04/11/2024
In a world constantly affected by accelerated technological innovations, which reshape the business environment on a daily basis, the possibility of resolving disputes in a quick and confidential manner is indispensable, especially in sectors as technology and construction.
The United Nations Commission on International Trade Law (“UNCITRAL”), attuned to the needs of these growing markets, developed a set of Model Clauses aiming to resolve disputes with the agility and confidentiality inherent to the business environment.
In order to offer highly customizable dispute resolution methods, the four new Model Clauses on Specialised Express Dispute Resolution (“SPEDR”) – Highly Expedited Arbitration, Adjudication, Technical Advisors and Confidentiality – were adopted by UNCITRAL at the 57th Session of its General Assembly. This progress offers a specialized response to the legal challenges that arise with the complexity of innovation projects.
The first two SPEDR – Highly Expedited Arbitration and Adjudication – are tailored specifically to the technology and construction sectors, which require promptness and technical expertise in dispute resolution to reduce project delays and avoid financial losses.
The Model Clause on Highly Expedited Arbitration, for instance, stipulates that the final award must be issued within 90 days of the constitution of the Arbitral Tribunal.
The two other SPEDR – Technical Advisors and Confidentiality – may be used in conjunction with the previous ones, since the disputes in which the first two are applicable may require specialized knowledge and the handling of sensitive information, but also in arbitral proceedings in general.
However, UNCITRAL warns that in overly complex disputes or in those that require the production of evidence, a balance must be found between expediency and efficiency, to avoid compromising the quality of the arbitral award. The analysis of the best dispute resolution clause to be implemented in each contract must be made on a case-by-case basis with the advice of a specialist.
The creation of the SPEDR by UNCITRAL is proof of the extent to which arbitration, as a method for the resolution of domestic and international disputes, is constantly undergoing self-regulation, in order to develop and improve the application of the institute to modern demands.
L.O Baptista’s Dispute Resolution team, always alert to the latest developments in international practice, remains committed to assisting its clients in the evaluation of the appropriate drafting of dispute resolution clauses, as well as to assist in complex expedited procedures.
Coauthored by: Silvia Rodrigues Pachikoski, Mariana Dias Sallowicz, Gabriel Rogenfisch Quintans, José Victor Palazzi Zakia and Julia Guimarães Rosseto
