UNCITRAL
The United Nations Commission on International Trade Law ("UNCITRAL") established a set of arbitral rules in 1976. Being promulgated by the UN, the UNCITRAL rules are often acceptable to entities from outside Western Europe in a way that the LCIA and ICC rules are not. The UNCITRAL rules were revised in 2010 to take into account developments in arbitral practice since the original rules were adopted. The revised rules apply to agreements containing an UNCITRAL clause made on or after 15 August 2010.
UNCITRAL is not an arbitral institution; the UNCITRAL rules are a set of arbitration rules which were originally developed to better facilitate ad hoc arbitration and so their use will, without more, result in an ad hoc arbitration under the UNCITRAL rules (although an appointing authority - normally either the ICC or the LCIA - still needs to be named in the clause to appoint arbitrators where the parties cannot agree, or a party fails to act).(See Institutional Rules or Not? for more consideration of ad hoc arbitration generally).
It is also possible to have an arbitration conducted under the UNCITRAL Rules, but which is also administered by a recognised institution. However, this is somewhat less common and only some institutions (e.g. the LCIA, and HKIAC) do this. If this is desired it is wise to check with the desired institution whether they do so, and whether they have any particular advised form of wording to deal with administration by them of an UNCITRAL arbitration.
If using UNCITRAL rules, our precedent clause effects an ad hoc UNCITRAL arbitration and:
(a) excludes general discovery on the grounds that the saving in time and cost makes up for the few cases in which general discovery might have changed the outcome. Consider whether this will be appropriate in your case before using this clause;
(b) waives any right of appeal against the award (the UNCITRAL rules themselves do not do so); and
(c) specifies an appointing authority.
Note: In Russian related contracts (i.e. where enforcement of an award is likely to be required in Russia (e.g. when contracting with a Russian counterparty),or the seat of arbitration is in Russia, or the clause is governed by Russian law) it may be that, if considering the UNCITRAL Rules, your clause should provide for an administered (not ad hoc) UNCITRAL clause in order to deal with the influence of Russian case-law concerning the identification of arbitral institutions. If relevant to you, please consult a member of the Linklaters International Arbitration group for further information.
Links to rules:
On 1 April 2014, a new Article 1, para 4 came into effect in the UNCITRAL Rules 2010 in order to give effect to the UNCITRAL Rules on Transparency in Treaty-based Investor-State Arbitration (the “Rules on Transparency”). The Rules on Transparency comprise a set of procedural rules intended to promote accessibility to the public of information regarding investment treaty claims (see here for more general information on such claims). Pursuant to Article 1 of the Rules on Transparency, they will apply to investor-state arbitration initiated under the UNCITRAL Rules pursuant to a treaty concluded on or after 1 April 2014 unless the parties to the treaty have agreed otherwise. In relation to such arbitrations pursuant to a treaty concluded before that date, Article 1 of the Rules on Transparency provide that they shall only apply if the parties to the arbitration so agree, or the parties to the treaty (or, in the case of a multilateral treaty, the State of the claimant and the respondent State) have agreed after 1 April 2014 to their application.