Originally from:
Between East and West: Essays in Honour of Ulf Franke - Hardcover
Between East and West: Essays in Honour of Ulf Franke - Electronic
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The Parties' Contract with the
Arbitration Institution
Christer Söderlund*
I. INTRODUCTION
There can be no doubt that the SCC Institute has enjoyed remarkable
success-- particularly in the last ten, fifteen years--in terms of recognition
by the business community. This remarkable success is in large measure
due to the SCC Institute's General Secretary of long standing, Ulf Franke,
who, by a unique combination of flair, wisdom, energy, and efficiency, has
managed the development of the institution's dispute resolution services
to meet the changing and increasing demands from parties in quest of
efficient dispute resolution services, particularly in the international realm.
In this connection it may be allowed to offer some views on the
relationship between parties seeking institutional support for their dispute
resolution needs and the arbitral institutions, a subject not often subject to
discussion.
II. THE ROLE OF THE ARBITRAL INSTITUTION
Arbitral institutions are service providers. However, they are not
business enterprises in any stricter sense, and, in fact, their operations do,
as a rule, only break even at best. Already for this reason, no arbitral
institution is operated for the sole purpose of profit. Instead, they are
normally part of--or are in themselves--something that could be classified
as NGOs. The SCC Institute, for instance, is an integral part of the
Stockholm Chamber of Commerce, although independently managed. The
ICC is an integral part of the International Chamber of Commerce. LCIA is
an independent institution.
It is reasonable that arbitration institutions should appear in this
form: They do not represent enticing business propositions. The
indispensable requirements for such an institution of permanence,
stability, and resilience against short-termism, make this necessary.
Arbitral institutions are normally of a venerable age--ICC in Paris
started its dispute resolution services in 1923, LCIA in London is the
evolution of a dispute resolution service that was initiated way back at the
beginning of the last century and the SCC Institute in Stockholm has been
providing facilities for dispute resolution since more than seventy years
ago (although it is only in the last thirty years that its dispute resolution
services have picked up speed). It is hardly conceivable to start up any