I. VIAC Model Arbitration Clause
All disputes or claims arising out of or in connection with this contract, including disputes relating to its validity, breach, termination or nullity, shall be finally settled under the Rules of Arbitration (Vienna Rules) of the Vienna International Arbitral Centre (VIAC) of the Austrian Federal Economic Chamber by one or three arbitrators appointed in accordance with the said Rules.
Optional supplementary agreements on:
(1) the number of arbitrators (one or three) (Article 17 Vienna Rules);
(2) the language(s) to be used in the arbitral proceedings (Article 26 Vienna Rules);
(3) the substantive law applicable to the contractual relationship, the substantive law applicable to the arbitration agreement (both Article 27 Vienna Rules), and the rules applicable to the proceedings (Article 28 Vienna Rules);
(4) the applicability of the provisions on expedited proceedings (Article 45 Vienna Rules);
(5) the scope of the arbitrators’ confidentiality (Article 16 paragraph 2) and its extension regarding parties, representatives and experts.
(6) In case of participation of Russian parties, following addition to the model clause is advisable:
All disputes or claims arising out of or in connection with this contract, including disputes relating to its validity, breach, termination or nullity, shall be submitted to the Vienna International Arbitral Centre (VIAC) of the Austrian Federal Economic Chamber and shall be finally settled under the Rules of Arbitration (Vienna Rules) of VIAC by one or three arbitrators appointed in accordance with the said Rules.
(7) If parties wish to conduct Arb-Med-Arb proceedings, following addition to the model arbitration clause should be included:
Furthermore, the parties agree to jointly consider, after due initiation of the arbitration, to conduct proceedings in accordance with the Mediation Rules (Vienna Mediation Rules) of the Vienna International Arbitral Centre (VIAC) of the Austrian Federal Economic Chamber. Settlements that are generated in such proceedings shall be referred to the arbitral tribunal appointed in the arbitration. The arbitral tribunal may render an award on agreed terms reflecting the content of the settlement (Article 37 paragraph 1 Vienna Rules).
For a Commentary on the recommended model clauses by Alice Fremuth-Wolf and Anne-Karin Grill please see the new VIAC-Handbook 2019.
The International Swaps and Derivatives Association (ISDA) (advised by Allen & Overy LLP) has published a second edition of its Arbitration Guide (the 2018 ISDA Arbitration Guide). The document can be downloaded HERE. Further information on the updated version of the ISDA Arbitration Guide can be obtained from a memorandum prepared by Allen & Overy in London.
We are very proud that VIAC has been included in this guide thereby enhancing the use of arbitration as a recommendable dispute resolution alternative for banks and financial institutions.
Appendix K contains an ISDAfied arbitration clause under the VIAC Rules that was drafted in co-operation with Wolf Theiss and Graf&Pitkowitz.
The VIAC-ISDA model clause can be downloaded HERE.