The Ethical Code

The Center for Arbitration and Dispute Resolution Ltd. (“the CADR”, “Hamishkan”))

A.        Introduction

            The ethical code of the CADR reflects the norms and values that guide arbitrations within the CADR. The code outlines guidelines for the CADR’s Arbitrators regarding ethical issues that may arise during or in relation to the arbitration process, aiming to ensure a transparent, fair, and professional arbitration procedure.

            Unlike legal rules whose violation entails enforcement, the ethical code suggests the appropriate conduct for the arbitration process, while exercising professional judgment.

            The code, is influenced by changes in the perception of norms and values accepted in the cultural-professional environment in which it operates. Accordingly, the CADR’s ethical code is updated from time to time as necessary.

           The CADR has adopted ethical rules since its establishment and updates these rules primarily with the development of alternative dispute resolution methods and their increasing use among litigants in Israel and worldwide. For updates, the CADR consults periodically with experts from the legal world, academia, retired judges, and learns from leading arbitration institutions around the world.

B. Definitions

• In this ethical code, each of the following terms shall have the meaning appearing next to it:

The ethical code of the CADR or “the ethical code”, “the code“: The ethical code of the CADR as detailed in this document and as updated from time to time.

The Arbitration Law: The Arbitration Law, 5728-1968 (Isr)

Arbitration Rules: The arbitration rules of the CADR or other rules chosen by the parties for the procedure.

Arbitration Regulations: The Civil Procedure Regulations in Arbitration Matters, 5728-1968 (Isr).

Arbitrator: Anyone appointed to the role with the parties’ consent from the CADR’s list of Arbitrators ,or  based on prior agreement between the parties, or by the CADR according to it’s rules or by anyone the parties appointed for selecting an Arbitrator or appointed by law.

• Other terms and expressions in this ethical code shall have the meaning known to them (as applicable) in the Arbitration Law, the Arbitration Regulations, and the Arbitration Rules.

C. Applicability

1. The provisions of the ethical code shall apply, with necessary modifications, to any Arbitrator conducting arbitration proceedings in the CADR.
2. The ethical code does not replace other legal provisions and/or professional ethical rules applicable to retired judges, lawyers, or any other person serving as an Arbitrator and subject to ethical rules or guidance relevant to them, as applicable to those involved in the arbitration process, and does not detract from them.
3. The guidelines of the ethical code do not create new or additional grounds for judicial review of the arbitration process and it’s results.

D. Arbitrator’s Responsibility

General

1. The Arbitrator shall fulfill their role with loyalty to the laws of the State of Israel and the fundamental values of the state.
2. The Arbitrator shall fear nothing but the law.
3. The Arbitrator shall act skillfully, diligently, professionally, and efficiently to advance the arbitration process for the benefit of all litigants before them without bias. If an Arbitrator feels unable to perform their role impartially, they must withdraw from the case.
4. The Arbitrator shall maintain the dignity and integrity of the arbitration process. The Arbitrator shall act with patience, tolerance, and respect towards the parties and their representatives and ensure that the parties do likewise towards them, the process, and each other.

E. Conflicts of Interest

• Immediately upon commencing the arbitration process, the Arbitrator shall conduct a conflict-of-interest check, disclosing to the parties any known interest at that time, including all stated in section 2 below. The Arbitrator shall also require each participant, including the parties and their representatives, to declare any connection or association with the Arbitrator that may raise concerns about a conflict of interest. Additionally, they must raise any claims of potential conflicts of interest of any other party in the process. Any such claims or concerns raised  shall be  submitted in writing to the CADR, with a copy to the Arbitrator.

1.1.      The conflict-of-interest check and its results shall be thoroughly documented in writing in the first meeting’s protocol.

 1.2.     If any such issues arise, the Arbitrator must obtain the parties’ consent to continue the process as a condition precedent to continuation. In the event the parties consent, the Arbitrator shall document and have the parties sign a separate document to be attached to the meeting protocol.

 1.3.     If the parties agree to the Arbitrator’s appointment, after being informed of the Arbitrator’s previous connections with any of the parties, or similar potential conflict of interest, they will not be able, at later stage,  to object to the Arbitrator’s appointment on this ground.

• a.   The Arbitrator shall inform the parties and their representatives of any connection, affinity, association or other matter that, in their opinion, may raise a conflict of interest or an appearance of bias, including any matters discovered after the arbitration process has begun. This includes the following disclosures:

a.1.      To the best of their knowledge, they or their first-degree relatives or their spouses have a personal and/or financial and/or commercial and/or friendly and/or work relationship that may raise concerns of a conflict of interest for any of the parties.

a.2. Previous involvement in the case as a representative, Arbitrator, mediator, witness, professional advisor, expert, or judicial role when it comes to a retired judge.

a.3.      Any personal, financial, or other interest in the case and/or its outcome.

a.4.      In the case at hand, one or more of the parties and/or their representatives were or are clients of the Arbitrator’s law firm.

a.5.      In a case where the Arbitrator and the representative of any of the parties have professional relations that include legal consultation.

a.6.      The Arbitrator serves or has served as an Arbitrator, mediator, witness, professional advisor, expert, or judicial role when it comes to a retired judge. In a matter where one of the parties to the current dispute, or the representative of any of the parties, was a party or represented a party in a dispute.

a.7. The Arbitrator represents, as a lawyer, other parties in arbitration proceedings in the CADR conducted before another Arbitrator.

a.8. In an appeal on the decision of another Arbitrator (the “decision” in this section), disclosure shall be made regarding the following cases:

(1) An Arbitrator who is a retired judge served in the same court, at the same time, in the instance from which they retired, along with the Arbitrator who made the decision.

(2) The decision was made by an Arbitrator who served with them on the same arbitration panel during the last three (3) years.

(3) The Arbitrator serves simultaneously in another arbitration panel with the Arbitrator who made the decision.

b.

b.1. If any of the matters listed in section 2(a) above arise before the arbitration begins or at the first meeting, the rules outlined in article 1 above shall apply.

b.2. If any of the matters listed in section 2(a) above are discovered after the arbitration has begun, the rules outlined in article 3 below shall apply.

•  

3.1.      If the Arbitrator learns, after the arbitration process has started, of the existence of matters that may raise concerns of bias, including the matters mentioned in article 2 above, the Arbitrator shall notify the parties of their existence at the earliest possible time. In this case, the decision regarding the continuation of the arbitration will be made by the Arbitrator immediately after allowing the parties to present their arguments if they wish to do so. The decision shall be reasoned and made before any other decision.

3.2.      The Arbitrator shall notify the CADR regarding the matter and the decision made.

• There is no prohibition on an Arbitrator sitting in an appeal on a decision given by another Arbitrator when both conduct arbitrations in the CADR.

F. The Arbitration Process

1. The Arbitrator shall adhere to conducting the arbitration process according to the Arbitration Law, the Arbitration Regulations, the Arbitration Rules, and/or the rules agreed upon by the parties.
2. As a general rule, all meetings during arbitration shall be held in the presence of all parties and/or their representatives unless otherwise agreed, or according to rules applicable to the process, or the nature of the discussion requires it. If a hearing is held ex parte – it shall be documented and the reasons for it detailed.

G. Termination of Arbitration

The Arbitrator may terminate the arbitration if one or more of the following circumstances occur:

1. The parties and/or their representatives, or one of them, conduct themselves in a manner that does not allow the proper conduct of the arbitration.
2. During the arbitration, a legality issue arose.
3. According to the determination of the Ethics Committee.

H. Ethics Committee

1. Appeals to the Ethics Committee shall be made at the request of the Arbitrator or by the decision of the CADR.
2. If the need for an appeal to the Ethics Committee is determined according to section H.1. above, the CADR shall appoint an ad-hoc Ethics Committee consisting of two retired judges from the district or supreme court, and an additional member (appointed by the other two committee members).
3. The committee shall discuss issues brought before it as necessary. In the event of a dispute regarding a potential conflict of interest in arbitration, the committee shall have the authority to deliberate and decide, after hearing the arguments of the parties and the Arbitrator about the need to remove an Arbitrator from their position. The committee may decide to remove an Arbitrator from their position or to impose conditions on the continuation of the arbitration as it deems appropriate, including giving instructions to the parties and/or their representatives regarding the continuation of the arbitration.
4. If the committee finds that the Arbitrator should be removed from their position, the committee shall order the replacement of the Arbitrator in accordance with the CADR’s rules for replacing an Arbitrator, with reasons to be recorded.
5. If the issue of removal of the Arbitrator is brought before the Ethics Committee as defined below, the termination of the arbitration shall be contingent upon the approval of the Ethics Committee.
6. The committee’s decisions shall documented in writing and reasoned.
7. The chairperson of the committee shall be authorized to decide whether the issue referred to the committee requires a decision by the committee or an investigation by other means.

I. Confidentiality

1. The Arbitrator shall not disclose or allow the disclosure of details of the arbitration process, during and after the arbitration, to those who are not parties to the arbitration, unless the agreement between the parties permits such disclosure.
2. During the arbitration proceedings, the Arbitrator shall ensure the right of the parties to privacy of information, provided that this does not infringe upon the right to a fair process of the other parties involved in the arbitration.
3. The Information obtained by the Arbitrator is confidential and shall not be disclosed to anyone unless permission is given by the parties, required by law or by a court order.

J. Publication The ethical code of the CADR for Arbitration shall be published on the CADR’s website.