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Frequently Asked Questions
1. What is arbitration?
In ad hoc arbitration, the parties are responsible for managing the arbitration process themselves. This includes tasks such as selecting the arbitrator or arbitrators, setting the rules and procedures that will govern the arbitration, and overseeing the conduct of the arbitration proceedings.
2. What is ad hoc arbitration?
Ad hoc arbitration is a type of arbitration in which the parties to a dispute agree to resolve their dispute through arbitration without using the services of a specialized institution or organization to administer the arbitration process.
3. What is institutional arbitration?
Institutional arbitration is a type of arbitration where the administration of the arbitration process is handled by a specialized institution or organization, rather than being conducted on an ad-hoc basis.
In institutional arbitration, the institution plays a variety of roles, such as administering the arbitration rules, appointing arbitrators, managing the arbitration process, and providing support to the parties and the arbitrators. These institutions usually have established sets of rules and procedures that govern the arbitration process and ensure that it is fair, efficient, and effective.
One of the key advantages of institutional arbitration is that it provides a structured framework for resolving disputes, which can help to streamline the process and reduce the risk of procedural issues or challenges.
4. Can CI-MAC provide legal advice?
No. As a neutral arbitration institution, CI-MAC does not act on behalf of any party, nor does it provide any legal advice.
5. Are parties required to be represented by lawyers in CI-MAC arbitrations?
No, parties are not required to be represented by lawyers under the CI-MAC rules, but it is recommended.
6. What are the benefits of arbitration?
Arbitration offers several benefits as a means of resolving disputes. Some of the key benefits of arbitration include:
Privacy and confidentiality: Arbitration proceedings are generally private and confidential, which can help to protect sensitive or confidential information from becoming public.
Flexibility: The parties to an arbitration can tailor the arbitration process to suit their specific needs and circumstances, such as by choosing the location, language, and applicable law.
Speed and efficiency: Arbitration can be a faster and more efficient means of resolving disputes than traditional litigation, which can be bogged down by procedural complexities and court delays.
Expertise: The parties can choose an arbitrator with specific expertise or experience in the subject matter of the dispute, which can result in a more informed and knowledgeable decision.
Finality: The decision reached in arbitration is typically final and binding, meaning that the parties cannot appeal the decision to a higher court.
Cost-effectiveness: Arbitration can be more cost-effective than litigation, as it can be completed more quickly and with fewer procedural complexities.
Overall, arbitration can provide an effective and efficient means of resolving disputes that offers greater flexibility, expertise, privacy, and finality than traditional litigation.
7. What are the advantages of arbitration in the Cayman Islands?
Convenience: CI-MAC is a short ten-minute drive from the international airport with nonstop flights from the US, the UK, and Canada. There are numerous first-class hotels and restaurants within minutes of the centre. CI-MAC offers well-appointed hearing and breakout rooms, first-class technology, 24/7 security, extensive catering options, on-site parking and facilities, and a roster of experienced resident and non-resident arbitrators and mediators – all with a view of the Caribbean Sea. CI-MAC’s experienced and attentive staff are be available in-person to assist with all aspects of hearings to help ensure smooth and efficient proceedings.
Neutrality: The Cayman Islands is a politically stable and neutral jurisdiction, which can provide parties with confidence in the impartiality of the arbitration process.
Confidentiality: Arbitration proceedings in the Cayman Islands are confidential, which can be particularly beneficial in cases where the parties wish to keep the details of their dispute private.
Speed: Arbitration in the Cayman Islands can be a quicker process.
Supportive Judiciary and Modern Laws: The Judiciary in the Cayman Islands is supportive of arbitration and the jurisdiction also benefits from a modern arbitration law.
Recognition and enforcement of awards: The Cayman Islands is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which means that arbitration awards made in the Cayman Islands can be enforced in other countries that are also signatories to the convention.
Overall, these factors contribute to the Cayman Islands being an ideal choice for arbitration.
8. What is the difference between arbitration and mediation?
Mediation is a process in which a neutral third party, called a mediator, facilitates negotiations between the parties involved in a dispute. The mediator does not make a decision or impose a solution, but instead works to help the parties reach a mutually agreeable resolution. Mediation is typically a voluntary and confidential process, and the parties retain control over the outcome.
Arbitration, on the other hand, is a process in which a neutral third party, called an arbitrator, hears evidence and arguments from both sides and makes a binding decision. The arbitrator's decision, called an award, is typically final and enforceable in court. Unlike mediation, arbitration is usually a contractual requirement, meaning that the parties have agreed to submit any disputes to arbitration rather than going to court.
In summary, mediation is a process in which a mediator helps the parties reach a voluntary agreement, while arbitration is a process in which an arbitrator makes a binding decision that the parties are required to follow.
9. Do hearings have to be held in Cayman for CI-MAC to administer the arbitration?
No, generally hearings do not need to be held in Cayman for CI-MAC to administer the arbitration. It is also possible for parties to agree on a documents only or completely virtual hearing.
10. What platform does CI-MAC use to host virtual hearings?
Through our partnership with Arbitration Place, we offer a wide range of virtual hearing services.
Arbitration Place Virtual is platform agnostic. In other words, we adapt our services to your demand, and can accommodate certain platform requests. If we notice that the requested platform provides an experience that may be contradictory to a smooth and successful virtual matter (it features a lack of security & encryption, or poor audio transmission), APV may suggest an alternate platform. In any case, at the end of the day, parties have the final say.
If you seek platform suggestions, our clients often enjoy our services conducted on our Enterprise License of Zoom.
11. What are the security specifications for virtual hearings?
Through our partnership with Arbitration Place and the Enterprise License of Zoom, we benefit from AES 256 GCM encryption for real-time content.
Moreover, Zoom’s controlled and transparent data routing allows us to opt-in or opt-out of any of its data centers (excluding our home region) and grants us the ability to customize and manage geographic regions for specific meetings.
We ensure that no unauthorized participant will enter the virtual matter through the following safeguards:
• Eleven (11) digit unique meeting IDs
• Complex passwords
• Waiting Rooms with the ability to automatically admit participants from your domain or another selected domain. Alternatively, our Virtual Case manager can manually accept any participant after verifying his credentials.
• Meeting lock feature that can prevent anyone from joining the meeting
• Ability to remove participants
• Authentication profiles that only allow entry to registered users, or restrict to specific email domains
We meet the following industry and security organization standards:
● SOC 2 (Type II)
● FedRAMP (Moderate)
● GDPR, CCPA, COPPA, FERPA, and HIPAA Compliant (with BAA)
● Privacy Shield Certified (EU/US, Swiss/US, Data Privacy Practices)
● TrustArc Certified Privacy Practices and Statements
If you are interested in using another platform and have any security concerns or questions, please reach out and we would be happy to assist.
12. How is an arbitration commenced under CI-MAC's rules?
Any party wishing to commence an arbitration under the CI-MAC Rules (“Claimant”)
shall provide CI-MAC with a written request (“Request”). For the complete form requirements, please see the CI-MAC Rules.
13. How is a Notice of Arbitration filed?
A Notice of Arbitration may be filed electronically to info@caymanarbitration.com. The email size should not exceed 5MB and a copy of the Notice of Arbitration should be sent to the Respondent. The Claimant should notify CI-MAC as to the mode of service and the date of service.
14. Can an arbitration be commenced at CI-MAC without an arbitration clause?
No. Unless there is an arbitration clause in the contract or parties have a post-dispute agreement to refer the dispute to arbitration at CI-MAC or arbitration in accordance with the CI-MAC Rules, CI-MAC cannot administer the arbitration.
15. Does CI-MAC have a model arbitration clause?
Yes, CI-MAC does offer several versions of model arbitration clauses for parties to choose from. Here is one example:
"Any dispute, controversy or claim arising out of or relating to this agreement, including any question regarding its breach, existence, validity or termination, or the legal relationships established by this agreement, or any non-contractual claims (whether in tort or otherwise), shall be referred to and finally determined by arbitration in accordance with the Arbitration Rules of the Cayman International Mediation and Arbitration Centre Ltd ("Rules") in force as at the date of this agreement, which Rules are deemed to be incorporated by reference into this clause. The language of the arbitration shall be English. The seat of the arbitration shall be Cayman Islands. There shall be [[one] / [three]] arbitrator[s]. This arbitration agreement shall be governed by and construed in accordance with the law of the Cayman Islands."
For other model clauses, please see the "Model Clause" page.
16. How does the Respondent file a Response after receiving a Notice of Arbitration?
A Notice of Response may be filed electronically to info@caymanarbitration.com. The email size should not exceed 5MB and a copy of the Notice of Response should be sent to the Claimant. The Respondent should notify CI-MAC as to the mode of service and the date of service.
17. What happens if the Claimant fails to pay the Case Filing Fee?
If the Claimant does not pay the Case Filing Fee, CI-MAC may determine that the Notice of Arbitration is not complete, or not substantially complete, and the arbitration will not be commenced.
18. What happens if the Respondent fails to pay the Counterclaim Filing Fee?
If the Respondent does not pay the Counterclaim Filing Fee, CI-MAC may determine that the counterclaim was not filed and the arbitration will proceed without the counterclaim.
19. Can CI-MAC provide a sample Notice of Arbitration?
No. CI-MAC does not provide a template for the Notice of Arbitration, and parties are free to submit the Notice of Arbitration in their preferred format, as long as it complies with the CI-MAC Rules and any other contractual agreements that may exist between the parties.
20. Can CI-MAC administer arbitration where the governing law of the contract is not Cayman Islands law?
Yes. CI-MAC is able to administer arbitrations where the governing law of the contract is not Cayman Islands law.
21. Can CI-MAC administer arbitrations where the seat of the arbitration is not in Cayman?
Yes. CI-MAC is able to administer arbitrations where the seat of arbitration is not the Cayman Islands.
22: Would an arbitration clause which provides for "arbitration in Cayman" or "Cayman Islands arbitration" be sufficient for CI-MAC to administer the arbitration under CI-MAC rules?
No. An arbitration agreement referring to “arbitration in Cayman" or "Cayman Islands arbitration" may not sufficiently provide for CI-MAC-administered arbitration, although it may provide for ad hoc arbitration seated in the Cayman Islands.
Parties who would like to ensure that arbitration at CI-MAC under the CI-MAC rules is reflected in the contract may wish to use the CI-MAC Model Clause or, if they don't currently have an arbitration clause that sufficiently provides for a CI-MAC arbitration but wish to proceed with an arbitration at CI-MAC under the CI-MAC Rules, parties may wish to agree to a post-dispute agreement that refers the dispute to arbitration at CI-MAC or arbitration in accordance with the CI-MAC Rules.
23. What is the case filing fee?
CI-MAC's case filing fee is US$1,000.
24. How are filing fees paid?
Filing fees are paid by bank transfer. For up to date bank information, please email info@caymanarbitration.com
25. Can CI-MAC administer arbitrations in languages other than English?
Yes, CI-MAC can administer arbitrations in languages other than English. To find out more or make a specific request, please contact info@caymanarbitration.com
26. Does CI-MAC have a roster of arbitrators?
Yes, CI-MAC does maintain a roster of mediators.
27. Can CI-MAC act as an appointing authority for ad hoc arbitration?
Yes. Subject to the terms of the arbitration agreement, CI-MAC is able to act as the appointing authority for ad hoc cases. CI-MAC is also able to perform fund-holding services in ad hoc arbitrations.
28. Can CI-MAC act as an appointing authority for experts to resolve technical disputes outside of arbitration?
Yes, CI-MAC is able to appoint experts to resolve technical disputes outside of arbitration, and the procedure for such appointments varies depending on the specific case. If a party wishes to engage CI-MAC's appointment service for experts, they must submit a written request that includes the parties' names, nationalities, and contact details, a copy of the contract or agreement related to the dispute, and supporting documents. Additionally, an appointment fee must be paid to CI-MAC, which is equivalent to the fees outlined in the CI-MAC Schedule of Fees for ad hoc appointments of arbitrators.
29. What does CI-MAC charge to act as an appointing authority?
There are no separate appointment fees for CI-MAC administered arbitrations. For appointment services related to ad hoc arbitration, according to CI-MAC's current table of fees, CI-MAC charges US$1,500 for one arbitrator, US$2,000 for two arbitrators, and US$2,500 for three arbitrators.
30. Do arbitrators have to be lawyers?
No, arbitrators are not required to be lawyers. Arbitrators can come from a wide range of backgrounds, including business, engineering, medicine, and other fields. The qualifications and experience of the arbitrator(s) appointed for a particular case will depend on the nature of the dispute and the preferences of the parties.
31. Can a party nominate an arbitrator who is not on CI-MAC's roster?
Yes. Parties are free to nominate arbitrators of their choice. It is not necessary for parties to choose from CI-MAC's roster.
32. How does one apply to be included on CI-MAC's roster?
If you are interested in submitting an application to be considered, please send your CV and a covering letter of interest to info@caymanarbitration.com.
33. Can provide technology or help prepare parties for upcoming virtual or hybrid hearings?
If you request it, or we deem it necessary for the complexities involved in your virtual proceeding, you can receive tailored virtual training from one of our amazing Virtual Case Managers. In this technical rehearsal, we will troubleshoot all parties’ technological setups and share best practices to make sure your proceeding goes as smoothly as possible.
If one of our clients is technologically unprepared, we ship them our Virtual Remote Kits which comes with all the necessary hardware to ensure a smooth technological experience during your matter.
For pricing and additional information regarding our Virtual Remote Kits, please contact us.
35. Does CI-MAC provide document management?
Yes, CI-MAC does provide document management. If you have any specific requests or questions, please reach out to info@caymanarbitration.com
36. What is an arbitral secretary and does CI-MAC offer them?
Yes, CI-MAC can provide arbitral secretaries upon request.
An arbitral secretary is a person who assists the arbitral tribunal in conducting the arbitration proceedings. The arbitral secretary performs a variety of administrative and procedural tasks, such as preparing draft orders, communicating with the parties, and organizing the arbitration hearings.
The role of the arbitral secretary is generally to provide administrative support to the tribunal, rather than to make substantive decisions or influence the outcome of the arbitration. The arbitral secretary may also assist the tribunal in managing and organizing the documents and evidence presented by the parties, and may provide research or drafting support as needed.
It is important to note that the role of the arbitral secretary is limited to providing administrative and procedural support, and they do not have decision-making authority in the arbitration. The final decision is always made by the arbitral tribunal, which typically consists of one or more arbitrators appointed by the parties to the dispute.
37. What are virtual case managers?
Virtual Case Managers are there to ensure a smooth proceeding. They will help troubleshoot technical issues and facilitate the proceeding in a way that best leverages the virtual platform to support all your proceeding’s demands.
Whether you need to discuss with your client privately or need a suggestion for the technology you need for the big day, our Virtual Case Managers will answer your needs.
Moreover, our Virtual Case Managers can either teach you how to confidently display your documents or present them for you with trial presentation software.
Unanswered questions?
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