• Journal of Arbitration Studies
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• v.23 no.4
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• pp.3-27
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• 2013

Overriding Mandatory rules are laws that purport to apply irrespective of the law chosen by the parties to govern their contractual relations. This article examines their role and applicability in international arbitration. The overriding mandatory rules pose a complex and continuing problem for arbitrators because they put the interests of states and parties in direct competition. When a law says that arbitrators must apply it, yet the parties' contract excludes it, what should the arbitrators do? Where should their allegiance lie? The answer depends on the underlying nature of arbitration - and since that can be legitimately conceptualized in different ways, a principled approach to overriding mandatory rules seems to be impossible to provide. Nevertheless, a practical solution is required, because there were European cases in which courts voided valid arbitration agreements made, reasoning that arbitrators certainly would not apply and/or take into account its overriding mandatory rules of indemnity right granted to commercial agent and distributor in Europe. Therefore, this paper first examines status of overriding mandatory rules of another law in international litigation and then explores any possibility of application of overriding mandatory rules of another law in international commercial arbitration. With this analysis, the author reaches into a conclusion that the arbitrator should and/or take into account overriding mandatory rules of another law, yet should limit to them of the country where characteristic performance is made under the contract.

• Journal of Arbitration Studies
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• v.18 no.2
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• pp.55-77
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• 2008

The purpose of this paper is to make a research on the administration and practical problems of the arbitral organization called "uth-North Commercial Arbitration Commission". The Arbitration Commission shall be set up under the South-North Agreements officially called "reement on Settlement Procedure of Commercial Dispute" and "reement on Organization and Administration of the South-North Arbitration Commission" between the South and the North of Korea. A variety means of dispute settlement including friendly consultations, conciliation and arbitration called Alternative Dispute Resolution(ADR) will be used frequently and institutionally to settle commercial disputes and conflicts arising from economic transactions between the South and the North of Korea. Under the circumstances, it is becoming a problem of vital importance how to operate the Arbitration Commission for the prompt and effective settlement of the South-North commercial disputes. First of all, the South and the North of Korea should recognize the availability of prompt and effective means of dispute resolution such as arbitration and conciliation to be made by the Arbitration Commission would promote the orderly growth and encouragement of th South-North trade and investment, for which the following measures should be taken as soon as possible : 1. Enactment of the South-North Arbitration Rules. 2. Designation of the arbitral institution by North-Korean side. In this connection, the Korean Commercial Arbitration Board(KCAB) was already designated officially as the arbitral organization of South Korean side as of April 17, 2007. 3. Arbitration shall be held in the place where the respondent has his domicile, in case that both parties fail to agree as to the place of arbitration. 4. Permission of a third country arbitration in case that both parties agree to do so. 5. To become a member country of international arbitration agreements including the New York Convention.