Conflict of laws rules in international arbitration - The 'direct choice' approach - Núm. 11-2, Octubre 2018 - Revista de Estudios Ius Novum - Libros y Revistas - VLEX 791688345

Conflict of laws rules in international arbitration - The 'direct choice' approach

AutorTill Meier
CargoEstudiante de Derecho en Ruprecht-Karls-Universität Heidelberg
Páginas144-170
ISSN 0718-5510 [Impresa] / 2452-4263 [En línea] Revista de Estudios Ius Novum, vol 11 n°2, 2018
CONFLICT OF LAWS RULES IN INTERNATIONAL ARBITRATION [pp.144 170]
Conflict of laws rules in international arbitration
The “direct choice” approach
TILL MEIER1
RESUMEN
Este artículo trata la elección de la ley
aplicable a los méritos de la disputa por
los árbitros. Presenta los métodos
comunes y examina el método d e
“elección directa” como la última
tendencia. Finalmente, se sugiere un
enfoque alternativo para determinar el
derecho sustantivo.
PALABRAS CLAVE
Arbitraje comercial internacional
Elección del derecho por los árbitros El
método de “elección directa”.
ABSTRACT
This article addresses the arbitrators’
selection of the law applicable to the
merits of the dispute. It presents the
common methods and scrutinises the
“direct choice” approach as the latest
trend. Finally, an alternative approach to
determine the substantive law is
illustrated.
KEYWORDS
International commercial arbitration
Choice of law by the arbitrators The
“direct choice” approach.
*1 Estudiante de Derecho en Ruprecht-Karls-Universität Heidelberg, especializada en derecho internacional
privado. El artículo fue escrito como parte de la clase Conflict of Laws“ de Prof. Dr. Geert Van Calster, LL.M.,
Ph.D. mientras estudiaba en KU Leuven en el semestre de verano de 2017.
ISSN 0718-5510 [Impresa] / 2452-4263 [En línea] Revista de Estudios Ius Novum, vol 11 n°2, 2018
CONFLICT OF LAWS RULES IN INTERNATIONAL ARBITRATION [pp.144 170]
I. INTRODUCTION
Parties often choose international arbitration to resolve their disputes because
they a re interested in an efficient, flexible, neutral and enforceable dispute resolution
method.
1
In add ition to these features, arbitration proceedings seek to provide
predictability.
2
Choice of law issues, however, stand in contrast to this consideration.
3
Questions may arise in relation to the law applicable to the arbitral procedure, the
arbitration agreement and the merits of the dispute.
4
The Supreme Court of t he United
States concluded: “A contractual provision [determining the applicable law] is, therefore,
an almost indispensable precondition to achievement of the orderliness and predictability
essential to any international business transaction”.
5
Parties that may be subject to an international arbitration, thus, act in their own
interests when t hey specify the applicable law in advance. This thesis, nonetheless, will
focus on instances where the parties did not agree on the applicable substantive law, in
particular with respect to the substantive law applicable to the merits of the dispute.
6
In
these instances, it falls to the arbitral tribunal to determine the substantive law.
7
This
raises the question what approach the arbitrators can apply to select the applicable law.
During the last decad es, the discretion of arbitrators in that regard has been broadened
tremendously and, hence, has resulted in their choice of law being “virtually unlimited”.
8
This article will shed some light on the selection of the substantive law by
arbitrators. It will give an overview of the most relevant methods that arbitrators have
applied (II.). Then, the “direct choice” approach, as t he most recent approach, will be
examined (III.). Finally, this thesis will suggest an alternative procedure for arbitrators to
determine the substantive law (IV.) and conclude by summarising all relevant findings
(V.).
1
LEW, Loukas A.; MISTELIS, Julian D. M., Comparative International Commercial Arbitration (Boston, London and
The Hague, Kluwer International Law, 2003), paras. 1.15-1.30.
2
BORN, Gary B., International Commercial Arbitration (2nd edition, Boston, London and The Hague, Kluwer
International Law, 2014), p. 2615.
3
Ibid., p. 2616.
4
Ibid., p. 2617.
5
SCHERK V. ALBERTO-CULVER CO., 417 U.S. 506, 516 et seq. (1974).
6
Hereinafter, “substantive law” refers to the substantive law applicable to the merits of the dispute. Aside from
this, questions may also arise in relation to the substantive law applicable to the parties’ arbitration agreement.
7
HAGUE CONFERENCE ON PRIVATE INTERNATIONAL LAW, Feasibility Study on the Choice of Law in International
Contracts Special Focus on International Arbitration (The Hague, 2007), para. 27; JONES, Doug, Choosing the Law or
Rules of Law to Govern the Substantive Rights of the Parties (26th volume, Singapore, Singapore Academy of Law
Journal, 2014), p. 911.
8
FOUCHARD, Philippe; GAILLARD, Emmanuel; GOLDMAN, Berthold, International Commercial Arbitration
(Boston, London and The Hague, Kluwer International Law, 1999), p. 864.

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