Commentary on Ordinance No. 15861 of 2024: the Validity of the 'per relationem' Arbitration Clause

The recent Ordinance No. 15861 of June 6, 2024, issued by the Court of Cassation, provides an important opportunity for reflection on the interpretation of arbitration clauses, particularly those 'per relationem' in the context of foreign arbitration. The ruling clarifies the necessary conditions for such clauses to be considered valid, establishing fundamental principles for their application.

The Regulatory Context

The Court ruled based on Article 2 of the New York Convention of June 10, 1958, and Article 808 of the Code of Civil Procedure (c.p.c.). These provisions establish that parties can refer future disputes to foreign arbitrators through an arbitration clause. However, a written form is essential. In particular, for 'per relationem' clauses, it is crucial that the reference to the document containing the clause is explicit and specific.

  • Explicit and specific reference: there must be a clear reference to the arbitration clause.
  • Generic reference: a mere reference to the document or form is insufficient, as it does not guarantee the awareness of the parties.
  • Awareness of the parties: it is crucial that both parties are fully informed of the waiver of ordinary jurisdiction.

The Ruling's Maxim

New York Convention of June 10, 1958 - Written form of the consent of the contracting parties - 'per relationem' arbitration clause to another transaction or document - Validity - Conditions - Basis. According to Article 2 of the New York Convention of June 10, 1958, and Article 808 c.p.c., in so-called foreign arbitration, it is possible to refer future disputes not yet arisen to foreign arbitrators, in a preventive and eventual manner, through an arbitration clause drafted in written form "ad substantiam", which precisely identifies the future disputes arising from the main contract; for 'per relationem' arbitration clauses - that is, those provided in a different transaction or document to which the contract refers - the aforementioned requirement of form is satisfied if the reference contained in the contract includes an explicit and specific mention of the arbitration clause, not if it is generic and merely refers to the document or form containing the clause, as only the explicit reference ensures the parties' full awareness of the waiver of jurisdiction.

Conclusions

Ordinance No. 15861 of 2024 represents an important clarification in the field of foreign arbitration, establishing clear criteria for the validity of 'per relationem' arbitration clauses. It is essential for parties involved in international contracts to pay attention to the drafting of arbitration clauses, ensuring that they are formulated in a way that guarantees awareness and explicit agreement on any waivers of ordinary jurisdiction. Only with adequate attention to these details is it possible to avoid future disputes and ensure the proper application of arbitration rules.

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