SYSTECH SOLICITORS LEGAL UPDATE

The SICC confirms
Singapore as a Dispute
Resolution Hub,
with the Singapore
International Arbitration
Centre and Singapore
International Mediation
Centre
The last year brought about an exciting development
in Singapore’s legal landscape, when the Singapore
International Commercial Court (SICC) opened its
doors in January 2015.
An Asian “Dispute Resolution Hub”
The SICC joined the Singapore International
Arbitration Centre and the Singapore International
Mediation Centre to set the stage for a dispute
resolution hub in the region. This provided parties
with the options of litigation, arbitration or mediation
as the need arises, within the framework of
Singapore’s business friendly legal system.
In view of the region’s bustling trade activity and
economic growth, the Dispute Resolution Hub will
significantly lower the cost of settling disputes for
parties in Asia and even internationally. The SICC,
with its commercial focus and specific expertise,
aims to provide an avenue where disputes are
settled quickly through the litigation process and
costs are kept low.
The need for the SICC
The SICC was first proposed as a response to the
increase in international commercial litigation work.
The Court and the litigation process will also be able
to address the perceived limitations of arbitration.
While the Singapore International Arbitration Centre
has enjoyed great success, arbitration has come
under increasing criticism that it is costly, takes a
long time to resolve, and lacks transparency due to
its confidential nature.
1
Singapore International Commercial Court (2015)
2
ibid
WHAT?
WHO?
Parties can bring their
cross border disputes
to a Court that can
handle the international
focus and commercial
demands of the cases
Litigation is also a key option when certain subject
matters are not amendable to arbitration, or
where multiple arbitrations for the same project
are prohibited. Arbitration may result in multiple
proceedings over a main contract and subcontract,
and litigation may prove to be the better option. It is
therefore imperative that litigation, especially those
catered to international parties, is effective and
affordable. The SICC provides an avenue for disputes
to be resolved more quickly, due to its commercial
focus, such that the usual perceived pitfalls of the
court-based avenue will not be a deterrent for the
parties involved.
How the SICC works
WHERE?
Singapore, as a neutral
third party, will allow
representaiton of
foreign lawyers in the
International Court
The SICC is part of the Supreme Court of Singapore,
constituted as a statutory division of the High Court
and having identical jurisdictional limits to the High
Court 1 . Appeal cases will be heard in the Singapore
Court of Appeal 2 .
The SICC will be hearing cross border disputes that
are “of an international and commercial nature” as a
neutral third party if parties have submitted to the
jurisdiction under a written jurisdiction agreement.
A recent case heard by the court involved a joint
venture between the subsidiary of an Australian
company and an Indonesian company. The court will
determine if a case is relevant, but unlike traditional
courts will not decline jurisdiction if there is a
more appropriate forum (the forum non conveniens
principle). Judges, unlike in arbitration, cannot be
nominated by the parties, but one with the right
qualifications or experience may be appointed from
www.systech-int.com
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