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Cannons of Judicial Ethics
for Arbitration Jurisprudence
(adopted on May 22, 2000 by the General Meeting of the Polish Arbitration Association)
The resolution of disputes through arbitration constitutes a significant element of the judicial system, providing fair decisions on the rights and obligations of parties submitting their disputes to arbitration, in conformance
with society's expectations. Individuals accepting the role of arbitrators serve as participants in the system of jurisprudence, thereby taking on significant obligations, both with respect to the parties and with respect to society. Such duties also encompass obligations in the area of ethics.
These cannons shall guide the ethical conduct of individuals accepting the role of arbitrator in disputes submitted to arbitration. As used in these cannons, the term "arbitrator" shall also apply to individuals designated as "chief arbitrator", "arbitration panel chairman", etc.
These cannons are based on general moral principles, not comprising part of arbitration rules, and shall not be construed as a source of law or as principles for interpreting contractual obligations of the parties or as provisions of law governing reasons for recusal of an arbitrator or for setting aside an arbitration decision. In a agreement to arbitrate, the parties may stipulate that these cannons shall apply to arbitrators resolving such disputes. These cannons may also be endorsed by a professional organization affiliating arbitrators or by an entity that organizes or administers arbitration services.
These cannons shall apply both to arbitrators hearing matters under rules adopted by international organizations or authorities (e.g. UNCITRAL) or by domestic entities (e.g. the Polish Chamber of Commerce in Warsaw - "KIG"), as well as arbitrators serving in "ad hoc" arbitrations, for which parties have not specified rules governing conduct of the proceeding in the agreement to arbitrate. Accordingly, these cannons include certain procedural rules which are in many instances covered by applicable regulations. In such cases, it is indicated that the respective cannon shall apply, if applicable rules or regulations do not provide otherwise.
1. Independence and impartiality of arbitrators
1.1. Arbitrators shall preserve the appropriate tenor of arbitration proceedings, specifically maintaining the independence and impartiality thereof. Arbitrators shall maintain impartiality towards the parties to the dispute
being heard and towards all other persons participating in the arbitration proceeding. Arbitrators shall not advocate the interests of any party and shall act independently of each party after appointment, notwithstanding the circumstance that a party may have influenced the selection of a specific arbitrator.
1.2. A person designated to serve as arbitrator shall only agree to serve in this capacity, if he is fully convinced that: 1) he is capable of providing this service in an impartial manner, 2) he has the necessary qualifications to hear and resolve to disputed matter, and 3) he is able to devote time and attention, reasonably anticipated by the parties, to participation in proceedings.
1.3. After accepting appointment, an arbitrator shall not engage in any endeavor, activity or enter into any financial, commercial, professional, family or social relationship or accept any personal or financial benefits that might limit his independence or create a reasonable impression of partiality or dependence. This obligation shall also remain in force for a reasonable time after resolution of the matter.
1.4. Arbitrators shall demonstrate a lack of prejudice with respect to all parties to the proceeding. Arbitrators shall not yield to external pressures, fear of criticism or be guided
by self interest. Arbitrators shall avoid behavior or statements that may create an impression of partiality to any party involved in the proceeding.
1.5. An arbitrator shall take all reasonable actions to ensure
a fair, expedient and cost effective resolution of the dispute
that he was appointed to resolve. Arbitrators shall exercise
diligence in precluding actions designed to result in protracted proceedings.
1.6. An individual who favors one of the parties or has prior
knowledge of the dispute can not be impartial and should not
accept the role of neutral arbitrator. A potential arbitrator
shall be deemed partial or to have prior knowledge of the
dispute, e.g. if prior to being designated arbitrator, he
issued an opinion on the anticipated resolution of the dispute,
regardless of the nature of such involvement.
1.7. An arbitrator who is a member or employee of a law office
or law firm shall exercise diligence in preventing his office
or firm from entering into relationships that may adversely
affect his objectivity or create a reasonable inference of
partiality, dependence or financial benefits, to be derived
after conclusion of the case.
2. Disclosure of circumstances that may adversely affect the objectivity of an arbitrator or create an impression of partiality or dependence.
2.1. An individual designated as arbitrator shall disclose:
a) any financial or personal interest related to the resolution of the arbitration proceeding.
b) all present or past financial, commercial, professional or family or social relationships that may suggest partiality or dependence with respect to a party or the representative of a party; this obligation shall also apply to immediate family members and partners of the arbitrator,
c) the nature and scope of any prior knowledge of the dispute.
2.2. The obligations set forth in points 2.1(a) and (b) are of a continuing nature, applicable at every stage of the arbitration proceeding after acceptance of the appointment.
2.3. Disclosure shall be made to all parties to the proceeding and to all other arbitrators, unless agreement between the parties, regulations or applicable law provides for another form of disclosure.
2.4. An arbitrator shall recuse himself from a matter, if a motion for recusal is supported by all parties to the proceeding. If only some of the parties to the proceeding join in a motion for recusal, the arbitrator shall also recuse himself, unless after careful consideration he concludes that the allegations are not significant and that notwithstanding such allegations, the arbitrator is nonetheless able to hear and resolve the matter in an independent and fair manner and when recusal would cause delay or result a party incurring additional costs.
2.5. If agreement between the parties, arbitration regulations or applicable law define procedures for recusal of an arbitrator, such procedures shall be complied with.
3. Contacts with the parties
3.1. If agreement between the parties or regulations do not otherwise regulate the manner and content of communications with the parties, arbitrators shall comply with the following rules of conduct:
a) upon receiving notice of appointment, a potential arbitrator may address questions to the parties or their representatives regarding the identity of the parties and witnesses, as well as the general nature of the dispute.
A potential arbitrator may also answer questions posed by the parties or their representatives, intended to establish whether he has an appropriate background to resolve such disputes. In such conversations, the arbitrator may obtain information
regarding the general nature of the dispute, but shall not permit the parties or their representatives to make statements regarding the essence of the dispute.
b) It shall also be permissible to contact parties in matters such as determining the location and date of the hearing or others details pertaining to the organization of the proceeding.. The arbitrator shall immediately notify the other party of the subject of such a conversation and shall not make any decision until the party has had an opportunity to respond to the specific issue.
c) copies of all documents addressed to one of the parties
shall be immediately delivered to the other party (parties).
If an arbitrator receives a document from one of the parties,
appearing that a copy was not to have been delivered to the
other party (parties), he shall make a copy of the document
and deliver or cause delivery thereof, to the party (parties)
that ha not received copies.
d) The rules set forth in b) and c) above shall apply to the
chief arbitrator, if the matter is being heard by an arbitration panel.
3.2. An arbitrator shall not accept direct or indirect economic benefits or avail himself of significant generosity, offered by any party to the proceeding.
4. Diligence and fairness of the proceeding
4.1. The principle of equality between the parties shall apply at every stage of the proceeding; the parties shall be treated identically and objectively.
4.2. Arbitrators shall be calm, patient, moderate and respectful to the parties.
4.3. Arbitrators shall conduct proceedings in a diligent and efficient manner, leading to resolution of the matter as expediently as possible.
4.4. In the absence of regulations governing proceedings in the respective case:
a) arbitrators shall ensure that each party and his representative has the opportunity to appear in person and to be heard during the hearing. An arbitrator shall allow each party to present evidence and arguments, which does not limit the arbitrator's right to exclude repetitive or immaterial evidence.
b) if a party was duly notified of a hearing date and fails to appear without justifiable cause, the arbitrator may hear the case in the absence of that party;
c) if an arbitrator concludes that further explanations or evidence are necessary for clarification of the case, he may require additional information from the parties, submission of documents or presentation of other evidence.
d) it shall be permissible to suggest to the parties an attempt at resolving the dispute amicably. Arbitrators shall not be present and shall not participate in such discussions, unless requested by both parties. It shall not be permissible to pressure the parties to settle.
5. Conscientiousness, equity and due consideration in resolving matters
5.1. Arbitrators shall resolve all demands of the parties, after detailed hearing and consideration and a thorough exploration of all circumstances related to resolution of the matter. The decision shall not pertain to issues that were not the subject of demands raised by the parties.
5.2. Arbitrators shall apply honest and objective judgment, guided by the principle of equity, and shall not permit external pressures to influence the contents of a decision.
5.3. Arbitrators shall not delegate their obligation to resolve the demands of the parties to any other person.
5.4. Upon demand of a party, arbitrators shall merge the contents of a settlement reached by the parties into the decision, noting that it is based upon a settlement reached by the parties, unless regulations governing the case provide otherwise.
6. Trust and confidentiality related to the role of arbitrator
6.1. Arbitrators shall not utilize information obtained in the course of an arbitration proceeding in connection with an arbitration proceeding for personal benefit or the benefit of any third party and shall not disclose such information for purposes that are related to the proceeding that is underway or has been completed. Arbitrators shall maintain confidentiality of all information obtained in connection with a proceeding that is under consideration or has been resolved.
6.2. The contents of a decision shall not be revealed prior to being delivered to the parties. Forwarding a decision to employees of an organization or institution administering the proceeding, for the performance of clerical duties and delivery to the parties, shall not violate this rule.
7. Compensation and expenses
7.1. Findings pertaining to compensation and expenses shall be presented to the parties clearly and unambiguously, in an objective manner.
7.2. Terms and conditions for payment of compensation shall be established prior to acceptance of an appointment as arbitrator. All parties to the proceeding shall be informed thereof in writing.
7.3. If the proceeding is being conducted under regulations or rules of an organization or institution administering the proceeding, payments should be handled by that organization.
8. Preparation of the decision
8.1. The decision shall be formulated in a clear and transparent manner and shall be complete.
8.2. The decision shall be edited in proper language, in a logical manner, and shall comply with all formal requirements arising from applicable regulations and provisions of law. The decision shall cover all issues submitted for resolution. Decisions pertaining on each issue shall be set forth unambiguously and be formulated in a precise manner, allowing the decision to be enforced under applicable provisions of law.
8.3. Arbitrators shall not be required to draft grounds for the decision, unless demanded by the parties, required by regulations governing the arbitration proceeding, or by applicable provisions of law.
9. Advertising prohibited
9.1. Arbitrators are prohibited from advertising in any form.
9.2. Arbitrators shall exercise restraint in propagating their arbitration services. Information on the willingness to serve as arbitrator or on the availability of such services provided by a specific individual shall be limited to:
- a short description of the arbitrator's professional experience and preparation
- listing the fields, in which the arbitrator is an expert or is professionally active
- contact information
- information on whether he is registered in the list of arbitrators or whether he has participated in ad hoc arbitration.
Information shall not:
- be inaccurate or imprecise,
- include comparisons with other arbitrators or representatives of other professions,
- contain statements pertaining to the quality of the arbitrator's work or his achievements in arbitration practice,
- imply acceptance of the role of arbitrator on principles other than those set forth in these cannons
This rule shall not preclude publication of printed advertisements or internet listings, conforming with the above standards, direct presentations to prospective users of arbitration services, subject to the above standards, or responding to inquiries regarding the feasibility of serving as arbitrator or participating in an arbitration proceeding, qualifications, experience or conditions of compensation.
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