Source: https://app.leg.wa.gov/RCW/default.aspx?cite=7.05&full=true
Timestamp: 2019-12-13 03:23:22
Document Index: 436143801

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Chapter 7.05 RCW: INTERNATIONAL COMMERCIAL ARBITRATION
RCWs > Title 7 > Chapter 7.05
Chapter 7.05 RCW
7.05.010 Scope of application.
7.05.020 Definitions and rules of interpretation.
7.05.030 International origin and general principles.
7.05.040 Receipt of written communications.
7.05.050 Waiver of right to object.
7.05.060 Extent of court intervention.
7.05.070 Court authority for certain functions of arbitration assistance and supervision.
7.05.080 Arbitration agreement—Definition and form.
7.05.090 Arbitration agreement—Substantive claim before court.
7.05.100 Arbitration agreement—Interim measures by court.
7.05.110 Number of arbitrators—Immunity.
7.05.120 Appointment of arbitrators.
7.05.130 Disclosure requirements—Grounds for challenge.
7.05.140 Challenge procedure.
7.05.150 Failure or impossibility to act.
7.05.160 Appointment of substitute arbitrator.
7.05.170 Competence of arbitral tribunal to rule on its own jurisdiction.
7.05.180 Power of arbitral tribunal to order interim measures.
7.05.190 Conditions of granting interim measures.
7.05.200 Application for preliminary orders—Conditions for granting preliminary orders.
7.05.210 Procedures for preliminary orders—Expiration of preliminary orders.
7.05.220 Modification, suspension, termination of preliminary orders.
7.05.230 Provision of security.
7.05.240 Disclosures.
7.05.250 Costs and damages.
7.05.260 Recognition and enforcement of interim measures.
7.05.270 Grounds for refusing recognition and enforcement.
7.05.280 Court-ordered interim measures.
7.05.290 Equal treatment of parties.
7.05.300 Determination of rules and procedure.
7.05.310 Place of arbitration.
7.05.320 Commencement of arbitral proceedings.
7.05.330 Language used in proceedings.
7.05.340 Statement of claim and defense.
7.05.350 Hearings and written proceedings.
7.05.360 Default of a party.
7.05.370 Expert appointed by arbitral tribunal.
7.05.380 Court assistance in taking evidence—Consolidation.
7.05.390 Rules applicable to substance of dispute.
7.05.400 Decision making by panel of arbitrators.
7.05.410 Settlement.
7.05.420 Form and contents of award.
7.05.430 Termination of proceedings.
7.05.440 Correction and interpretation of award—Additional award.
7.05.450 Application for setting aside as exclusive recourse against arbitral award.
7.05.460 Recognition and enforcement.
7.05.470 Grounds for refusing recognition or enforcement.
RCW 7.05.010
(1) This chapter applies to international commercial arbitration, subject to any agreement between the United States and any other country or countries.
(2) The provisions of this chapter, except RCW 7.05.090, 7.05.100, 7.05.260, 7.05.270, 7.05.280, 7.05.460, and 7.05.470, apply only if the place of arbitration is in the territory of this state.
(a) The parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different countries;
(b) One of the following places is situated outside the country or countries in which the parties have their places of business:
[ 2015 c 276 § 1.]
RCW 7.05.020
(a) "Arbitration" means any arbitration whether or not administered by a permanent arbitral institution.
(b) "Arbitral tribunal" means a sole arbitrator or a panel of arbitrators.
(c) "Commercial" means matters arising from all relationships of a commercial nature, whether contractual or not, including, but not limited to, any of the following transactions:
(i) A transaction for the supply or exchange of goods or services;
(iii) A commercial representation or agency;
(iv) An exploitation agreement or concession;
(v) A joint venture or other related form of industrial or business cooperation;
(vi) The carriage of goods or passengers by air, sea, rail, or road;
(viii) Insurance;
(ix) Licensing;
(x) Factoring;
(xi) Leasing;
(xii) Consulting;
(xiii) Engineering;
(xiv) Financing;
(xv) Banking;
(xvi) The transfer of data or technology;
(xvii) Intellectual or industrial property, including trademarks, patents, copyrights, and software programs; and
(xviii) Professional services.
(d) "Court" means a body or organ of the judicial system of this state.
(2) Where a provision of this chapter, except RCW 7.05.390, leaves the parties free to determine a certain issue, such freedom includes the right of the parties to authorize a third party, including an institution, to make that determination.
(3) Where a provision of this chapter refers to the fact that the parties have agreed, that they may agree, or in any other way refers to an agreement of the parties, such agreement includes any arbitration rules referred to in that agreement.
(4) Where a provision of this chapter, other than in RCW 7.05.360(1) and 7.05.430(2)(a), refers to a claim, it also applies to a counter-claim, and where it refers to a defense, it also applies to a defense to such counter-claim.
[ 2015 c 276 § 2.]
RCW 7.05.030
(1) In the interpretation of this chapter, regard is to be had to its international origin and to the need to promote uniformity in its application and the observance of good faith.
(2) Questions concerning matters governed by this chapter which are not expressly settled in it are to be settled in conformity with the general principles on which this chapter is based.
[ 2015 c 276 § 3.]
RCW 7.05.040
(a) Any written communication is deemed to have been received if it is delivered to the addressee personally or if it is delivered at the addressee's place of business, habitual residence, or mailing address. If none of these can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee's last-known place of business, habitual residence, or mailing address by registered letter or any other means which provides a record of the attempt to deliver it; and
[ 2015 c 276 § 4.]
RCW 7.05.050
A party who knows that any provision of this chapter from which the parties may derogate or any requirement under the arbitration agreement has not been complied with and yet proceeds with the arbitration without stating the party's objection to such noncompliance without undue delay or, if a time limit is provided therefore, within such period of time, shall be deemed to have waived the party's right to object.
[ 2015 c 276 § 5.]
RCW 7.05.060
[ 2015 c 276 § 6.]
RCW 7.05.070
Court authority for certain functions of arbitration assistance and supervision.
(1) The functions referred to in RCW 7.05.120 (3) and (4), 7.05.140(3), 7.05.150, 7.05.170(3), and 7.05.450(2) shall be performed by the superior court of the county in which the agreement to arbitrate is to be performed or was made.
(2) If the arbitration agreement does not specify a county where the agreement to arbitrate is to be performed and the agreement was not made in any county in the state of Washington, the functions referred to in RCW 7.05.120 (3) and (4), 7.05.140(3), 7.05.150, 7.05.170(3), and 7.05.450(2) shall be performed in the county where any party to the court proceeding resides or has a place of business.
(3) In any case not covered by subsections (1) or (2) of this section, the functions referred to in RCW 7.05.120 (3) and (4), 7.05.140(3), 7.05.150, 7.05.170(3), and 7.05.450(2) shall be performed in any county in the state of Washington.
[ 2015 c 276 § 7.]
RCW 7.05.080
Arbitration agreement—Definition and form.
(1) For the purposes of this chapter, "arbitration agreement" is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
(4) The requirement that an arbitration agreement be in writing is met by an electronic communication if the information contained therein is accessible so as to be useable for subsequent reference. For the purposes of this section, "electronic communication" means any communication that the parties make by means of data messages; and "data message" means information generated, sent, received, or stored by electronic, magnetic, optical, or similar means, including, but not limited to, electronic data interchange (EDI), electronic mail, telegram, telex, or telecopy.
(5) An arbitration agreement is in writing if it is contained in an exchange of statements of claim and defense in which the existence of an agreement is alleged by one party and not denied by the other.
[ 2015 c 276 § 8.]
RCW 7.05.090
Arbitration agreement—Substantive claim before court.
(1) A court before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so requests not later than when submitting the party's first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative, or incapable of being performed.
(2) Where an action referred to in subsection (1) of this section has been brought, arbitral proceedings may nevertheless be commenced or continued, and an award made, while the issue is pending before the court.
[ 2015 c 276 § 9.]
RCW 7.05.100
Arbitration agreement—Interim measures by court.
[ 2015 c 276 § 10.]
RCW 7.05.110
Number of arbitrators—Immunity.
(3) An arbitrator has the immunity of a judicial officer from civil liability when acting in the capacity of arbitrator under any statute or contract. The immunity afforded by this section shall supplement, and not supplant, any otherwise applicable common law or statutory immunity.
[ 2015 c 276 § 11.]
RCW 7.05.120
(1) No person shall be precluded by reason of the person's nationality from acting as an arbitrator, unless otherwise agreed by the parties.
(a) In an arbitration with three arbitrators, each party shall appoint one arbitrator, and the two arbitrators thus appointed shall appoint the third arbitrator; if a party fails to appoint the arbitrator within thirty days of receipt of a request to do so from the other party, or if the two arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment shall be made, upon request of a party, by the court specified in RCW 7.05.070; and
(b) In an arbitration with a sole arbitrator, if the parties are unable to agree on the arbitrator, the arbitrator shall be appointed, upon request of a party, by the court specified in RCW 7.05.070.
(c) A third party, including an institution, fails to perform any function entrusted to it under such procedure;
Any party may request the court specified in RCW 7.05.070 to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment.
(5) A decision on a matter entrusted by subsection (3) or (4) of this section to the court specified in RCW 7.05.070 shall be subject to no appeal. The court, in appointing an arbitrator, shall have due regard to any qualifications required of the arbitrator by the agreement of the parties and to such considerations as are likely to secure the appointment of an independent and impartial arbitrator and, in the case of a sole or third arbitrator, shall take into account as well the advisability of appointing an arbitrator of a nationality other than those of the parties.
[ 2015 c 276 § 12.]
RCW 7.05.130
Disclosure requirements—Grounds for challenge.
(1) When a person is approached in connection with the person's possible appointment as an arbitrator, the person shall disclose any circumstances likely to give rise to justifiable doubts as to the person's impartiality or independence. An arbitrator, from the time of the arbitrator's appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties unless they have already been informed of them by the arbitrator.
(2) An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to the arbitrator's impartiality or independence, or if the arbitrator does not possess qualifications agreed to by the parties. A party may challenge an arbitrator appointed by the party, or in whose appointment the party has participated, only for reasons of which the party becomes aware after the appointment has been made.
[ 2015 c 276 § 13.]
RCW 7.05.140
(1) The parties are free to agree on a procedure for challenging an arbitrator, subject to the provisions of subsection (3) of this section.
(2) Failing such agreement, a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any circumstance referred to in RCW 7.05.130(2), send a written statement of the reasons for the challenge to the arbitral tribunal. Unless the challenged arbitrator withdraws from the arbitrator's office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.
(3) If a challenge under any procedure agreed upon by the parties or under the procedure of subsection (2) of this section is not successful, the challenging party may request, within thirty days after having received notice of the decision rejecting the challenge, the court specified in RCW 7.05.070 to decide on the challenge, which decision shall be subject to no appeal. While such a request is pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an award.
[ 2015 c 276 § 14.]
RCW 7.05.150
(1) If an arbitrator becomes de jure or de facto unable to perform the arbitrator's functions or for other reasons fails to act without undue delay, the arbitrator's mandate terminates if the arbitrator withdraws from the arbitrator's office or if the parties agree on the termination. Otherwise, if a controversy remains concerning any of these grounds, any party may request the court specified in RCW 7.05.070 to decide on the termination of the mandate, which decision shall be subject to no appeal.
(2) If, under this section or RCW 7.05.140(2), an arbitrator withdraws from the arbitrator's office or a party agrees to the termination of the mandate of an arbitrator, this does not imply acceptance of the validity of any ground referred to in this section or RCW 7.05.130(2).
[ 2015 c 276 § 15.]
RCW 7.05.160
Where the mandate of an arbitrator terminates under RCW 7.05.140 or 7.05.150 or because of the arbitrator's withdrawal from office for any other reason or because of the revocation of the arbitrator's mandate by agreement of the parties or in any other case of termination of the arbitrator's mandate, a substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced.
[ 2015 c 276 § 16.]
RCW 7.05.180
[ 2015 c 276 § 18.]
RCW 7.05.190
Conditions of granting interim measures.
(1) The party requesting an interim measure under RCW 7.05.180(2) (a), (b), and (c) shall satisfy the arbitral tribunal that:
(2) With regard to a request for an interim measure under RCW 7.05.180(2)(d), the requirements in subsection (1)(a) and (b) of this section shall apply only to the extent the tribunal considers appropriate.
[ 2015 c 276 § 19.]
RCW 7.05.200
Application for preliminary orders—Conditions for granting preliminary orders.
(3) The conditions defined under RCW 7.05.190 apply to any preliminary order, provided that the harm to be assessed under RCW 7.05.190(1)(a) is the harm likely to result from the order being granted or not.
[ 2015 c 276 § 20.]
RCW 7.05.210
Procedures for preliminary orders—Expiration of preliminary orders.
(4) A preliminary order shall expire after twenty days from the date on which it was issued by the arbitral tribunal. However, the arbitral tribunal may issue an interim measure adopting or modifying the preliminary order after the party against whom the preliminary order is directed has been given notice and an opportunity to present its case.
[ 2015 c 276 § 21.]
RCW 7.05.220
Modification, suspension, termination of preliminary orders.
The arbitral tribunal may modify, suspend, or terminate an interim measure or a preliminary order it has granted upon application of any party or, in exceptional circumstances and upon prior notice to the parties, on the arbitral tribunal's own initiative.
[ 2015 c 276 § 22.]
RCW 7.05.230
(2) The arbitral tribunal shall require the party applying for a preliminary order to provide security in connection with the order unless the arbitral tribunal considers it inappropriate to do so.
[ 2015 c 276 § 23.]
RCW 7.05.240
(2) The party applying for a preliminary order shall disclose to the arbitral tribunal all circumstances that are likely to be relevant to the arbitral tribunal's determination whether to grant or maintain the order, and such obligation shall continue until the party against whom the order has been requested has had an opportunity to present its case. Thereafter, subsection (1) of this section shall apply.
[ 2015 c 276 § 24.]
RCW 7.05.250
[ 2015 c 276 § 25.]
RCW 7.05.260
Recognition and enforcement of interim measures.
(1) An interim measure issued by an arbitral tribunal shall be recognized as binding and, unless otherwise provided by the arbitral tribunal, enforced upon application to the superior court, irrespective of the country in which it was issued, subject to the provisions of RCW 7.05.270.
(2) The party who is seeking or has obtained recognition or enforcement of an interim measure shall promptly inform the court of any termination, suspension, or modification of that interim measure.
[ 2015 c 276 § 26.]
RCW 7.05.280
[ 2015 c 276 § 28.]
RCW 7.05.290
The parties shall be treated with equality, and each party shall be given a full opportunity of presenting its case.
[ 2015 c 276 § 29.]
RCW 7.05.300
Determination of rules and procedure.
(1) Subject to the provisions of this chapter, the parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings.
(2) Failing such agreement, the arbitral tribunal may, subject to the provisions of this chapter, conduct the arbitration in such manner as it considers appropriate. The power conferred upon the arbitral tribunal includes the power to determine the admissibility, relevance, materiality, and weight of any evidence.
[ 2015 c 276 § 30.]
RCW 7.05.310
(2) Notwithstanding the provisions of subsection (1) of this section, the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts, or the parties, or for inspection of goods, other property, or documents.
[ 2015 c 276 § 31.]
RCW 7.05.320
[ 2015 c 276 § 32.]
RCW 7.05.330
Language used in proceedings.
(1) The parties are free to agree on the language or languages to be used in the arbitral proceedings. Failing such agreement, the arbitral tribunal shall determine the language or languages to be used in the proceedings. This agreement or determination, unless otherwise specified therein, shall apply to any written statement by a party, any hearing, and any award, decision, or other communication by the arbitral tribunal.
[ 2015 c 276 § 33.]
RCW 7.05.340
Statement of claim and defense.
(1) Within the period of time agreed by the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting its claim, the point at issue, and the relief or remedy sought, and the respondent shall state its defense in respect of these particulars, unless the parties have otherwise agreed as to the required elements of such statements. The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit.
(2) Unless otherwise agreed by the parties, either party may amend or supplement its claims or defenses during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow such amendment having regard to the delay in making it.
[ 2015 c 276 § 34.]
RCW 7.05.350
(3) All statements, documents, or other information supplied to the arbitral tribunal by one party shall be communicated to the other party. Any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties.
[ 2015 c 276 § 35.]
RCW 7.05.360
Unless otherwise agreed by the parties, if, without showing sufficient cause:
(1) The claimant fails to communicate its statement of claim in accordance with RCW 7.05.340(1), the arbitral tribunal shall terminate the proceedings;
(2) The respondent fails to communicate its statements of defense in accordance with RCW 7.05.340(1), the arbitral tribunal shall continue the proceedings without treating such failure in itself as an admission of the claimant's allegations; and
(3) Any party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the award on the evidence before it.
[ 2015 c 276 § 36.]
RCW 7.05.370
(1) Unless otherwise agreed by the parties, the arbitral tribunal:
(2) Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it necessary, the expert shall, after delivery of the expert's written or oral report, participate in a hearing where the parties have the opportunity to put questions to the expert and to present expert witnesses in order to testify on the points at issue.
[ 2015 c 276 § 37.]
RCW 7.05.380
Court assistance in taking evidence—Consolidation.
(1) The arbitral tribunal or a party with the approval of the arbitral tribunal may request from the superior court assistance in taking evidence. The court may execute the request within its competence and according to its rules on taking evidence.
(2) When the parties to two or more arbitration agreements have agreed in their respective arbitration agreements or otherwise, the superior court may, on application by one party with the consent of all other parties to those arbitration agreements, do one or more of the following:
(a) Order the arbitration proceedings arising out of those arbitration agreements to be consolidated on terms the court considers just and necessary;
(b) Where all parties cannot agree on an arbitral tribunal for the consolidated arbitration, appoint an arbitral tribunal in accordance with RCW 7.05.120(4); and
(c) Where the parties cannot agree on any other matter necessary to conduct the consolidated arbitration, make any other order it considers necessary.
[ 2015 c 276 § 38.]
RCW 7.05.390
[ 2015 c 276 § 39.]
RCW 7.05.400
[ 2015 c 276 § 40.]
RCW 7.05.410
(2) An award on agreed terms shall be made in accordance with the provisions of RCW 7.05.420 and shall state that it is an award. Such an award has the same status and effect as any other award on the merits of the case.
[ 2015 c 276 § 41.]
RCW 7.05.420
(2) The award shall state the reasons upon which it is based, unless the parties have agreed that no reasons are to be given or the award is an award on agreed terms under RCW 7.05.410.
(3) The award shall state its date and the place of arbitration as determined in accordance with RCW 7.05.310(1). The award shall be deemed to have been made at that place.
[ 2015 c 276 § 42.]
RCW 7.05.430
(1) The arbitral proceedings are terminated by the final award or by an order of the arbitral tribunal in accordance with subsection (2) of this section.
(a) The claimant withdraws its claim, unless the respondent objects thereto and the arbitral tribunal recognizes a legitimate interest on the respondent's part in obtaining a final settlement of the dispute;
(3) The mandate of the arbitral tribunal terminates with the termination of the arbitral proceedings, subject to the provisions of RCW 7.05.440 and 7.05.450(4).
[ 2015 c 276 § 43.]
RCW 7.05.460
(1) An arbitral award, irrespective of the country in which it was made, shall be recognized as binding and, upon application in writing to the superior court, shall be enforced subject to the provisions of this section and of RCW 7.05.470.
(2) The party relying on an award or applying for its enforcement shall supply the original award or a copy thereof. If the award is not made in English, the court may request the party to supply a translation thereof into English.
[ 2015 c 276 § 46.]
RCW 7.05.470
(i) A party to the arbitration agreement referred to in RCW 7.05.080 was under some incapacity, or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made;
(ii) The party against whom the award is invoked was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present its case;
(iii) The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognized and enforced;
(iv) The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or
(2) If an application for setting aside or suspension of an award has been made to a court referred to in subsection (1)(a)(v) of this section, the court where recognition or enforcement is sought may, if it considers it proper, adjourn its decision and may also, on the application of the party claiming recognition or enforcement of the award, order the other party to provide appropriate security.
[ 2015 c 276 § 47.]