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The liability of arbitrators is regulated under Article 419 of the
CPC. Unless agreed otherwise by the parties, in the event that the arbi-
trator who accepted the office in the arbitral proceeding fails to fulfill
the task in the absence of a valid reason, he shall compensate the dam-
ages of the parties. It is seen that the relevant provision limits the lia-
bility of arbitrators.
Filing of the Case and Proceedings
Provisions concerning filing of the case and proceedings are laid
down under Article 423 and following articles of the CPC. Article 423
regulates the two essential principles that govern the arbitral proceed-
ings. These principles are equal rights and authorities of parties and
legal right to hearing. The parties may, in principle, freely agree on the
procedural rules to be applied to arbitral proceedings, however, con-
trary regulations to these principles may not be adopted and the arbi-
trators shall comply with these principles as well.
The parties may freely determine the procedural rules to be applied
by the arbitrators, without prejudice to the compulsory provisions
under the arbitration section of the CPC. In the event that the parties do
not determine the said rules, the arbitration shall be conducted by the
arbitrators by taking into consideration the arbitration related provi-
sions of the CPC.
Pursuant to Article 425 of the CPC, the place of arbitration shall be
freely determined by the parties or by an arbitration institution agreed
by the parties. If the parties have not previously agreed on the place of
arbitration, the place of arbitration shall be determined by the arbitral
tribunal having regard to the circumstances of the case. The arbitral tri-
bunal may meet at any location other than the place of arbitration and
may conduct procedural actions, under condition to previously notify
the parties.
Article 426 of the CPC sets forth different provisions regarding the
date of filing of the case in arbitration, for different scenarios. Pursuant
to this article, the arbitration case shall be considered to be initiated
with the application to the tribunal for the appointment of arbitrators,
or to the person, institution or organization who shall appoint the arbi-
trators, or in the event that the arbitrators shall be appointed by both
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NEWSLETTER 2012