanner.

TheaimofthisbookletistooutlinetheroleofFCC’sdisputeresolutionrvice.

Disclaimer

ThisGuideisabriefintroductiontoFCCArbitrationandispublishedforinformationonly.

IntheeventofadisputethepartiesarereferredtotheapplicableArbitration&Appeal

RulesandtheFCCContractRules.

©FCC

2

Issued:2015

Contents

WhatisFCCArbitration?................................................................................................................................3

BenefitsofFCCArbitration.............................................................................................................................3

TheArbitrationProcess..................................................................................................................................4

HowdoesFCCArbitrationwork?....................................................................................................................5

ArbitrationbeforeaTribunal..........................................................................................................................5

AppealbeforeaBoardofAppeal....................................................................................................................5

Howareawardnforced?.............................................................................................................................6

©FCC

3

Issued:2015

ARBITRATION-WhatisFCCArbitration?

Arbitrationisaprocessfortheresolutionofdisputeswhichavoidsthecostandcomplexitiesof

tiestoadisputereferthemattertotheFCCforthe

appointmentofarbitrators(theTribunal)whoadjudicatethematterandwhodecisionspecified

atorsappointedtoFCCarbitrationsarelected

fromaPanelofexperiencedcocoaprofessionalsapprovedbytheFCCCouncil.

visionsoftheArbitrationAct1996,

andofanyamendmentorre-enactmenttotheAct,applytoeveryarbitrationandappeal.

FCC’sinternationallyrespectedarbitrationrviceisthefoundationoftheFCCstandardform

contracts.

AllFCCcontracts(forcocoabeansandcocoaproducts)includeanArbitrationclau,which

incorporatestheFCCArbitration&AppealRules.

FCCarbitrationshallbeconductedintheEnglishlanguageonthebasisoftheEnglishlanguage

versionsoftheFCCRules,unlessthepartieshaveagreedandspecifiedinthecontractthat

proceedingsaretobeconductedintheFrenchlanguageonthebasisoftheFrenchlanguage

versionsoftheFCCrules.

Ingeneral,wheneverthetwopartiestoacontractcannotmutuallyresolvetheirdispute,rather

thangoingtothecourts,narbitrationawardis

notacceptedbyoneoftheparties,anAppealmaybelodgedandaBoardofAppealwillissuean

AppealAwardwithafinalandbindingdecision.

BenefitsofFCCArbitration

ationmeetingsand

hearingsareheldinprivateandtheproceedings,decisionsandawardsareconfidentialto

thetwopartiesinvolvedandtheappointedarbitrators.

Arbitrationisinexpensive,andcanbearapidsolutioneventodisputesinvolvingvery

largesumsofmoney..

sterthan

dingunnecessarilylengthyarguments,andbymanagingthe

proceedingsinanefficientway,arbitrationcansavethepartiesbothtimeandexpen.

ArbitrationisimpartialandconductedbyFCCArbitrators,whoareMembersofthe

Federationandactiveinthetradeofcocoabeansand/itratorsare

sthaveanin-depth

ust

attendtrainingcoursandannualworkshopstokeepthemabreastwithcurrentmarket

andarbitrationissues.

scanbeassistedby

othertradeexpertswiththeprentationoftheirsubmissionsorreprentationata

wish,partiescanappointlawyerstoadvithem,howeverlawyersare

notpermittedtoreprentthepartiesatahearingunlesspermittedbythearbitrators.

©FCC

4

Issued:2015

TheArbitrationProcess

Atitssimplest,thearbitrationprocessisasfollows:

TheClaimantnotifiestheRespondentandtheFederationofanapplicationforFCC

arbitrationwithinthetimelimitsstipulatedinthecontractrules

IfrequestedbytheSecretary,theClaimantdepositswiththeFederationasumspecified

bytheFCConaccountofthecosts,feesandexpensofthearbitration.

ThedisputeisheardbyaTribunalofthreearbitratorsappointedbytheFCC.

TheClaimantdrawsupsubmissionsdetailinghisclaimandwhatheexpectsfromthe

TribunalandndstotheFCCwithinthetimelimitsstipulatedintheArbitration&Appeal

Rules.

TheRespondentdrawsupsubmissionsdetailinghisdefenceandcounterclaim,ifany,

andndstotheFCCwithinthetimelimitsstipulatedintheArbitration&AppealRules.

TheClaimantdrawsupsubmissionsdetailinghisreplytotheRespondent’sstatementof

defenceanddefencetocounterclaim,ifany.

TheFCCndachparty’ssubmissionstotheTribunalandtotheotherparty.

TheTribunalhasdiscretiontoacceptadditionalsubmissionsanddocumentaryevidence

fromtheparties.

Ingeneral,themajorityofarbitrationsaredeterminedwithoutanoralhearingwhichisnot

compulsorybutmayberequestedeitherbytheTribunalortheparties.

ThedecisionofthetribunalshallbemadeandissuedinwritingasanAward.

EitherpartymayappealagainstanAward.

OnceanappealislodgedwithinthetimelimitsstipulatedintheArbitration&Appeal

Rules,aBoardofAppealwillbeappointedbytheFederationtohearthedisputeadopting

rdofaBoardofAppeal,

whetherconfirming,varying,amendingorttingasidetheTribunal’sAwardisfinaland

snorightofappealfollowinganAppealAward.

TherearecleartimelimitstoutintheFCCArbitration&AppealRuleswithinwhicha

claimforarbitrationcanbemade,arbitratorsappointed,submissionslodged,andan

ailedarbitrationprocessistoutintheFCC

Arbitration&AppealRulesavailabletomembersfromtheFCCwebsite.

©FCC

5

Issued:2015

HowdoesFCCArbitrationwork?

Whenthereisadisputethepartywithaclaim(Claimant)advistheotherparty

(Respondent)thattheyarereferringthedisputeforttlementbyarbitration.

TheClaimantthenpreparesastatementofcawiththedetailsofhisdispute,together

withallsupportingdocuments.

Inreply,theRespondentprepareshisstatementofdefence,andwithsupporting

evidence,ndscopiestotheFCC.

TheClaimantthenhasanotheropportunitytoreplytotheRespondent’sdefenceand

providefurtherevidenceonanynewpointsraidintheRespondent’ssubmissions.

Inorderforthearbitrationtoproceed,theclaimandthesubmissionofdocumentsmust

bemadeinaccordancewiththetimelimitstoutintheFCCArbitration&AppealRules.

TheFCChasatwo-tierarbitrationrvice–tierone(ArbitrationbeforeaTribunal);tier

two(AppealbeforeaBoardofAppeal).

ArbitrationbeforeaTribunal

TheprocedureapplicabletoarbitrationbeforeaTribunalistoutinPart2oftheFCC

Arbitration&appointsall3arbitratorsfromtheArbitration&

AppealPanellistpublishedontheFCCwebsite.

TheFederationaimstohaveanarbitrationdecision(“theaward”)within4to5monthsof

ationsaremainlydealtwithbythearbitratorson

thebasisofthewrittendocumentssubmittedwithouttheneedforthepartiesortheir

itratorswilldeterminethedispute

yment

bytheClaimantofthecosts,feesandexpensoftheFederationandthearbitrators,the

awardisthenpublishedtobothparties.

AppealbeforeaBoardofAppeal

EachpartyhastherighttoappealagainsttheawardmadebyaTribunal,withinthetime

limitsstipulatedintheArbitration&AppealRulesprovidedthatpaymentofthefeesand

expensoftheFederationandtheArbitratorshavebeenpaid.

TheFCCappoints3membersoftheArbitration&AppealPaneltoconstitutetheBoardof

Appealthatwilldeterminethedisputereferredtothem.

tiescannotassumethat

evidenceorinformationproducedatthearbitrationstageisavailabletotheBoard.

Anappealisusuallymoreformalthananarbitrationbutmayneverthelessproceedand

rinmorecomplexcas,itis

necessaryforthepartiesortheirreprentativestoprentoralevidenceand/ororal

submissionsandtheBoardofAppealshallfixoneormoredatesforahearingforthis

©FCC

6

Issued:2015

purpo.

TheAwardoftheBoardofAppealshallbeconclusiveandbindingontheparties.

Howareawardnforced?

r,ifapartyrefustottlethe

finalaward,theFCCCouncilwillinformallofitsmembersworldwideandpublishonthe

websitethatthepartyhasfailedtocomplywiththeaward.

Awardscanalsobeenforcedunderthe1958NewYorkConventionwhichconcerns

entthereareover145signatorycountriestothe

ansthatingeneral,arbitrationawardsrenderedinone

countrywillbeenforcedinanothersignatorycountrythroughtheirlegalsystem.