IBA Guidelines on Conflict of Interest

Are the IBA Guidelines on Conflict of Interest in International Arbitration used in the UAE?

Introduction

The IBA Guidelines on Conflict of Interest in International Arbitration were released early in 2024. The International Bar Association (‘IBA’) released in February 2024 the revisited IBA Guidelines on Conflicts of Interest in International Arbitration.

The goal of this publication is to address the concept and importance of this publications, their difference with the regular IBA Guidelines on Conflict of Interest in addition to addressing whether the IBA Guidelines  on Conflicts of Interest in International Arbitration are often used in Dubai and extended UAE arbitrations.

What are the IBA Rules on Conflict of Interest in International Arbitration?

The IBA Guidelines on Conflicts of Interest in International Arbitration serve as a comprehensive framework for identifying, evaluating, and managing conflicts of interest that may arise within the context of international arbitration proceedings. These guidelines are instrumental in promoting fairness, impartiality, and transparency in arbitration by addressing potential conflicts involving arbitrators, parties, and counsel.

The guidelines are specifically tailored to apply to conflicts of interest that may arise in international arbitration, encompassing arbitrators, counsel, and parties involved in the arbitration process. They are designed to assist all participants in identifying and addressing conflicts to uphold the integrity and impartiality of arbitration proceedings.

The guidelines define various types of conflicts of interest that can impact arbitration proceedings. These include situations where an arbitrator’s relationships, past or present appointments, or personal and financial interests may affect their impartiality. The guidelines distinguish between conflicts that are inherently damaging to impartiality (“non-waivable”) and those that can potentially be cured with parties’ consent (“waivable”).

Arbitrators are required to make full and timely disclosures of any circumstances that could give rise to a conflict of interest. The guidelines provide guidance on the scope, timing, and extent of disclosures, ensuring transparency and enabling parties to assess potential conflicts effectively.

Clear procedures are outlined for challenging arbitrators based on conflicts of interest. The guidelines establish criteria for assessing the seriousness and impact of a conflict on an arbitrator’s impartiality, providing parties with avenues to address concerns regarding potential biases.

Arbitrators are expected to conduct themselves impartially and act with integrity throughout the arbitration process. They have a duty to objectively assess potential conflicts and withdraw from appointments when necessary to maintain the integrity and fairness of arbitration proceedings.

Parties and their counsel are encouraged to conduct conflict checks and promptly raise concerns about potential conflicts. The guidelines emphasize the importance of active participation by parties in identifying and addressing conflicts to safeguard the fairness and legitimacy of the arbitration process.

Certain conflicts, such as direct financial interests in a party or subject matter, are deemed non-waivable and require an arbitrator’s immediate withdrawal to preserve the integrity and credibility of arbitration proceedings.

The guidelines underscore the principles of transparency and fairness in managing conflicts of interest. They provide a structured framework for parties and arbitrators to navigate complex conflict situations effectively, thereby upholding the credibility and legitimacy of international arbitration.

In summary, the IBA Guidelines on Conflicts of Interest in International Arbitration are a vital resource for practitioners, institutions, and parties involved in international arbitration. Adhering to these guidelines helps ensure ethical conduct, mitigate conflicts of interest, and uphold the fundamental principles of fairness and impartiality in the arbitration process. Participants in international arbitration should familiarize themselves with these guidelines and integrate them into their practice to maintain the highest standards of integrity and credibility in dispute resolution.

Specific Differences between Arbitration and General Guidelines

IBA Guidelines on Conflicts of Interest in International Arbitration: These guidelines are specifically tailored to address conflicts of interest in the context of international arbitration proceedings. They provide detailed guidance primarily aimed at arbitrators, parties, and counsel involved in international arbitrations. The guidelines offer criteria and procedures for identifying, disclosing, and managing conflicts of interest to ensure the fairness and impartiality of the arbitration process.

General Rules on Conflicts of Interest: General Guidelines on Conflicts of Interest are broader ethical rules that apply to lawyers in general practice, not solely in the context of arbitration. These rules provide guidance on identifying and managing conflicts of interest in various legal representations beyond arbitration, including litigation and other legal services. They serve as a comprehensive framework for lawyers to uphold ethical standards and avoid conflicts of interest in their professional practice.

While both publications share common principles related to conflicts of interest, the IBA Guidelines on Conflicts of Interest in International Arbitration are more specialized and tailored specifically for the unique challenges and considerations in the field of international arbitration. These guidelines are frequently referenced and respected within the international arbitration community as a key reference point for managing conflicts of interest effectively in arbitration proceedings.

It’s important for practitioners to consult the specific guidelines or rules relevant to their practice area and context to ensure compliance with the applicable standards and best practices in conflict management.

More Information on IBA Rules on Conflicts of Interest in International Arbitration

The full text of the current IBA Guidelines on Conflict of Interest in International Arbitration can be found here  and a side by side comparison between the 2014 and the 2024 here.

Are the IBA Guidelines on Conflict of Interest in International Arbitration used in UAE based arbitrations?

The IBA stresses the intended goal for the 2024 Guidelines to be used globally:

“The Guidelines on Conflicts of Interest represent the most comprehensive work to date defining the framework by which the impartiality of arbitration in the international arena can be most effectively assured. The publication sets out a series of seven general standards of independence and disclosure to govern the selection, appointment and continuing role of an arbitrator. The most recent version of the Guidelines was published in February 2024. This version updates the 2014 version of the Guidelines. The Guidelines are intended for use around the world.”

Building on this intention and general acceptance by the international arbitration community it is our experience that the IBA Guidelines are systematically used in Dubai and UAE based arbitrations therefore arbitrators and counsels will need to be versed in the most up to date content of the Guidelines.

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We hope this publication will help you understand the importance of the IBA Guidelines on Conflict of Interest in International Arbitration and remain available for any questions regarding this post of general application.

For more information published in English you can visit all our publications at this link as well as the videos in English of our Partner Maria Rubert.

*The information on this page is not intended to be legal advice. This article is intended to provide an initial introduction to the IBA Guidelines on Conflict of Interest in International Arbitration