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Settlement of Parties and Awards by Consent in ICC
Arbitration
*
Att. Ezgi Babur
As per the records of the International Chamber of Commerce
(“ICC”), approximately forty-seven percent of ICC arbitrations are
withdrawn before a final award is rendered
1
. In case of a settlement, in
order to avoid additional costs, the parties should promptly inform the
ICC Secretariat and the arbitral tribunal of the settlement. Once a set-
tlement is reached, the parties may request that the arbitration be with-
drawn. Another option is to request an award by consent, which shall
be examined in our article.
In General
Awards by consent are set forth under Article 32
2
of the ICC
Arbitration Rules (“Rules”). Pursuant to said Article, if the parties
reach a settlement after the file has been transmitted to the arbitral
tribunal in accordance with Article 16 of the Rules, the settlement
shall be recorded in the form of an award made by consent of the
parties, if so requested by the parties and if the arbitral tribunal agrees
to do so.
As is known, following a settlement, the parties are at liberty to
simply request that the arbitration be withdrawn. In this case, the par-
ties should nevertheless inform the arbitral tribunal, and the tribunal
should formally order the termination of the proceedings. Upon receiv-
ARBITRATION LAW
191
*
Article of March 2014
1
Jason Fry, Simon Greenberg, Francesca Mazza
,
The Secretariat’s Guide to ICC Arbitration
,
ICC Publication 729 (Paris, 2012), p. 323 (“Secretariat’s Guide”).
2
Please note that no modification has been made to the relevant Article within the 2012 modifi-
cations to the Rules.