Western and Central Africa
Eastern and Southern Africa
Eastern Europe and Central Asia
ARBITRATION RULES FOR THE ADDIS ABABA
CHAMBER OF COMMERCEArbitration Rules For AACC ARBITRATION
I. PRELIMINARY PROVISIONS
Article 1. Submission for Arbitration
1. Where the parties to a contract have agreed in
writing that disputes in relation to that contract shall be settled
by Arbitration in accordance with the Rules of the Addis Ababa
Chamber of Commerce Arbitration Institute (hereinafter referred to
as the " Institute"), then such disputes shall be settled in
accordance with these rules and amendments thereof.
2. The Rules applicable to the arbitration shall be
those in force at the time of the commencement of the arbitration
unless the parties have agreed otherwise.
Article 2. Provision of
The Institute shall, at the request of either
party, make available or arrange for such facilities and assistance
for the conduct of arbitration proceedings as may be required,
including suitable accommodation for sittings of the arbitral
tribunal, secretarial assistance and other facilities within the
capability of the Institute.
Where the parties have designated the institute as an appointing
authority of arbitrators for an ad-hoc arbitration, the Institute
shall fix the fees for such service.
II. INITIATION OF
Article 3. Request for
1. Parties who may wish to make use of the
facilities provided by the Institute should make a written request
to it that the parties have entered into a written arbitration
agreement. In such written arbitration agreement, the parties shall
indicate to submit to arbitration all or certain disputes which
have arisen or which may arise between them in respect of a defined
legal relationship, whether contractual or not. This arbitration
agreement may be in the form of an arbitration clause in a contract
or in the form of a separate agreement.
2. The arbitration clause may be stated as "any
disputes, controversies or claim arising out of or relating to this
contract, or the breach, termination or invalidity or any
subsequent amendment of this contract thereof, shall be settled by
arbitration in accordance with the Arbitration rules of AACC
Arbitration Institute as at present in force. In addition, parties
may wish to consider: a) appointing authority, b) number of
arbitrators, c) place of arbitration and d) language of
3. Such an agreement may be incorporated in a
contract between the parties out of which the dispute has arisen or
by a separate agreement, which the parties enter into.Article 4. Statement of claim
1.The claimant shall satisfy the
following requirements when submitting his applications for
i. an application for arbitration in writing shall be
submitted and the following shall be specified in the application
· the name and address of the claimant and those
of the respondent, including the telephone, fax, email or other
communication means, if any;
· the arbitration agreement relied upon by the
the facts of the case and the main points of dispute;
the claimant's claim and the facts and reasons on which his claim
· the name and address of the arbitrator
designated by the claimant where more than one arbitrator is to be
· name and address of an attorney, if any while
attaching at the same time power of attorney.
· The application for arbitration shall be signed
and/or stamped by the claimant and/or the attorney authorized by
ii. when an application for arbitration is
submitted to the Institute, the relevant documentary evidence on
which the claimant's claim is based shall accompany the application
iii. the claimant shall pay in advance the fee specified under
Article __ and Annex ___ of this rule.
2. When the Secretariat of the Institute,
after examination of the application for arbitration, deems that
the claimant has not completed the formalities required for
arbitration, it shall demand the claimant to complete them, and
when the secretariat deems that the claimant has completed the
formalities, it shall immediately send to the respondent a notice
of arbitration together with one copy each of the claimant's
application for arbitration and its attachment as well as the
arbitration rules, the list of arbitrators and the arbitration fee
schedule of the arbitration commission, and shall simultaneously
send to the claimant one copy each of the notice of arbitration,
the arbitration rules, the list of arbitrators and arbitration fee
Article 5. Statement of defense and of
1. The respondent shall, within 45 days from the
date of receipt of the notice of arbitration, submit his written
defense, appoint his arbitrator if more than one arbitrator is to
be designated, and attach relevant documentary evidence to the
2. The Institute may extend that the time limit if
it deems that there are justified reasons.
3. When lodging a counterclaim, the respondent must
state in his written statement of counterclaim his specific claim,
the facts and reasons upon which his claim is based, and attach to
his written statement of counterclaim, the arbitration agreement
and other relevant documentary evidence.
When lodging a counterclaim, the respondent shall pay the required
fee in advance according to the arbitration fee schedule of the
Article 6. Amendments to Claims and
4. The claimant may request to amend his claim and
the respondent may request to amend his counterclaim. Yet the
arbitration tribunal may refuse such an amendment if it considers
that it is too late to raise the request and the amendment may
affect the arbitration proceedings.
5. The arbitration proceedings shall not be
affected in case the respondent fails to file his defense in
writing or the claimant fails to submit his written defense against
the respondent's counterclaim.
III. COMPOSITION OF THE ARBITRAL
Article 7. Number of Arbitrators and manner of their
1. The parties are free to determine the number of
arbitrators. Where the parties have not agreed on the number of
arbitrators, the arbitral tribunal shall consist of three
arbitrators, unless the Institute, taking into account, inter alia,
the complexity of the case, the amount in dispute and other
circumstances, decides that the dispute is to be settled by a sole
2. Where the arbitral tribunal shall consist of
more than one arbitrator, each party shall appoint an arbitrator.
Where a party fails to appoint an arbitrator within the period of
time stipulated by the Institute, the Institute may make the
3. Where there are multiple parties on either side
and the dispute is to be decided by more than one arbitrator, the
multiple claimants, jointly, and the multiple respondents, jointly
shall appoint an equal number of arbitrators. If either side fails
to make such joint appointment, the Institute shall make the
appointment for that side. If the circumstances so warrant the
Institute may appoint the entire arbitral tribunal, unless
otherwise agreed by the parties.
4. Where the dispute is to be decided by sole
arbitrator, the parties are to appoint jointly the said arbitrator.
If they fail to do so within 20 days from filing of the statement
of defense, the Institute shall make the appointment, unless
otherwise agreed by the parties.Article 8. Nationality of Arbitrators
If the parties are of different
nationalities, the Institute shall appoint a sole arbitrator or
Chairman of a nationality other than of the parties, unless the
parties have agreed differently or if otherwise deemed appropriate
by the Institute.
Article 9. Impartiality and Independence of
An arbitrator must be impartial and
Before appointment or confirmation, a prospective arbitrator shall
sign a statement of independence and disclose in writing to the
Secretariat any facts or circumstances which might be of such a
nature as to call into question the arbitrator's independence in
the eyes of the parties. The Secretariat shall provide such
information to the parties in writing and fix a time limit for any
comments from them.
An arbitrator who becomes aware of any circumstances, which may
disqualify him, must immediately, in writing, inform the parties
and the other arbitrators thereof.Article 10. Challenge of Arbitrator
5. Where a party wishes to challenge an arbitrator
that party shall send a written statement to the institute stating
the reasons for the challenge.
6. Notification of a challenge must be made within
15 days as from the date on which the arbitrator is appointed or
the allegedly disqualifying circumstance became known to the party.
Failure by a party to notify the Institute of a challenge within
the stipulated period of time will be considered a waiver of the
right to initiate such a challenge.
7. The Institute shall provide the parties and the
arbitrators the opportunity to comment on the challenge.
8. The Institute shall make the final decision on
the challenge. If the Institute finds an arbitrator disqualified,
it shall challenge the arbitrator.
9. A party may challenge the arbitrator appointed
by him only for reasons of which he becomes aware after the
appointment has been made.
Article 11. Removal of
10. Where an arbitrator is prevented from de facto
fulfilling his duties or fails to perform his functions in adequate
manner, the Institute shall remove the arbitrator
11. Before removing an arbitrator, the Institute shall
request the views of the parties and the arbitrators.
Article 12. Replacement of
1. Where an arbitrator appointed by a party dies,
the party in question shall appoint another arbitrator. Where an
arbitrator appointed by the Institute dies, the Institute shall
appoint another arbitrator.
2. Where an arbitrator resigns or is removed, the
Institute shall appoint another arbitrator. If the arbitrator had
been appointed by a party, the Institute shall request the views of
the appointing party. Where the Arbitral Tribunal consists of three
or more arbitrators, the Institute may decide that the remaining
arbitrators shall proceed with the case. Prior to making such a
decision, the views of the parties and the arbitrators shall be
3. An Arbitrator shall be replaced upon his death,
upon the acceptance by the court of Arbitrator's resignation, upon
acceptance by the Court of a challenge or upon the request of all
4. An arbitrator shall also be replaced on the
Court's own initiative when it decides that he is prevented de jure
or de facto from fulfilling his functions, or that he is not
fulfilling his functions, or that he is not fulfilling functions in
accordance with the Rules or within the prescribed time
5. When, on the basis of information that has come
to its attention, the Court considers applying Article 12(2), it
shall decide on the matter after the arbitrator concerned, the
parties and any other members of the Arbitral Tribunal have had an
opportunity to comment in writing within a suitable period of time.
Such comments shall be communicated to the parties and to the
6. When an arbitrator is to be replaced, the Court
has discretion to decide whether or not to follow the original
nominating process. Once reconstituted, and after having invited
the parties to comment, the Arbitral Tribunal shall determine if
and to what extent prior proceedings shall be repeated before the
reconstituted Arbitral Tribunal.
7. Subsequent to the closing of the proceedings,
instead of replacing an arbitrator who has died or been removed by
the Court pursuant to paragraph 3 and 4 of this Article, the Court
may decide, when it considers it appropriate, that the remaining
arbitrators shall continue the arbitration. In making such
determination, the Court shall take into account the views of the
remaining arbitrators and of the parties and such other matters
that it considers appropriate in the circumstancesIV. ARBITRAL PROCEEDINGS
Article 13. General
1. Subject to these Rules, the arbitral tribunal
may conduct the arbitration in such manner as it considers
appropriate, provided that the parties are treated with equality
and that at any stage of the proceedings each party is given a full
opportunity of presenting his case.
2. If either party so requests at any stage of the
proceedings, the arbitral tribunal shall hold hearings for the
presentation of evidence by witnesses, including expert witness, or
for oral argument. In the absence of such a request, the arbitral
tribunal shall decide whether to hold such hearings or whether the
proceedings shall be conducted on the basis of documents and other
3. All documents or information supplied to the
arbitral tribunal by one party shall at the same time be
communicated by that party to the other party.
4. The Secretariat shall transmit the file to the
Arbitral Tribunal as soon as it has been constituted, provided the
advance on costs requested by the Secretariat at this stage has
Article 14. Place of
1. Unless the parties have agreed upon the place
where the arbitration is to be held, such place shall be determined
by the arbitral tribunal, having regard to the circumstances of the
2. The arbitral tribunal may determine the locale
of the arbitration within the country agreed upon by the parties.
It may hear witness and hold meetings for consultation among its
members at any place it deems appropriate, having regard to the
circumstances of the arbitration.
3. The arbitral tribunal may meet at any place it
deems appropriate for the inspection of goods, other property or
documents. The parties shall be given sufficient notice to enable
them to be present at such inspection.
The award shall be made at the place of arbitration.
Article 15. Language of
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
Article 16. Establishing the Facts of
1. The Arbitral Tribunal shall proceed within as
short a time as possible to establish the facts of the case by all
2. After studying the written submissions of the
parties and all documents relied upon, the Arbitral Tribunal shall
hear the parties together in person if any of them so requests or,
failing such a request, it may of its own motion decide to hear
3. The Arbitral Tribunal may decide to hear
witnesses, experts appointed by the parties or any other person, in
the presence of the parties, or in their absence provided they have
been duly summoned.
4. The Arbitral Tribunal, after having consulted
the parties, may appoint one or more experts, define their terms of
reference and receive their reports. At the request of a party, the
parties shall be given the opportunity by the Tribunal
5. At any time during the proceedings, the Arbitral
Tribunal may summon any party to provide additional
6. The Arbitral Tribunal may decide the case solely
on the documents submitted by the parties unless any of the parties
requests a hearing.
7. The Arbitral Tribunal may take measures for
protecting trade secrets and confidential information.
Article 18. Closing of the
V. THE AWARD
1. When there are three arbitrators, any order or
other decision of the arbitral tribunal shall be made by a majority
of the arbitrators.
2. In the case of questions of procedures, when
there is no majority or when the arbitral tribunal so authorizes,
the presiding arbitrator may decide on his own move, subject to
revision, if any, by the arbitral tribunal.
Article 20. Form and Effect of the
3. In addition to making a final award, the
arbitral tribunal shall be entitled to make interim, interlocutory,
or partial awards.
4. The award shall be made in writing and shall be
final and binding to the parties. The parties waive their right to
appeal against the award.
5. The arbitral tribunal shall state the reasons
upon which the award is based unless the parties have agreed that
no reasons are to be given.
6. An award shall be signed by the arbitrators and
it shall contain the date on which and the place where the award
was made. Where there are three arbitrators and one of them fails
to sign, the award shall state the reason for the absence of the
7. The award may be made public only with the
consent of both parties.
8. Copies of the award signed by the arbitrators
shall be communicated to the parties by the arbitral
If the arbitration law of the country where the award is made
requires that the award be filed or registered by the arbitral
tribunal, the tribunal shall comply with this requirement with in
the period of time required by law.
Article 21. Applicable Law, and
1. In international arbitration, the arbitral
tribunal shall apply the law designated by the parties as
applicable to the substance of the dispute. Failing such
designation by the parties, the arbitral tribunal shall apply the
rules of law which it determines to be appropriate.
2. The arbitral tribunal shall decide as amiable
compositeur or ex aequo et bono only if the parties have expressly
authorized the arbitral tribunal to do so.
3. In all cases, the arbitral tribunal shall decide
in accordance with the terms of the contract and shall take into
account the usages of the trade applicable to the
Article 22. Settlement or other
grounds for termination
1. If, before the award is made, the parties agree
on a settlement of the dispute, the arbitral tribunal shall either
issue an order for the termination of the arbitral proceedings or,
if requested by both parties and accepted by the tribunal, record
the settlement in the form of an arbitral award on agreed terms.
The arbitral tribunal is not obliged to give reasons for such an
2. If, before the award is made, the continuation
of the arbitral proceedings becomes unnecessary or impossible for
any reason not mentioned in paragraph 1, the arbitral tribunal
shall inform the parties of its intention to issue an order for the
termination of the proceedings. The arbitral tribunal shall have
the power to issue such an order unless a party raises justifiable
grounds for objection.
3. Copies of the order for termination of the
arbitral proceedings or of the arbitral award on agreed terms,
signed by the arbitrators, shall be communicated by the arbitral
tribunal to the parties. Where an arbitral award on agreed terms is
made, the provisions of this rule stated under Article 20,
paragraphs 2 and 4 to 7, shall apply.
Article 23. Interpretation of the
4. Within thirty days after the receipt of the
award, either party, with notice to the other party, may request
that the arbitral tribunal give an interpretation of the
5. The interpretation shall be given in writing
within forty-five days after the receipt of the request. The
interpretation shall form part of the award and the provisions of
article 20, paragraphs 2 to 7, shall apply.
Article 24. Correction of the
1. Within thirty days after the receipt of the
award, either party, with notice to the other party, may request
the arbitral tribunal to correct in the award any errors in
computation, any clerical or typographical errors, or any errors of
similar nature. The arbitral tribunal may within thirty days after
the communication of the award make such corrections on its own
2. Such corrections shall be in writing, and the
provisions of Article 20, paragraphs 2 to 7 shall apply.
Article 25. Additional Award
3. Within thirty days after the receipt of the
award, either party, with notice to the other party, may request
the arbitral tribunal to make an additional award as to claims
presented in the arbitral proceedings but omitted from the
4. If the arbitral tribunal considers the request
for an additional award to be justified and considers that the
omission can be rectified without any further hearings or evidence,
it shall complete its award within sixty days after the receipt of
5. When any additional award is made, the
provisions of article 20, paragraphs 2 to 7, shall
VI. COSTS OF
Article 26. Costs of
1. After receipt of the Request, the Secretary
General may request the Claimant to pay a provisional advance in an
amount intended to cover the costs of arbitration until the Terms
of Reference have been drawn up.
2. As soon as practicable, the Institute shall fix
the advance on costs in am amount likely to cover the fees and
expenses of the arbitrators and the Institute's administrative
costs for the claims and counterclaims which have been referred to
it by the parties. This amount may be subject to readjustment at
any time during the arbitration. Where, apart from the claims,
counterclaims are submitted, the Institute may fix separate
advances on costs for the claims and the counterclaims.
3. The advance on costs fixed by the Institute
shall be payable in equal shares by the claimant and the
Respondent. Any provisional advance paid on the basis of Article
26(1) will be considered as a partial payment thereof. However, any
party shall be free to pay the whole of the advance on costs in
respect of the principal claim or the counterclaim should the other
party fail to pay its share. When the Institute has set separate
advances on costs in accordance with Article 26(2), each of the
parties shall pay the advance on costs corresponding to its
4. When a request for an advance on costs has not
been complied with, and after consultation with the Arbitral
Tribunal, the Secretary General may direct the Arbitral Tribunal to
suspend its work and set a time limit, which must be not less than
15 days, on the expiry of which the relevant claims, or
counterclaims, shall be considered as withdrawn. Should the party
in question wish to object to this measure it must take a request
within the aforementioned period for the matter to be decided by
the Institute. Such party shall not be prevented on the ground of
such withdrawal from reintroducing the same claims or counterclaims
at a later date in another proceeding.
5. If one of the parties claims a right to a
set-off with regard to either claims or counterclaims, such set-off
shall be taken into account in determining the advance to cover the
costs of arbitration in the same way as a separate claim insofar as
it may require the Arbitral Tribunal to consider additional
Article 27. Decisions as to the Costs
of the Arbitration
1. The costs of the arbitration shall include the
fees and expenses of the arbitrators and the Institute's
administrative expenses fixed by the Institute, in accordance with
the scale in force at the time of the commencement of the arbitral
proceedings, as well as the fees and expenses of any experts
appointed by the Arbitral Tribunal and the reasonable legal and
other costs incurred by the parties for the arbitration.
The Institute may fix the fees of the arbitrators at a figure
higher or lower than that which would result from the application
of the relevant scale should this be deemed necessary due to the
exceptional circumstances of the case. Decisions on costs other
than those fixed by the Institute may be taken by the Arbitral
Tribunal at any time during the proceedings.
2. The final Award shall fix the costs of the
arbitration and decide which of the parties shall bear them or in
what proportion they shall bear them or in what proportion they
shall be borne by the parties.
Article 28. Fees of
1. The Arbitration Institute shall fix its fees in
accordance with the scale hereinafter set out as Annex 3. Where the
sum is not set out the fees shall be fixed by taking in to
consideration such factors as the complexity of the case, the
diligence of the Arbitrators, the nature of the dispute, length of
hearings, and eminence and standing of the Arbitrators
Article 29. Advance to cover costs of the
1. The Institute shall prepare an estimate of the
costs of Arbitration and may request each party to deposit an equal
amount as an advance for those costs.
2. During the course of the arbitral proceedings
the Institute may request supplementary deposits from the parties
as it is found important and appropriate.
3. If the required deposits are not paid in full
within thirty days after the receipt of the request, the Institute
shall so inform the parties in order that one or another of them
may make the required payment.
4. If such payment is not made, the arbitral
tribunal, after consultation with the Institute, may order the
suspension or termination of the arbitral proceedings.
The Institute may apply the deposits towards disbursements for the
costs of the Arbitration.
5. After the award has been made, the Institute
shall render an accounting to the parties of the deposits received
and return any unexpended balance to the parties