International commercial arbitration: procedure.
The bill introduces stricter definitions and requirements for requesting interim measures in arbitration. For example, a party must demonstrate potential irreparable harm and that such harm outweighs any injury to the other party to succeed in obtaining an interim measure. By enforcing the requirement of being bound by decisions made by the arbitral tribunal during the arbitration process, the bill aims to create a fairer landscape for international dispute resolution, promoting more reliable outcomes for parties engaged in arbitration.
Assembly Bill 615, introduced by Assembly Member Maienschein, seeks to amend the procedures surrounding international commercial arbitration in California. The proposed legislation provides important definitions and conditions for 'interim measures' within arbitration, clarifying that such measures must be written and can be recognized through electronic communications. Specifically, it expands the frameworks already established in existing law for enforcing arbitration agreements and decisions, thereby enhancing the clarity and functionality of arbitration processes.
While proponents argue that clarifying these legal frameworks will facilitate international commerce and protect parties' interests in arbitration, there could be points of contention regarding the increased power and discretion granted to the arbitral tribunal. Some stakeholders may raise concerns about the potential for arbitrators to overreach or apply undue burdens on parties seeking interim measures, particularly around issues of evidence preservation and the specifics of compliance with tribunal decisions.