CIAC Resolution No. 12-2007

(NAR) VOL. 18 NO. 4/OCTOBER - DECEMBER 2007

[ CIAC RESOLUTION NO. 12-2007, October 30, 2007 ]

ADOPTING A HARMONIZED ARBITRATORS’ COMPENSATION SCHEDULE FOR ALL CASES

WHEREAS, compensation for arbitrators, in general, is based on the following stages of arbitral proceedings and percentages of arbitrators’ fees due prescribed in Annex A of CIAC Resolution No. 09-2006, as amended by CIAC Resolution No. 03-2007: 1st stage (acceptance of appointment by the arbitrator up to TOR signing) - 22% 2nd stage (hearing) - 38% 3rd stage (drafting of award to execution) - 40%

WHEREAS, on the other hand, for cases with motions to dismiss grounded on lack of jurisdiction which are granted, in effect terminating the proceedings even before a preliminary conference is held, the compensation prescribed for arbitrators under CIAC Resolution No. 09-2007 is 10% of arbitrator’s fees;

WHEREAS, for cases jointly withdrawn and/or settled by compromise agreement (regardless of whether or not a judgment/award is rendered, based on the compromise agreement), arbitrators’ compensation is based on the following schedule approved during the 44th CIAC Regular Meeting held on 24 February 1998: Stage of withdrawal/settlement % of Arbitrators’ Fee - Appointment of Arbitrator/s 15% - Executive session held 30% - Preliminary Conference held 40% - Terms of Reference (TOR) signed 50% - Initial Hearing held 60% - Second Hearing held & anytime 70%; before award

WHEREAS, the above schedule was amended under CIAC Resolution No. 03-2001 prescribing 70% of arbitrators’ fees as compensation if the TOR was signed and a judgment, upon motion of the parties, is rendered based on a compromise agreement; and

WHEREAS, in keeping with its general policy of compensating arbitrators for actual services rendered and/or work performed, and to provide for a fair and unified schedule applicable to all cases, the Commission, in its 101st Regular Meeting heldon 27 September 2007, agreed to revisit and harmonize its policies on arbitrators’ compensation; NOW, THEREFORE, WE THE UNDERSIGNED COMMISSIONERS, after due deliberations in the 102nd CIAC Regular Meeting and by virtue of the powers vested in us by law, HEREBY RESOLVE, as it is HEREBY RESOLVED, to adopt the following harmonized schedule of arbitrators’ compensation for all cases, subject to deductions for absences at any stage of the proceedings pursuant to CIAC Resolution No. 09-2006, as amended by CIAC Resolution No. 03-2007: % of ARBITRATORS’ FEES STAGE OF PROCEEDINGS/ Regular Cases with Motion Cases jointly Milestone Cases to Dismiss due to withdrawn and/or lack of jurisdiction, settled by if granted compromise agreement Without Award 1st Stage Award rendered - Executive session/s held 10% 10% 10% 10% (at the discretion of the Tribunal); and/or hearing on motion to dismiss/withdraw held; motion resolved - Preliminary Conference held 5% N.A. 5% 5% -TOR signed 7% N.A. 7% 7% *Sub-Total 22% 10% 22% 22% 2nd Stage - Initial/full hearing held 19% N.A. 19% 19% - Subsequent hearings held/ 19% N.A. 19% 19% reception of evidence/final memoranda/draft decision *Sub-Total 38% N.A. 38% 38% 3rd Stage - Award rendered 40% N.A. N.A 10% *Sub-Total 40% N.A. N.A. 10% TOTAL 100% 10% 60% 70% RESOLVED FURTHER, that the above percentages of arbitrators’ fees be applied in the computation of administrative fees and Arbitration Development Fund (ADF) charges. The filing fee, however shall be paid in full regardless of the stage of the proceedings. Cases dismissed or withdrawn/settled which are subsequently re-filed shall be treated as entirely new cases without crediting arbitration fees paid for theprevious cases.

UNANIMOUSLY APPROVED.

Adopted: 30 Oct. 2007 THE COMMISSION:

(SGD.) ISAAC S. DAVID (SGD.) SAMSON C. LAZO Member Member