Revised law on Arbitration

1. Revised Law on Arbitration
Anthony Woolley
Hogan Lovells Mongolia
13 March 2017

2. www.hoganlovells.com
Introduction
• Adopted on 26 January 2017
• Entered into force on 27 February 2017
• Revoked Law on Arbitration adopted on 9 May 2003
• Amended 18 pieces of legislation
• Aims to regulate relations concerning the arbitration of
disputes in conformity with international standards
2

3. www.hoganlovells.com
Introduction
• Based on the 1985 UNCITRAL Model Law on
International Commercial Arbitration
• Scope of application:
– if the seat of arbitration is Mongolia
– if seat of arbitration is outside of Mongolia:
• interim measures taken by arbitral tribunals and the courts
• court assistance in taking evidence
• recognition and enforcement arbitral awards
3

4. www.hoganlovells.com
Key Changes
• international arbitration is distinguished from domestic
arbitration and provides different regulation for each
type of arbitration
• recognises agreement to arbitrate in any form
including electronic communication
• clarifies when the courts may be involved at various
times or for different types of arbitration
• clarifies criteria and procedures applicable to
appointment of arbitrators
4

5. www.hoganlovells.com
Key Changes
5
• introduces interim measures and preliminary orders in
line with the UNICITRAL Model Law
• clarifies the grounds for setting aside and refusing to
recognise or enforce arbitral awards in line with the
UNICITRAL Model Law
• broadens the powers of arbitrators - determining place
of arbitration, making decisions relying on fairness and
ethical standards

6. www.hoganlovells.com
Key Changes
• removes additional procedures in previous law relating
to the recognition and enforcement of arbitral awards
• expands the provisions relating to confidentiality by
clarifying permitted disclosures
• recognises the validity of arbitration agreements and
proceedings in the event of the insolvency of a disputing
party
• clarifies proceedings relating to setting aside an arbitral
award with the amendment to the Civil Procedure Code
6

7. www.hoganlovells.com
Interim Measure
Definition
• temporary measures which an arbitral tribunal orders a party
to follow prior to the issuance of the final award
Types of interim measure:
• maintain or restore the status quo pending determination of
the dispute
• take action that would prevent, or refrain from taking action
that is likely to cause, current or imminent harm or prejudice
to the arbitral process itself
• provide a means of preserving assets out of which a
subsequent award may be satisfied
• preserve evidence that may be relevant and material to the
resolution of the dispute
7

8. www.hoganlovells.com
Interim Measure
Conditions to be satisfied:
• that harm not adequately reparable if the measure is not
ordered and the harm substantially outweighs the harm
that is likely to result
• that reasonable possibility that the requesting party will
succeed on the merits of the claim
• that request for interim measures is clear,
understandable and enforceable
8

9. www.hoganlovells.com
Interim Measure
• The party requesting an interim measure is:
– liable for costs and damages caused by interim
measure
– provide security if necessary
• An interim measure is binding and can be enforced
upon application to court
• Grounds for refusal of recognition or enforcement same
as the UNICITRAL Model Law
9

10. www.hoganlovells.com
Preliminary Order
• An order directing a party not to frustrate the purpose of
an interim measure
• Same conditions applicable to interim measures must
be satisfied
• Expires 20 days after the date on which it was issued
• Party against whom the preliminary order is directed
must be given an opportunity to present its case
• Not enforceable by a court
10

11. www.hoganlovells.com
Insolvency
• Agreement to arbitrate is enforceable if the receiver
or administrator does not refute the contract
• Court may direct any dispute relating to insolvency
to be referred to arbitration if:
− the matter is one to which the arbitration provisions
applies
− the respondent entered into an arbitration agreement prior
to the commencement of the insolvency proceedings
− the receiver or administrator did not disclaim the contract
containing the arbitration provisions
11

12. www.hoganlovells.com
Amendments to Other Legislation
• Civil Procedure Code:
− any application or request to the courts must be resolved
within 14 days
− an application for setting aside an arbitral award must be
resolved within 30 days
− specifies the information and documents to be included in
an application for setting aside an arbitral award
− hearing date and location of hearing for setting aside an
arbitral award must be notified to the parties in advance
12

13. www.hoganlovells.com
Amendments to Other Legislation
• 15 laws revised to allow disputes to be resolved by
arbitration
– Petroleum Law, Land Law, Concession Law, Law on
Widespread Minerals, Law on Securities Market
• Criminal offences under the Criminal Code:
− submission of false evidence by disputing parties and
arbitrators
− giving false testimony during arbitral proceedings
− abusing or acting in excess of official position or authority
by arbitrators
13

14. www.hoganlovells.com
"Hogan Lovells" or the "firm" is an international legal practice that includes Hogan Lovells International LLP, Hogan Lovells US LLP and their affiliated businesses.
The word "partner" is used to describe a partner or member of Hogan Lovells International LLP, Hogan Lovells US LLP or any of their affiliated entities or any employee or consultant with equivalent standing. Certain individuals, who are
designated as partners, but who are not members of Hogan Lovells International LLP, do not hold qualifications equivalent to members.
For more information about Hogan Lovells, the partners and their qualifications, see www.hoganlovells.com.
Where case studies are included, results achieved do not guarantee similar outcomes for other clients. Attorney Advertising.
© Hogan Lovells 2014. All rights reserved.
*Associated offices
Hogan Lovells has offices in:
Alicante
Amsterdam
Baltimore
Beijing
Brussels
Budapest*
Caracas
Colorado Springs
Denver
Dubai
Dusseldorf
Frankfurt
Hamburg
Hanoi
Ho Chi Minh City
Hong Kong
Houston
Jakarta*
Jeddah*
Johannesburg
London
Los Angeles
Luxembourg
Madrid
Mexico City
Miami
Milan
Monterrey
Moscow
Munich
New York
Northern Virginia
Paris
Philadelphia
Rio de Janeiro
Riyadh*
Rome
San Francisco
São Paulo
Shanghai
Silicon Valley
Singapore
Tokyo
Ulaanbaatar
Warsaw
Washington DC
Zagreb*