One of the main reasons parties in international conflicts select arbitration as
a means of conflict settlement over other forms is prevention of public
broadcast of information and negative publicity. However, in case of
international commercial arbitration (ICA), the conventional assumption that it
is confidentiality attracts parties to arbitration might be contested since
confidentiality has not been statutorily imposed in various countries globally.
Furthermore, lacking explicitly from the UNCITRAL model law establishing the
fundamental basis of many domestic governments is arbitration procedures meant
to guarantee secrecy. While nations like Sweden, United Kingdom, USA, etc. have
kept silent on specifically offering a provision of confidentiality, India and
some arbitral organisations like LCIA and SIAC have advised that arbitral
proceedings shall remain confidential.
Moreover, privacy is often used together with confidentiality although the two
terms carry an entirely mean differently in the arbitration set-up as privacy
would mean that no third party other than the arbitrator and the parties in
dispute can attend the arbitration proceedings whereas confidentiality would
mean non-disclosure of information to the third party without consent.
This
paper will concentrate on stressing the reality of the presumption of
confidentiality in the international commercial arbitration system by means of
an exploration of the lack of consistency in the international principle of
confidentiality in the laws of arbitration and the degree and scope of
protection of confidence if any, to be maintained by the parties in the
international context.
Introduction
"Though confidentiality still remains a key attraction of arbitration ...the
once general confidentiality of arbitral proceedings has been eroded in recent
years."--
Redfern and Hunter[1]
Arbitration's many advantages are including secrecy and confidentiality, have
reportedly helped businesses from all around the globe to settle cross-border
economic conflicts.[2]
Privacy refers to the right of those other than the arbitrators, parties, and
their necessary representatives and witnesses to show up to the arbitration
hearings.
Confidentiality is the obligation of the parties and the arbitrators to keep
knowledge regarding the topic of the arbitration private. Confidentiality
protects both the arbitration procedure and any generated or distributed
documentation during it.[3] Researchers and judges have embraced two quite
different points of view on secrecy. One point of view holds that should
confidentiality be a component of arbitration; it should be stated either in the
relevant arbitration regulations or the arbitration agreement itself.
The second
perspective holds that, depending on the conditions of the arbitration
agreement, secrecy is an implied clause in every one of them.
When looking at comparative law, one finds that there are notable variations
rather than a consistent approach to the issue since many national legislatures
make no reference of secrecy at all, while others do so in a quite broad sense.
Exceptionally, some statutes contain broader regulations. Even in fields where
it is accepted, the extent and content of diversity differ substantially. Though
one assumes there is a legal basis for the obligation of confidentiality,
usually there is none.
The UNCITRAL Model Law or national arbitration laws of
most significant economic countries state, "Arbitration is not secret". This is
the reason certain legal systems including those in the United Kingdom, Korea,
Japan, the Federal Arbitration Act in the United States, and Swiss law do not
have any specific requirements. Some arbitral bodies, such the London Court of
International Arbitration (LCIA)[4] and the Singapore International Arbitration
Centre (SIAC)[5], however insist that proceedings be kept private. The
International Chamber of Commerce (ICC) rules let the arbitral tribunal, upon a
party's request, mandate the confidentiality of the arbitration proceedings or
of any other matter pertaining to the arbitration and may act to safeguard trade
secrets and confidential information.[6]
Entitled to attend the hearings are persons including the parties, his agent or
advocate, witnesses, shorthand writer, and arbitrator himself.[7]This should be
kept apart from the secrecy obligation, which bans talking about the arbitration
processes with any other party without their consent. This is essentially always
true. Confidentiality with regard to arbitration proceedings and any documents
created or disclosed covered a topic never explored for a very long time at
least not until the 1990s.[8] In this sense, however, the position of law has
been found to be diverse depending on the different policies followed by
different countries.
This paper will concentrate on offering a liberal, strict
and balanced approach on the subject of maintaining confidentiality of the
arbitral process, analyses the approaches of the English courts of UK that
follow the view that confidentiality is an implied term in all arbitration
agreements, position of law upheld by the Australian Courts being serving as a
polar opposite view in contrast to that of the UK as The silence was broken [9]
and that of Sweden that stands strong on the point that confidentiality may not
be implied unless it has been specifically agreed upon when the High Court of
Australia refuted the generally held belief that there is a universal obligation
of confidentiality in arbitration procedures.
Comparative study along with the
author suggesting the most suitable mechanism that is needed to be adopted by
countries in order to promote the way forward for arbitration to be the most
preferred mode of alternative dispute resolution will help to analyse the
contradicting arguments suggested by different scholars together with the
precedents that have led to the debate.
Research Objective
- How far is confidentiality regarded as a basic concept in international arbitration, and how does it run counter to the openness and publicity guidelines enforced by courts, arbitrators, and parties?
- How do the main justifications for and against an obligation of confidentiality in international arbitration affect the efficiency of arbitration as a means of resolving conflicts?
- What lessons about the worldwide approach to confidentiality in arbitration processes may judicial precedents in the UK, Australia, and Sweden offer? How have they affected the application of secrecy in international arbitration?
Research Problem
Different approaches of the presumption of confidentiality in arbitration
Apart with enforcement and part, control, confidentiality and privacy should be
traits of arbitration.[10] Arbitration is usually of a private nature therefore.
In at least the absolute meaning most people understand it, the notion that a
duty of confidentiality exists is really more of a truism than a truth.
Furthermore, highly divisive are fundamental questions regarding the nature and
applicability of the idea as a legal principle as well as its presentation as an
arbitral procedure rule.
Actually, "there have been varying judicial attitudes
shown and no consensus of doctrines."[11] Furthermore, courts usually fall short
of, or even reject, the expectations of parties about the privacy and
confidentiality of their arbitration procedures.[12] "In light of judicial
sentiment, current institutional guidelines, national statutes, contract law
standards, and practical considerations, the extent to which various elements of
the arbitration process can be and are protected by a duty of confidentiality
will be the main focus of this article."
Research Questions
- Whether implicit confidentiality is the standard everywhere in ICA?
- What are the many national perspectives on ICA confidentiality?
- Does the public interest make it difficult to resolve the issue of confidentiality in ICA?
Research Methodology
This paper is completely based on the secondary method of research approach
where the data used are collected and analysed from the legal documents w.r.t
the Confidentiality vs. Transparency in commercial arbitration: a myth or
reality and other related document and other legislative texts and existing
literature from a selected website such like Jstor etc. Confidentiality vs.
Transparency in commercial arbitration: a myth or reality The research is
carried out in such a way that it offers a thorough knowledge of Commercial
Arbitration and its implications on confidentiality and relateddifficulties and
the effectiveness of arbitration in making effective to reduce the disparities.
Literature Review
Ending Blind Spot Justice: Broadening The Transparency Trend In International
Arbitration By Brook. J. INT'L L.[13] The book addresses the idea of "Ending
Blind Spot Justice" in international arbitration, contending that the present
system of blind spot justice is impeding development of openness. established to
increase openness and confidentiality in international arbitration, the
Transparency Rules for Treaty-Based Investor-State Arbitration (UNCITRAL) are
established by the United Nations Commission on International Trade Law.
Protecting public interests—including democratic deficit concerns, public purse
and taxpayer concerns, claims of government misbehaviour, and "profoundly
important" public policy issues the Transparency Rules seek to safeguard In the
framework of international arbitration, the book also defines privacy, secrecy,
and openness suggesting that the Supreme Court's decision in the Mitsubishi
Motors case should eliminate blind spot justice. The book exhorts UNCITRAL to
enact a rule mandating the disclosure of unsensitized arbitral rulings in order
to safeguard public interests and advance the integrity of international
commercial arbitration.
Need For Implied Transparency In Investment Arbitration By Ritika Bansal[14]
With investment arbitration being under regulation by specialised treaties,
globalisation has resulted in more corporate transactions and cross-border
conflicts. States cannot offer fair and reasonable treatment to investors
without transparency. Although some nations enforce an implicit obligation of
secrecy via their domestic legislation, the requirement of openness in
international commercial and investment arbitration is divisive. Revised
versions of the United Nations Convention on Transparency in Treaty-based
Investor-State Arbitration (Mauritius Convention) now have clauses encouraging
more openness. The ICSID Reform proposal calls for parties to make proceedings
documentation publicly accessible, therefore enhancing openness. This may
guarantee responsibility, reduce inconsistency in decision-making, and provide
more rewards access.
According to
Mary Zhao's Paper "Transparency In International Commercial
Arbitration: Adopting A Balanced Approach,"[15] investor-[16]state arbitrations'
transparency requirements need to be adopted by international commercial
arbitration. The paper questions the conventional wisdom that public interests
are limited to conflicts between investor-states and suggests a compromise
between openness and anonymity.
Generally speaking, public disclosure is advised
when presenting evidence or sensitive information; as a specific first step
towards meeting more transparency criteria, systematic publishing of arbitral
rulings is advised. Entering into effect in 2017, the United Nations Convention
on Transparency in Treaty-based Investor-State Arbitration (Mauritius
Convention) marks a turning point in world attempts to solve openness in
international arbitration. Transparency upholds public access to information in
conflicts affecting public interests, therefore strengthening the legitimacy of
the system. The paper also addresses how openness more especially, the
disclosure of arbitral rulings—fits in international commercial arbitration.
The International Arbitration In Times Of Change (EULEX)[17] organization faces
challenges in Kosovo due to segregation, corruption, high unemployment, and
financial embezzlement. To enhance its legitimacy, EULEX must subject itself to
greater scrutiny than UNMIK and ensure appropriate budget planning to prevent
fraud and corruption. The unstable political, social, and legal environment
presents unique challenges for EULEX, and change must come from within Kosovo.
Foreign investors' choice of international arbitration can create problems such
as lack of coherence, discrimination, and concerns about transparency and
fairness. The article discusses potential solutions to protect third parties'
legal interests and public interest in investor-state arbitration, proposing
top-down and bottom-up approaches.
Ethical Investing: Ethical Investors And Managers By Richard Hudson Ethical
investing involves choosing financial securities based on ethical actions of
companies, aiming to fulfill duties such as not profiting from immoral business
activities and punishing good firms. The ability of ethical investors to fulfill
their duties depends on how stock prices and returns react to making corporate
practices more ethical.
A theoretical argument suggests that ethical trading
activities will not affect share price or return, and empirical studies show
that ethical stocks yield market returns. Ethical investors may face costs such
as diversification, research into the corporation's ethicality, and trading more
than other investors if the corporation's level of ethicality is not stable.
Ethical investors' actions do not have any effect on corporate behavior or
fulfill any duties.
Analysis
The subject matter goes beyond whether or not there is a confidentiality duty
because, even in circumstances where the responsibility is accepted, their
nature and application vary.
The substantial extent of the party's pleadings and memorials, provided
documentation, or other evidence—such as expert reports or witness statements—as
well as information included in such filings might all cover the award and other
arbitration rulings.
Furthermore, the contents of the arbitration files might be quite important as
they can include sensitive business information such profit margins, production
costs, pricing strategies, know-how, or trade secrets that might be detrimental
to one or both parties in an ICA.[18] Keeping in mind the safeguarding of trade
secrets in this sense, Article 39 of the TRIPS Agreement should also be taken
into account.[19] Furthermore, it might expose the financial situation of a
corporation or the availability of a defective product, circumstances that can
tarnish its public image and advantage competitors.
Reality of Arbitration as a Private Conflict Resolution System
As is already well known, the engagement of national courts in arbitral
procedures cannot be totally avoided even if arbitration belongs to the category
of out-of-court alternative dispute resolution system. Actions like looking for
temporary fixes, among the few events that lead to judicial involvement are
award execution and stay of awards. This obviously provides a logical exception
to the rule of secrecy.
In instances of public interest as well, regulatory agencies may step in and the
parties can be obliged to provide material pertaining to the arbitration.
While various laws, arbitration rules, or case law in some nations have also
accepted them as exceptions to the need of secrecy, there are additional
situations that do not fit the above specified inevitable ones. This is the
case, for instance, when revealing the existence of the arbitration is
reasonably necessary to protect one party's legitimate interests in regard to
third parties or to defend or enforce a right against a third party acting as a
plaintiff or defendant defined as a matter of procedural public order. It has
also been considered that there is no violation of the requirement of secrecy
even if certain information related to the arbitration is given but there is a
good reason to do so.
Among other interested parties, a parent business, shareholders, corporate
auditors, an insurance company, and even a party interested in buying a firm
needing due diligence have rights to know the presence and result of the
arbitration.
Unless specifically forbidden by the relevant legislation or arbitration rules,
or by agreement between the parties, the parties may therefore disclose
information about their own arbitration, even to interested third parties,
provided there are good faith explanations for doing so.
National Laws and Arbitration Policies Related to confidentiality
The Arbitration and Conciliation Act, 1996[20] has just seen a major change. The
Act now explicitly requires secrecy. This change came forth in the 2019
Amendment.
Unless publication of an arbitral decision is necessary for the implementation
and execution of an award, the newly added Section 42A of the Act[21] mandates
that all arbitral processes shall be kept secret by the parties, arbitrators,
and arbitral institution.
The limited exemption to the confidentiality rule that of implementation and
execution of an award allows the arbitral process great challenges as well. It
thereby raises the possibility of legal confidentiality duties being violated.
For example, the clause does not reflect that, should a party seek interim
protections or in line with other judicial procedures pertaining to the
arbitration, disclosure of the arbitral proceedings may be required. Disclosure
may also be required when outside funding is needed, experts recruited to assist
with a dispute call for disclosures pertinent to an arbitration, or applicable
law calls for disclosures. Although the newly adopted regulation requires
secrecy for arbitrators, parties, and arbitral institutions, it leaves quiet on
the obligations of lawyers, witnesses, stenographers, the tribunal secretary,
etc.
Applicable to both domestic and international arbitral proceedings, the national
arbitration legislation of New Zealand includes a secrecy provision.[22] It is
claimed that the clause was meant to circumvent the Esso precedent[23] as
established in Australia that will be covered below. Though questionable
judicial tendencies may be seen that will be discussed later, most of the other
jurisdictions essentially do not expressly include a clause in this respect.
Conversely, rules on arbitration established by Arbitral Institutions have
included specific clauses. Although there are more specialised rules or codes of
ethics for arbitrators or certain recommendations, they do not usually impose a
requirement of secrecy on the parties. This is the situation with the ICC Rules,
wherein Articles 1 of Appendix II and Article 6[24] of Appendix I just set
responsibilities on Not on the parties, seven arbitrators and the International
Court of Arbitration's staff follow Article 22.3, which lets the Arbitral
Tribunal grant confidentiality orders upon a party's request.[25]
Similar to this, item 37.1 of the ICDR rules of the AAA merely requires the
Administrator and arbitrators to keep anonymity; article 37.2 indicates that the
tribunal may impose instructions about confidentiality.[26] It further states
"the arbitrator shall maintain the privacy of the hearings unless the law
provides to the opposite."[27]
Conversely, item 30 of the LCIA Rules[28] precisely controls the obligation of
secrecy.
Although article 34.5 seems to recognise an implied secrecy of the award by
requiring both parties' permission before it may be made public, the subject is
not particularly addressed in the UNCITRAL Arbitration Rules.[29]
Judicial Perspectives
United Kingdom: Arbitration agreement implied obligation of confidentiality
Based on the case
Hassneh Insurance Co. of Israel v. Steuart J. Mew[30], English
law might be seen as the conventional or traditional perspective on the matter.
Based on his choice, Mr. Justice Coleman stopped the plaintiff from revealing
the material. The argument that revealing the relevant records would breach a
confidentiality agreement helped the Judge to reach his finding. The court
decided that the implicit term must be founded on customary or commercial
efficacy by basing its conclusion on the Dolling-Baker case[31] wherein the
general duty of secrecy about the inferred requirement was applied.
Hyundai Engineering & Construction Co v. Active Building & Civil
Construction[32] from 1994 offers greater support for the stance adopted in the
previously cited decisions. Justice Philips LJ's decision in that case states
that anybody who gets confidential information about an arbitration under
English law is liable for the same secrecy requirements as the participants of
the arbitration. He decided that
"The English authorities demonstrate that the nature and extent of the duty of
confidentiality applicable to documents and information obtained in arbitration
proceedings is by no means fully charted. It is not clear whether the duty of
confidentiality arises out of a contractual term or by virtue of the
relationship between the parties. It is clear that a duty of confidentiality
must be subject to limits or restrictions…."
This implies that the English courts were moving from a strict rule prohibiting
disclosures under all circumstances to one more accommodating.
Finally, in
Ali Shipping Corporation v. Shipyard Trogir[33], the Court of Appeal
gave a precise rationale on the nature, extent and application of exceptions,
therefore offering a superb study of English common law pertaining to
arbitration.[34] Potter LJ made a reference to Lord Bridge's decision in Scally
v. Southern Health and Social Services Board[35], in which it was noted that the
particular character of "the implied term of confidentiality" differed:
"Between the searches for an implied term necessary to give business efficacy to
a particular contract and the search, based on wider considerations, for a term
which the law will necessarily imply as a necessary incident of a definable
category of contractual relationship."
Moreover, Justice Potter LJ said that it was not necessary or even advisable to
restrict exclusions to circumstances of "reasonable necessity". He agreed with
Coleman J[36] that a disclosure had to be required rather than just useful.
Australia: Rejection of implied confidentiality in arbitration agreement
With its decision in
Esso/BHP v. Plowman[37] whereby main judge, Marks J,
rejected the English legal position that there is a universal requirement of
secrecy and that it is an assumed condition in arbitration agreements,
"That the mere fact that parties to a dispute agree impliedly or expressly to
have it arbitrated in private does not import any legal or equitable obligation
not to disclose to third parties any information at all which may be said to
have been obtained by virtue of or in the course of the arbitration."
The appellate division later maintained this, and Justice Mason CJ wanted to
have this preferred:
"Describe the private character of the hearings as something that inheres in
the subject matter of the agreement to submit disputes to arbitration…"[38]
And therefore held that:
Confidentiality was not an essential attribute of arbitration in Australia.
Although those disclosures were mandated by law, The Court of Appeal of New
South Wales decided in the case of Australia v. Cockatoo Dockyard Pty Ltd[39]
that an arbitrator lacked the authority to issue a procedural directive imposing
a confidentiality obligation that would prevent the government from disclosing
information and documents to a state agency or the public. Drawing on the Esso
case 38, Justice Kirby P concluded that:
"The set of confidentiality directions, extended to documents the Commonwealth
wished to give to State Authorities. While this information was important for
the public, it was urgent for public health and restoration agencies. The judge
argued that there should not be a duty of confidentiality to a party's own
documents prepared or arbitration, if they have a wider public interest."[40]
Consequently, he declined to accept that, depending on the public interest
exemption, a private arbitration agreement might nullify or limit the
Commonwealth's commitment to forward the public interests.
Sweden: Confidentiality is not a mandate unless expressly agreed
The Swedish Arbitration Act leaves no guidelines on secrecy. [41] Nonetheless,
it is noteworthy that most of the current laws emphasise the need of the same
notably in situations involving trade secrets of corporations.[42] This opinion
was changed, however, in the Bulbank Case[43], when the Supreme Court decided
that an arbitration agreement included no legal obligation of secrecy.
The Court held that: "Arbitration is based upon an agreement, whereby the
proceedings are private and confirmed that arbitral proceedings are
fundamentally private and that factor is one of the main advantages and reasons
why companies choose arbitration."
Still, the Court distinguished privacy from secrecy. Arbitration processes are
private, hence a prerequisite of secrecy does not always apply for the parties.
Unlike court procedures, the true definition of privacy is that the public does
not have the right to access records or show attendance at the sessions. The
Court held that the parties' capacity to reveal material acquired throughout the
proceedings does not contradict each other.
The Supreme Court observed the global landscape and concluded that views were
split. On one hand, English and French opinions maintained the overall
confidentiality in arbitration principle.[44] On the other hand, the Court
quoted the High Court of Australia's ruling in Esso rejecting the obligation of
confidentiality. [45]These facts led the Supreme Court to decide that, except
from special agreement, a party engaged in an arbitration under Swedish law
could not be bound by confidentiality.
Conclusion And Suggestions
Suggestions
Establishing a uniform worldwide framework that precisely determines the extent
of confidentiality is one of the most efficient approaches to address the
problem of confidentiality in international commercial arbitration (ICA). Like
the UNCITRAL Transparency Rules for investor-state conflicts, a comparable
worldwide tool needs to be established to provide consistency in ICA
confidentiality criteria. This would guarantee that parties and arbitrators have
clear instructions on the use of secrecy across many legal systems, therefore
preventing jurisdictional discrepancies.
Parties could also specifically include confidentiality terms to their
arbitration agreements. Parties should clearly specify the scope and
restrictions of confidentiality in arbitration agreements rather than presuming
it as an inferred condition. These clauses should make clear if the
confidentiality duty covers pleadings, evidence, and arbitral rulings or merely
the hearings. Through this, participants may avoid uncertainty and any conflicts
on confidentiality throughout the procedures.
Arbitral organisations should also change their guidelines to include more exact
secrecy clauses. Certain institutions, such the Singapore International
Arbitration Centre (SIAC) and the London Court of International Arbitration (LCIA),
already have secrecy requirements; others let the tribunal decide on this
matter. Major arbitration bodies should include a default secrecy provision so
that parties may opt-out in case they would want openness.
Legislatively speaking, national arbitration rules need to be changed to provide
more precise rules on secrecy. A positive first step is the 2019 amendment to
the Indian Arbitration and Conciliation Act including Section 42A. On
exceptions, including disclosures needed in legal procedures or regulatory
enquiries, the clause is vague, nevertheless. Therefore, nations should pass
laws defining their duties regarding secrecy as well as specifying reasonable
exceptions to serve public interest.
A well-defined system should be created to control circumstances where
disclosure is required in order to strike public interest against secrecy. Cases
involving antitrust breaches, financial crimes, public health issues, or
environmental problems might all fit here. Arbitration cases involving corporate
fraud, monopolistic activities, or faulty goods, for instance, could call for
disclosure to defend consumer, shareholder, or regulatory body rights. Arbitral
courts and organisations should be able to evaluate whether, in some
circumstances public interest exceeds the requirement for secrecy.
Arbitral organisations might post deleted copies of arbitral rulings to increase
openness while maintaining anonymity. Eliminating private business data would
allow these written accolades to serve as helpful legal precedents while
preserving the anonymity of the parties engaged. Anonymised databases of
arbitral rulings might help to shape international arbitration law even further
and guarantee that private corporate data stays private.
Giving arbitrators, tribunal secretaries, witnesses, and outside funders
confidentiality responsibilities is another vital step. Although certain
arbitration rules mandate secrecy to arbitrators and institutional workers, they
may ignore other parties with access to private information. Explicitly
mandating that all arbitration participants maintain secrecy would help to
greatly lower the possibility of leaks and illegal disclosure.
Furthermore, important in improving confidentiality in arbitration is
technology. Document exchange and case management on encrypted digital platforms
should help to stop illegal access. Blockchain technology's usage in arbitration
records may also provide safe and tamper-proof storage, therefore guaranteeing
that private data is only available to authorised parties.
Another approach to protect anonymity is by supporting optimal standards in
arbitration practice. By means of training courses and professional rules of
behaviour, arbitral institutions, law firms, and arbitration practitioners
should raise knowledge of confidentiality requirements and best practices. These
initiatives will assist to reduce conflicts on confidentiality and standardise
expectations.
At last, it is advisable to promote judicial restraint and non-interference in
issues of secrecy. Only when absolutely required should courts step in to
resolve confidentiality conflicts in order to serve public interest or justice.
This strategy will stop too much court investigation that may compromise the
effectiveness and appeal of arbitration as a means of resolving conflicts.
ICA can keep its standing as a private and effective conflict resolution tool by
putting these sensible, reasonable, and legally enforced measures into use,
therefore resolving issues about openness and public interest. These steps will
guarantee that, even with respect to legal process integrity, arbitration
remains a desirable choice for companies.
Conclusion
The issue of whether we need secrecy as an explicit legislative duty or if we
would be better off if the arbitral rulings were disclosed thereby increasing
transparency of the process is still contested as the globe progresses towards
openness.
Regarding international arbitration jurisprudence. The UNCITRAL Rules on
Transparency in Treaty-based Investor-based Arbitration (2014) [46], which apply
the "what to disclose" rather than "when or to whom to disclose," help to solve
this issue. To further public interest and provide open access to "key
documents" generated during the arbitration, the Rules advocate enhanced
openness in investment arbitration. Simultaneously, under the exemption from the
rules, private or protected information has been very safeguarded.
With respect to the pragmatic breadth of exceptions resulting from the various
national policies, it is challenging to get exact findings.[47] Keeping in mind
the conundrum of "public interest" cases that was presented before the High
Court of Australia, a similar view to that of Esso case would have been held
even if the English courts not considering all possible circumstances that could
occur in the near future such as where one party to arbitration is seeking to
release information obtained in arbitration to a third party for a purpose
unrelated to the dispute. However, since Germany, France and Switzerland have
adopted the English perspective, that confidentiality is an implied term in all
arbitration agreements. The said view can thus also be considered as a
rationally welcoming approach for private parties to participate in arbitral
proceedings since it was found that 87% of respondents believed that
confidentiality in international commercial arbitration is of importance for it
is the confidentiality factor that is one of the biggest driving factors for
people to opt for ICA.[48]
While arbitration in Australia is subject to confidentiality but not to privacy,
the perspective in the United States of America is clearly comparable.[49] One
of the main elements of the many points of view is the way individuals respect
privacy, or the extent and influence of private.
Sweden has shown a balanced approach by changing its position in the Bulbank
case[50], thereby stressing the point that, while parties do have the means at
their disposal to guarantee secrecy if they so wish, it is not a self-evident
component of arbitration. Arbitration is finally a voluntary, cooperative way to
settle disputes.
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End-Notes:
- Blackaby Nigel, Constantine Partasides, et al., Redfern and Hunter on International Arbitration, 6th edition (Oxford University Press 2015) pp. 30.
- Ronald Bernstein, General Principles, Handbook of Arbitration Practice 9, Ronald Bernstein ed., 2d ed. (1993) 99-100 USA.
- Jason A. Fry, Without Prejudice and Confidential Communications in International Arbitration (When Does Procedural Flexibility Erode Public Policy?), INT'L ARB. L. REV, 209 (1998).
- Article 30 of the LCIA Rules, 2014.
- Rule 39 of the SIAC Rules, 2016.
- Article 22 (3) of the ICC Rules, 2017.
- Bernstein Ronald, Tackaberry John, Marriott Arthur, Handbook of Arbitration Practice, 3rd ed. at 194, London, (1998).
- Neill Patrick, Confidentiality in Arbitration, 12 Arbitration International, 287, (1996).
- Esso/BHP v. Plowman, (1995) 128 A.L.R. 391.
- L. Yves Fortier, The Occasionally Unwarranted Assumption of Confidentiality, 15 ARB. INT'L 131 (1999).
- Tatsuya Nakamura, Confidentiality in Arbitration; SI EA Court of Appeal Decision - Is It Good News from Stockholm? 14 MLEALEY'S INT'L ARB. RLP. 24 (June 1999).
- Robert D. Argen, Ending Blind Spot Justice: Broadening the Transparency Trend in International Arbitration, 40 BROOK. J. INT'l L. 207 (2014).
- Ritika Bansal, Need for Implied Transparency in Investment Arbitration, 54 N.Y.U. J. INT'l L. & POL. 221 (Fall 2021).
- Mary Zhao, Transparency in International Commercial Arbitration: Adopting a Balanced Approach, 59 VA. J. INT'l L. 175 (2019).
- Business Ethics Quarterly, Oct. 2005, Vol. 15, No. 4 (Oct. 2005), pp. 641-657 Published by: Cambridge University Press.
- Rodrigo Polanco Lazo, International Arbitration in Times of Change: Fairness and Transparency in Investor-State Disputes, 104 AM. SOC'y INT'l L. PROC. 591 (2010).
- Francois Dessemontet, Arbitration and Confidentiality, 7 AM. REV. INT'L ARB. 299 (1996).
- Article 39, TRIPS, 33 I.L.M. 81, 98 (1994).
- The Arbitration and Conciliation Act, 1996, No 26, Acts of Parliament, 1996 (India).
- The Arbitration and Conciliation Act, 1996, § 42A, No 26, Acts of Parliament, 1996 (India).
- The New Zealand Arbitration Act, § 14, 1996.
- David Williams, New Zealand: The New Arbitration Act, Adoption of the Model Law with Additions, 1(6) INT'L ARB. L. Rev 214, 216 (1998).
- Article 6 of the ICC Rules, 2017.
- Article 22.3 of the ICC Rules, 2017.
- American Arbitration Association, Commercial Arbitration Rules Rule 25 (1993), Reprinted In Thomas Oehmkb, Commercial Arbitration, app.c 7 at 881 (Supp. 1994).
- Article 34.5 of the UNCITRAL Arbitration Rules, 2010.
- Hassneh Insurance Co and others v. Steuart Mew, (1993) 2 Lloyd's Rep. 243 (Q.B Com Ct.).
- Dolling-Baker v. Merrett, (1990) 1 W.L.R. 1205 (C.A).
- Insurance Co. v. Lloyd's Syndicate, (1995) 1 Lloyd's Rep. 272 (Q.B. Com. Ct.).
- Ali Shipping Corporation v. Shipyard Trogir, (1998) 2 All. E.R. 136 (C.A. Civ. Div.).
- Scally v. Southern Health and Social Services Board, (1992) 1 A.C. 294.
- Commonwealth of Australia v. Cockatoo Dockyard Pty Ltd., (1995) 36 NSWLR 662.
- Swedish Arbitration Act, 1962, Lag (1999:116) Om skiljeförfarande.
- SOU (1995:96), Näringslivets tvistlösning, at 185.
- Bulgarian Foreign Trade Bank Ltd. v. AI Trade Finance Inc, 2 Stockholm District Court, 1998-09-10, Case T 6-111-98.
- The Supreme Court of Sweden, 2000-10-27, Case T 1881-99, at 10.
- UNCITRAL brings in new transparency rules (April 1, 2014) in treaty-based investor-state arbitration, available on http://www.nishithdesai.com/information/research-and-articles/nda-hotline/nda-hotline-single-view/article/uncitral-brings-in-new-transparency-rules-with-effect-april-1-2014-in-treatybased-investor-state-a.html?no_cache=1&cHash=d1a716f314a5dc88c269b0a5f6eba054.
- Gary B. Born, Confidentiality in International Arbitration, International Commercial Arbitration (Second Edition), 2nd edition, Kluwer Law International (2014), pp. 2784 and 2785.
- International Arbitration Survey: The Evolution of International Arbitration, conducted by White & Case and Queen Mary University of London, available on https://www.whitecase.com/sites/whitecase/files/files/download/publications/qmul-international-arbitration-survey-2018-19.pdf (accessed on 28 November 2019).
- Michael F. Hoellering, How to Draft an AAA Arbitration Clause, 7 Foreign Investment L.J. 141, 152 (1992).
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