ADDITIONAL CONCEPTS RE ADR

Q: What is Competence Competence?

A: Means that the arbitral tribunal MAY INITIALLY rule on its own jurisdiction,
including any objections with respect to the existence or validity of the arbitration
agreement or any condition precedent to the filing of a request for arbitration. (Rule
2.2)
Q: What is the Principle of Separability of the Arbitration Clause?
A: Means that said clause shall be treated as an agreement independent of the
other terms of the contract of which it forms part. A decision that the contract is null
and void shall not entail IPSO JURE the invalidity of the arbitration clause (Rule 2.2)
Q: What is the Rule Governing Arbitral Proceeding?
A: The parties are free to agree on the procedure to be followed in the conduct of
arbitral proceedings. Failing such agreement, the arbitral tribunal may conduct
arbitration in the manner it considers appropriate. (Rule 2.3)
Q: What is the Policy implementing competence-competence?
A:
1. The arbitral tribunal shall be accorded the 1 st opportunity or competence to
rule on the issue of whether or not it has competence or jurisdiction to decide
a dispute submitted to it for decision, including any objection with respect to
the existence or validity of the arbitration agreement.

2. When a court is asked to rule upon the competence / jurisdiction the Court
must exercise JUDICIAL RESTRAINT and defer to the competence or
jurisdiction of the Arbitral tribunal by allowing it the 1 st opportunity to rule
upon the issues.

3. Where the court is asked to make a determination of whether the arbitration

agreement is null and void, inoperative or incapable of being performed,
under this policy of judicial restraint, the court must make no more than a
prima facie determination of the issue.

4. Unless the court, pursuant to such prima facie determination, concludes that
the arbitration agreement is null and void, inoperative or incapable of being
performed, the court must suspend the action before it and refer the parties
to arbitration pursuant to the arbitration agreement.