Arbitration

Arbitration Roadmap

The procedures in JCAA international arbitration are widely recognized as a global standard. Below is an outline of JCAA arbitration procedures conducted under the Commercial Arbitration Rules or the Interactive Arbitration Rules.

Step 1Request for Arbitration

Claimant

submits to the JCAA:

JCAA
  • requests the claimant to pay the administrative fee calculated based on the amount or economic value of the claimant's claim.
    For more details, please see Costs
  • notifies the parties of the request for arbitration upon confirming the payment of administrative fee
  • requests the parties to pay an initial deposit to the JCAA
Commercial Arbitration Rules

if the parties have agreed to have three arbitrators, the amount of initial deposit is JPY3,000,000 each for the claimant and the respondent. In other cases, such amount is JPY1,500,000 in general.

Interactive Arbitration Rules

JCAA will require the claimant(s) and the respondent(s) to deposit an equal amount sufficient to cover the full amount of the arbitrator's remuneration (a fixed amount depending on the amount of the claim).

Respondent
  • submits an answerWord to the JCAA within four weeks from the respondent's receipt of the request for arbitration.
  • submits a counterclaimWord, if any, within four weeks from the respondent's receipt of the request for arbitration.

Step 2Appointment of Arbitrator

1. Number of arbitrators
  • The parties may agree on the number of arbitrators.
  • If there is no agreement between the parties as to the number of arbitrators, the number of arbitrators is, in principle, one. JCAA decide the number of arbitrators to be three if either party requests so.
Where the expedited arbitration procedures apply

The number of arbitrators is one unless the parties have agreed otherwise..

2. Appointment of arbitrators
  • Where the number of arbitrators is one, all parties agree on and appoint a solo arbitrator.
  • Where the number of arbitrators is three, each party appoints an arbitrator and two party-appointed arbitrators appoint the third arbitrator.

＊If requested by a party, JCAA can present a list of arbitrator candidates, with expertise relevant to the parties’ specific case, for the parties’ consideration.
＊If the parties fail to notify JCAA of the appointment of arbitrator within the time limit, JCAA will appoint such arbitrator. In that case, in principle, JCAA will provide the parties a list of arbitrator candidates and appoint the arbitrator considering the parties’ ranking.

Appointment of arbitrators
3. Notification to the JCAA of the parties' appointment of arbitrator

Once the parties or co-arbitrators appoint an arbitrator, they should submit the following documents to the JCAA by the time limit provided under the Rules or designated by the JCAA.

Step 3Procedural Schedule

The arbitral tribunal sets up the procedural schedule after conferring with the parties by videoconferencing, exchange of email or any other appropriate means. The tribunal also sets out the procedural rules applied to the case.

Step 4Exchange of Submission and Evidence

The parties exchange written submissions and evidence on schedule.

Arbitration under the Interactive Arbitration Rules
  • The tribunal presents to the parties a written summary of each party's positions on factual and legal grounds of the claim and defense as well as factual and legal issues and provides the parties with an opportunity to comment.
  • The tribunal presents to the parties its preliminary view as to the important issues prior to its determination on whether witness examination should be conducted and provide the parties with an opportunity to comment.

Step 5Oral Hearing

An oral hearing takes place if the parties request so or the tribunal considers it appropriate. The arbitral tribunal decides on the venue and date of the hearing after conferring with the parties. The primary purpose of the hearing is witness examination.

Where the expedited arbitration procedures apply

There will be no hearing, unless the tribunal considers a hearing necessary or all the parties agree to hold a hearing.

Step 6Arbitral Award

  • The arbitral tribunal renders an arbitral award in which it upholds or rejects the claims and determines on the allocation of costs between the parties.
  • The arbitral award is final and binding upon the parties.
  • The JCAA sends the arbitral award to the parties.
Where the expedited arbitration procedures apply

The arbitral award will be rendered within six months (or within three months where the amount in dispute is JPY50 million or less) from the constitution of the arbitral tribunal.