14 October 1999 saw the introduction of the Scottish Code for Domestic & International Arbitration. The new Code was welcomed by Jim Wallace the Deputy First Minister and Justice Minister for Scotland. He commended the new Code as a major step forward in promoting Arbitration as a means of resolving commercial disputes.

Scotland has a long and distinguished history of arbitration as a means of resolving commercial legal disputes, based on legislation dating back to 1600s. The new Scottish Code provides a unified framework for conducting arbitration proceedings in both domestic and international disputes.
Lord Roger of Earlsferry, Lord President of the Court of Session in Scotland, notes in the introduction to the Code that it removes one of the main difficulties in Scottish Arbitration. The ancient lineage of domestic law meant that rules tended to be scattered in various places - old case law and various statutes. The lack of clarity that this produced has now been removed with the introduction of the new Code.

Based on UNCITRAL arbitration rules, arbitration proceedings conducted under the new Scottish Code are recognised internationally. Awards can be enforced in any of the one hundred and fifty countries subscribing to the UNCITRAL rules. This makes arbitration an attractive option for commercial disputes resolution over international boundaries where a court ruling in one country cannot always be enforced in another.

The Code's provisions are well suited to many industrial and commercial contracts including the manufacturing, offshore, construction, banking, insurance and financial services industries, corner stones of the Scottish economy and its international trade. One of the features of the Scottish Code is its flexibility while retaining procedural robustness.

Prepared by the Scottish Council for International Arbitration, The Chartered Institute of Arbitrators (Scottish Branch) and the Scottish Building Contract Committee the new Arbitration Code reflects the current need for dispute resolution procedures that lessen the demands on the courts. The Code, and the availability of Arbitrators, has the potential to offer to parties to a dispute a defined structure to hasten resolution in complex contractual and technical matters.

The Scottish Arbitration Code now places Scotland in the forefront to offer international as well as domestic arbitration services. Parties to disputes will find a location with a structured legal system, a body of experienced and capable arbitrators, advocates and solicitors, a sophisticated and advanced telecommunications infrastructure and facilities to house proceedings.

The sources and main provisions made in the Scottish Code are summarised below.

1. Authors
The Scottish Council for International Arbitration, The Chartered Institute of Arbitrators (Scottish Branch) and the Scottish Building Contract Committee.

2. For use in Domestic and International Arbitrations conducted in Scotland.

3. The Code is fully comprehensive and deals with the machinery to be used by the parties and the Arbitrator for the following purposes:-

(i) Commencement of the Arbitration
(ii) Notices and communications
(iii) Constitution of the Tribunal, number of Arbitrators and procedure for appointment.
(iv) Qualifications of Arbitrators
(v) Challenge of Arbitrators
(vi) Replacement of Arbitrators
(vii) Truncated Tribunal
(viii) Fees and Expenses
(ix) Communications between parties and Arbitrators
(x) Exclusion of liability
(xi) Preliminary issues
(xii) State of Arbitration
(xiii) Language of Arbitration
(xiv) Substantive law applicable
(xv) Conduct of proceedings generally
(xvi) Additional powers of Arbitrators
(xvii) Evidence, hearings and pleadings
(xviii) Evidence of witnesses
(xix) Experts
(xx) Interim measures
(xxi) Closure of proceedings
(xxii) The award
(xxiii) Collection of awards and additional awards
(xxiv) Expenses
(xxv) Settlement

4. Summary

The role of the Courts is limited, the whole object being to empower the Arbitrator sufficiently so that he may make a final decision on the facts and the law.

Prints of the Code are available from James M Arnott, Director and Secretary of the
Scottish Council for International Arbitration
Excel House
30 Semple Street
Edinburgh
EH3 8BL.

Tel:- (44) 131 229 5046
Fax: (44) 131 229 0849
E-mail jim.arnott@macroberts.co.uk