Standalone procedural rules reveals to boost Singapore International Commercial Court

Standalone procedural rules reveals to boost Singapore International Commercial Court

Singapore courts move to become the preferred location for high-stakes commercial disputes as its rules focus on 'clarity and efficiency'

A new court rule has been published by the Singapore International Commercial Court to help it handle commercial cases more fairly and efficiently.

With its new procedural rules, Singapore's SICC - a specialist division of the Supreme Court - no longer follows the High Court, which it had been following since it was founded in 2015.

New case management rules will come into force - including international judges sitting alongside Singaporean judges - next April following consultations with stakeholders, court users, advocates, registrars and judges. The parties can also retain their own attorneys, including foreign attorneys.

According to Singapore's chief justice, Sundaresh Menon: "In launching SICC in January 2015, we hoped to enhance Singapore's position as a trusted and neutral dispute resolution venue in Asia and in the world as well.

"The SICC now has its own set of procedural rules that stand alone. I am pleased to see this. As well as procedures responsive to the needs and realities of international commerce, the SICC Rules 2021 incorporate the hallmarks of litigation in the SICC, including efficiency, procedural flexibility, fairness and impartiality."

Justice Quentin Loh, president of the SICC, explains that the new rules retain some elements of the existing procedures and "new and novel additions" aimed at improving the SICC and making it more attractive for potential users.

It is imperative that these changes save parties both time and money throughout the dispute resolution process. Furthermore, he said that new rules and robust case management enable the quick, fair and cost-effective solution of cases.

According to Loh, the changes set it apart from cases where "adjudicators are hesitant to apply firm pressure on dilatory tactics in fear of their awards being overturned for lack "Due Process Paranoia" refers to the paranoia of a fair hearing.

Menon himself had earlier this year criticized the length of and cost of international arbitration proceedings in an academic legal journal as implied critiques of the arbitration process.

One Singapore-based international disputes and arbitration specialist, Katie Chung, says the rules are an important step in Singapore's attempt to become one of the world's leading jurisdictions for high-stakes commercial disputes.

"In comparison with arbitration procedures, the rules give the SICC greater flexibility by introducing three types of adjudication processes," she said. "In expressing a desire to integrate the SICC into Singapore's well-established ADR institutions, the new rules expressly require parties to consider alternative dispute resolution."

In May 2021, potential arbitrators ranked Singapore International Arbitration Centre (SIAC) and London as the top arbitral destinations, as well as Singapore's two mediation centres.

In addition, Chung noted that the expedited timeframe for appeals against application decisions and after a trial or hearing on the merits marks a game-changer in this area."

QC Jern-Fei Ng of Seven Bedford Row describes the new rules as "arbitration in litigation," which incorporates elements of international arbitration within a court setting.

Disputes partner Tom Furlong at Herbert Smith Freehills agrees with both. Reforms will keep the court "at the cutting edge of international conflict resolution by offering flexible dispute resolution for parties from around the world."

This ability to distinguish itself as a truly international commercial court is also a key part of the reforms, said Ng.

"These changes would also be welcomed by commercial parties who recently proposed legislation that would allow for conditional fees in SICC disputes." Furlong concluded: "These developments would be supported by recent proposals that would allow conditional fees in SICC cases."

Moreover, the SICC has announced the creation of a construction and technology list last month in an effort to appeal to parties as an alternative to London-based centres.