1. Each member of the Georgian Stock Exchange (hereinafter referred to as the
Exchange) may nominate one representative to serve as an Arbitrator, by
submitting an application to the Supervisory Board of the Arbitration.
2. The Supervisory Board shall, upon receipt of a nomination, and prior to
approval of such nomination, review the nominee's fitness to serve as an
arbitrator and consider the following factors:
(a) that the nominee has at least two years experience in banking, financial
services or securities industry;
(b) that the nominee has demonstrated a reputation for integrity and
professionalism;
(c) that the nominee has presented at least two letters of recommendation from
persons who have knowledge of his/her reputation for fairness and
integrity; and
(d) that the nominee has attended the arbitrators training program.
3. Each Arbitrator is appointed by the member shareholders of the Exchange for a
five-year term, and shell serve as an Arbitrator in the permanent Arbitration,
which shall be created in accordance with the Georgian Legislation.
4. Each arbitrator shall abide by the conflict of interest rules described in
Article 11.
5. Each arbitrator shall abide by the rules limiting the use of confidential,
non-public information described in Article 15.
6. The Arbitration shall provide three arbitrators to each arbitration
proceeding, using the procedure described in these rules, unless the parties
have agreed to use the Exchange's Small Claims Procedure; in which case the
Arbitration shall provide one arbitrator to the proceeding.
7. Arbitration shall, from time to time, recommend revisions and amendments to
the Arbitration Rules, subject to approval of the Supervisory Board of
Arbitration and the National Securities Commission of Georgia.
8. The Arbitration shall establish qualifications for arbitrators to be selected
to become a member of the Arbitration and shall define the requirements for the
arbitrator-training program.
9. The Supervisory Board of the Arbitration shall elect, by majority vote,
chairman of the Arbitration, whose term shall be one year.
10. The Arbitration shall administer all arbitration cases that are eligible for
Arbitration. In so doing, the Arbitration shall be responsible to:
(a) register and log in all complaints that are transmitted to the Arbitration,
that are eligible for Exchange Arbitration and are presented in a proper
form;
(b) maintain the Arbitration docket of cases, including all relevant dates;
(c) transmit to all parties to an arbitration, a copy of the Arbitration Rules
of the Exchange;
(d) ensure that all parties are served and noticed all documents and hearing
notices in a timely manner, in the form and manner described in these rules;
(e) maintain control over deadlines on submission of documents by all parties;
(f) update the Arbitration docket; and
(g) maintain control over all arbitration documents.
ARTICLE 1
GENERAL PROVISIONS
1. A property dispute, which has arisen between members of the Exchange or
between a customer and a member of the Exchange, or any physical and juridical
person, may be referred to the permanent Arbitration in accordance with the
agreement of the parties and these Rules.
2. In accordance with the Law of Georgia on Private Arbitration, an agreement
between parties on bringing a dispute to Arbitration shall be made in writing.
The agreement shall include the:
2.1. names of the parties and their residence or legal address;
2.2. subject matter of the dispute;
2.3. date and place of the agreement.
3. If an arbitration agreement constitutes part of the agreement concluded
between the parties, invalidation of the agreement shall not invalidate the
arbitration agreement by force of law.
4. If, during an arbitration proceeding, a criminal case is initiated on the
matter, which is the subject of the dispute, and which could influence the
outcome of the proceeding, on the basis of a Court ruling, the arbitration
proceeding shall not be deemed to have been held.
5. The death or dissolution of a party shall not terminate the arbitration
agreement, and the appointed Arbitrators shall not be changed, unless the
parties have agreed otherwise.
6. For matters provided for in the Law of Georgia on Private Arbitration, claim
of a party or Arbitration request shall be heard by the district (City) court on
whose operating territory the Arbitration hearing is held.
ARTICLE 2
NOTICE AND SERVICE
1. For the purposes of these Rules, any notice, communication or proposal shall
be delivered to habitual residence, place of business or mailing address, or, if
after making reasonable inquiry none of these can be found, then to the
addressee's last-known residence or place of business. Notice shall be deemed to
have been received on the day it is so delivered. If an addressee is a juridical
person the above-mentioned notice, communication or proposal shall be delivered
to its legal address.
2. For the purposes of calculating a period of time under these Rules, such
period shall begin to run on the day when any notification is received.
ARTICLE 3
ARBITRATION CLAIM
1. The party initiating arbitration (hereinafter referred to as the
"Claimant") shall transmit an Arbitration Claim to the Arbitration
Chairman, and to the other party (hereinafter referred to as the
"Respondent").
2. Arbitration proceedings shall be deemed to commence on the date on which the
respondent receives the Arbitration Claim.
3. The Arbitration Claim shall include the following:
(a) a demand that the dispute be referred to arbitration;
(b) the names and addresses of the parties;
(c) a reference to the arbitration clause;
(d) a reference to the contract out of or in relation to which the dispute
arose.
ARTICLE 4
STATEMENT OF CLAIM
1. Unless the Statement of Claim was contained in the Arbitration Claim, within
10 days, the claimant shall communicate his/her Statement of Claim in writing to
the Arbitration Chairman and to the opposing party (ies). A copy of the
contract, and of the arbitration agreement if not contained in the contract,
shall be annexed thereto.
2. The Statement of Claim shall include the following particulars:
(a) the names and addresses of the parties;
(b) a statement of the facts supporting the claim;
(c) the points at issue; and
(d) the amount, which is requested by the party as compensation.
3. The claimant may annex to his Statement of Claim all documents he deems
relevant or may add a reference to the documents or other evidence he will
submit.
ARTICLE 5
WRITTEN ANSWER OF A RESPONDENT AND A COUNTER CLAIM
1. Within ten business days from receiving a Statement of Claim, the respondent
shall communicate his Answer in writing to the Claimant and to the Arbitration.
The Answer shall respond to the particulars of (b), (c) and (d) of the Statement
of Claim (Article 4, par. 2). The respondent may annex to his/her statement the
documents on which he relies for his defense or may add a reference to the
documents or other evidence he will submit.
2. In the Answer, the respondent may make a counter-claim if it arises out of
the same contract, to which the Arbitration Claim is related. The provisions of
paragraph 1 of this Article shall apply to a counter-claim.
ARTICLE 6
PLACE OF HEARING DISPUTES
A dispute between the parties shall be heard in the Capital of Georgia - Tbilisi, at the address of the Arbitration.
ARTICLE 7
AMENDMENTS
1. During the course of the arbitration proceedings a party may change or amend
his/her Claim or Answer, unless the Arbitration considers it inappropriate to
allow such amendment, having regard to the delay of such amendment, or the other
party or other circumstances. However, a Claim may not be changed or amended in
such a manner that the changed or amended Claim falls outside the arbitration
rules or the arbitration agreement.
ARTICLE 8
JURISDICTION AND VALIDITY OF AN ARBITRATION AGREEMENT
1. The Arbitration is authorized to rule on an objection of either party that
the Arbitration does not have jurisdiction over the case, and shall also have
the power to rule on an objections with respect to the existence or validity of
the arbitration clause or of an arbitration agreement.
2. The Arbitration is authorized to determine existence or validity of the
contract of which an arbitration agreement forms a part. An arbitration
agreement which forms part of a contract and which provides for arbitration
under these Rules shall be treated as an agreement independent from the other
terms of the contract. Accordingly, a decision by the Arbitration that the
contract is null and void shall not invalidate the arbitration agreement.
3. An objection that the Arbitration does not have jurisdiction shall be
presented to the Arbitration Chairman and the other party within 10 days from
the submission (receipt) of an Arbitration Claim.
4. In general, the Arbitration should rule on an objection concerning its
jurisdiction as a preliminary question. However, an Arbitration Panel may
proceed with an arbitration and rule on such an objection.
SECTION II. COMPOSITION OF AN ARBITRATION PANEL
ARTICLE 9
SELECTION OF ARBITRATORS
1. Arbitrators for an Arbitration Proceeding shall be selected in the following
way:
a) Upon receipt of the Claim and Answer, the Arbitration shall transmit to both
parties, a copy of the Arbitration's roster of Arbitrators, having first
eliminated from the roster any arbitrator who is in any way related to or
professionally associated with either party or has other private interest in the
given Arbitration Proceeding.
b) Each party shall, within five days, select from the roster, three arbitrators
whom they believe will be impartial and independent with regard to the
proceeding. The parties shall number their arbitrator selection, such as
first choice, second choice and third choice.
c) The Arbitration Chairmen shall select, from each party's "short
list", one arbitrator for the proceeding, and promptly submit such notice
to the parties.
2. If one of the parties fails to make a selection, the Arbitration Chairman
shall make the appointment.
3. If any party objects to the selection of an Arbitrator by the Arbitration
Chairman, for good cause, the party may use the arbitrator challenge procedure
as described in Article 12 of these rules and the legislation.
ARTICLE 10
1. For all other arbitration proceedings, other than those referenced in Article
9, the Arbitration shall appoint three arbitrators in the following manner.
2. Upon receipt of the Claim and Answer, the Arbitration shall transmit to both
parties, a copy of the roster of Arbitrators, having first removed from the
roster any arbitrator who is in any way related to, or is professionally
associated with either of the parties.
3. Each party shall, within five days, select at least three arbitrators from
the roster whom they believe will be impartial and independent with regard to
the proceeding.
4. The Arbitration shall select, from each party's "short list", three
arbitrators for the proceeding, and shall promptly submit such notice to the
parties.
5. If a party fails to select an arbitrator, the Arbitration Chairman shall make
the appointment.
6. If a party objects to the selection of an Arbitrator by the Arbitration
Chairman, for good cause, the party may use the arbitrator challenge procedure
as described in Article 12 of these rules and the legislation.
ARTICLE 11
THE GROUNDS FOR CHALLENGE OF AN ARBITRATOR
1. An arbitrator cannot examine the case or take part in its examination, if
he/she:
a) is a party to this case, or is under obligations or common rights with any
party, or has a other personal interest in the case;
b) is a relative of a party or its representative;
c) has a personal, direct or indirect interest in the results of case, or there
is such other circumstance bringing his/her impartiality into doubt;
d) is in business or professional relationship with either party or their
representatives, despite when this relationship occurred;
e) was in the past or is in financial affair with one of the parties or their
representative;
f) has a strong opinion or belief on any issue relating to the case, and which
may influence his/her impartiality.
2. As per item "b" of the first part of this Article the following
persons are deemed as relatives:
a) a spouse;
b) the engaged;
c) next of kin;
d) brother or sister;
e) nephews and nieces;
f) aunts and uncles;
g) relatives by marriage;
h) persons connected by family relations within a long time.
3. In case of grounds for challenge the arbitrator shall declare the
self-challenge. The arbitrator (arbitration panel) shall pass the ruling on
self-challenge where the grounds of self-challenge shall be
mentioned.
ARTICLE 12
CHALLENGE PROCEDURE
1. A party who intends to challenge an arbitrator shall send notice of his/her
challenge to the Arbitration Chairman within ten days from receiving the notice
of arbitrator selection, or within 10 days upon discovery of circumstances which
may become a reason for challenge.
2. The challenge shall also be noticed to the other party, the arbitrator who is
challenged and the remaining arbitrators. The notification shall be made in
writing and shall be motivated.
3. When an arbitrator has been challenged by one party, the other party may
agree to the challenge. The arbitrator may also, after the challenge, rescue
himself from the proceeding. In both cases the procedure provided in Article 9
and 10 shall be used in full for the appointment of a new arbitrator.
ARTICLE 13
1. If the other party does not agree to the challenge and the challenged
arbitrator does not withdraw, the decision on the challenge will be made by the
two remaining arbitrators.
2. If the party who challenged the arbitrator does not then agree with the
decision of the two arbitrators, the party has the right to appeal that decision
to the Supervisory Board of Arbitration.
3. The decision of the Supervisory Board of Arbitration is final.
4. If necessary, a new arbitrator shall be appointed pursuant to the procedure
applicable to the appointment of an arbitrator as provided in Articles 9 or
10.
5. Once the selection of the three arbitrators has been finalized, they shall
choose, between themselves, one arbitrator to serve as the Chairman of the
Arbitration Panel.
ARTICLE 14
1. In the event of the death or resignation of an arbitrator during the course
of the arbitration proceedings, a substitute arbitrator shall be appointed or
chosen pursuant to the procedure provided for in Articles 9 or 10 of these
Rules.
2. In the event that an arbitrator fails to act or in the event of de facto or
de jure impossibility of his performing his functions, the replacement of an
arbitrator shall be in accordance with Article 12.
SECTION III. ARBITRATION PROCEEDING
ARTICLE 15
GENERAL PRINCIPALS OF ARBITRATION PROCEEDING
1. An arbitration proceeding shall commence within twenty days from the
appointment of Arbitrators on an Arbitration Panel.
2. In accordance with these Rules, the Arbitration Panel may conduct the
arbitration in such manner as it considers appropriate, provided that the
parties are treated with equality and that at all stages of the proceedings each
party is given a full opportunity to present his/her case.
3. If either party so requests, the Arbitration Panel shall hold hearings for
the presentation of evidence by witnesses, including expert witnesses and
debates. In the absence of such a request, the Panel shall decide whether to
hold such hearings or whether the proceedings shall be conducted on the basis of
the documents and other materials proffered.
4. All documents produced in connection with an arbitration proceeding shall be
considered to be confidential information, and as such, members of the
Arbitration, and members of a potential Arbitration Panel may not duplicate or
disclose the contents of any such document to any person other than those
persons involved in the arbitration process. At the conclusion of any such
proceeding, all documents shall be returned to the Arbitration.
ARTICLE 16
RIGHT ON REQUEST OF PRESENTATION OF DOCUMENT
1. All documents and information supplied to the Arbitration by one party shall
at the same time be communicated by that party to the other party.
2. Both parties to the arbitration shall be allowed to request documents from
the opposing party. Such request shall be in writing and shall state the
necessity for the documents.
3. All document requests shall be forwarded to the Arbitration Panel and the
opposing party.
4. If the opposing party does not voluntarily forward the documents to the
requesting party, the Arbitration Panel shall rule on the request.
5. When making decision whether or not to grant the request, the Panel shall
consider the necessity for the documents and the materiality and relevance of
each document to the subject matter of the dispute. If the requested documents
are "likely to lead to relevant evidence" the request shall be
granted.
6. If the request meets the standard of para 5, and the request is reasonable,
the Panel shall grant the request and order the other party to produce the
documents in a timely manner.
7. If the request meets the standard of para.5, but is too broad, the Panel may
use its discretion, and place reasonable limitations on the request and order
the other party to produce the documents in a timely manner.
8. In granting a request, the Panel shall provide that the party produces the
documents within a relatively short time frame so that the requesting party will
have ample time to review and examine the documents prior to the hearing date.
9 The Panel may provide that if the party fails to produce the requested
documents in a timely manner, the panel may award sanctions against that party.
10. The Panel shall rule on all document requests with ten days from receiving
the request.
ARTICLE 17
FURTHER WRITTEN STATEMENTS
1. Prior to the arbitration proceeding the Arbitration Panel shall decide if
other written statements, in addition to the Statement of Claim and Answer,
shall be required from the parties, and shall fix the periods of time for
communicating such statements to the Panel and the other party.
2. The Arbitration Panel may require both parties to deliver to the Panel and to
the other party, within such a period of time as the Panel shall decide, a
summary list of the documents and other evidence which the party intends to
present at the hearing to support the facts in issue.
ARTICLE 18
RIGHT TO COUNSEL
Each party shall have the right to be represented by counsel at any and all
stages of the proceeding.
ARTICLE 19
ARBITRATION HEARING
1. Each party shall have the burden of proving the facts relied on to support
his/her Claim or Answer.
2. For oral hearings, the Arbitration shall give the parties notice of the date,
time and place thereof, pursuant to Article 2 (1) of these Rules.
3. If witnesses are to be heard, at least 15 business days before the hearing,
each party shall communicate to the Arbitration Panel and to the other party the
names of the witnesses he/she intends to present and the subject matter of the
witnesses' testimony.
4. The Arbitration Panel may voluntarily interrogate witnesses and request the
presentation of evidence. If a witness does not voluntary appear or present
evidence, the Arbitration Panel is authorized to solicit to the court for a
ruling. The rights and duties of a witness summoned to testify shall be
specified pursuant to the Law of Georgia on Civil Procedure.
5. The Arbitration Panel may on its own initiative, or at a party's request,
resort to the Court for its ruling in respect of the presentation of evidence.
6. The arbitration proceedings shall be conducted on the basis of equality of
the parties.
7. Hearings shall be held in camera unless the parties agree otherwise. The
Arbitration Panel may require the retirement of any witness or witnesses during
the testimony of other witnesses
ARTICLE 20
STANDARD FOR EVIDENCE ADMISSIBILITY
1. The Arbitration Panel shall determine the admissibility of the evidence
proffered by the parties.
2. If a party objects to the admissibility of evidence proffered by the other
party, the Arbitration Panel shall determine if the evidence is relevant and
material to the subject matter of the dispute.
3. If the evidence proffered "is likely to lead to relevant evidence",
the Panel shall allow the evidence into the hearing, and determine its weight in
their deliberations.
ARTICLE 21
INTERIM MEASURES
1. At the request of either party, and after careful review of the facts at
issue, the Arbitration Panel is authorized to take any interim measures it deems
necessary, such as ordering a party to deposit the full amount of the claim in
escrow with a third party.
2. Such interim measures may be established in the form of an interim award. The
Panel shall be authorized to require security for the costs of such measures.
3. A request for interim measures addressed by any party to a court shall not be
deemed incompatible with the Arbitration Agreement.
ARTICLE 22
EXPERT WITNESSES
At the hearing, either party may present expert witnesses to testify on the
issues.
ARTICLE 23
FAILURE TO COMMUNICATE OR APPEAR
1. If, within the period of time fixed by the Arbitration, the claimant fails to
communicate his/her claim without showing sufficient cause for such failure, the
Arbitration shall issue an order for the termination of the arbitration
proceedings.
2. If, within the period of time fixed by the Arbitration, the respondent fails
to communicate his/her Answer without showing sufficient cause for such failure,
the Arbitration shall order that the proceedings continue.
3. If one of the parties, duly notified under these Rules, fails to appear at
the hearing, without showing sufficient cause for such failure, the Arbitration
may proceed with the arbitration.
4. If one of the parties, duly invited to produce documentary evidence, fails to
do so within the established period of time, without showing sufficient cause
for such failure, the Arbitration may make the award on the evidence before it.
ARTICLE 24
1. After each party has had an opportunity to present his/her case in full, the
Arbitration Panel shall inquire with the parties if they have any further proof
to offer, witnesses to be heard or submissions to make. If both parties affirm
that they do not have anything further to present, the Panel shall declare the
hearing closed.
ARTICLE 25
WAIVER
A party who knows that any provision or requirement under these Rules or the Law
of Georgia on Private Arbitration has not been satisfied, and yet proceeds with
the arbitration without promptly stating his objection to such non-compliance,
shall be deemed to have waived his right to object.
SECTION IV. THE ARBITRATION AWARD
ARTICLE 26
1. Where there are three arbitrators, an award or decision shall be made by a
majority of the arbitrators.
2. No Arbitrator may abstain from voting.
ARTICLE 27
1. In addition to making the final award, the Arbitration Panel is authorized to
make interim or partial awards.
2. The final award shall be in writing and is final and binding on the parties.
The parties shall undertake to carry out the award without delay.
3. An award shall be signed by all three arbitrators and it shall contain the
date and place the award was made. Where one of the arbitrators fails to sign,
the award shall state the reason for the absence of the signature.
4. The award may be made public only with the consent of both parties.
5. Within three days of making an award, copies of the award signed by the
arbitrators shall be communicated to the parties and to the regional Court on
whose operating territory the hearing took place. The award shall be
notarized.
6. The Arbitration shall maintain copies of all Arbitration Awards for at least
20 years.
7. All arbitration awards shall be made no later than thirty days after the end
of the proceeding.
ARTICLE 28
Contents of Award
1. An arbitration award shall be set down in writing and shall contain:
a) the date, place of making the award and the composition of the arbitration;
b) the arbitration agreement on which basis the Arbitration was in operation;
c) all the parties in dispute;
d) the subject-matter of the dispute;
e) a motivation part, which sets out the basis on which the Arbitration made an
award, except those cases when the arbitration agreement provides for existence
of such a motivation part.
f) the arbitration award; and
g) the terms and/or conditions of the award's enforcement
2. An Arbitration Award shall be notarized.
3. One copy of an Arbitration Award shall be forwarded to each party and to
district (City) Court on whose operating territory the Arbitration hearing was
held.
ARTICLE 29
1. An Arbitration shall apply the law designated by the parties as applicable to
the substance of the dispute. Failing such designation by the parties, the
Arbitration shall apply the rules established by the legislation on conflict of
laws.
2. In all cases, the Arbitration shall decide the matter in accordance with the
terms of the contract and shall take into account the laws and usages of the
trade applicable to the transaction.
ARTICLE 30
SETTLEMENT OF DISPUTE
1. If, before the award is made, the parties agree on a settlement of the
dispute, the Arbitration Panel shall either issue an order for the termination
of the arbitration proceedings or, if requested by both parties, record the
settlement in the form of an arbitration award on agreed terms.
2. Where parties agree on settlement of the dispute, the Arbitration shall,
without hearing, issue an order for termination of the arbitration proceedings
and shall forward such an order to the parties within three days from receiving
a notification of parties agreement.
ARTICLE 31
INTERPRETATION OF THE AWARD
1. Within 15 days from the receipt of the award, either party, with notice to
the other party, may request that the Arbitration Panel gives an interpretation
of the award.
2. The interpretation shall be in writing and shall be transmitted to the
parties within 15 days from the receipt of the request, and shall become part of
the award.
ARTICLE 32
REQUEST FOR CORRECTION
1. Within 15 days from the receipt of the award, either party, with notice to
the other party, may request the Arbitration to correct in the award any errors
in computation, any clerical or typographical errors, or any errors of similar
nature. The Arbitration may, within 30 days from the communication of the
award, make such corrections on its own initiative.
2. Such corrections shall be in writing and transmitted to the parties within 10
days from the receipt of the request, and shall become part of the award.
ARTICLE 33
ENFORCEMENT OF AN ARBITRATION AWARDS
1. An arbitration award that is not fulfilled on a voluntary basis shall be
subject to judicial enforcement pursuant to an endorsement by the Arbitration
Chairman.
2. The Arbitration Chairman may make the enforcement endorsement either on his
own initiative, or upon party's request, within five (5) days from the receipt
of such a request.
3. Upon making an enforcement endorsement, an arbitration award shall be
enforced pursuant to the rules of enforcement in the Law of Georgia on Civil
Procedure.
ARTICLE 34
RIGHT OF APPEAL TO COURT
1. An arbitration award may be contested before court and may be set aside if:
a) it is contrary to the Administrative Offenses Code and the criminal
legislation;
b) the Arbitration violated the rules established under agreement of the parties
and the Law of Georgia on Private Arbitration; or
c) an arbitrator has committed a deed provided for in Article 189 of the
Criminal Law of Georgia as established by the judgment in force; unless the deed
did not influence the arbitration award.
ARTICLE 35
RECOURSE
1. In the case of recourse against the award, enforcement of the Panel's award
shall not be suspended. A district (City) Court shall be authorized to suspend
enforcement of the recoursed arbitration award provided it would incur
irreparable damage to a party.
ARTICLE 36
DEFINITION OF TERMS OF ARBITRATION COSTS
1 Arbitration costs include arbitration costs and out of arbitration costs.
2. Arbitration costs include the arbitration fees and costs connected with the
hearing.
3. The out of arbitration costs include the barrister's fees, costs born for
providing proofs and other necessary costs of the parties.
ARTICLE 37
ARBITRATION FEE
The arbitration fee is paid for:
a) a claim;
b) a counter-claim;
ARTICLE 38
AMOUNT OF ARBITRATION FEE
The amount of arbitration fee depends on the value of subject of the dispute and
is calculated according to the following table:
Value of Subject of Dispute (Amount of Claim) Amount of Arbitration Fee
up to 10,000 4% (minimum of GEL 200 )
from 10,000 to 100,000 3%
from 100,000 to 500,000 2.5%
from 500,000 to 1,000,000 2%
from 1,000,000 to 2,000,000 1.75%
from 2,000,000 to 3,000,000 1.5%
from 3,000,000 to 4,000,000 1.25%
5,000,000 and above 1%
ARTICLE 39
VALUE OF SUBJECT OF THE DISPUTE
1. The value of the subject of the dispute is stipulated by the Claimant.
2. If at the time of bringing the action, the value of the disputable subject
cannot be determined exactly, the amount of Arbitration fee shall be determined
by the Arbitration beforehand; then the additional payment is made or the excess
amount is paid back in accordance to the value of a Claim fixed at the hearing.
ARTICLE 40
COSTS RELATED TO ARBITRATION HEARING
The cost related to the hearing are:
a) amounts to be paid to witnesses, specialists and experts;
b) amounts to be paid to the person invited as an interpreter;
c) expenses born for the local inspection;
d) expenses for searching the Respondent;
e) costs related to the enforcement of an Arbitration Award.
ARTICLE 41
AMOUNTS PAYABLE TO WITNESSES, EXPERTS, SPECIALISTS AND INTERPRETERS
1. Witnesses, experts, specialists, interpreters shall be paid for the travel
and accommodation expenses rendered for their attendance in the Arbitration and
per diem subsistence allowance.
2. Experts, interpreters, specialists receive remuneration based on agreement
made with them on their work executed under the instructions of the Arbitration.
When determining the amount of remuneration there shall be taken into account
the length of their work to be executed under the instructions of the
Arbitration, materials required for the proper execution of this work, etc.
ARTICLE 42
DECREASE IN AMOUNT OF ARBITRATION COSTS
1. The amount of Arbitration costs shall be halved, if:
a) a Claimant waives the Claim, or a Respondent admits the claim;
b) the parties conciliate;
c) in case of award by default.
2. If waiving the claim, admitting the claim or conciliation of the parties
concerns only a part of the subject of the dispute, the liability of payment of
the Arbitration costs shall be determined by the costs caused by examination of
the remaining part of the claim.
ARTICLE 43
PRE-PAYMENT OF ARBITRATION COSTS BY A PARTY
A party that initiated an Arbitration claim shall prepay the Arbitration costs.
ARTICLE 44
DISTRIBUTION OF THE ARBITRATION COSTS BETWEEN THE PARTIES
Payment of the costs born by that party for which the judgement was rendered
shall be undertaken by the other party. If a claim is satisfied partially,
the claimant shall undertake the payment mentioned in this Article in proportion
to that part of a claim which was satisfied by the judgement, and the respondent
shall undertake the payment in proportion of that part of a claim waived by the
claimant.
ARTICLE 45
DISTRIBUTION OF EXPENSES TO BE PAID FOR THE ARBITRATION COSTS AND BARRISTER'S
Fee in Case of Waiving the Claim and Conciliation
1. If a claimant waives the claim, a Respondent shall not indemnify the costs
born by him/her, but if the claimant does not promote his claim for the
respondent because he/she has voluntarily satisfied it after bringing the claim,
then the Arbitration, at the claimant's request, shall charge the respondent
with indemnification of all legal costs born by the claimant.
2. If within conciliation the parties agree on the rule of distribution of the
expenses rendered for the Arbitration costs and barrister fees, the Arbitration
shall settle this question according to the parties' agreement.
ARTICLE 46
APPEAL AGAINST RULING ON THE ARBITRATION COSTS
The ruling on the Arbitration costs may be contested before the Supervisory
Board of Arbitration.
ARTICLE 47
SMALL CLAIMS PROCEDURE
1. Any claim, total value of which does not exceed 10,000 GEL, shall be settled
using the Arbitration's Small Claims Procedure, as described in this Article.
2. The claim will be settled by one arbitrator, who will be chosen by the
parties from the roster of arbitrators, and he or she will decide the claim
solely on the basis of the documents proffered by the parties.
3. In selecting the arbitrator, the Arbitration shall use the procedure
described in Article 8 of these Rules.
4. Both parties have the right to challenge the selection of the arbitrator
pursuant to Articles 11 and 12 of these Rules.
5. The arbitrator may request further documents from the parties, and shall
provide a time period for the presentation of these documents.
6. Within 15 days from receiving all documentation, the Arbitrator shall render
an award and mail it to the parties in accordance with the provisions of Article
2 of these Rules.