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1 /...1 PRIVATE ARBITRATION KIT

2 Introduction This document contains Guidelines, Rules and a Model Agreement in respect of private arbitrations. It is designed to assist practitioners when referring disputes to arbitration. The Guidelines were developed by the Arbitration Liaison Committee setting out the responsibility of practitioners when acting as arbitrators under the legislation which has now been replaced by the Commercial Arbitration Act 2010 and the Civil Procedure Act The Guidelines were adopted by the Council of the Law Society of NSW on 23 November The Rules and Model Agreement were developed jointly by the Law Society s Arbitration Liaison Committee and the Property Law Committee to cover disputes arising out of the Contract for the Sale of Land and for the conduct of commercial arbitration generally. May /...2

3 CONTENTS Introduction 2 Contents 3 I. Guidelines for Arbitrators 4 II. The Law Society Conveyancing Arbitration Rules 5 (Contract for Sale of Land 2005 Edition, Contract for the Sale and Purchase of Land 2014 Edition or subsequent editions) III. The Law Society of New South Wales Rules for 13 the Conduct of Commercial Arbitration (incorporating the Expedited Commercial Arbitration Rules) IV. The Law Society Arbitration Agreement /...3

4 GUIDELINES FOR ARBITRATORS The responsibilities of practitioners when acting as arbitrators under the Commercial Arbitration Act 2010 and the Civil Procedure Act 2005 are set out in the following Guidelines developed by the Arbitration Liaison Committee and approved by the Council of the Law Society of NSW. 1. An arbitrator must do right to all manner of people after the laws and usages of the State of New South Wales without fear or favour, affection or ill will. 2. Each participant must be afforded a reasonable opportunity to take an appropriate part in the process. 3. An arbitrator must not only be impartial, but must also appear to be impartial. S/he must disclose any circumstances which may cause or have any tendency to give rise to an apprehension of bias. 4. An arbitrator shall use his or her best endeavours to complete any task involved in the arbitration process in a diligent manner and as soon as reasonable in all the circumstances. As a general rule, no award should be reserved for longer than eight (8) weeks. 5. An arbitrator s award should, unless the parties otherwise agree:- a. contain a reasoned analysis of the evidence and the basis for the decision so as to make the parties aware of the arbitrator s view of the case made by each of them, and to enable any Court reviewing the award to consider any question of law arising from the award. b. specify the evidence which was accepted and/or rejected and the reasoning process which led to the decision. 6. During any arbitration hearing an arbitrator shall act with due courtesy towards all other participants. 7. A good arbitrator is one who:- a. keeps a relaxed atmosphere during the arbitration b. keeps in the forefront of his / her mind that all witnesses and Counsel take part in the arbitral process to assist the arbitrator to achieve a fair and just result c. keeps formality to a minimum d. controls the hearing so it is confined to the issues /...4

5 THE LAW SOCIETY CONVEYANCING ARBITRATION RULES (For disputes arising under the Contract for Sale of Land 2005 Edition, Contract for the Sale and Purchase of Land 2014 Edition or subsequent editions) Preamble The Council of the Law Society of New South Wales has resolved that, where parties have entered into a Contract for Sale of Land 2005 Edition, Contract for the Sale and Purchase of Land 2014 Edition or subsequent editions and a dispute has arisen between them and pursuant to the terms of that Contract the parties have agreed to submit the dispute to arbitration then the parties shall be taken to have agreed that the arbitration shall be conducted in accordance with these Rules, namely: RULES 1 RULE 1 Appointment of an Arbitrator PART I PRELIMINARY In the event that the parties to the dispute are unable to agree on an Arbitrator within one (1) month of completion of the Contract, the Law Society President for the time being will at the request of either party in his or her absolute discretion appoint an Arbitrator. RULE 2 Notice of Dispute The Statement of the amount claimed pursuant to the Contract shall be deemed to be the Notice of Dispute for the purposes of the Arbitration. RULE 3 Appointment Fee 3.1 The parties shall deposit with the Law Society the prescribed Appointment Fee (to be shared equally between the parties). 3.2 The Appointment Fee shall be such sum as is prescribed by the Law Society at the relevant time and from time to time. 3.3 Lodgement of the prescribed Appointment Fee shall be a pre-requisite to the appointment of an Arbitrator under Rule 4. RULE 4 Call for Appointment 4.1 Where a Statement of amount claimed has been served pursuant to the terms of the Contract and the dispute has not settled within one (1) month 1 These rules are intended to bind the parties to the Arbitration and are not Legal Professional Rules made pursuant to the Legal Profession Act /...5

6 of completion either party may thereafter request the Law Society President in writing to appoint an arbitrator and, in so doing, shall submit the following to the Law Society: a. a copy of the Statement of the amount claimed; b. a copy of the relevant Contract of Land; c. the names and addresses of the parties to the dispute and their respective solicitors; d. a brief description of the nature of the dispute containing such particulars of the dispute as will permit the Law Society President to appoint an appropriate arbitrator. e. a cheque for half of the prescribed Appointment Fee made payable to The Law Society of New South Wales. 4.2 Within ten (10) days after receipt of the material submitted pursuant to paragraph 1 of this Rule and receipt of payment of the prescribed Appointment Fee, or such further information as to the nature of the dispute as the Law Society may reasonably require for the purposes of appointment, the Law Society President shall appoint an arbitrator and advise the parties and the Arbitrator accordingly. RULE 5 Entry on Reference to Arbitration 5.1. The Arbitrator shall, within seven (7) days of receiving advice of his or her appointment or agreed appointment, give written notice to the parties of the time and place of a Preliminary Conference which the parties or their duly authorized representatives shall attend. At or prior to that Preliminary Conference, the Appointed Arbitrator may advise any conditions he or she wishes to impose (including provision of security for the fees and expenses of the Appointed Arbitrator) and request the agreement of the parties to such conditions. Failure to respond to the Arbitrator s request not later than the holding of the Preliminary Conference shall be deemed to be a failure to agree to the conditions. 5.2 On the parties agreeing to any such conditions, the Arbitrator shall accept appointment and shall then be deemed to have entered on the reference as Arbitrator. 5.3 If any party fails to attend the Preliminary Conference or does not agree with the conditions of the Appointed Arbitrator, then the Appointed Arbitrator shall notify the parties and the Law Society in writing within three (3) working days as to whether he or she accepts appointment as Arbitrator notwithstanding that non-appearance or disagreement. On acceptance of appointment, the Appointed Arbitrator shall be deemed to have entered on the reference as Arbitrator. If appointment is declined by the Appointed Arbitrator, then the Law Society President shall within ten (10) days appoint a replacement Appointed Arbitrator. 5.4 Where the Arbitrator has entered on the reference as Arbitrator, the arbitration shall be fixed for a time, date, place and timetable agreeable to the parties and the Arbitrator. If the parties are unable to agree on a time, date and place or upon a timetable, the Arbitrator may give directions /...6

7 stipulating these. These directions are binding upon the parties. RULE 6 Appointed Arbitrator Failing to Act / Loss of Arbitrator The Law Society President shall appoint a replacement arbitrator, within ten (10) days of being called on to do so by a party, if: 6.1. an Appointed Arbitrator does not enter upon the reference to arbitration within one (1) month of the date of his or her appointment; or, 6.2. after entering on the reference to arbitration, an Appointed Arbitrator shall die or shall otherwise become incapable by reason of ill health, or no longer be the holder of a current practising certificate, or otherwise, from continuing on the reference to arbitration. RULE 7 Liability of Law Society for acts or omissions The parties agree that the Law Society, its officers and employees are not liable to any party for, or in respect of, any act or omission in the discharge or purported discharge of the Law Society s functions under these Rules. RULE 8 Provision of Security The Arbitrator may direct that the parties provide security for the costs of the reference in such form, such amount or amounts and at such time or times as directed by the Arbitrator. Any such security shall be deposited and applied as directed by the Arbitrator. If there is any default in provision of security as directed by the Arbitrator, then the Arbitrator may make such directions for the further conduct of the arbitration as the Arbitrator then considers appropriate. PART II THE ARBITRAL PROCEDURE RULE 9 Preliminaries not to Prejudice Scope of Arbitration Unless otherwise agreed in writing by the parties: 9.1 Any description identifying a claim given in the Statement of amount claimed shall not be taken as defining or limiting the scope of the arbitration. 9.2 Any party may raise in its claim, defence, cross claim or defence to cross claim, any other dispute or difference which has arisen under the Agreement. 9.3 Thereafter any amendment or addition to claims will be in the discretion of the Arbitrator, and shall be subject to any conditions as to costs or otherwise that the Arbitrator may consider appropriate. RULE 10 General Duty of Arbitrator 10.1 The Arbitrator shall adopt procedures suitable to the circumstances of the particular case, avoiding unnecessary delay and expense, so as to provide an expeditious cost-effective and fair means of determining the matters in dispute /...7

8 10.2 The Arbitrator may make such directions or rulings as he or she considers to be reasonably appropriate, including in respect of the following: a. The form and extent of any pleadings or other documents defining the issues in dispute, including the extent to which particularisation should be provided by a party in respect of its contentions on all or some of the issues in dispute. b. The preparation of any joint statement of issues, in such manner and at such time as the Arbitrator considers appropriate, to define and narrow the issues in dispute. c. The holding of further Preliminary Conferences, meetings between experts and/or representatives of the parties, so as to narrow issues in dispute, including the time at which and manner in which they are conducted and who may attend, and preparation of any written document recording the results thereof. d. The preparation of joint reports by experts engaged by the parties following any meetings between such experts, recording the matters on which they agree, the matters on which they disagree, and identifying the reasons for any such disagreement and their respective contentions in relation to same. e. The preparation of joint bundles of documents for use in the arbitration, including at any meetings between experts and/or representatives of the parties or preparation of any joint report of experts. f. The provision of factual information to experts for the parties for use in their joint deliberations or preparation of any joint report. g. The manner in which and the extent to which the parties shall produce documents for inspection by any opposing party. h. The form of any evidence in chief, by witness statement or otherwise, and the time or times at which it is to be provided to the Arbitrator and any other party. i. The extent to which an oral hearing is required and any limitations in relation to same, including reasonable time limits on oral evidence and the provision of written opening addresses and final submissions. j. The service of offers of settlement without prejudice except as to costs The Arbitrator shall be independent of, and act fairly and impartially as between the parties, giving each party a reasonable opportunity of putting its case and dealing with that of any opposing party, and a reasonable opportunity to be heard on the procedure adopted by the Arbitrator. RULE 11 General Duty of Parties 11.1 The parties shall do all things reasonably necessary for the proper, expeditious and cost-effective conduct of the arbitral proceedings /...8

9 11.2 Without limiting the generality of the foregoing, the parties shall comply without delay with any direction or ruling by the Arbitrator as to procedural or evidentiary matters The parties agree that as a condition of being present or participating in the arbitration, they will, unless compelled by law, preserve total confidentiality in relation to the course of proceedings within the arbitration and in relation to any exchanges that may come into their knowledge, whether oral or documentary, concerning the dispute, passing between any of the parties and the arbitrator or between any two or more of the parties within the arbitration. This agreement does not restrict the parties freedom to disclose and discuss the course of proceedings and exchanges within the arbitration with advisers and insurers of a party to the dispute PROVIDED ALWAYS that any such disclosure and discussions will only be on the same basis of confidentiality. RULE 12 Waiver of Right to Object 12.1 Subject to any Statute Law or principle of common law or equity, or prior written agreement of the parties, if a party to arbitral proceedings takes part, or continues to take part, in those proceedings without making forthwith or within a reasonable time thereafter any objection: a. that the Arbitrator lacks substantive jurisdiction; b. that the proceedings have been improperly conducted; c. that there has been a failure to comply with the Rules; or d. that there has been any other irregularity affecting the Arbitrator or the proceedings, then that party shall be deemed to have waived its right to make such objection later, before the Arbitrator or a Court, unless it shows that, at the time it took part or continued to take part in the proceedings, it did not know and could not with reasonable diligence have discovered the grounds for the objection Subject to any Statute Law or prior written agreement of the parties, where the Arbitrator rules that he or she has substantive jurisdiction and a party to arbitral proceedings who could have questioned that ruling in a Court does not do so within any time fixed by the Arbitrator (or if no time is fixed, within a reasonable time and not later than the conclusion of any hearing), then that party shall be deemed to have waived any right it may otherwise have had to later object to the Arbitrator s substantive jurisdiction on any ground which was the subject of that ruling, and shall be deemed to have submitted to the Arbitrator s jurisdiction. RULE 13 Procedural Directions Subject to any Statute Law or prior written agreement of the parties, and the requirements of Rule 10, the Arbitrator may make such directions or rulings in respect of procedural and evidentiary matters as he or she sees fit /...9

10 RULE 14 Views and Other Material 14.1 The Arbitrator may, in his or her discretion, view the subject matter or site of any dispute, the view of which might assist the Arbitrator in determining the issues in dispute. The Arbitrator may use his or her own observation not merely to assist in understanding the evidence but also as material which he or she may use in determining the issues in dispute provided that, in so doing, the Arbitrator puts the parties on notice of any preliminary adverse conclusion which is based solely on the Arbitrator s observations on the view and then affords such parties a reasonable opportunity to meet it Subject to any Statute Law or contrary agreement of the parties, the Arbitrator shall be at liberty to obtain such technical and/or legal assistance or advice as the Arbitrator may, in his or her discretion, reasonably require provided that, in so doing, the Arbitrator complies with the rules of natural justice. The costs or expenses of so doing shall form part of the Arbitrator s fees and expenses of the arbitration. RULE 15 Awards 15.1 Subject to any Statute Law or the Agreement, the Arbitrator shall within a reasonable time deliver one or more interim awards so as to deal with all issues in the arbitration except for the costs of the arbitration The Award of the arbitrator is binding upon the parties. Unless otherwise agreed, the parties have no right of appeal other than that provided in the Commercial Arbitration Act 2010 or any other legislation which governs the conduct of the arbitration Thereafter, at the time and in the manner directed by the Arbitrator, the parties shall place before the Arbitrator such evidence and submissions on which they respectively rely on the question of costs, and the Arbitrator shall as soon as reasonably practicable thereafter deliver a final award which includes the Arbitrator s determination on costs, including by whom and in what manner the whole or any part of the costs of the arbitration are to be paid Awards of the Arbitrator shall be made in writing, and either forwarded by mail to the successful party (and a signed copy thereof shall be forwarded to the other party or parties) or the Arbitrator may advise the parties that the award may be collected at some place nominated by the Arbitrator In the event that security moneys lodged are less than that which the Arbitrator determines as the Arbitrator s fees and expenses and any other amounts to be paid from that security, then the Arbitrator may withhold the award until a party pays the outstanding balance so determined by the Arbitrator, whereupon such party may collect the award /...10

11 PART III GENERAL RULE 16 Definitions In these Rules: The Law Society means The Law Society of New South Wales. Appointed Arbitrator means an arbitrator who has been appointed by the Law Society or agreed by the parties but who has not entered on the reference to arbitration. Arbitrator means an arbitrator who has entered on the reference to arbitration. the costs of the arbitration includes the costs of the reference and the costs and disbursements of the parties. the costs of the reference includes the fees and expenses of an Arbitrator or Appointed Arbitrator, any Appointment Fee or other fee payable to the Law Society, the costs of room hire or transcript, and any fees or expenses incurred pursuant to Rule Court means any Court which has jurisdiction under the Statute Law which governs arbitration in the place where the arbitration is held. days means normal working days and shall exclude Saturdays, Sundays and public holidays. dispute includes, but is not limited to, a claim made by the purchaser under Clause 7 of the Contract in NSW. RULE 17 Application of Rules These Rules are subject to the Statute Law which governs arbitration in the place where the arbitration is held and to any agreement between the parties in relation to the arbitration process. Otherwise where the parties to a dispute have agreed to arbitration in accordance with these Rules, they are thereby bound to comply with these Rules. RULE 18 Counting of Days 18.1 For the purpose of counting days under these Rules, such period shall begin to run on the day following the day when notice, notification, communication or proposal is actually received or deemed to be received under paragraph 2 of this Rule, whichever is earlier. If the last day of such period is a public or official holiday or a non-business day at the residence or place of business of the addressee, then the period is extended until the first business day which follows Any such notice, notification, communication or proposal which is posted is deemed to have been received on the second day following the day of posting. Any such notice, notification, communication or proposal which is sent by facsimile or other means of telecommunication or electronic transmission is deemed to have been received on the day of transmission /...11

12 RULE 19 Termination of the Arbitration The arbitration is terminated after the handing down of a final award and an award to costs if any, by the Arbitrator or by the execution of a settlement agreement prior to the handing down of an award by the Arbitrator /...12

13 THE LAW SOCIETY OF NEW SOUTH WALES RULES FOR THE CONDUCT OF COMMERCIAL ARBITRATIONS 2 (Incorporating the Expedited Commercial Arbitration Rules) Authority for Rules The Rules for the Conduct of Commercial Arbitrations (the Rules) apply to commercial arbitrations conducted in accordance with the provisions of the Commercial Arbitration Act The Council of the Law Society of New South Wales resolved at a meeting on 20 April 2006 that, where parties have agreed between them that a dispute arising or having arisen between them shall be submitted to arbitration, the arbitration shall be conducted in accordance with either of the following: a. The Law Society of New South Wales Rules for the Conduct of Commercial Arbitrations; or b. The Law Society of New South Wales Expedited Commercial Arbitration Rules (Rules numbered 1 to 22 and Schedule 2 apply). Where any agreement, submission or reference provides for arbitration under the Rules of the Law Society of New South Wales, the parties are taken to have agreed that the arbitration is to be conducted in accordance with these rules or any modified, amended or substituted Rules which the Law Society may have adopted and which have come into effect before the start of that arbitration. PART I RULE 1 PRELIMINARY Appointment of an Arbitrator 1.1 Nothing in these Rules prevents the parties to a dispute from agreeing on an arbitrator or arbitrators of their choice. 1.2 If the parties in dispute do not agree on an arbitrator, the Law Society President for the time being will in his or her absolute discretion appoint an Arbitrator. RULE 2 Notice of Dispute 2.1 This Rule applies to the extent that it is not inconsistent with the Agreement (as defined in Rule 16). 2.2 If a dispute is covered by the submission to arbitration in an Agreement, any party to the dispute and the Agreement may give written notice of the dispute to the other party or parties. 2 Rules drawn from the Institute of Arbitrators & Mediators Australia Rules for the Conduct of Commercial Arbitrations and the Arbitration Rules of the Chartered Institute of Arbitrators /...13

14 2.3 The notice ( the Notice of Dispute ) is to be served at the address for the party or parties specified in the Agreement. Service may be effected personally, by mail, or by any means of electronic transmission. 2.4 The passage of ten (10) days after service of the Notice of Dispute automatically refers the dispute to Arbitration in accordance with these Rules, unless it is settled within those ten days. 2.5 The parties can in writing waive the service of the Notice of Dispute and, instead call for the appointment of an arbitrator by the Law Society President in accordance with paragraph 1 of Rule 3. RULE 3 Call for Appointment 3.1 If a Notice of Dispute has been given under an Agreement or under Rule 2, and the dispute has not been settled, any party can in writing request the Law Society President, to appoint an arbitrator. The request is to be made with: a. a copy of the Notice of Dispute; or in the event that the parties have waived service of the Notice of Dispute, a copy of the waiver; b. a copy of the Agreement containing the submission to arbitration; c. the names and addresses of the parties to the dispute; and d. a brief description of the nature of the dispute with enough particulars of the dispute to allow the Law Society President to appoint an appropriate arbitrator. 3.2 The Law Society President is to appoint an Arbitrator within ten (10) days of receipt of the request, together with its associated material. This time limit may be extended if the supplied material does not, in the opinion of the Law Society President give enough information about the dispute. 3.3 If the request does not indicate that more than one (1) arbitrator is required, the Law Society President is to appoint one (1) arbitrator only. RULE 4 Appointment Fee 4.1 The parties shall deposit with the Law Society the prescribed Appointment Fee (to be shared equally between the parties). 4.2 The Appointment Fee shall be such sum as is prescribed by the Law Society at the relevant time and from time to time. 4.3 There can be no appointment of an arbitrator until the Appointment Fee has been paid to the Law Society. RULE 5 Entry on Reference to Arbitration 5.1 In Rules 5 to 15 Arbitrator means either an arbitrator appointed by the Law Society President or an arbitrator appointed by agreement of the parties. 5.2 The Arbitrator must, within seven (7) days of receiving written advice of his or her appointment give written notice to the parties of the time and place of a Preliminary Conference which the parties or their duly authorized representatives must attend /...14

15 5.3 At or prior to that Preliminary Conference, the Arbitrator must advise any conditions which he or she wishes to include in the Arbitration Agreement, (as defined in Rule 16), (including provision of security for the costs of the arbitration) and that Arbitration Agreement is to be signed by the Parties at the Preliminary Conference. 5.4 When the parties sign the Arbitration Agreement, the Arbitrator must sign it, and the Arbitration commences at that time. 5.5 If any party fails to attend any Preliminary Conference or does not agree with the conditions proposed by the Arbitrator or the jurisdiction of the Arbitrator, and does not sign the Arbitration Agreement, the Arbitrator must notify the parties and the Law Society in writing within two (2) days whether he or she accepts appointment notwithstanding that disagreement. On such acceptance the Arbitration commences. 5.6 When the Arbitration has commenced, the Arbitrator must fix a time, date, place and timetable agreeable to the parties, but if the parties do not agree, the Arbitrator may give directions setting these, which then bind the parties. 5.7 If the parties do not agree on the terms of reference of the Arbitration, the Arbitrator may make a binding determination on that. RULE 6 Appointed Arbitrator Failing to Act / Loss of Arbitrator RULE 7 RULE 8 The Law Society President must appoint a replacement Arbitrator, within a reasonable time of : 6.1 receiving written notice from the Arbitrator that he or she does not accept the appointment; 6.2 being called on by a party if the Arbitrator does not commence the Arbitration within one (1) month of his or her appointment; or 6.3 being advised of the death of an Arbitrator, or an Arbitrator otherwise having become incapable of continuing the Arbitration because of legal incapacity, ill health or other actual incapacity. Liability of Law Society for acts or omissions The parties acknowledge by signing the Arbitration Agreement that the Law Society, its officers and employees are not liable to any party for or in respect of any act or omission in the discharge or purported discharge of the Law Society s functions under these Rules unless such act or omission is fraudulent. Provision of Security The Arbitrator may direct that the parties provide security for the costs of the Arbitration. Any such security is to be deposited from time to time and applied as directed by the Arbitrator. If there is any default in giving the security, the Arbitrator may make such directions for the further conduct of the Arbitration as the Arbitrator then considers appropriate /...15

16 PART II THE ARBITRAL PROCEDURE RULE 9 Preliminaries not to Prejudice Scope of Arbitration 9.1 The description of the dispute given in the Notice of Dispute under Rule 2 or in accordance with Rule 3 does not define or limit the scope of the Arbitration. 9.2 Any party may raise in its claim, defence, cross claim or defence to cross claim, any other dispute or difference which has arisen under the Agreement. 9.3 Unless limited by the Agreement, any amendment or addition to claims is at the discretion of the Arbitrator, and can be subject to any conditions as to costs or otherwise as the Arbitrator considers appropriate. RULE 10 General Duty of Arbitrator 10.1 The Arbitrator must adopt procedures suitable to the circumstances of the dispute, avoiding unnecessary delay and expense, to provide an expeditious cost-effective and fair means of determining all of the matters in dispute The Arbitrator must be independent of, and act fairly and impartially as between the parties, giving each party a reasonable opportunity of putting its case and dealing with the case of any opposing party, as well as reasonable opportunity to be heard on the procedure adopted by the Arbitrator. RULE 11 General Duty of Parties 11.1 The parties must do all things reasonably necessary for the proper, speedy and cost-effective conduct of the Arbitration, and must promptly comply with all directions or rulings by the Arbitrator whether about procedural or evidentiary matters or otherwise The parties are to keep all aspects of the Arbitration and all information and knowledge disclosed in it absolutely confidential, but this obligation does not prevent: a. the parties from giving evidence in any Court whether in proceedings about the Arbitration, the Dispute or otherwise; or b. the parties disclosing to their legal and other advisors or their insurers, so long as the disclosing party binds the advisor or insurer to the same obligation of absolute confidentiality. RULE 12 Waiver of Right to Object 12.1 If a party takes part, or continues to take part, in the Arbitration without immediately or within a reasonable time thereafter, taking any objection: a. that the Arbitrator lacks jurisdiction; b. that the Arbitration has been improperly conducted; c. that there has been a failure to comply with the Agreement; or /...16

17 d. that there has been any irregularity affecting the Arbitrator or the Arbitration, then that party is deemed to have waived its right to make the objection later, whether before the Arbitrator or a Court, unless it shows that, at the time it took part or continued to take part in the proceedings, it did not know and could not with reasonable diligence have discovered, the grounds for the objection If the Arbitrator rules that he or she has jurisdiction and a party does not question that ruling in a Court within the time fixed by the Arbitrator (or if no time is fixed, within a reasonable time and not later than the conclusion of the Preliminary Conference), then that party is deemed to have waived any right it may otherwise have had to later object to the Arbitrator s jurisdiction on any ground which was the subject of that ruling, and is deemed to have submitted to the Arbitrator s jurisdiction. RULE 13 Procedural Directions 13.1 The Arbitrator can make such directions or rulings about procedural and evidentiary matters as he or she sees fit, but within the limits set by Rule The Rules in Schedule 1 govern the Arbitration, unless the parties agree that it is to be expedited, and in that case the Rules in Schedule 2 apply. RULE 14 Views and Other Material 14.1 If the Arbitrator reasonably believes that a view of the subject matter or site of any dispute might assist the Arbitrator in determining the dispute, then he or she may do so. The Arbitrator can use his or her own observation not merely to assist in understanding the evidence but also as evidence for deciding the dispute however the Arbitrator must first notify the parties of any preliminary adverse conclusion which is based solely on the Arbitrator s observations at the view and then must give the parties a reasonable opportunity to meet it The Arbitrator can obtain such technical and/or legal assistance or advice as the Arbitrator, in his or her discretion reasonably requires provided that, in so doing, the Arbitrator complies with the rules of natural justice. The cost of that assistance is part of the costs of the Arbitration. RULE 15 Awards 15.1 The Arbitrator can within a reasonable time deliver one or more Interim Awards and then a Preliminary Final Award to deal with all issues in dispute, except for the costs of the Arbitration The Preliminary Final Award is binding on the parties. The parties have no right of appeal other than that provided in the Commercial Arbitration Act If the security for costs is less than the amount which the Arbitrator determines as the costs of the Arbitration then the Arbitrator may withhold the Preliminary Final Award until the outstanding balance is paid /...17

18 15.4 After the Preliminary Final Award the Arbitrator can direct the parties to give evidence and make submissions about the costs of the Arbitration and the Arbitrator must then within a reasonable time deliver the Final Award, dealing with all issues in dispute and dealing with the costs of the Arbitration The Awards must be made in writing and signed by the Arbitrator in at least as many hard copies as there are parties, and those hard copies forwarded by mail to the parties or collected from the Arbitrator as he or she directs. PART III GENERAL RULE 16 Definitions In these Rules: Law Society means the Law Society of New South Wales. Agreement means any agreement between the parties embodying a submission of present or future disputes to arbitration. Arbitration Agreement means the written agreement proposed by the Arbitrator to bind the parties to these Rules, and acknowledge the Arbitrators jurisdiction to determine the dispute. The costs of the Arbitration includes the fees and expenses of the Arbitrator, any Appointment Fee or other fee payable to the Law Society, the room hire, transcript, and the costs and disbursements of the parties. Commercial Arbitration Act 2010 includes any other legislation which precedes, amends or replaces that Act. court means any Court which has jurisdiction under the Commercial Arbitration Act days means normal working days and excludes Saturdays, Sundays and public holidays. dispute includes, but is not limited to, a claim made by the purchaser under Clause 7 of the Contract for Sale of Land in NSW. written or writing includes any thing sent by facsimile transmission or by electronic mail irrespective of whether or not such thing is in fact received or, if received, printed at or by the address to which that thing is sent provided that the sender has both printed out a copy of the thing sent and can verify that the address used was an address specified for the electronic reception of information. RULE 17 Application of Rules 17.1 These Rules are subject to the Commercial Arbitration Act 2010 and to any agreement between the parties about the Arbitration. Otherwise where the parties to a dispute have agreed to arbitration in accordance with these Rules, they must comply with these Rules /...18

19 RULE 18 Counting of Days 18.1 For the purpose of counting days under these Rules, the first day is the day following the day when notice is first actually received or deemed to be received under paragraph 2 of this Rule, whichever is earlier. If the last day is a non-business day at the residence or place of business of the addressee, then the period is extended until the first business day which follows Any notice, which is posted, is deemed to have been received on the second day following the day of posting. Any notice, which is sent by electronic transmission is deemed to have been received on the day of transmission. RULE 19 Multiple Arbitrators Appointment of Umpire RULE Where there is more than one Arbitrator then, where the context requires it, Arbitrator means Arbitrators and, also subject to Rule 20, means any umpire who is appointed Where there is an even number of Arbitrators, those Arbitrators must appoint an umpire if the Arbitrators fail to agree on any matter for determination If the Arbitrators are unable to agree on the umpire within seven (7) days of their disagreement, then they must notify the parties in writing, and any party may then make a written request to the Law Society President to appoint an umpire. The Law Society President must within ten (10) days thereafter appoint an umpire and advise the parties, the Arbitrators and the nominated umpire accordingly. Determination by an Umpire 20.1 When the umpire is appointed, he or she must, within two (2) days, notify the parties and the Law Society of his or her acceptance of the appointment and the Arbitrators must within seven (7) days of notification of the umpire s appointment provide the umpire with a written statement of the points of agreement and points of disagreement, but without reasons, together with all other written material relevant to the Arbitration including exhibits and items marked for identification but excluding private notes of the Arbitrators The umpire must then proceed to deliver an award as soon as is reasonable and, in so doing, must take into account the evidence before the Arbitrators but is not bound by any of the points of agreement expressed by the Arbitrators, and no further evidence is to be led before the umpire unless the umpire considers it appropriate. RULE 21 Termination of the Arbitration The arbitration is terminated after the handing down of the Final Award by the Arbitrator, or the Umpire, or by the execution of a settlement agreement between the parties before the handing down of the Final Award /...19

20 RULE 22 Mediation and Arbitration 22.1 If the parties select a dispute resolution process in which arbitration is preceded by mediation, the mediator cannot act as the arbitrator, except as provided for under section 27D of the Commercial Arbitration Act If during the Arbitration, the Arbitrator and the parties believe that some direct negotiation, or some assisted negotiation or mediation would assist resolution of the dispute, then the Arbitration is to be adjourned for that process to occur. Unless otherwise agreed by the parties, this process must take place within twenty-one (21) days of the adjournment and conclude within twenty-eight (28) days If the parties wish to mediate, the mediator is to be appointed by the parties. If the parties cannot agree on a mediator, either party may request the President of the Law Society to appoint a mediator and the parties must then in good faith join in the mediation which must be conducted in accordance with the Mediation Rules of the Law Society. SCHEDULE 1 The Arbitrator can make any directions or rulings as he or she considers to be reasonable and may include the following: 1. the form and extent of any submissions or documents defining the issues in dispute; 2. the preparation of any joint statement of issues, to define and narrow the issues in dispute; 3. the holding of further Preliminary Conferences, meetings between experts and/or representatives of the parties, or Experts Conclaves chaired by the Arbitrator, to narrow issues in dispute, including the manner in which they are conducted and who is to attend, and preparation of a document recording the results; 4. the preparation of joint reports by experts engaged by the parties recording the matters on which they agree, the matters on which they disagree, and identifying the reasons for disagreement and their respective contentions about that; 5. the preparation of joint bundles of documents including at any meetings between experts and/or representatives of the parties and any Experts Conclaves; 6. the provision of factual information to experts engaged by the parties for use in their joint deliberations or preparation of any joint report; 7. the production of documents for inspection by any opposing party; 8. the form of any evidence in chief, by witness statement or otherwise, and when it is to be provided to the Arbitrator and any other party; 9. the extent of or limitations on oral hearings, including reasonable time limits on oral evidence and the provision of written opening addresses and final submissions; and/or, 10. the service of offers of settlement without prejudice except as to costs /...20

21 SCHEDULE 2 THE LAW SOCIETY EXPEDITED COMMERCIAL ARBITRATION RULES The arbitration is to be conducted in accordance with the following Rules. 1. The claimant must, within twenty one (21) days of the date on which the Arbitration commences provide the following to each other party and to the Arbitrator: a. a written outline describing the dispute, the legal and factual issues involved, its contentions in relation to those issues, and the amount of its claim; b. all statements of evidence and copies of all documents on which it relies; c. any expert reports on which it relies; and, d. its written submissions on the legal and factual issues involved in its claim. 2. After that each other party must within a further period of twenty one (21) days, provide the following to each other party and to the Arbitrator: a. a written initial submission indicating whether or not it agrees with the claimant s outline of the dispute, and if not, its statement of the nature of the dispute (including any cross claim), the legal and factual issues involved in the claimant s claim and any such cross claim, its contentions in relation to those issues, and the amount of any such cross claim; b. all statements of evidence and copies of all documents on which it relies; c. any expert reports on which it relies; d. any objections which it has to the statements of evidence, experts reports, and documents served by the claimant, detailing the basis of any such objection; and, e. its written submissions on the legal and factual issues involved in the claimant s claim and any cross claim brought by it. 3. After that any party can reply to written material served within a further period of twenty one (21) days, by providing the following to each other party and to the Arbitrator: a. a written reply indicating whether or not it agrees with the initial submission and, if not, its reply as to the nature of the dispute, the issues likely to arise and its contentions in relation to same; b. all statements of evidence and copies of documents in reply to material served under paragraph 2b; c. any expert reports in reply; d. any objections which it has to the statements of evidence, experts reports, and documents detailing the basis of any such objection; and, e. its written submissions in reply on the legal and factual issues involved. 4. If a cross claim is made then each other party can reply, in the same manner as set out in paragraph 3, to written material served in respect of such cross claim. 5. The Arbitrator can direct that expert reports not be served and that, instead, the experts retained by the parties are to be each provided with all of the relevant material and then jointly confer and produce a joint report or reports (all by a time /...21

22 fixed by the Arbitrator) recording the matters on which they agree, the matters on which they disagree, and identifying the reasons for disagreement and their respective contentions about that. 6. The Arbitrator can direct that the experts retained by the parties attend one or more Experts Conclaves chaired by the Arbitrator, to narrow issues in dispute, the Conclaves are to be held at a time and are to be conducted and recorded as directed by the Arbitrator. 7. The Arbitrator can make any other directions or rulings as he or she considers to be reasonable, which may include directions like paragraphs 1, 2, 3, 5, 6, 7 and 10 of Schedule After that the Arbitrator must determine the matter based on the written material unless the Arbitrator decides that an oral hearing is necessary to explain or resolve conflicts in the written material. 9. If the Arbitrator decides that an oral hearing be held about any of the issues in dispute, then that hearing is to be conducted as soon as possible at a time and as directed by the Arbitrator, including any reasonable time limits on oral evidence and the provision of written opening addresses and final submissions. 10. Any times fixed by this schedule can be varied by agreement of the parties. If there is no agreement, on proper cause being shown by a party, the Arbitrator can vary the times fixed but on such terms as to costs or otherwise as the Arbitrator considers reasonable /...22

23 THE LAW SOCIETY ARBITRATION AGREEMENT 1. This Arbitration Agreement is made between [set out the names and addresses of the parties] : A. B. C. 2. Differences have arisen between the parties as to [set out a brief description] : a) b) ( the Dispute ) 3. The parties are unable to resolve the Dispute by agreement and have agreed to refer the dispute to arbitration in accordance with the Commercial Arbitration Act 2010 as presently amended ( the Act ). 4. The parties accept the appointment of as Arbitrator to determine the dispute. 5. (a) The parties now pay the sum of $ each to the Arbitrator on account of and by way of security for the estimated costs of the Arbitration. If, as the Arbitration progresses, it appears to the Arbitrator that this amount is not enough to cover all of the costs of the Arbitration, the parties will each within fourteen (14) days pay such further amount as the Arbitrator in writing requests. 5. (b) The Costs of the Arbitration are:- (i) (ii) The cost of hiring premises and supplying facilities, the cost of transcription if required by the parties, and all other proper expenditure of the Arbitrator, and The Arbitrator s fees at the hourly rate of $ per hour, whether engaged in preliminary aspects with the parties, in actual hearing time, in perusing documents, in considering written submission (if the parties elect to make them) or writing the Award and delivering it /...23

24 6. It is agreed by the parties amongst themselves and with the Arbitrator that:- a) the Arbitrator is to determine the Dispute; b) any Award made by the Arbitrator is, subject to the Act, final and binding on the parties; c) the parties are to do all things which the Arbitrator asks to allow a just Award to be made; d) no party may do anything to delay or prevent an Award being made; e) (i) the parties are to appear before the Arbitrator personally or by appropriately authorised representative, [or] (ii) the parties are to be represented by a legal practitioner. [delete as appropriate] f) the Arbitrator is not bound by the rules of evidence but may inform himself/herself in relation to any matter in such manner as the Arbitrator thinks fit; g) the Arbitrator is to make the Award in writing and deliver a signed copy to each of the parties; h) the Arbitrator is able to make an Interim Award or determine part of the dispute as the Arbitrator thinks fit; i) the costs of the parties of preparing for and appearing in the Arbitration and the costs of the Arbitrator are to be at the discretion of the Arbitrator; j) the Arbitrator may draw the costs of the Arbitration from the amount held as security, equally from the parties, and must appropriately account to the parties; k) when the Arbitrator makes an order for costs in the Award, the parties indemnify each other against any payment made in excess of their obligations as determined by the Arbitrator; l) the authority given the Arbitrator by this Agreement is irrevocable; m) this Agreement is governed by the laws of New South Wales and the Court has jurisdiction under the Commercial Arbitration Act 2010 and a reference in the Act to the Court is a reference to that Court /...24

25 DATED this. day of 20 Signed by: Signed by: Signed by: Signed by the Arbitrator: /...25

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