Western and Central Africa
Eastern and Southern Africa
Eastern Europe and Central Asia
Clause 1- These
rules apply when CAREN has been appointed following an arbitration
clause in a contract or an agreement to arbitrate.
CAREN is responsible for the organisation of
those arbitrations both national and international that are
entrusted to it.
A CAREN Arbitration Committee is responsible for
the organisation and supervision of arbitrations carried out under
CAREN's jurisdiction. A Secretariat exists which
acts as clerk for the arbitration and also provides support for the
Clause 1.1- "Arbitration Committee" or
"Committee" means the Arbitration Committee referred to
Arbitration Agreement" means the agreement whereby CAREN
is given jurisdiction whether by way of an arbitration clause or by
agreement to arbitrate.
Tribunal" is the Arbitrator(s) appointed under
the CAREN rules
Clause 1.2- The time limits mentioned in these rules are in
months. Time expires at midnight on the day of
the final month being the same numbered day of the month as the
event decision or service causing time to run.
In the event that the final month lacks the same numbered day of
the month time will run out on the last day of that
Time that would normally expire on a public
holiday or a non-working day is extended until the first working
Time runs in the case of giving a notice from the date on
which that notice was sent.
Clause 1.3- From
the time when the mission statement referred to in Clause 16 hereof
has been registered with the secretariat the parties' domicile is
as set out therein.
Clause 1.4- All notices or correspondence that are required under
these rules to be effected by the committee or the parties must be
effected by registered post with receipt or by such procedure as
may be the equivalent in the country to which the correspondence is
being sent by post or by any means whereby there is written proof
of a document having been sent and received. The
parties must use the most rapid means of communication
II - Appointment of CAREN as
Clause 2- The parties themselves are responsible for bringing a
matter to arbitration. They are also at liberty
to bring that appointment to an end before it naturally determines
as a result of the Award being made.
Arbitration proceedings are initiated by a
request to arbitrate sent to the secretariat who will date it and
record that it has been registered.
The request must include :
- The family name, personal name, title and
address of the party making the request and where appropriate all
details necessary to identify a body corporate and the names,
Christian names and offices held by the officers acting in the
company's name ;
- The agreement to arbitrate;
- A summary of the dispute;
- The claimant's submission;
- Any submission as to the number of arbitrators
and the manner by which they are to be chosen.
Inadmissible Request for
Clause 3- When the request for arbitration is defective, either
because of the nature of the claim or as a result of the drafting,
and as a result the request fails to establish the existence of an
agreement to arbitrate between the parties or the jurisdiction of
CAREN, the secretariat will ask the respondent for its
If the respondent objects to CAREN's
jurisdiction or does not reply within one month of receipt of the
request for its observation, the secretariat will advise the
claimant that, in the circumstances, arbitration cannot take
The Arbitration Committee will give a ruling on
all such problems.
Service of Notice upon the
Clause 4- When the request for arbitration appears to be in
order, the secretariat will send one copy of the request and the
documents accompanying it to the defendant.
Using the language of the arbitration clause or agreement the
notice will also make reference in the clearest terms to the
provisions of Clause 6 hereof.
Clause 5- Within one month of receipt of this information the
respondent shall notify the secretariat of its requirements
regarding the number of arbitrators and the manner of their
choice. Should it be the case that he accepts
the proposal set out in the request, he may, if need be , appoint
an arbitrator. The respondent shall briefly set
out the grounds for opposing the claimant's case. He may disclose
his documents or raise a counterclaim. The
secretariat will advise the Claimant of the Respondent's
Failure of Respondent to
Clause 6- Arbitration may proceed and an award may be made
despite the objection or non-participation of the
Before the Arbitration Proceedings begin, the
arbitrator will satisfy himself that service has been properly
effected upon the respondent.
PART III -Constitution of the Arbitration
Clause 7- Arbitration can be by one or three
In the following Clauses the expression
nominated arbitrator or the nomination of an arbitrator applies
both to a nomination of an arbitrator by one of the parties or by
the Arbitration Committee.
Appointed arbitrator or the appointment of an
arbitrator refers to an arbitrator who has accepted to act as
Enrolled or Registered Arbitrator means a person
enrolled on the list of CAREN
The jurisdiction of CAREN is deemed to begin
once the last of the arbitrators has been appointed and has
accepted to act as such.
Clause 8-1- When the parties have agreed that the matter shall be
decided by a sole arbitrator they may by agreement appoint an
arbitrator and ask the Committee to confirm such
appointment. In the absence of agreement, the
arbitrator will be appointed by the Arbitration Committee after the
expiry of one month from the date of notification of the request
for arbitration to the respondent.
Clause 8-2- When three arbitrators are to be appointed, each party
in the request for arbitration, or in the reply thereto, shall
nominate an arbitrator for confirmation by the
Should one of the parties fail to do so, that
appointment shall be made by the Committee.
Where there is more than one Respondent or
Claimant, the individuals making up the party shall come to
agreement for a nomination of their arbitrator.
In default of agreement, an arbitrator will be
appointed by the Committee.
The third arbitrator, who shall be chairperson,
is appointed by the Committee unless the parties agreed that the
arbitrators they have nominated shall choose the third arbitrator
within a fixed period of time. In this case the
Committee will approve the appointment of the third
The third arbitrator will be appointed by the
Committee in the event that, at the expiry of the time limits fixed
by the parties or imposed by the Court, the arbitrators nominated
by the parties have not been able to agree on an
Clause 8-3- Where the arbitration agreement does not specify the
number of arbitrators, the Tribunal shall consist of one arbitrator
unless the matters in issue
appear to the Arbitration Committee to justify
the appointment of three arbitrators.
The Parties shall, within one month of the
service of the request for arbitration, take steps to nominate the
arbitrator(s). The Arbitration Committee shall
appoint the arbitrators in default of agreement between
Clause 9- When the nomination of an arbitrator is not effected by
the Arbitration Committee, the arbitrator must be approved by the
Arbitration Committee. In the event that the
Committee do not approve, it must propose a new arbitrator and
submit the arbitrator's name for approval by the party whose
nominee was not approved.
In the event that the party concerned does not
accept the new nominee within one month of nomination, the
Committee will appoint an arbitrator from the CAREN list of
Clause 10-Acceptance of an arbitration
mission shall be expressed in writing and sent to the
This commits the arbitrator to act throughout
the matter up to its conclusion.
The secretariat shall notify all the
parties of the appointment.
Challenging and Dismissal of
Clause 11- Arbitrators must remain independent and impartial
throughout. Any arbitrator nominated who
believes that there may be a reason for his admissibility to be
challenged must notify the parties and the
secretariat. In this case, he can only accept
appointment with the agreement of the parties.
The arbitrator once appointed shall refrain from such acts as shall
in the eyes of the parties raise doubts as to his independence or
to his impartiality. Should such circumstances
arise after the arbitrator has accepted to act he shall immediately
notify the arbitration committee.
Any party can require the Arbitration Committee
to take steps to challenge an arbitrator's
appointment. The request shall be sent to the
secretariat within one month of notification of the appointment of
the arbitrator or within one month of the occurrence of the event
or disclosure of the information or fact relied upon as the reason
for the challenge. The time limits are strict
and must be complied with if a valid request is to be
The Arbitration Committee has an inherent power
to object to an arbitrator who has been appointed when his
independence or his impartiality appears to be in doubt or has been
discovered after his appointment. It has a
further inherent jurisdiction to cancel the appointment of an
arbitrator who is not complying with the terms of his appointment
and who fails to ensure that the arbitration is completed within a
reasonable time. The Committee shall give its
decision after hearing the arbitrator concerned, the parties to the
arbitration and, if the need be and is believed that the same may
be of relevance, the other arbitrators.
When withdrawal or the cancellation of an
appointment of an arbitrator occurs, the Arbitration Committee will
take steps to replace him. The Committee will
propose the name of a new arbitrator for the agreement of the
parties. In the event of failure of the parties
to agree within one month, the Committee will appoint an arbitrator
from the approved list.
Clause 12- Where unforeseen circumstances prevent an arbitrator
from fulfilling his role, the Committee may give notice in writing
to this effect and seek a solution with the agreement of the
parties. Should agreement not be reached within
one month of the date of the said circumstances or their becoming
known, the Committee shall appoint an arbitrator from the approved
Clause 13- If the arbitrator(s) has/have not been appointed within
the three months of the date on which the request for arbitration
was served upon the respondent and, when the arbitration is taking
place in France or where the parties thereto have consented to
French procedural law applying, either party may apply for such
appointment to be made by summons to the President of the Tribunal
de Grande Instance (of Lille) (High Court) ( in Lille ). That same
party shall serve a copy of the summons and the Court's decision
upon the secretariat.
PART IV - The
A. Place of Hearing
Clause 14- Unless the parties decide otherwise, the hearing shall
take place in Lille (France). Nevertheless, the
Committee may decide on another venue in view of the circumstances
of the case.
B. Language of
Clause 15- If the parties have not chosen the applicable language
this will be fixed by the Court taking into account the
circumstances of the case and the language of the
C. Procedure for the
Clause 16- As soon as the Tribunal has been established and the
matters in issue have been set out by the statements of the parties
that follow the request for arbitration and the Respondent's reply,
the Tribunal will set out a statement of the issues in question
which will contain but not exclusively:
- Identification of the parties and of the
- Whether the arbitration is international or
- The address and country of residence chosen by
the parties for the purpose of the proceedings.
- Identifying the matter in issue.
- Setting out such matters as may be relevant to
the choice of law and of procedure and, if the case may be, the
giving of power to the Tribunal to act as mediator (amiable
compositeur) in accordance with clauses 29 and
- Indicating the place where the arbitration
shall take place.
- The language for the arbitration.
- Setting up the time limits for discovery of
documents and schedules of evidence.
- Setting out the time limits applicable under
the two first paragraphs of clause 26 for the making of the
Clause 17-The mission statement shall be
signed by the arbitrators and by the parties to the
If one of the parties refuses to sign, the
tribunal shall draw attention to this refusal, the reasons which
have brought about this refusal and the answer given to these
Once it has been signed and endorsed with the
conditions mentioned in the preceding paragraph, the mission
statement should be dated and sent to the secretariat for the
matter to be listed.
However, should all the parties refuse to
sign, the tribunal will be suspended on pain of the abolition of
this body following a three month period.
Clause 18- The Tribunal is empowered to give a ruling, either at
the request of a party or of its inherent jurisdiction, upon the
existence or the validity of the agreement or of its own
Clause 19- Amendments are permitted during the course of the
arbitration to include related matters that the Tribunal regards as
being linked to the original dispute.
When the Tribunal accepts the amendments, it
will issue a supplemental statement in order that the matters in
issue are clearly set out. The provisions of
clause 17 apply to the amended statement.
Clause 20- A Party may apply to the Arbitration Committee for the
case to be joined with other cases, where such a link exists
between the cases that the proper administration of justice
If joinder is ordered on matters which are in
the same arbitral jurisdiction, then, by virtue of the order, the
Tribunal's jurisdiction is extended to cover all the
If joinder is ordered where more than one
jurisdiction is involved, the order for joinder shall establish a
Tribunal consisting of three arbitrators. The
two arbitrators or the two chairmen of the arbitration bodies
involved shall appoint a third arbitrator from the approved
In the event that it proves impossible to
appoint the third arbitrator within one month of the order, the
order shall lapse.
Rules of Procedure
Clause 21- Rules of procedure shall be in accordance with the law
applicable chosen by the parties and in default of such choice with
the Tribunal's own rules.
country's commercial interests, the
procedure is subject to these rules whenever there is no conflict
with the law of that country.
Clause 22- The hearings shall be in private unless the parties
agree to the contrary.
Clause 23- The arbitration Tribunal shall with the agreement of
the parties, have power to decline to receive oral evidence or oral
admissions whether generally or in respect of such matter as
he/they may specify and to make their determination on the basis of
written submissions only.
Clause 24- The Tribunal shall, in all circumstances, follow the
principles and ensure that the other parties follow the principle
of the right to be heard. No party can be forced
to take part in arbitration proceedings without having been heard
or properly summoned thereto.
The Tribunal may request that parties provide
explanations of facts pleaded in the matter as well as explanations
of the law applicable which the Tribunal considers necessary for
the dispute to be resolved.
The parties shall notify each other of the
evidence upon which they propose to rely to base their claims, and
the documents upon which they will rely and intend to produce and
the precedents and legal arguments upon which they will rely in
order that each one of them can properly prepare their case for the
From the date upon which the arbitration has
been requested, all communications between the parties should be
made via the secretariat or directly but with a copy to the
From the moment of the commencement of the
arbitration, written notices shall be served upon parties at the
address given by them in the mission statement.
Clause 25- The Tribunal may order at a request of a party any
admissible investigation and, in particular, it may appoint any
person of its choice to clarify a question of fact which requires
explanation by an expert.
The Tribunal can also visit sites and take
evidence from parties agreeing thereto.
If one party refuses to attend for a joint meeting with
the other party the Tribunal may draw from the refusal all
No investigation will be ordered under this
clause to make up for a failure in preparing its case by the party
who makes the request.
The Tribunal will restrict such investigations
to those that are sufficient in order to resolve the dispute
between the parties, endeavouring to limit the same to those that
are the most simple and the least burdensome.
Time Limit for the
Clause 26-The Arbitration agreement or a
separate document will impose on the Tribunal the time limits
within which it must deliver its ruling.
Failing the fixing of a time limit, the
arbitration mission shall not last longer than six months from the
date of notification of the acceptance of the last of the
arbitrators to the parties in accordance with Clause 10 of these
The Tribunal may, with the approval of the
Committee, or of its inherent jurisdiction, extend the time limit
under the agreement or the rules for a period of three
months. Such an extension is only permitted
The time limits under the Contract or the rules
may nevertheless always be extended for an unlimited time with the
agreement of the parties.
A party or the Tribunal may always request the
Committee to extend the agreed time limits for a limited
period. The Committee may grant such requests
upon giving reasons if it is satisfied that, for reasons not
attributable to the arbitrators, the termination of the arbitration
proceedings has been delayed.
PART V - INTERIM and PROTECTIVE
Clause 27- Any party may request the tribunal to make interim
orders that may be found necessary concerning the subject matter of
the dispute. The tribunal may require security
for the costs incurred by such interlocutory
Clause 28- The terms of the previous clause nevertheless shall not
prevent a party applying to the appropriate judicial authorities
for interim or protective orders either before the matter has been
submitted to the tribunal or in exceptional circumstances when
extremely urgent during the course of the
hearing. However, an interim payment shall not
be the subject of a request to the judicial authorities once the
tribunal has been seised of the matter.
PART VI - THE
A Decision ex aequo et
Clause 29- The Tribunal may give its ruling as "amiable
compositeur" (ex aequo et bono ) if the arbitration agreement or
subsequent agreement between the parties entitles it so to
Clause 30- Where the subject matter of an arbitration involves
business dealings within one jurisdiction the applicable law is
that of the said country.
Where the arbitration is international the
tribunal will decide the issues in accordance with the law chosen
by the parties. In default of such choice the
tribunal will decide the applicable law under which to decide the
The tribunal will take note in all cases of the
practices usual in any particular trade.
Clause 31- Throughout the arbitration proceedings the parties may,
either of their own initiative or at that of the tribunal reach an
agreement on all or part of the matters in dispute.
The nature of the agreement even if it relates
to part only of the matters in dispute shall be set out in a signed
document and transmitted without delay to the
tribunal. The arbitrators may sign this formal
document. The tribunal may at the request of the
parties make an award based on the agreement between the
parties. Clauses 34 and 35 hereof shall apply to
such an award.
Clause 32- The tribunal can give final awards as well as interim
interlocutory awards limited in their scope.
Such awards are made in writing and shall
contain reasons even when the tribunal gives a ruling in its
capacity as amiable compositeur.
The tribunal may order its award to be
implemented forthwith. The parties undertake to
comply with the award immediately and to act in good faith
expressly agreeing not to follow other courses of
Clause 33- When an award is made by three arbitrators it is a
majority decision. In the event that no majority
can be obtained ( i.e. a tie ) the Chair of the tribunal alone will
make the award having advised the committee of the reasons that
required him to do so.
Clause 34- The draft award must be signed by the arbitrators and
then forwarded to the committee for its endorsement.
of a presentational
nature. It may also draw the attention of the
arbitrators to matters of content.
When the committee's approval has been endorsed
upon an award which has not yet been signed by each of the
arbitrators the absence of such signature shall be
Contents of the
Clause 35- The award shall have endorsed thereon the date and
place where it was given, the name of the arbitrators concerned,
the name surname and titles of the parties concerned as well as
their address or registered office and if appropriate the names of
the lawyers or all other persons who represented or assisted the
The award is then signed by the
It shall not disclose whether the decision was
unanimous, by a majority or decided on the Chair's casting
vote. Any dissenting decision shall not be set
out in the award nor annexed thereto.
Clause 36- The award is secret and shall not be published without
the agreement of the parties. CAREN may publish
details of decisions made in arbitrations effected under its
aegis. Such summaries shall maintain the
anonymity of the parties and will only reveal those facts which may
be necessary for an understanding of the matter and of the decision
which was reached.
PART VII -Rectification and correction of material
errors on appreciation of the facts and for increase or reduction
of quantum of the award
37- The award
brings to an end the tribunal's role in the dispute which it was
asked to decide.
However the tribunal may upon formal request
made by any party be asked to decide matters of interpretation,
correction of material error in order that the award may be
finalised or to reinforce it if the tribunal has failed to make a
decision on every matter put before it or if it has gone beyond the
limit of that which it was required to decide.
The tribunal will give reasons after having heard the
The remedies set out in the preceding paragraph
shall only be admissible within six months of the date of the
award. Material errors and omissions can also be
corrected by the tribunal of its inherent jurisdiction the parties
having been heard or summoned to make representations.
Should it prove impossible to assemble the same
tribunal reference must be made to the provisions of clause 12
The provisions of Clauses 34 and 35 hereof apply
also to the interpretative and corrective
decisions. Such decisions shall require
endorsement by the committee and be registered with the secretary
who shall place them with the original award.
PART VIII -COSTS AND FEES
Clause 38- An administration fee for the arbitration and the fees
of the arbitrators is chargeable in accordance with the CAREN scale
of fees annexed.
When the amount in question has to be evaluated
this is done by the committee as soon as possible after the date of
filing the mission statement by the secretariat.
When the parties do not wish to reveal the value
of the matters at stake the costs and fees are left entirely to the
discretion of the committee.
The committee can reduce the amounts which would
apply if the scale were used.
The committee can increase the amount of the
costs for administration when in the course of the proceedings
additional matters have arisen which justify an
In exceptional cases and for good reasons given,
the committee can increase the fees paid to the
Clause 39-The secretariat or, in case of
difficulty, the Committee, shall set the amount and the due date of
the deposit on account to cover costs and fees.
This amount shall be divided equally between
If one or other of the parties fails to make
payment, the claimant is responsible for the payment of the amounts
due by the defaulting parties from the date of the request to do so
sent to him by the secretariat.
Failure by the claimant to pay the deposit on
account to cover the administrative costs within a period of two
months from the date of the request to do so sent to him by the
secretariat or the arbitration committee will result in the
abolition of the arbitration body.
PART IX -SIMPLIFIED ARBITRATION
40-1- The provisions of the
present Part IX apply , unless the parties agree
otherwise, where the matter at stake fullfils the three following
- two persons only are
- the value of the dispute
does not exceed the sum fixed in the table
alluded to in clause 57
- the claimant's credit is
certain (not seriously challenged), liquid (its amount is
determined) and exigible (date of payment
- The amount of the claimant's request is the
capital sum, interests and costs excluded . It cannot be increased
The respondent's eventual counterclaim is of no
effect for the determination of the value of the dispute, unless it
appears that the claimant's request has been reduced or even
presented in order to avoid the normal arbitration
If that is the case the Arbitration Committee
will give a ruling.
41-1- The request for
arbitration is presented on a form procured from the
It contains at least the mentions of that form.
The evidence upon which the claimant bases his
demand shall be joigned.
The whole is established in
exemplar is sent directly by the claimant to the respondent by
registered post with receipt or by any equivalent mean.
The other one is sent to the secretary or
deposited upon receipt,with payment of the
deposit fixed by clause 47-1 and the proof of
the sending of the request to the respondent.
42-1- The answer is
submitted to the same rules as the request.
answer shall be sent within ten days of the receipt of the request.
A late answer should be rejected, unless the claimant or the
arbitrator consents to admit it.
respondent pays to the secretary the same deposit as the claimant
and in the same time furnishes the evidence of
the sending of his answer to the claimant.
- The claimant in the event of the defendant's
failure to reply, or the parties may choose
- an exclusively written procedure
- or a hearing with a unique
If the parties do not agree , the procedure will
be oral (hearing).
- If they choose the witten procedure, the
parties may notify each other, when they think it useful, a second
statement with the corresponding documents (evidence). A copy
should be sent simultaneously to the secretary and , if he has been
appointed, to the arbitrator.
The admissibility ot the second statement is
subject to the respect of a ten days delay, unless consent of the
couterpart or arbitrator.
- When the procedure is oral the arbitrator may
reject all documents that would not have been communicated in due
time by a party to the other before the hearing.
- The parties choose an arbitrator registered on
an list established by CAREN
In the event either of the defendant's default
or of absence of agreement of the parties, the arbitrator is
appointed by CAREN.
- The date and place of the hearing are fixed by
the arbitrator, after he has asked the parties their
- If need be the arbitrator may in
writing question the parties, and fix a delay
for their reply.
44-4- The arbitrator shall
follow and ensure that the parties follow the essentials principles
of arbitration, and specially the right of "contradiction" . He can
act as amiable compositeur only with the parties'
End of proceedings
- The proceedings come to an end on the
arbitrator's decision where he states that either
- one of the conditions required in clause 42-1
is not fulfilled
- or the solution of the dispute requires
application of the arbitration normal
In such a case the arbitrator informs the
parties and CAREN without delay. Immediately the latter takes the
The same arbitrator shall be appointed in the
ordinary procedure only with both parties' agreement.
- Where the proceedings have been entirely
accomplished, the arbitrator gives his award within one month of
the closing of the wrtten procedure or of the date of the
- When for any reason, for exemple the necessity
of a technical checking, the delay of one month cannot be
respected, the arbitrator informs as soon as possible the parties
Immediately the parties make known their
observations,and if necessary the Artitration Committee
Costs and fees
- The costs and fees due to Caren and to the
arbitrator are fixed in a special table.
The deposit to be paid by the parties, as said
in clause 42 , is half of the
- The parties' personal expenses remain their
charge unless otherwise decided by the arbitrator.
Application of the other parts of the
- The provisions of the parts I to VIII apply to
a simplified arbitration where they are not contrary to those of
the present part IX.
X - CONCLUSION
Date of applicability of the
Clause 48 - The clauses 44-1
to 47 are applicable since 1st of july 1996.
The defendant may refuse their application when
the contract containing the CAREN compromissory clause has been
undersigned before that date.
Clause 49 - These rules
(part IX excepted) have come into force
on the lst day of January 1995 and apply to all requests
for arbitration registered with the secretariat from that
All amendments to these rules approved before
registration of a request for arbitration by the secretariat under
Clause 2 hereof shall apply to arbitrations registered
The arbitrators are responsible for ensuring
that their decisions under these rules do not conflict with the
substantive law applicable to the arbitration in
Supremacy of French
Clause 50- These rules are intended to be translated into several
languages. In the event of differences of
interpretation the French text shall be final.
- REAM Arbitration
Where a dispute is of an international nature
and the necessary conditions are fullfilled, the
parties may demand the application of the Rules established by the
EIEG Réseau européen d'arbitrage et de médiation
(CAREN being a member of that Group).