Foreword

Seven questions on the notion of good faith
Eduardo Silva Romero (based on notes prepared by Pierre Mayer)….. 9

Chapter 1

Introduction
Samantha Nataf & Wei Lee Lim….. 14

Chapter 2

Law applicable to the extension of an arbitral clause: A snake biting its own tail?
Aurélie Conrad Hari & Liliya Tseytlina….. 16

I. On the need to extend and the challenge of determining the applicable law to assess extension….. 16
II. Fundamentals of what an ‘extension’ is and some distinctions….. 17
III. The general basis for extension and the related applicable law….. 18
A Little to no extension: Explicit consent….. 19

B Extension based on implied consent….. 20

IV. Figuring out the relevant applicable law to rule on extension….. 23
A The impossible equation….. 23

B Can the recourse to universal concepts bridge the gaps?….. 25

C Advocating for a detailed examination of the relevant applicable law and suggesting a reasoning tree….. 29

Chapter 3

The role of good faith in the determination of the scope ratione personae of the arbitration clause
Bernard Hanotiau….. 36

Chapter 4

Good faith principles in the interpretation of arbitration agreements
Gerard Meijer, Rajesh Pillai, Sarah Parker & Piotr Wilinski….. 43

I. Introduction….. 43
II. Arbitration and parties’ right to court….. 43
III. Approaches to contractual interpretation….. 45
A A civil law approach to interpreting contracts: Dutch law….. 45

B A common law approach to interpreting contracts: English law….. 48

C Interim conclusions….. 51

IV. Pro-arbitration policies and the interpretation of arbitration agreements….. 51
A Modern statutory frameworks applicable to arbitration agreements….. 52

B Pro-enforcement mechanism….. 52

C Validating arbitration agreements….. 53

V. Approaches to the interpretation of arbitration agreements…… 55
A The strong emphasis on good faith in Dutch law….. 55

B ‘One-stop shop for arbitration’: enforcing arbitration agreements under English law….. 57

C No need to imply a duty of good faith under English Law….. 59

D Interim conclusions….. 60

VI. Application of the rules of contractual interpretation to selected types of arbitration clauses…. 61
A Pathological clauses….. 61

B Multi-tiered dispute resolution clauses….. 66

VII. Conclusion…… 69
Chapter 5

Good faith and the merits in international arbitration and the need for faith to do good
Jeffrey Waincymer…. 81

I. Introduction….. 81
II. Sources of good faith obligations….. 84
A The procedural framework…. 84

B Arbitral discretion….. 86

C Express or implied norms or applicable law….. 87

D Interpretation of express good faith norms in codes, case law or contracts…. 88

E Good faith and common industry practice….. 91

F Bad drafting and interpretation…… 92

III. Iura novit curia?….. 93
IV. Arbitral method in pursuit of evidence relevant to the law on the merits….. 94
V. An outline of the sources of good faith within applicable law….. 97
VI. International instruments….. 97
A United Nations Convention on the International Sale of Goods and other UNCITRAL instruments….. 97

VII. UNIDROIT….. 98
VIII. The principles of European contract law….. 100
IX. Lex mercatoria generally….. 100
X. Civil law….. 101
A German law….. 101

B French law….. 103

XI. Sharia law….. 104

XII. Common law….. 104
A UK and common law…. 104

B United States…. 105

C Canada…. 106

XIII. Other common law jurisdictions….. 107
A The possibility of meta-analysis….. 107

B Moral and philosophical perspectives….. 108

C Economic perspectives….. 110

D Historical perspectives….. 112

E Meta-theories that have been proposed….. 113

F Critiques of meta-theories and good faith per se….. 114

XIV. Is good faith more than the opposite of bad faith?….. 116

XV. Is it a subjective or objective concept?….. 116

XVI. The sub-elements that are said to apply….. 116

A The duty of honesty….. 117

B Fair dealing….. 118

C Duties of cooperation….. 119

D Loyalty….. 121

E Fidelity to contract purpose….. 122

F Confidentiality….. 122

G Vigilance….. 122

H Reasonableness….. 122

I Abuse of rights and the impact of good faith norms on discretionary rights….. 123

J Hardship, unfair contracts and unequal bargaining power….. 125

K Good faith is to be distinguished from et aequo et bono decision making….. 126

XVII. Can good faith norms support stand-alone claims?….. 127
XVIII. The application of good faith norms to differing contract types…. 127
XIX. The application of good faith norms to differing stages of contractual activities…. 127
A Negotiations….. 128

B Conclusion of contract and standard terms….. 128

C Performance and termination….. 129

D Remedies….. 129

XX. Conclusions….. 130
Chapter 6

Good faith and the merits in international arbitration:
The art of balance with the binding force of the contract

Maximin de Fontmichel….. 139

I. The handling of good faith in arbitral disputes….. 141
A Different uses of the principle of good faith….. 141

B The greater autonomy of good faith: Formal ground for stand-alone claims….. 144

II. The coordination with the binding force of the contract….. 146
A The disruptive effect of good faith on the intangibility of the contract…… 146

B The compass of intensity of good faith on the binding force of the contract…… 149

Chapter 7

Good faith and evidence: A counsel’s perspective
Jalal El Ahdab & Joseph Dalmasso….. 153

I. Good faith in collecting and preparing evidence for the proceedings….. 155
A Good faith as a prerequisite for the reliability of testimonies….. 155

B Technology, good faith, and evidence…… 159

II. The access to evidence during the proceedings and the right to submit evidence….. 161
A Cooperating in good faith during the document production…… 161

B The admissibility of evidence allows for the protection of good faith in the proceedings….. 162

III. The way a tribunal can ensure compliance with good faith….. 166
A Procedural bad faith may impact a decision on the merits….. 166

B Costs and other sanctions may be used to safeguard the duty of good faith…. 167

C Sanction of guerilla tactics, while possible, remains limited….. 168

IV. Conclusion…… 169
Chapter 8

Good faith or bad: Why Chinese-style arbitral proceedings acquiesce in adducing evidence at or even after the hearing
Arthur Ma & Zhizhou Dai….. 174

Introduction: A conflict of views….. 174

Context: Arbitration in China….. 175

I. Legal Regime….. 175
II. Major arbitration institutions….. 176
III. ‘Good faith’ is a permeating mandate….. 177
Adducing evidence: When is it really ‘too late’….. 179

I. Judicial philosophy in courtrooms….. 180
II. The function of ‘good faith’….. 181
III. Characteristics of Chinese-style arbitral proceedings….. 182
Concluding remarks: Chinese version of ‘Kaplan Opening”?…. 188

Chapter 9

Good faith and investment arbitration
Laurie Achtouk-Spivak….. 192

I. Good faith: A recognized general principle of law….. 192
A. Definition….. 192
B. Role….. 193
II. Good faith and investment treaties….. 194
A. Good faith and treaty conclusion….. 194
B. Good faith and treaty interpretation….. 195
C. Good faith and treaty performance…… 196
Conclusion….. 200

Chapter 10

Good faith and abuse of process in international investment arbitration
Kabir Duggal….. 204

I. Introduction…… 204
II. Making of an investment: Necessity of making an investment in good faith….. 205
III. Restructuring of an Investment: Measures prior to such a valid restructuring are not protected…. 208
IV. Parallel proceedings: Different levels of the same company alleging the
same harm and claiming the same damage may not be protected….. 211

V. Conclusion….. 217
Chapter 11

Good faith and investment arbitration:
Assessing investor conduct through the prism of good faith

Samantha J. Rowe….. 222

I. Introduction….. 222
II. Good faith and investor conduct:
Determining whether the host state has breached the treaty….. 223

A. Good faith and legitimate expectations….. 223
B. Good faith and lack of transparency….. 226
C. Good faith and allegations of investor misconduct….. 227
III. Good faith and investor conduct: Contributory fault….. 229
IV. Conclusion….. 231
Closing remarks
Klaus Peter Berger….. 234

I. A brief and subjective review of key takeaways from today’s debate…… 234
II. A look into the future of good faith…. 235
Conclusion
Lim Wei Lee & Samantha Nataf….. 237

Biographies….. 241
About ICC….. 250

About the ICC Institute of World Business Law….. 250

ICC Dispute Resolution Library…. 251

Dossiers of the ICC Institute of World Business Law….. 252