The final and binding nature of arbitral awards provides legal predictability to the parties while also allowing for the possibility of material errors or omissions in the arbitral decisions.
In this context, ICC Arbitration Rules allow for the correction or completion of an award under certain conditions, ensuring the protection of parties' rights. However, the high costs associated with correction processes resulting from the tribunal's own errors raise questions about the compatibility of these costs with fundamental arbitration principles such as accessibility and party autonomy. This process, shaped by ICC Rules and Law No. 4686 on International Arbitration, has significant legal and financial implications for the parties in practice, making it essential to carefully assess post-award procedures.
ICC Arbitration Proceedings
The International Chamber of Commerce ("ICC") has become one of the most frequently chosen arbitration institutions by individuals and legal entities seeking dispute resolution. One of the main reasons for this is ICC's long-standing tradition, dating back to 1919, which upholds the principles of "neutrality" and "independence."
Cases in Which Correction and Additional Decision May Be Requested Under ICC Rules
According to the ICC Rules, error correction can be requested in two situations. The first occurs when a material error is present in the arbitral award due to the arbitrator. In such cases, the concerned parties may request the correction of this error. Applications for correction, aimed at rectifying clerical, computational, or other material mistakes in the award, must be submitted to the ICC Arbitration Secretariat within 30 days from the notification of the award.
Similarly, if the arbitral tribunal has failed to address one of the parties’ claims, the concerned party may request an additional decision to cover the omitted issues. This request must also be submitted to the Secretariat within 30 days from the notification of the award.
The arbitral tribunal, upon receiving the request, informs the opposing party and typically allows them a period not exceeding 30 days to submit their views. After this period, the tribunal must submit its draft decision to the ICC Court within a maximum of 30 days or within a timeframe determined by the Court. Correction or interpretation decisions are issued as an annex to the award, whereas additional decisions, if granted, are issued separately.
Pursuant to Article 36(1) of the ICC Rules, only clerical, computational, or similar material errors in the award are subject to correction or an additional decision. The tribunal does not have the authority to issue an additional decision or correction concerning the substantive aspects of the award. Rather, only elements affecting the comprehensibility and enforceability of the decision—such as a mathematical miscalculation or a missing conjunction—may be amended.1
Remission of the Arbitral Award, Additional Costs, and Party Rights
If a court remands an arbitral award to the tribunal, the provisions of Articles 32, 34, 35, and 36 of the ICC Rules apply to the extent appropriate. Depending on the conditions set forth in the court’s remand decision, the arbitral tribunal may either rectify or complete the deficiencies in the award by issuing a new decision or amend the previous one. In this process, the ICC Court takes the necessary measures to ensure that the tribunal complies with the court’s instructions and may determine an advance payment covering the arbitrators' additional fees, expenses, and ICC’s extra administrative costs. This mechanism aims to both preserve the efficiency of arbitration proceedings and protect the rights of the parties, thereby contributing to legal certainty in post-award procedures.
In this context, it is crucial to emphasize that parties retain the right to object to any resulting costs. Expecting parties to bear the financial burden of correcting an error or omission caused by the tribunal itself—especially when the associated costs are substantial—would contradict fundamental principles promised by the ICC before arbitration, particularly “Access to Justice” and “Party Autonomy”. Moreover, the ICC Secretariat evaluates such objections and has, in certain cases, reversed its initial demands for cost payments previously communicated to the parties.
Correction and Additional Decision Requests Under Law No. 4686 on International Arbitration
In addition to the ICC Rules, when the seat of arbitration is in Turkey and, consequently, lex arbitri is Turkish law, the relevant provisions of Law No. 4686 on International Arbitration (“IAL”) must also be considered. Article 14 of the IAL grants parties the opportunity to assess arbitral awards more thoroughly and to apply for corrections or additions where necessary.
According to Article 14 of the IAL, arbitral awards must include the identities of the parties, the legal grounds upon which the decision is based, the seat and date of arbitration, the signatures of the arbitrators, and any dissenting opinions. The award is communicated to the parties by the arbitrator or the presiding arbitrator of the tribunal. The parties may also request that the award be submitted to the civil court of first instance, provided they cover the associated costs.
For the correction of clerical, computational, or similar material errors in the award, either party may apply to the arbitral tribunal within 30 days from the notification of the award. This request must also be communicated to the opposing party. After receiving the opposing party’s views, if the tribunal deems the request justified, it must issue a correction or interpretation decision within a maximum of 30 days. The arbitrator or the tribunal may also correct such material errors on its own initiative within 30 days from the date of the award.
Additionally, if a party had raised a claim during the arbitration proceedings that was not addressed in the award, they may request a supplementary arbitral decision. This request must also be made within 30 days from the notification of the award, and if deemed justified, the tribunal must issue a supplementary decision within a maximum of 60 days. These corrections, interpretations, and supplementary decisions are communicated to the parties and are considered an integral part of the arbitral award.
Conclusion
In conclusion, despite the finality of arbitral awards, the ICC Arbitration Rules and Law No. 4686 on International Arbitration provide exceptional mechanisms for correcting material errors and addressing omitted claims. However, the imposition of high costs on parties for corrections necessitated by the tribunal’s own errors has led to debates in practice. The ICC Secretariat’s occasional review of such costs helps ensure alignment with the principles of accessibility and party autonomy in arbitration proceedings.
Therefore, parties engaging in arbitration must carefully consider post-award procedures and potential additional costs. Correction and additional decision mechanisms should not be viewed merely as remedial tools but as integral components of the arbitration process, necessitating strategic planning accordingly.
1 Webster, Thomas H.; Bühler, Michael. Handbook of ICC Arbitration. London, 2021.
By Tarik Guleryuz, Partner, and Berre Nazli Celik, Legal Intern, Guleryuz & Partners
