Preliminary Questions Sample Clauses
The 'Preliminary Questions' clause establishes a set of initial inquiries or issues that must be addressed before the main proceedings or substantive matters of an agreement or process can continue. Typically, this clause outlines specific questions of fact or law that need to be resolved at the outset, such as determining jurisdiction, the validity of a contract, or the standing of parties involved. By resolving these foundational issues early, the clause helps streamline the process, prevent unnecessary disputes later on, and ensure that all parties are proceeding on a clear and agreed-upon basis.
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Preliminary Questions. Before ruling on the merits, the Tribunal shall address and decide as a preliminary question any objection to jurisdiction and admissibility by the disputing Party. When deciding on any objection of the disputing Party, the Tribunal may, if warranted, award to the prevailing disputing party reasonable costs including attorney’s fees incurred in submitting or opposing the objection. In determining whether such an award is warranted, the Tribunal shall consider whether the claim was frivolous or whether the objection was frivolous, and shall provide the disputing parties a reasonable opportunity to comment.
Preliminary Questions. (a) A Tribunal shall address and decide as a preliminary question any objection by the respondent that, as a matter of law, the Tribunal may not make an award against the respondent in accordance with Article 103, provided that the respondent so requests as soon as possible after the Tribunal is established, and in no event later than the date the Tribunal fixes for the respondent to submit its counter-memorial. In deciding such objection, the Tribunal shall assume to be true the factual allegations of the claimant in support of any claim in the notice of arbitration. The Tribunal may also consider any relevant facts not in dispute.
(b) Subparagraph (a) shall not prejudice the authority of the Tribunal to address as a preliminary question any objection other than the objection referred to in subparagraph (a), such as an objection that the dispute is not within the competence of the Tribunal.
(c) On receipt of the objection referred to in subparagraph (a), the Tribunal shall suspend any proceedings on the merits, establish a schedule for considering the objection consistent with any schedule it has established for considering any other preliminary question, and issue a decision or award on the objection, stating the grounds therefor.
2. In the event that the respondent so requests within 45 days after the date of establishment of the Tribunal, the Tribunal shall address and decide on an expedited basis the objection referred to in subparagraph 1(a) or any objection that the dispute is not within the competence of the Tribunal. The Tribunal shall suspend any proceedings on the merits and issue a decision or award on the objection, stating the grounds therefor, no later than 150 days, or 180 days if a hearing is held or under extraordinary circumstances, after the date of the request.
3. When it decides a respondent’s objection pursuant to paragraph 1 or 2, the Tribunal may, if warranted, award to the prevailing disputing party reasonable costs including attorneys’ fees incurred in submitting or opposing the objection. In determining whether such an award is warranted, the Tribunal shall consider whether the claimant’s claim was frivolous or whether the respondent’s objection was frivolous, and shall provide the disputing parties a reasonable opportunity to comment.
4. The respondent does not waive its right to make any objection or argument on the merits merely because the respondent did or did not make a request pursuant to paragraph 1 or 2.
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