Aviation Finance and Leasing 2025

INTRODUCTION  Contributed by: Paul P. Jebely, Paul P. Jebely

solely by the Netherlands Arbitration Institute (NAI). The Hague CAA may be “new”, but NAI was found - ed in 1949 and has successfully administered over 5,000 arbitration cases alone. It is one of the old - est and most respected international arbitration and mediation institutions in the world. In 2022 alone, the NAI administered a caseload representing more than USD2 billion in dispute worldwide. It is noteworthy that for the past century or so, the municipality of the Hague has earned its reputation as the international city of peace and justice. Its unique position as an international centre of decision-making and influence has led to it becoming home to more than 200 international organisations, including the Permanent Court of Arbitration and the International Court of Justice. It is now also the default seat of the Hague CAA. The seat of arbitration, distinct from its physical loca - tion, determines the legal framework. Parties may of course choose a seat different from the institution’s default seat. They may also choose a different physi - cal location – though the majority of arbitration and mediation today occurs mostly via electronic means, avoiding much of the need for physical travel com - pared to the past. For example, an arbitration admin - istered under the Hague CAA arbitration rules may be seated and/or physically held in, say, London, Paris, Dubai, Singapore, Hong Kong or New York. However, the seat affects crucial aspects of an arbitration, such as parties’ access to national courts (for example, for an order to freeze assets by way of interim meas - ures), challenges to tribunal decisions, and enforce - ment provisions. Jurisdictional support varies, with interventionist courts posing risks and generally best avoided. The Dutch legal system, however, is highly supportive of arbitration, typically intervening only to assist and uphold the process – including, for exam - ple, by way of a comprehensive regime for interim measures before a Dutch court. Specialised expertise The arbitrators and mediators involved in The Hague CAA bring with them more than just expert proficiency in arbitration and mediation. An arbitrator or media - tor’s insights into the operational, regulatory, tech - nical, legal and commercial aspects of the aviation

industry, combined with his or her unique understand - ing of arbitration, provide a rare blend of expertise that enriches the dispute resolution process. The Hague CAA encourages the use of its two lists of vetted neu - trals in both its arbitration and mediation rules. In terms of arbitration, the first is a list of sole/chair-eli - gible arbitrators, which consists of highly experienced, “top name” senior arbitrators around the world, a high percentage of whom have experience arbitrating avia - tion disputes. The second is a list of co-arbitrators, which consists solely of seasoned legal and technical veterans of the aviation industry, with years of prac - tical experience tucked under their wings, who are also trained arbitrators. All mediators on The Hague CAA list are highly experienced in aviation. The Hague CAA also maintains a large and diverse list of senior aviation technical experts, many of whom also serve as members of its one-of-a-kind Technical Stand - ing Committee, which continually provides input and guidance to inform The Hague CAA’s design thinking and especially its rule-making processes. Specialised rules The specialised arbitration rules of the Hague CAA are not arbitrary, but carefully crafted to expedite proceedings, improve time and cost efficiency, and avoid absurd outcomes that do not reflect the reali - ties of the industry. Both the arbitration and media - tion rules seek to address the industry’s critical pain points with litigation before national courts. There are many, many unique examples to point to, from the electronic submissions to virtual hearings to early determination, but perhaps the most poignant exam - ple concerns speed in arbitration in particular. The Hague CAA has broken new ground in the realm of arbitration generally by mandating an unprecedented default expedited procedure with shorter time limits and more potent remedies to reduce delay, providing parties with an arbitral award within only six months from the date of the initial case management confer - ence. The initiation of proceedings, and the proceed - ings themselves, under the rules are designed to go twice as fast as most international arbitrations. The contrast to litigation is even more pronounced – for example, the median length from the initiation of a claim to the conclusion of a jury or bench trial in civil

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