LCIA Terms and Conditions for the Administration of and/or Provision of Specific Services in UNCITRAL Arbitrations effective 1 December 2023 Download PDF The LCIA UNCITRAL Terms and Conditions apply where the LCIA agrees to administer the UNCITRAL Arbitration pursuant to the 2010 or 2013 UNCITRAL Arbitration Rules and in UNCITRAL Arbitrations where the LCIA agrees to serve as appointing authority to: appoint the Tribunal, conduct a Challenge Determination and/or provide a Cost Service, in accordance with the terms and conditions. Article 1 LCIA Services in UNCITRAL Arbitrations Article 2 Requests for the LCIA’s Services in UNCITRAL Arbitrations Article 3 Fees and Expenses of the Arbitrator(s) Article 4 The LCIA’s Fees and Expenses Article 5 Deposits of Costs Article 6 Return of Funds Article 7 Compliance Article 8 Data Protection Article 9 Limitation of Liability Article 10 Governing Law and Jurisdiction Article 1 LCIA Services in UNCITRAL Arbitrations 1.1 These terms and conditions (LCIA UNCITRAL Terms and Conditions) effective from 1 December 2023 set out the terms on which the LCIA may provide the following services to parties to an arbitration (each a Party and together the Parties) conducted pursuant to the 2010 or 2013 UNCITRAL arbitration rules (UNCITRAL Arbitration Rules)1 (UNCITRAL Arbitration) provided that the Parties have either agreed that the LCIA will serve as appointing authority or that the LCIA will administer the arbitration, or the Secretary-General of the Permanent Court of Arbitration (PCA) has designated the LCIA as appointing authority, in the UNCITRAL Arbitration: (a) the appointment (Appointment) of an arbitrator or arbitrators, including any appointment of a substitute arbitrator, which for the purpose of these LCIA UNCITRAL Terms and Conditions are collectively referred to as the Arbitrator(s) (Arbitrator(s)) and the arbitral tribunal (Tribunal); (b) the determination of a challenge against any of the Arbitrators in the UNCITRAL Arbitration (Challenge Determination); (c) the review of, and potential adjustment of, the Tribunal’s fees and expenses proposal (Fee Proposal), and/or the Tribunal’s fees and expenses determination (Fee Determination), including any rates the Tribunal intends to apply and/or the provision of comments to the Tribunal concerning the amount of any deposits or supplementary deposits including for the payment of the Tribunal’s fees and expenses (each a Cost Service and together the Cost Services); and/or (d) the administration of the UNCITRAL Arbitration in accordance with the UNCITRAL Arbitration Rules (Administration). The Administration of the UNCITRAL Arbitration may encompass, among other things, Appointment(s), Challenge Determination(s) and Cost Services; each a Service and together, the Services. 1.2 For the avoidance of doubt, the LCIA has all the powers conferred on the appointing authority under the UNCITRAL Arbitration Rules. Unless otherwise agreed by the Parties, an agreement that the LCIA shall administer the UNCITRAL Arbitration pursuant to the UNCITRAL Arbitration Rules shall be treated as an agreement that the LCIA also shall act as appointing authority under the UNCITRAL Arbitration Rules. 1.3 To the extent that there is any conflict between these LCIA UNCITRAL Terms and Conditions and the UNCITRAL Arbitration Rules, the Parties agree that these LCIA UNCITRAL Terms and Conditions shall prevail and, in accordance with Article 1(1) of the UNCITRAL Arbitration Rules, modify, in so far as necessary, the application of the UNCITRAL Arbitration Rules to the UNCITRAL Arbitration. 1.4 In addition to terms that are expressly defined to include the plural, all other references in these LCIA UNCITRAL Terms and Conditions to the singular shall also include the plural, where applicable, and vice versa. 1.5 Subject to the LCIA’s approval of a request in accordance with Article 2.3, the LCIA is only prepared to hold funds in GBP, USD, CAD, EUR, CHF, or SGD up to a maximum of GBP one million, or equivalent, in aggregate in any single UNCITRAL Arbitration at any time. Article 2 Requests for the LCIA’s Services in UNCITRAL Arbitrations 2.1 A Party may request the LCIA to provide one or more of the Services by sending the LCIA a request by email or other electronic means, including via any electronic filing system operated by the LCIA, to [email protected] (Request) together with: (a) a copy of the arbitration agreement or the underlying agreement containing the arbitration clause; (b) a copy of the notice of arbitration and, if applicable, any response to the notice of arbitration; (c) the email address of each Party including the email address of any legal representatives authorised to act on legal matters for the Party, and who is on the record in the UNCITRAL Arbitration (Legal Representatives); (d) the UK value added tax (UK VAT) details for each Party if they are subject to UK VAT; (e) for Challenge Determinations, a copy of the notice of challenge which states the reasons for the challenge; (f) for Cost Services, where applicable, documentation evidencing the Fee Proposal and/or Fee Determination and/or the amounts of deposits; and (g) confirmation that a non-refundable fee of £1,950 (Registration Fee) for each Service requested has been deposited in the LCIA’s bank account. Where a Party or the Parties request that the LCIA provide more than one Service in support of the same UNCITRAL Arbitration, a further non-refundable Registration Fee is payable for each such Service unless the LCIA shall decide in its sole discretion, and without the need to state any reasons, to waive such further Registration Fee. 2.2 Parties to any Request, designating the LCIA as an appointing authority or to administer the UNCITRAL Arbitration, filed with the LCIA on or after 1 December 2023, and any arbitrator candidate to be appointed in the UNCITRAL Arbitration, are deemed to have consented to these LCIA UNCITRAL Terms and Conditions. 2.3 Once the LCIA has received the Request and the Registration Fee in accordance with Article 2.1, the LCIA will decide in its sole discretion, and without the need to state any reasons, whether it is willing to provide the Service(s) and will inform the Parties of its decision as soon as practicable. 2.4 Unless otherwise directed by the LCIA, all communications shall be delivered in electronic form to [email protected] and any communication so delivered shall be treated as having been received. 2.5 When a Party communicates with, or copies correspondence to, the LCIA in connection with the Services, that Party shall prominently quote the LCIA case reference number. 2.6 If there is any change to the contact details of a Party or its Legal Representatives, that Party shall promptly inform the other Party, the LCIA and the Tribunal in writing of the new contact details, and such details should then be used. 2.7 Unless and until the Party informs the other Party, the LCIA and the Tribunal of any change, the other Party, the LCIA and the Tribunal are entitled to continue using that Party’s previous contact details (including the contact details for their previous Legal Representatives). Article 3 Fees and Expenses of the Arbitrator(s) 3.1 In accordance with Article 41(1) of the UNCITRAL Arbitration Rules, the fees and expenses (including any cancellation charges) of the Arbitrator(s) shall be reasonable in amount, taking into account the amount in dispute, the complexity of the subject matter, the time spent by the Arbitrator(s) and any other relevant circumstances of the case including, but not limited to, the range of hourly rates contained in Article 3.3 below, any agreement between the Parties and the Tribunal concerning the fees and expenses of the Tribunal, the Tribunal’s Fee Proposal, and any adjustments made thereto, in accordance with Article 41(3) of the UNCITRAL Arbitration Rules. 3.2 Where the LCIA conducts the Administration of the UNCITRAL Arbitration and/or a Party requests the LCIA to conduct the review of, and potential adjustment of, a Fee Proposal or a Fee Determination and the LCIA considers that the fees and expenses of the Arbitrator(s) are inconsistent with Article 3.1 of these LCIA UNCITRAL Terms and Conditions then, in implementing Articles 41(3) and 41(4)(c) of the UNCITRAL Arbitration Rules, the LCIA shall make any adjustments it considers necessary and such adjustments will bind the Tribunal. 3.3 In implementing Article 41 of the UNCITRAL Arbitration Rules and determining the fees of the Arbitrator(s), the LCIA will, absent it deciding in its sole discretion and without the need to state any reasons that exceptional circumstances exist justifying a different rate, apply an hourly rate in the range of £250 to £650 per hour for each Arbitrator. 3.4 The Arbitrator’s fees and expenses may be subject to UK VAT, tax equivalent to value added tax or other sales tax at the prevailing rate. Article 4 The LCIA’s Fees and Expenses 4.1 The Parties shall be jointly and severally liable for the LCIA’s fees and expenses. 4.2 The LCIA will charge the Parties for time spent performing the administrative functions necessary to provide the Services, at the following rates, as amended from time to time in its sole discretion, and without the need to state any reasons:2 (a) for the Registrar, or Deputy Registrar: £300 per hour; (b) for Senior Counsel or Counsel: £285 per hour; (c) for Casework Administrator functions: £220 per hour; and (d) for Casework Accounting functions: £190 per hour. The rates provided above exclude UK VAT. 4.3 The LCIA will charge the Parties expenses, if any, incurred by the LCIA and by members of the LCIA Court in connection with the Services (such as postage, telephone, travel, etc) and additional arbitration support services, whether provided by the LCIA, or by the members of the LCIA Court, from its own resources or otherwise. 4.4 Where the LCIA conducts the Administration of the UNCITRAL Arbitration, the LCIA’s administrative charges also include a sum equivalent of 5% of the fees of the Tribunal (excluding expenses) in respect of the LCIA’s general overhead. 4.5 When the LCIA Court conducts a Challenge Determination, time spent by members of the LCIA Court in carrying out such Service shall be charged to the Parties at hourly rates advised by the members of the LCIA Court. The LCIA Court shall determine in what amount and to whom any Party should pay all or any part of the costs of the challenge. The costs of the challenge for these purposes means the LCIA Court’s fees and expenses; the LCIA’s fees and expenses for performing the administrative function; and legal fees and expenses of the Parties incurred in relation to the challenge. 4.6 The LCIA will not fulfil any Service unless it is in receipt of sufficient funds to cover its fees and expenses. 4.7 The LCIA will periodically render invoices for its fees and expenses. Once invoices are rendered, the LCIA will deduct the fees directly from the account in accordance with the payment terms of its invoice. 4.8 UK-based Parties shall be jointly and severally liable to the LCIA for any UK VAT chargeable on or in respect of the provision of the Services by the LCIA. 4.9 Any bank charges incurred on any transfer of funds by or to the Parties shall be borne exclusively by the Parties. Article 5 Deposits of Costs 5.1 The LCIA shall direct deposits from the Parties in such proportions and at such times as it thinks appropriate, to cover the LCIA’s fees and expenses for providing the Services. 5.2 The LCIA will make directions for deposits on behalf of the Tribunal when the LCIA conducts the Administration of the UNCITRAL Arbitration. 5.3 Any deposits made in accordance with Article 43 of the UNCITRAL Arbitration Rules and received by the LCIA or made to the LCIA at its own direction, shall be the property of the LCIA to be disbursed or otherwise applied by the LCIA in accordance with these LCIA UNCITRAL Terms and Conditions. The Parties agree that the LCIA shall not act as trustee, and its sole duty in respect of the funds received shall be to act in accordance with these LCIA UNCITRAL Terms and Conditions and the UNCITRAL Arbitration Rules. 5.4 The Parties are not entitled to interest on any credit balance, and any interest earned from funds paid to the LCIA by the Parties shall accrue for the sole benefit of the LCIA. 5.5 The LCIA will only accept deposits, and any other payments in connection with the Services, from a Party or a Party’s Legal Representatives, and the LCIA's acceptance of deposits/payments is subject to Article 7. 5.6 No Party should deposit or seek to deposit funds with the LCIA (other than the Registration Fee) before the LCIA has confirmed its agreement to provide the Service in accordance with Article 2.3. Otherwise, and unless the LCIA obtains satisfactory additional information, it may, in its sole discretion, and without the need to state any reasons, return the funds to the account from which they were paid. Article 6 Return of Funds 6.1 Where the LCIA holds deposits made in accordance with Article 43 of the UNCITRAL Arbitration Rules and there is an excess amount to be returned to the Parties, the LCIA will return the funds in accordance with the directions of the Tribunal and Article 43(5) of the UNCITRAL Arbitration Rules. 6.2 If the Tribunal does not provide directions to the LCIA regarding the return of the excess amount, the excess amount will be paid: (a) in accordance with any written agreement between the Parties, or if the Parties do not agree, in accordance with the written instructions of one of the Arbitrators to the LCIA; failing which, (b) the LCIA shall return the funds in the same proportions and to the same Parties as the payments were made to the LCIA. 6.3 Subject to Article 7, once instructions are provided, the LCIA will transfer the excess amount as soon as practicable in accordance with the details provided by the Parties in the UNCITRAL Arbitration and provide confirmation to the Parties and the Tribunal that the transfer has occurred. 6.4 The LCIA will make reasonable attempts to contact the Parties in order to arrange for the transfer of the excess amount, using the contact details provided to the LCIA during the proceedings. If a response is not received from a Party so contacted within 30 days, the LCIA will provide that Party with written notice of its intention to retain the excess amount. If no response is received within a further 60 days, the Party will be deemed irrevocably to have waived any right to claim and/or receive the excess amount. 6.5 If a payment or payments have been made or the excess funds have been dealt with, such that the account has no balance remaining, the LCIA may close the account. Article 7 Compliance 7.1 Any dealings between a Party, the Arbitrator(s) and the LCIA will be subject to any requirements applicable to that Party, the Arbitrator(s) or the LCIA relating to bribery, corruption, terrorist financing, fraud, tax evasion, money laundering and/or economic or trade sanctions (Prohibited Activity), and the LCIA will deal with any Party and any Arbitrator on the understanding that it is complying with all such requirements. 7.2 The LCIA may refuse to act on any instruction and/or accept or make any payment if the LCIA determines (in its sole discretion and without the need to state any reasons) that doing so may involve Prohibited Activity, or breach any law, regulation, or other legal duty which applies to it, or that doing so might otherwise expose the LCIA to enforcement action or censure from any regulator or law enforcement agency. 7.3 The Parties and the Arbitrator(s) agree to provide the LCIA with any information and/or documents reasonably requested by the LCIA for the purpose of compliance with laws relating to Prohibited Activity. The LCIA may take any action it considers appropriate to comply with any applicable obligations relating to Prohibited Activity, including disclosure of any information and documents to courts, law enforcement agencies or regulatory authorities. Article 8 Data Protection 8.1 Any processing of personal data by the LCIA is subject to applicable data protection legislation, and the LCIA’s data protection notice can be found on the LCIA’s website. 8.2 The LCIA and the Tribunal may issue directions addressing information security or data protection, which shall be binding on the Parties, and in the case of those issued by the LCIA, also on the members of the Tribunal, subject to the mandatory provisions of any applicable law or rules of law. Article 9 Limitation of Liability 9.1 The LCIA is not liable, or otherwise responsible, for any loss incurred by the Parties, the Tribunal, or any third parties, as a consequence of the failure of, or any act or omission by, any bank or banks holding funds. 9.2 None of the LCIA (including its officers, members, and employees), the LCIA Court (including its President, Vice-Presidents, Honorary Vice-Presidents, former Vice-Presidents, and members), the LCIA Board (including any board member) and the Registrar (including any Deputy Registrar) shall be liable to any Party or any Arbitrator(s) howsoever for any act or omission in connection with the Services, save: (a) where the act or omission is shown by that Party, or that Arbitrator, to constitute conscious and deliberate wrongdoing committed by the body or person alleged to be liable to that Party, or to that Arbitrator; or (b) to the extent that any part of this provision is shown to be prohibited by any applicable law. Article 10 Governing Law and Jurisdiction 10.1 These LCIA UNCITRAL Terms and Conditions, together with the UNCITRAL Arbitration Rules, constitute the entire agreement between the LCIA, the Parties and the Tribunal concerning provision of the Service(s). 10.2 These LCIA UNCITRAL Terms and Conditions (and any non-contractual obligations related to them) are governed by, and shall be interpreted in accordance with, the laws of England. 10.3 The courts of England and Wales shall have exclusive jurisdiction to hear and decide any action, suit or proceedings between a Party, the Arbitrator(s) and the LCIA (including its officers, members and employees), the LCIA Court (including its President, Vice Presidents, Honorary Vice Presidents, former Vice Presidents and members), the LCIA Board (including any board member), the Registrar (including any Deputy Registrar) which may arise out of or in connection with these LCIA UNCITRAL Terms and Conditions (including any non-contractual obligations related to them) and, for these purposes, each Party and each Arbitrator irrevocably submits to the jurisdiction of the courts of England and Wales. 1 Subject to Article 2.3, requests for the provision of the LCIA’s services in arbitrations pursuant to other versions of the UNCITRAL Arbitration Rules will, insofar as possible, be accommodated in the LCIA’s sole discretion, and without the need to state any reasons, with any necessary changes. 2 Minimum unit of time in all cases: six minutes.