Law Times

Law Times • February 3, 2014 Page 9 www.lawtimesnews.com Focus on International/cross-border Law New Jerusalem centre brings arbitration to unlikely place Israeli-Palestinian organization offers alternative venue for business disputes he launch of the Jerusalem Arbitration Center in Novem- ber 2013 is nothing less than a beacon of hope in the ever- disturbing political scenario that marks the Middle East. "Anything that brings us face-to-face is a good beginning," says Zahi Khouri, a member of the centre's board and the Pal- estinian spokesman for the organization. "We have an agreement and institution for arbitration that covers both parties and that has some international accountability and that has never been done before." e centre is a joint venture between the International Chamber of Commerce in Israel and the International Chamber of Commerce Palestine with the support of the International Court of Arbitration of the International Chamber of Commerce. e accountability comes from the Jerusa- lem Arbitration Centre's court, whose role is to oversee the arbitration proceedings and make administrative decisions. e International Court of Arbitration appoints the court's members in co-oper- ation with its president, Yves Derains. e eight remaining members consist of two Palestinian, two Israeli, and four inter- national representatives, one of whom is vice president. "We now have an institution governed by the ICC in which Palestinians and Is- raelis are equal and in agreement, an ar- rangement where for the first time there is a symmetry," says Khouri. What many people don't realize is that some US$4 billion in trade transpires annually between the two jurisdictions, a fact that likely makes Palestine Israel's second-largest trading partner behind the United States. As in any commercial relationship, busi- ness disputes arise from these transactions. But in light of the political situation in the region, resolving them can be challenging. "In those disputes, Israelis generally have full access to the machinery of civil justice under Israeli law," wrote Catherine Rogers, professor of law at Penn State's Dickinson School of Law, in an article that originally appeared in New York Dispute Resolution Lawyer. "Meanwhile, it can be exceedingly dif- ficult for Palestinians to participate in ju- dicial proceedings in Israel; conversely, Israeli companies can face their own diffi- culties in enforcement. And, of course, just as with contracts between U.S. companies and French, Japanese, or Brazilian par- ties, neither party believes that it would be treated fairly in the other party's courts." e International Chamber of Com- merce in Israel has been in existence for almost 50 years, but it took a former Israeli general turned businessman, Oren Sha- chor, and Samir Hulileh, who leads one of Palestine's largest holding companies, to visualize and promote the concept of an Israeli-Palestinian arbitration centre. But that vision crystallized only af- ter the International Chamber of Com- merce, in keeping with its long-held "peace through commerce" ideology, agreed to the formation of ICC Palestine. In May 2011, the parties signed a memorandum of understanding for the establishment of the arbitration centre. Still, it took some 2-1/2 years before the centre finally launched. "Everything in the process had a po- litical angle," says Barry Leon, head of the international arbitration group at Ottawa's Perley-Robertson Hill & McDougall LLP. Ironically, one of Schachor's roles in the Israeli army was to oversee the West Bank occupation. "It was, however, this close daily work with Palestinians, as well as his role in negotiating the Oslo peace accords, that gave Shachor the background and insight to believe that co-operation through the JAC was possible and could be mutually beneficial," wrote Rogers. "Despite switching objectives, Shachor's military experience has been essential to creating the JAC — who else but a former general with such a distinguished military background could push through the ob- stacles and skepticism about the JAC?" Indeed, both the Israeli government and the Palestinian Authority have thrown their support behind the arbitration centre. e centre's main office, including the secretariat and hearing centre, are in east Jerusalem with governing offices at the ICC Palestine's office in Ramallah and ICC Israel's office in Tel Aviv. e secretariat employs one Israeli, one Palestinian, and one international lawyer. Arbitrations will take place in east Jeru- salem, but their formal seat will be in Paris unless the parties agree otherwise. e up- shot is that any recourse from arbitration awards will be to the French courts rather than the Israeli or Palestinian legal systems. "Real ingenuity was used to design an arbitration regime that was acceptable to both sides," says Leon. "e difficulty with having the formal seat at the place of hearing was that nobody wants to end up in the Israeli or Palestinian courts. And while there's a cost involved in going to Paris, that's about as good as you're going to get." In terms of procedure, the centre has its own set of rules based on the ICC rules of arbitration but customized to integrate Palestinian and Israeli arbitration laws. Parties may appoint anyone they can agree on as long as the arbitrators are in- dependent and impartial and the court ac- cepts that they have the appropriate expe- rience or expertise. e governments have co-ordinated enforcement of awards with monitoring by the ICC. In its first two months of operation, the centre's intervention has resolved a number of cases and there are two arbi- trations pending. "I consider this to be one of the most amazing and creative developments in in- ternational commercial dispute resolution and in relation to the Israeli-Palestinian situation," says Leon. "It is a wonderful story of how Israeli and Palestinian business people have developed a workable and mutually ac- ceptable commercial dispute resolution system to deal with matters arising from the significant volume of transactions between them." LT 'I consider this to be one of the most amazing and creative developments in international commercial dispute resolution and in relation to the Israeli-Palestinian situation,' says Barry Leon. BY JULIUS MELNITzER For Law Times and it's available to you 24 hours a day. s available y availabl y legal expertise? Looking for Find exactly what you need at www.CanadianLawList.com Starting a business, making a will or buying a house? Declaring bankruptcy, dealing with a personal injury, insurance claim or job loss? If you're in the midst of one of life's big events, help is as close as your smartphone, tablet or computer. Simply go to www.CanadianLawList.com to find the right lawyer for your particular legal need. www.CanadianLawList.com is Canada's most comprehensive online directory of lawyers and law firms. And it's easy to use! You can search by city, legal specialty, or name for listings and contact information. Find the legal expertise you need at www.CanadianLawList. com. Untitled-4 1 13-12-19 3:08 PM T

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