Representation of interests in the ICAC at the CCI of Ukraine

The International Commercial Arbitration Court (ICAC) at the Chamber of Commerce and Industry of Ukraine is one of the key institutions for resolving disputes in the field of international business. In this article, we will consider in which cases it is appropriate to apply to the ICAC, who has the right to such an application, the advantages and disadvantages of this method of dispute resolution.

ICAC resolves disputes that arise in connection with international commercial activities. These can be disputes regarding concluded contracts, supply of goods or services, violation of contract terms, transport agreements and other aspects of international business. Appealing to the ICAC is appropriate when the parties to the agreement prefer confidentiality and the speed of the dispute resolution process, as well as the need to take into account the specifics of the legislation of foreign countries that regulate business processes.

Enterprises and organizations engaged in international commercial activities may apply to the ICAC. These can be both Ukrainian companies and foreign business entities. An important condition is the existence of an arbitration agreement between the parties, which determines the right to consider the dispute by the ICAC.

Advantages of considering a case in the ICAC

One of the main advantages of resolving a dispute at the ICAC is the speed and confidentiality of the procedure. Compared to a traditional court process, arbitration usually takes less time to resolve a dispute because the arbitration decision is final and not subject to appeal or cassation review, with the exception of cases provided by law.

In addition, the arbitration process is often more flexible and tailored to the needs of the parties, and ensures a high level of confidentiality. However, we can consider the issue of privacy in two ways, as both an advantage and a disadvantage, which will be mentioned below.

Also, one of the advantages of ICAC is the ability of the parties to independently choose an arbitrator (arbitrators) to consider a specific dispute, taking into account the specialization of the arbitrator, because in certain cases, a highly specialized focus of the arbitrator (in essence, the court) that will consider the dispute is required.

An additional advantage can also be considered the possibility of the parties to choose the law under which the dispute will be considered and the language of the arbitration proceedings.

Disadvantages of consideration of the case in the ICAC

One of the disadvantages is the risk of non-systematic decisions, as they may be based on the personal vision of the arbitrators, rather than on generally accepted legal principles. And therefore, the combination of this risk with the fact that the decision of the ICAC is final and not subject to appeal creates an additional risk that the party to the case, which predicts its position on the basis of the established judicial practice of general courts, in fact receives a final decision, which was made on the basis of personal the position of arbitrators, which may differ radically from established court practice.

Although, on the other hand, the arbitrator’s independent approaches to law enforcement can have positive consequences depending on the position of the party, since the established practice of ordinary courts does not always take into account the specific features of the case and leads to a fair decision, although it is predictable.

We always emphasize that before entering into contractual relations with a counterparty, it is absolutely necessary to check it for reliability and the possibility of enforcement of future obligations in case of their violation. In this aspect, the confidential property of the ICAC plays the role of a disadvantage, since the parties do not have the possibility of such a check on the history of arbitration disputes in the ICAC due to the secrecy of the information.

The next drawback is the impossibility of securing a claim (seizure of the defendant’s accounts, assets, etc.) during the consideration of the case at the ICAC by the ICAC itself. Such an issue should be resolved in an ordinary court and in a separate proceeding, provided that such a possibility is provided for by the procedural legislation of the defendant’s country.

So, for example, if the non-resident claimant intends to seize the accounts of the defendant – a resident of Ukraine, then the claimant should apply to the appellate court at the location of the arbitration, the defendant or his property with a corresponding statement to secure the claim in the case submitted for consideration by the ICAC (Part 3 Article 152 of the Civil Code of Ukraine). Therefore, the resolution of procedural issues in such a case takes place not in one court, but in several.

In addition, after receiving a final decision, the plaintiff should initiate additional legal proceedings regarding the recognition of such a decision in the territory of the defendant’s country and obtaining permission for its execution or only for obtaining permission for its execution.

So, for example, a non-resident plaintiff, after receiving a decision of the ICAC, should apply to the appellate court at the location of the ICAC with an application for permission to enforce the decision of the above-mentioned court. The plaintiff, a resident of Ukraine, should generally first legalize the ICAC decision in the defendant’s country and after that obtain permission for its enforcement.

So, as we can see, the court process in the ICAC, by default, is transformed into three separate court processes, each of which has its own time intervals, delay tactics and cost, similar to the traditional court process based on the location of the defendant.

In conclusion, ICAC at the Chamber of Commerce and Industry of Ukraine is an important tool for resolving disputes in international business. The choice between arbitration and a traditional court process depends on the specific circumstances of the case and the demands of the parties. Considering the advantages and disadvantages of ICAC, every company should carefully consider this option for dispute resolution when planning its international activities.

When applying to the ICAC, it is recommended to enlist the support of qualified lawyers who have experience in working with international commercial disputes and representing interests in international commercial arbitrations.

AA Grandliga specializes in conducting cases in the international commercial arbitration court at the ICC, is a member of international legal organizations, has an extensive partner network of lawyers from all over the world, and therefore our client can receive all services related to international disputes in one place (conducting cases in the ICAC, securing a claim in an ICAC case, legalizing the ICAC decision in the defendant’s country and obtaining a permit for its execution).

If you have any questions or need assistance in conducting a case at the ICAC, contact us to discuss your case.