Additional procedures for on-line arbitration (on-line Rules)
PART I
Introduction
Sec. 1
(1) The purpose of „the Additional procedures for on-line arbitration“ (hereinafter referred to as „on-line rules“) is to facilitate arbitral proceedings to be conducted and dispute to be resolved via the Internet, where the parties have agreed to arbitration under these on-line rules.
(2) These Rules provide for all party submissions to be made online, the arbitral proceedings to be conducted on-line and the arbitral award to be rendered on-line, via the Internet.
(3) For the purpose of these Rules, the Arbitration Court refers to the Arbitration Court attached to the Economic Chamber of the Czech Republic and the Agricultural Chamber of the Czech Republic (hereinafter referred to as „the Arbitration Court“).
(4) The Rules refer to the Rules and Principles governing the Costs of Arbitral Proceedings applied to the domestic disputes of the Arbitration Court attached to the Economic Chamber of the Czech Republic and the Agricultural Chamber of the Czech Republic (hereinafter referred to as „the Rules“).
(5) These on-line Rules are an integral part of the Rules.
PART II
Definitions
Sec. 2
a) Administrative Site refers to the address of the Arbitration Court applied in the on-line arbitral proceedings on the Internet site www.arbcourtonline.cz. At the Administrative Site, parties may initiate arbitration under these on-line Rules and pay all the fees related to the conduct of the on-line arbitral proceedings by the Arbitration Court. The Administrative Site also provides Principles governing the Costs of on-line arbitral proceedings, renders guidelines regarding the format of submissions as well as other important information applicable to the procedures in the arbitral proceedings conducted under these on-line Rules. The acts at the Adminitrative Site are undertaken by the Secretary of the Arbitration Court attached to the Economic Chamber of the Czech Republic and the Agricultural Chamber of the Czech Republic (hereinafter referred to as „the Secretary“).
b) Administration refers to the activities exercised by the Arbitration Court in the proceedings according to these on-line Rules.
c) Arbitrator refers to a sole arbitrator appointed by the Chairman of the Arbitration Court according to the Rules.
d) Case site refers to a unique Internet address (site) exclusively established at the Administrative Site to conduct a particular dispute, to file all of the parties´ submissions, as well as all of the arbitrator´s decisions and to maintain all documents in an electronic form related to the dispute. No one other than the parties and the Arbitration Court shall have access to the Case Site.
e) Hearing led under the on-line Rules refers to the hearing led under the Rules.
f) Internet and on-line are interchangeably used terms referring to the world-wide electronic on-line medium.
g) Portal terms shall refer to the terms and conditions of use of the Administrative Site and the Case Site (concerning the publication of the Rules, on-line Rules and other terms and technical specification and conditions of conduct of the on-line arbitral proceedings by exposing it on the Web portal of the Arbitration Court). The Portal terms are set by the Arbitration Court.
h) Submit refers to filing of the Statement of Claim, the Statement of Defence, the prospective Counterclaim, to submitting of evidence, all of the other submissions and notifications, as well as to all other acts undertaken in the on-line arbitral proceedings under these on-line Rules by means of electronic transmittal, to the Administrative Site or the Case Site.
i) Writing refers not only to a document in its written form but also to a form of an „electronic record“ as well as a form of a document, which implies any form of a record, including data message.
PART III
Proceedings
Sec. 3
Principles of the use of the on-line Rules
(1) The parties which have agreed in a valid arbitration agreement (arbitration clause, or compromissum) to apply these on-line Rules and to submit to on-line arbitration at the Arbitration Court, shall be parties to the dispute.
(2) These on-line Rules shall apply to the on-line arbitral proceedings from its commencement.
(3) When applying the on-line Rules, the parties and the Arbitration Court are supposed to use exclusively Internet means of communication. All submissions and documents in the proceedings shall be transmitted and served by that means. The arbitrator may allow other means, provided that it is technically impossible.
(4) The Arbitration Court may decide, that the arbitral proceedings shall not be conducted under the on-line Rules where a party obviously lacks the capacity to participate in the arbitration in accordance with the on-line Rules (especially concerning the technical terms and conditions), or where the Arbitration Court otherwise finds, in its discretion, that an arbitration should not be conducted under the on-line Rules. The Arbitration Court shall issue a ruling (order) thereof. In the event that the Arbitration Court makes such a determination, the arbitration shall be conducted following the date of the issue of such a ruling (order) in accordance with the Rules. All acts properly undertaken till that date shall remain valid. Unless the arbitrator has been already appointed, the Chairman of the Arbitration Court shall be authorized to issue such a ruling (order).
(5) By agreeing to the on-line Rules, the parties expressly agree to the Portal Terms of the Arbitration Court in effect at the time of commencement of the on-line arbitration. By accepting the on-line Rules, the parties thereby authorize the Arbitration Court to administer the arbitration.
Sec. 4
Service and calculation of time periods
(1) All submissions provided for under these Rules shall be deemed to have been served when received by the Arbitration Court. The date and time of receipt shall be that stated in the confirmatory e-mail sent by the Arbitration Court to the party making the submission.
(2) For the purposes of calculating a period of time under these on-line Rules, such period shall begin to run from the date of receipt of a submission by the Arbitration Court.
Sec. 5
Statement of Claim
(1) The Claimant shall initiate the on-line arbitration by submitting to the Administrative Site a Statement of Claim.
(2) In addition to the terms under Section 17 of the Rules, the Statement of Claim shall
further contain:
a) the reference to the parties´ arbitration agreement on dispute resolution by electronic
means;
b) the indication of evidence;
c) the e-mail address of the Claimant, for the purpose of the communication with the
Arbitration Court;
d) the last known valid e-mail address of the Defendant; andpostal addresses, and telephone
and facsimile numbers of the parties (the Claimant and the Defendant).
(3) The Clamant shall submit the evidence together with the Statement of Claim.
(4) The Claimant shall pay the arbitration fee within five days of submitting the Statement of Claim (Counterclaim) to the Administrative Site. Such fee may be paid electronically or by other emthod prescribed by the Arbitration Court.
Sec. 6
Notification of the Statement of Claim
(1) Upon receipt of the arbitration fee, the Arbitration Court shall review the Statement of Claim to ascertain whether it complies with the terms and conditions of the on-line Rules.
(2) Once, the ruling (order) under Section 3 paragraph 4 of the on-line Rules shall not be issued, the Arbitration Court shall, within five business days, establish a Case Site upon which the Statement of Claim shall immerdiately be made available to the parties. At the same time, the Arbitration Court shall notify the parties by e-mail of the Internet address for the Case Site, as well as the access parameters (login and password) of the Case Site.
(3) If the Arbitration Court finds that notification of the Statement of Claim and of the disclosure of the Case Site to the Defendant via e-mail is not possible, it shall proceed according to Section 3 paragraph 4 of the on-line Rules.
Sec. 7
Time period for the response of the Defendant to the Statement of Claim
Within ten days following the notification of the establishment of the Case Site, the Defendant shall be free to submit a Statement of Defence.
Sec. 8
Time period for the response to the Counterclaim
Where the Defendant has submitted a Counterclaim, the Claimant shall be free to submit a Statement of Defence to the Counterclaim within ten days following the notification of the Counterclaim.
Sec. 9
Extension of Time period
(1) The Arbitration Court may, for good cause shown, extend the period of time for either party to submit its statement to the submission of the other party for the necessarily needed time period, differently from these Rules in such an extent not to frustrate the purpose of this proceedings.
(2) Any such request on extension of the time period shall be submitted to the Case Site.
Sec. 10
Language of the arbitral proceedings
The proceedings shall be held and decisions shall be made in Czech (or Slovak) language. Upon an approval of the Arbitration Court, the proceedings may be held in other language than in Czech (or Slovak) under the conditions set by the Principles governing the Costs of arbitral proceedings (Section 41 of the Rules).
Sec. 11
Place of arbitral award
The place of rendering the arbitral award shall be the seat of the Arbitration Court in Prague.
Sec. 12
Signing the arbitral award
The arbitral award shall be signed by the arbitrator according to Section 2 subparagraph b), Section 3 and Section 4 of the Act No. 227 of 2000 Coll., on the electronic signature.
Sec. 13
Communication of the arbitral award to the Parties
(1) The Arbitration Court shall render the arbitral award by submitting it to the Case Site. The arbitral award shall be deemed to have been made when submitted to the Case Site. That date shall be stated in the arbitral award as well as in the confirmatory e-mail sent to the parties notifying them that the arbitral award has been submitted. The Case Site shall remain available to the parties for thirty days from the date upon which the arbitral award was submitted. After the expiry of that time period the Case Site shall be made unavailable.
(2) Upon application of a party the Arbitration Court shall render the arbitral award in writing as well. The signature of the Secretary on the arbitral award in writing shall verify its authenticity as well as the signature of the arbitrator.
PART IV
Other provisions
Sec. 14
Communication between the parties and the Arbitration Court
The Arbitration Court announces the e-mail address
e-mail: online@arbcourt.cz
for the purpose of the communication between the parties and the Arbitration Court, respectively between the arbitrator and the Arbitration Court, which shall not be deemed as a submission.
Sec. 15
Providing copies from the documentation (files) led by the Arbitration Court
(1) The parties may at any time request the Arbitration Court to render a certain document filed at the Case Site in writting as well.
(2) The authenticity of the copy of a document in writing according to paragraph 1 of the present Section shall be verified by the Secretary of the Arbitration Court. According to the Principles governing the Costs of on-line arbitral proceedings there is a fee for providing such a copy.
Prague, 1 June 2004
JUDr. Bohuslav Klein
Chairman of the Arbitration Court
Recommended word of arbitration clauses in case of on-line
arbitration of the Arbitration Court attached to the Economic Chamber of the Czech Republic and the
Agricultural Chamber of the Czech Republic:
All disputes arising from the present contract and in connection with it shall be finally decided with the Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic by one arbitrator appointed by the Chairman of that Arbitration Court in accordance with the on-line Rules of that Arbitration Court.
The parties select the following e-mail addresses for the conduct of the on-line arbitral proceedings:
..................................................
..................................................
The present arbitration agreement is an integral part of the contract No ............. dated ............. agreed between the parties.
Prague ..................................
...........................................................
...........................................................
signature of the contracting party
signature of the contracting party
Principles Governing the Costs of on-line Arbitral Proceedings
(Annex to the on-line Rules)
Sec. 1
Costs of Arbitral Proceedings
(1) The costs of on-line arbitral proceedings shall include:
(a) the fees of arbitral proceedings (arbitration fees) in accordance with Secs. 2 and
3 of these Rules,
(b) specific costs incurred by the Arbitration Court, and
(c) proper costs incurred by the parties.
(2) The arbitration fees in accordance with paragraph 1 lit. a) of the present Section shall partly cover the general costs connected with the Arbitration Court activities. An arbitration fee shall be collected in respect of any dispute commenced.
(3) Specific costs incurred by the Arbitration Court are costs incurred pending the individual case for taking evidence, paying the remuneration to the expert witnesses, holding hearings outside the seat of the Arbitration Court, making translations of documents, paying the fees of interpreters, travelling costs of arbitrators, etc. These specific costs shall be paid in amounts, actually incurred.
(4) The proper expenditures of the parties (proper costs) shall be the expenditures incurred by the parties in connection with defending their interests (travelling costs, fees of their counsels, etc.).
Sec. 2
Determination and Payment of Arbitration Fees
(1) In consideration of the Arbitration Court trying the case, an arbitration fee, calculated on the value of the subject-matter of the claim shall be collected. This fee shall be paid by the Plaintiff when filing his Statement of Claim. Similarly, the Defendant filing a counterclaim or raising a plea of set-off under Sec. 28 paragraph (3) of the Rules of the Arbitration Court shall pay the arbitration fee. Until the arbitration fee is paid, the Statement of claim or the counterclaim, as the case may be, or the plea of a set-off shall not be tried; if the arbitration fee is not paid even in an additional period of time, the arbitration proceedings shall be discontinued.
(2) The third party, whose participation was admitted under Sec.13 paragraph 1 of the Rules, is also obliged to pay the arbitral fee based on the value of the subject of the dispute. Until the third party pays this fee, he shall not be admitted to the trial of the case.
(3) The amount of the arbitration fee shall be determined in dependence of the value of the claim in Czech crowns (CZK), in accordance with the tariff of the arbitration fees, attached hereto as Schedule hereof. The amount of the arbitration fee of the third party amounts to one third of the amount of the arbitration fee of a regular party according to that Schedule, however, at least to the minimum amount of the fee according to the Schedule.
(4) If the documents underlying the dispute are not in Czech or if a decision is being made in any other language than in Czech (or Slovak) language according to Section 7 of the Rules, the arbitration fee shall be increased by 100%. Until the increased arbitration fee is paid, the matter shall not be tried.
(5) The arbitration fee shall be deemed to be paid upon its being received by the Arbitration Court or upon its being credited to its banking account.
(6) In case the arbitrator issues the ruling (order) according to Section 3 paragraph 4 of the on-line Rules, the Claimant shall pay the remainder of the amount of the arbitration fee determined in accordance with the Schedule of costs of arbitral proceedings regarding domestic disputes within a period set by the Secretary of the Court, or by the arbitrator, otherwise without delay following the receipt.
Sec. 3
Arbitration Fee in Case of Counter-claim or in Respect of Pleas of Set-Off
(1) The same provisions governing the arbitration fee in case of the main claim being brought in the Arbitration Court shall apply to any counter-claims, too.
(2) Similarly, the same provisions governing the arbitration fee payable for the main claim (statement of claim) shall apply to the raised plea of set-off under Sec. 28 paragraph (3) of the Rules. The defendants, raising the plea of set-off under said Section 28 paragraph 3 of the Rules shall pay the fee, calculated on hand of the value of the claim set-off in accordance with the Schedule. Unless the fee is paid, the plea of set-off shall not be tried. If the fee is not paid even within an extended term, the proceedings in respect of the plea of set-off shall be discontinued.
Sec. 4
Splitting of the Arbitration Fee
(1) The arbitration fee shall, as a rule, be borne by the party who loses the case.
(2) If the Plaintiff is succesful only partially, the arbitration fee shall be split between the parties in a proportion corresponding to the awarded and rejected part of the relief sought.
(3) Parties shall be free to agree on a manner of splitting the arbitration fee between themselves otherwise than provided in paragraphs (1) and (2) of the present Section.
Sec. 5
Specific Costs
(1) In addition, the parties shall advance reasonable funds to the Arbitration Court to cover specific costs of the Arbitration Court under Sec. 1 paragraph (3) hereof incurred in trying individual cases. Such advances have to be paid within the term and in the amount determined by the arbitrator, or the Secretary. This duty may be imposed on one single party only who initiated such costs or, if same are incurred for its benefit. Unless the advance determined is paid, steps for the coverage of which it is destined shall not be carried out.
(2) If, pending the proceedings, an increase of the advance for specific costs becomes necessary because the amount thereof set forth as per paragraph (1) of the present Section is unable to cover same, the parties or the party, who initiated the costs or for whose benefit they are being incurred, shall, upon request of the arbitrator or the Secretary, pay (even repeatedly) further advances within the term fixed. If no such monies are advanced, the last sentence of paragraph (1) of the present Section shall apply accordingly.
(3) The final decision on specific costs shall be taken in the arbitral award or the ruling (order) of discontinuance (Sec. 33 of the Rules). Sec. 4 hereof, on splitting of the arbitration fee shall govern the duty to pay said specific costs accordingly, save for the exceptions in paragraphs (4) of the present Section.
(4) Specific costs incurred by the Arbitration Court regarding the interpreters or translators services into a language other than the language in which the proceedings are conducted, shall be borne by the party having made the request.
Sec. 6
Proper Costs of the Parties
As a rule, each party shall bear itself the costs incurred by it. In the arbitral award or the ruling (order) of discontinuance a coverage of these costs in a common amount may be adjudicated to such party, as a rule according to the success in the dispute.
Sec. 7
Exceptions
As exception from the provisions set forth in Secs. 4 hereof, the Arbitration Court shall be free to impose a duty to pay the costs of the other party incurred by it in vain as result of unnecessary of reckless steps by that party. Such unnecessary or reckless steps shall mean steps causing unnecessary costs to the other party in connection with taking steps in the proceedings that were unnecessary, particularly by circumstances leading to unjustified prolongation of the proceedings.
Sec. 8
Providing copies
There is a fee for providing copies of documents in writing according to Section 15 paragraph (2) of the on-line Rules, which amounts to 20,-CZK per each authenticated copy of a page of a document in the sheet size of the A4 format.
Sec. 9
Schedule of Costs
The Schedule of Costs of Arbitral Proceedings shall form an integral part of the present Principles.
Sec. 10
Validity and Effectivity
The present Principles Governing the Costs of on-line Arbitral Proceedings shall enter into force and shall be effective as of June 1st, 2004.
Schedule of Costs of on-line Arbitral Proceedings
(Annex to the principles governing the costs of on-line arbitral proceedings)
Arbitration fee 3 % from the value in dispute (sub. Section 18 of the Rules), however at
least
3 000,-CZK, at most 1 000 000,-CZK.