[From Singapore Office]NEW SIAC ARBITRATION RULES TO COME INTO EFFECT IN 2025 Part 2 Focus on Settlement, and Enhanced Procedure for Arbitrator Appointment

Mediation and Settlement

The SIAC has long been a supporter of the amicable resolution of disputes. When the Singapore International Mediation Centre (“SIMC”) was first established in 2014, a new “Arb-Med-Arb” protocol was set up through the collaboration of the SIAC and the SIMC, to encourage parties to explore settling their disputes through mediation at the SIMC, within the SIAC arbitration framework (the “AMA Protocol”).

Now the New Rules seek to further emphasise the role of mediation for settlement in the arbitration process by referring to amicable dispute resolution, whether via the AMA Protocol or otherwise, at various junctures from the outset:

Under the New Rules, therefore, parties are prompted from an early stage to consider the settlement of their disputes via amicable dispute resolution, and the Tribunal is also encouraged to discuss the possibility of settlement with the parties. Further, the Tribunal is expressly empowered to assist parties who are exploring alternative means of dispute resolution by suspending arbitral proceedings pending such endeavours. While these references to settlement are non-mandatory in nature, they nonetheless signal and facilitate settlement possibilities within the framework of arbitration, which is welcome.

Arbitrator Appointment and Removal

The New Rules have also enhanced the fairness and transparency of appointment and removal of arbitrators as follows:

1. Nationality of arbitrator. Under Rule 19.7, where the parties are of different nationalities, the sole arbitrator or presiding arbitrator (in the case of 3 arbitrators) must be of a different nationality, unless parties agree or SIAC determines otherwise.
2. Unequal appointment procedure. Under Rule 19.10, if there is a “substantial risk of unequal treatment that may risk affecting the validity or enforceability of the award” in the parties’ agreed appointment procedure, SIAC may take measures to appoint an independent and impartial Tribunal.
3. SIAC Code of Ethics. The New Rules have incorporated the SIAC Code of Ethics, a set of rules and good practices for arbitrators (e.g. independence, impartiality, conflict of interest, ability to discharge their functions). Rules 20.1 and 29.1(a) require arbitrators to comply with the Code of Ethics, failing which they may be removed.

These enhancements further buttress the neutrality and impartiality of arbitrators and the overall fairness of the arbitration process. This in turn serves to further shield the eventual award from potential challenge as an arbitrator’s lack of impartiality is a potential ground for setting aside the award.※1

Conclusion

The above updates to the SIAC Rules reflect the SIAC’s endeavours in ensuring the most effective resolution of parties’ disputes from both ends: by promoting the use of amicable dispute resolution methods to settle the dispute where possible; and if settlement fails, to safeguard the eventual award.