State of Illinois
90th General Assembly
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90_SB1882

      New Act
          Creates the  International  Commercial  Arbitration  Act.
      Provides  that  the  Act  applies to international commercial
      arbitration in the  State  of  Illinois.   Provides  for  the
      receipt of written communications, the waiver of the right to
      object,  the  extent  of  court  intervention, functions of a
      court, arbitration agreements, the composition of an arbitral
      tribunal, the  jurisdiction  of  an  arbitral  tribunal,  the
      conduct  of  arbitral proceedings, and the making of an award
      and the termination of proceedings.  Effective immediately.
                                                     LRB9011645NTsb
                                               LRB9011645NTsb
 1        AN ACT concerning international commercial arbitration.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4                   ARTICLE 1.  GENERAL PROVISIONS
 5        Section  1-1.  Short title.  This Act may be cited as the
 6    International Commercial Arbitration Act.
 7        Section 1-5. Scope of application.
 8        (a)  This  Act  applies   to   international   commercial
 9    arbitration,  subject  to  any agreement in force between the
10    United States and any other country or countries.
11        (b)  The provisions of this Act, except Sections 5-10 and
12    5-15, apply only if the place of arbitration is in the  State
13    of Illinois.
14        (c)  An arbitration is international if:
15             (1)  the  parties  to an arbitration agreement have,
16        at the time of the conclusion of  that  agreement,  their
17        places of business in different countries; or
18             (2)  one of the following places is situated outside
19        the  country  in  which  the parties have their places of
20        business: (i) the place of arbitration if determined  in,
21        or  pursuant  to,  the  arbitration agreement or (ii) any
22        place where a substantial part of the obligations of  the
23        commercial  relationship  is to be performed or the place
24        with which the subject matter  of  the  dispute  is  most
25        closely connected; or
26             (3)  the  parties  have  expressly  agreed  that the
27        subject matter of the arbitration  agreement  relates  to
28        more than one country.
29        (d)  For the purposes of subsection (c) of this Section:
30             (1)  If a party has more than one place of business,
                            -2-                LRB9011645NTsb
 1        the  place  of  business  is  that  which has the closest
 2        relationship to the arbitration agreement.
 3             (2)  If a party does not have a place  of  business,
 4        reference is to be made to his or her habitual residence.
 5        (e)  This  Act shall not affect any other law in force in
 6    the State of Illinois by virtue of which certain disputes may
 7    not be submitted  to  arbitration  or  may  be  submitted  to
 8    arbitration  only according to provisions other than those of
 9    this Act.
10        Section 1-10. Definitions and  rules  of  interpretation.
11    For the purposes of this Act:
12        (a)    "Arbitration" means any arbitration whether or not
13    administered by a permanent arbitral institution.
14        (b)   "Arbitral tribunal" means a sole  arbitrator  or  a
15    panel of arbitrators.
16        (c)  "Court" means a court of competent jurisdiction of a
17    country or state.
18        (d)  Where  a provision of this Act, except Section 25-5,
19    leaves the parties free to determine  a  certain  issue,  the
20    freedom  includes  the  right  of  the parties to authorize a
21    third  party,  including  an  institution,   to   make   that
22    determination.
23        (e)  Where  a  provision  of  this Act refers to the fact
24    that the parties have agreed or that they may agree or in any
25    other  way  refers  to  an  agreement  of  the  parties,  the
26    agreement includes any arbitration rules referred to in  that
27    agreement.
28        (f)  Where  a  provision  of  this  Act,  other  than  in
29    subsection (a) of Section 20-40 and subsection (a) of Section
30    25-25, refers to a claim, it also applies to a counter claim,
31    and  where  it  refers  to  a  defense,  it also applies to a
32    defense to the counter claim.
                            -3-                LRB9011645NTsb
 1        Section 1-15.  Receipt of written communications.
 2        (a)  Unless otherwise agreed by the parties, any  written
 3    communication  is  deemed  to  have  been  received  if it is
 4    delivered to the addressee personally, or if it is  delivered
 5    at  his  or  her  place  of  business, habitual residence, or
 6    mailing address.  If none of these can be found after  making
 7    a  reasonable  inquiry,  a written communication is deemed to
 8    have been received if it is  sent  to  the  addressee's  last
 9    known  place  of  business,  habitual  residence,  or mailing
10    address by registered letter or any other means that provides
11    a record of the attempt to deliver it.
12        (b)  Unless  otherwise  agreed  by   the   parties,   the
13    communication  is  deemed to have been received on the day it
14    is so delivered.
15        (c)  The provisions of  this  Section  do  not  apply  to
16    communications in court proceedings.
17        Section  1-20.   Waiver  of  right  to object. If a party
18    knows that any provision of this Act from which  the  parties
19    may   derogate  or  any  requirement  under  the  arbitration
20    agreement has not been complied with and  yet  proceeds  with
21    the   arbitration   without  stating  its  objection  to  the
22    non-compliance without undue delay, or, if a  time  limit  is
23    provided,  within  that  period  of time, that party shall be
24    deemed to have waived his or her right to object.
25        Section 1-25.  Extent of court intervention.  In  matters
26    governed  by  this Act, no court shall intervene except where
27    so provided in this Act or applicable federal law.
28        Section  1-30.   Functions  of  a  court.  The  functions
29    referred to in subsections  (c),  (d),  and  (e)  of  Section
30    10-10,  subsection  (c)  of  Section  10-20,  Section  10-25,
31    subsection  (c)  of  Section 15-5, Section 20-50, and Section
                            -4-                LRB9011645NTsb
 1    20-55 of this Act shall be performed by the Illinois  circuit
 2    court  of  the  county  in  which the place of arbitration is
 3    located.
 4                  ARTICLE 5.  ARBITRATION AGREEMENT
 5        Section  5-5.   Definition  and   form   of   arbitration
 6    agreement.
 7        (a)  "Arbitration  agreement"  is  an  agreement  by  the
 8    parties to submit to arbitration all or certain disputes that
 9    have  arisen  or  that may arise between them in respect of a
10    defined legal relationship, whether contractual or  not.   An
11    arbitration  agreement  may  be in the form of an arbitration
12    clause in a contract or in the form of a separate agreement.
13        (b)  The arbitration agreement shall be in  writing.   An
14    agreement  is  in  writing  if  it is contained in a document
15    signed by the parties or in an exchange  of  letters,  telex,
16    telegrams,  or other means of telecommunication that provides
17    a record of the agreement or in an exchange of statements  of
18    claim  and  defense in which the existence of an agreement is
19    alleged  by  one  party  and  not  denied  by  another.   The
20    reference  in  a  contract  to  a  document   containing   an
21    arbitration  clause  constitutes  an  arbitration  agreement,
22    provided that the contract is in writing and the reference is
23    such as to make that clause part of the contract.
24        Section  5-10.   Arbitration  agreement  and  substantive
25    claim before court.
26        (a)  A  court  before  which  an  action  is brought in a
27    matter that is the subject of an arbitration agreement shall,
28    if a party so requests not later than when submitting his  or
29    her  first  statement  on the substance of the dispute, refer
30    the parties to arbitration unless it finds that the agreement
31    is  null  and  void,  inoperative,  or  incapable  of   being
                            -5-                LRB9011645NTsb
 1    performed.
 2        (b)  When an action referred to in subsection (a) of this
 3    Section   has   been   brought,   arbitral   proceedings  may
 4    nevertheless be commenced or continued, and an award  may  be
 5    made, while the issue is pending before the court.
 6        Section 5-15.  Arbitration agreement and interim measures
 7    by   court.  It  is  not  incompatible  with  an  arbitration
 8    agreement for a party to request, before or  during  arbitral
 9    proceedings,  from  a  court an interim measure of protection
10    and for a court to grant the measure.
11            ARTICLE 10.  COMPOSITION OF ARBITRAL TRIBUNAL
12        Section 10-5.  Number of  arbitrators.  The  parties  are
13    free  to  determine  the number of arbitrators.  In the event
14    this determination is not  made,  the  arbitration  shall  be
15    conducted  by  a sole arbitrator, selected in accordance with
16    the provisions of subsection (d) of  Section  10-10  of  this
17    Act.
18        Section 10-10.  Appointment of arbitrators.
19        (a)  No person shall be precluded by reason of his or her
20    nationality  from  acting  as an arbitrator, unless otherwise
21    agreed by the parties.
22        (b)  The parties are free to  agree  on  a  procedure  of
23    appointing  the  arbitrator  or  arbitrators,  subject to the
24    provisions of subsections (e) and (f) of this Section.
25        (c)  In an arbitration with 3 arbitrators and  where  the
26    parties   fail  to  reach  an  agreement  on  an  appointment
27    procedure, each party shall appoint one arbitrator, and the 2
28    arbitrators  thus   appointed   shall   appoint   the   third
29    arbitrator. If a party fails to appoint the arbitrator within
30    30 days of receipt of a request to do so from the other party
                            -6-                LRB9011645NTsb
 1    or if the 2 arbitrators fail to agree on the third arbitrator
 2    within 30 days of their appointment, the appointment shall be
 3    made,  upon  request  of  a  party,  by  the  court  or other
 4    authority specified in Section 1-30 of this Act.
 5        (d)  In an arbitration with a sole arbitrator  and  where
 6    the  parties  fail  to  reach  an agreement on an appointment
 7    procedure, the arbitrator shall be appointed, upon request of
 8    a party, by the court specified in Section 1-30 of this Act.
 9        (e)  Where, under an appointment procedure agreed upon by
10    the parties, (i) a party fails to act as required  under  the
11    procedure  or  (ii)  the  parties  or the two party-appointed
12    arbitrators are unable to reach an agreement expected of them
13    under the procedure or (iii)  a  third  party,  including  an
14    institution,  fails  to  perform any function entrusted to it
15    under  the  procedure,  any  party  may  request  the   court
16    specified  in  Section 1-30 of this Act to take the necessary
17    measure, unless the agreement on  the  appointment  procedure
18    provides other means of securing the appointment.
19        (f)  A decision on a matter entrusted by subsections (c),
20    (d),  and  (e)  of  this  Section  to  the court specified in
21    Section 1-30 of this Act  is  not  subject  to  appeal.   The
22    court,  in appointing an arbitrator, shall have due regard to
23    any  qualifications  required  of  the  arbitrator   by   the
24    agreement  of  the parties and to any considerations that are
25    likely to  secure  the  appointment  of  an  independent  and
26    impartial  arbitrator  and,  in  the  case of a sole or third
27    arbitrator, shall take into account as well the  advisability
28    of appointing an arbitrator of a nationality other than those
29    of the parties.
30        Section 10-15.  Grounds for challenge.
31        (a)  When  a  person is approached in connection with his
32    or her possible appointment as  an  arbitrator,  that  person
33    shall  disclose  any  circumstances  likely  to  give rise to
                            -7-                LRB9011645NTsb
 1    justifiable  doubts  as  to  his  or  her   impartiality   or
 2    independence.   An  arbitrator,  from  the time of his or her
 3    appointment and throughout the  arbitral  proceedings,  shall
 4    without  delay  disclose  any  of  these circumstances to the
 5    parties unless they have already been informed of them by the
 6    arbitrator.
 7        (b)  An   arbitrator   may   be   challenged   only    if
 8    circumstances  exist  that give rise to justifiable doubts as
 9    to his or her impartiality or independence or if  he  or  she
10    does  not possess qualifications agreed to by the parties.  A
11    party may challenge an arbitrator it  has  appointed,  or  in
12    whose  appointment  it  has participated, only for reasons of
13    which that party becomes aware after the appointment has been
14    made.
15        Section 10-20.  Challenge procedure.
16        (a)  The parties are free to agree  on  a  procedure  for
17    challenging  an  arbitrator,  subject  to  the  provisions of
18    subsection (c) of this Section.
19        (b)  If the parties are unable to reach an  agreement,  a
20    party  that  intends to challenge an arbitrator shall, within
21    15 days after becoming  aware  of  the  constitution  of  the
22    arbitral tribunal or after becoming aware of any circumstance
23    referred  to  in subsection (b) of Section 10-15 of this Act,
24    send a written statement of the reasons for the challenge  to
25    the  arbitral  tribunal.   Unless  the  challenged arbitrator
26    withdraws from office  or  the  other  party  agrees  to  the
27    challenge,   the   arbitral  tribunal  shall  decide  on  the
28    challenge.
29        (c)  If a challenge under any procedure  agreed  upon  by
30    the  parties or under the procedure of subsection (b) of this
31    Section is not successful, the challenging party may request,
32    within 30 days after having received notice of  the  decision
33    rejecting  the challenge, the court specified in Section 1-30
                            -8-                LRB9011645NTsb
 1    of this Act to decide on the challenge, which decision is not
 2    subject  to  appeal.   While  the  request  is  pending,  the
 3    arbitral tribunal, including the challenged  arbitrator,  may
 4    continue the arbitral proceedings and make an award.
 5        Section 10-25.  Failure or impossibility to act.
 6        (a)  If  an arbitrator becomes de jure or de facto unable
 7    to perform his or her functions or for other reasons fails to
 8    act without undue delay, that arbitrator's mandate terminates
 9    if he or she withdraws from office or if the parties agree on
10    the  termination.   Otherwise,  if  a   controversy   remains
11    concerning  any  of  these grounds, any party may request the
12    court specified in Section 1-30 of this Act to decide on  the
13    termination  of the mandate, which decision is not subject to
14    appeal.
15        (b)  If, under this Section or under  subsection  (b)  of
16    Section  10-20  of  this  Act,  an  arbitrator withdraws from
17    office or a party agrees to the termination of the mandate of
18    an arbitrator, this does not imply acceptance of the validity
19    of any ground referred to in this Section or  subsection  (b)
20    of Section 10-15 of this Act.
21        Section  10-30.   Appointment  of  substitute arbitrator.
22    Where the mandate of an arbitrator terminates under  Sections
23    10-20  or  10-25  of  this  Act  or  because  of  his  or her
24    withdrawal from office for any other reason or because of the
25    revocation or termination of  that  arbitrator's  mandate,  a
26    substitute  arbitrator  shall  be  appointed according to the
27    rules or procedures that were applicable to  the  appointment
28    of the arbitrator being replaced.
29           ARTICLE 15.  JURISDICTION OF ARBITRAL TRIBUNAL
30        Section 15-5.  Competence of arbitral tribunal to rule on
                            -9-                LRB9011645NTsb
 1    its jurisdiction.
 2        (a)  The   arbitral   tribunal   may   rule  on  its  own
 3    jurisdiction, including any objections with  respect  to  the
 4    existence or validity of the arbitration agreement.  For that
 5    purpose,  an arbitration clause that forms part of a contract
 6    shall be treated as an agreement  independent  of  the  other
 7    terms  of  the contract.  A decision by the arbitral tribunal
 8    that the contract is null and void shall not by  itself  mean
 9    that the contract's arbitration clause is invalid.
10        (b)  A  plea  that  the  arbitral  tribunal does not have
11    jurisdiction shall be raised not later than the submission of
12    the statement of defense.  A  party  is  not  precluded  from
13    raising  the plea by the fact that he or she has appointed or
14    participated in the appointment of  an  arbitrator.   A  plea
15    that  the  arbitral  tribunal  is  exceeding the scope of its
16    authority shall be raised as soon as the matter alleged to be
17    beyond the scope  of  its  authority  is  raised  during  the
18    arbitral  proceedings.   The arbitral tribunal may, in either
19    case, admit a later plea if it considers the delay justified.
20        (c)  The arbitral tribunal may rule on a plea referred to
21    in subsection (b) of this Section  either  as  a  preliminary
22    question  or  in  an  award  on  the merits.  If the arbitral
23    tribunal  rules  as  a  preliminary  question  that  it   has
24    jurisdiction,  any  party  may  request, within 30 days after
25    having received notice of that ruling, the court specified in
26    Section 1-30 of this Act to decide the matter, which decision
27    is not subject to appeal.  While the request is pending,  the
28    arbitral  tribunal  may continue the arbitral proceedings and
29    make an award.
30        Section 15-10.   Power  of  arbitral  tribunal  to  award
31    interim  measures.   Unless  otherwise agreed by the parties,
32    the arbitral tribunal may, at the request of a  party,  order
33    any  party to take any interim measure of protection that the
                            -10-               LRB9011645NTsb
 1    arbitral tribunal may consider necessary in  respect  of  the
 2    subject  matter  of  the  dispute.  The arbitral tribunal may
 3    require  any  party  to  provide  appropriate   security   in
 4    connection with the measure.
 5            ARTICLE 20.  CONDUCT OF ARBITRAL PROCEEDINGS
 6        Section  20-5.  Equal  treatment  of parties. The parties
 7    shall be treated with equality, and each party shall be given
 8    a full opportunity of presenting his or her case.
 9        Section 20-10.  Determination of rules of procedure.
10        (a)  Subject to the provisions of this Act,  the  parties
11    are  free  to  agree  on  the procedure to be followed by the
12    arbitral tribunal in conducting the proceedings.
13        (b)  If the  parties  do  not  reach  an  agreement,  the
14    arbitral tribunal may, subject to the provisions of this Act,
15    conduct  the  arbitration  in  a  manner  that  it  considers
16    appropriate.   The power conferred upon the arbitral tribunal
17    includes the power to determine the admissibility, relevance,
18    materiality, and weight of any evidence.
19        Section 20-15.  Place of arbitration.
20        (a)  The parties are  free  to  agree  on  the  place  of
21    arbitration.    If the parties do not reach an agreement, the
22    place of arbitration shall  be  determined  by  the  arbitral
23    tribunal,  having  regard  to  the circumstances of the case,
24    including the convenience of the parties.
25        (b)  Notwithstanding the provisions of subsection (a)  of
26    this  Section,  the  arbitral  tribunal may, unless otherwise
27    agreed by  the  parties,  meet  at  any  place  it  considers
28    appropriate  for  consultation among its members, for hearing
29    witnesses, experts, or the  parties,  or  for  inspection  of
30    goods, other property, or documents.
                            -11-               LRB9011645NTsb
 1        Section  20-20.   Commencement  of  arbitral proceedings.
 2    Unless  otherwise  agreed  by  the  parties,   the   arbitral
 3    proceedings  in  respect  of a particular dispute commence on
 4    the date on which a request for that dispute to  be  referred
 5    to arbitration is received by the respondent.
 6        Section 20-25.  Language.
 7        (a)  The  parties  are  free  to agree on the language or
 8    languages to be used in the  arbitral  proceedings.   If  the
 9    parties  do  not  reach  an  agreement, the arbitral tribunal
10    shall determine the language or languages to be used  in  the
11    proceedings.    This   agreement   or  determination,  unless
12    otherwise specified  therein,  shall  apply  to  any  written
13    statement  by  a party, any hearing, and any award, decision,
14    or other communication by the arbitral tribunal.
15        (b)  The arbitral tribunal may order that any documentary
16    evidence shall be  accompanied  by  a  translation  into  the
17    language   or   languages  agreed  upon  by  the  parties  or
18    determined by the arbitral tribunal.
19        Section 20-30.  Statements of claim and defense.
20        (a)  Within the period of time agreed by the  parties  or
21    determined by the arbitral tribunal, the claimant shall state
22    the  facts  supporting his or her claim, the points at issue,
23    and the relief or remedy sought,  and  the  respondent  shall
24    state  his  or  her  defense in respect of these particulars,
25    unless the parties have otherwise agreed as to  the  required
26    elements  of  the  statements.   The  parties may submit with
27    their statements all documents they consider to  be  relevant
28    or  may  add  a  reference to the documents or other evidence
29    they will submit.
30        (b)  Unless otherwise agreed by the parties, either party
31    may amend or supplement  its  claim  or  defense  during  the
32    course  of  the  arbitral  proceedings,  unless  the arbitral
                            -12-               LRB9011645NTsb
 1    tribunal considers it inappropriate to allow  the  amendment,
 2    having regard to the delay in making it.
 3        Section 20-35.  Hearings and written proceedings.
 4        (a)  Subject  to  any  contrary agreement by the parties,
 5    the arbitral tribunal  shall  decide  whether  to  hold  oral
 6    hearings  for  the  presentation  of  evidence  or  for  oral
 7    arguments  or  whether  the proceedings shall be conducted on
 8    the basis of documents and other materials.  However,  unless
 9    the  parties  have agreed that no hearings shall be held, the
10    arbitral tribunal shall hold the hearings at  an  appropriate
11    stage of the proceedings, if so requested by a party.
12        (b)  The parties shall be given sufficient advance notice
13    of  any  hearing  and of any meeting of the arbitral tribunal
14    for the purposes of inspection of goods, other  property,  or
15    documents.
16        (c)  All  statements,  documents,  or  other  information
17    supplied  to  the  arbitral  tribunal  by  one party shall be
18    communicated to the other party.  Also, any expert report  or
19    evidentiary  document on which the arbitral tribunal may rely
20    in making its decision shall be communicated to the parties.
21        Section 20-40.  Default  of  a  party.  Unless  otherwise
22    agreed by the parties:
23        (a)  If,  without  showing sufficient cause, the claimant
24    fails to communicate its statement  of  claim  in  accordance
25    with subsection (a) of Section 20-30 of this Act the arbitral
26    tribunal shall terminate the proceedings.
27        (b)  If, without showing sufficient cause, the respondent
28    fails  to  communicate its statement of defense in accordance
29    with subsection (a) of Section 20-30 of this Act the arbitral
30    tribunal shall continue the proceedings without treating  the
31    failure   in   itself  as  an  admission  of  the  claimant's
32    allegations.
                            -13-               LRB9011645NTsb
 1        (c)  If, without  showing  sufficient  cause,  any  party
 2    fails  to  appear  at  a  hearing  or  to produce documentary
 3    evidence, the arbitral tribunal may continue the  proceedings
 4    and make the award on the evidence before it.
 5        Section  20-45.   Expert  appointed by arbitral tribunal.
 6    Unless otherwise agreed by the parties:
 7        (a)  The  arbitral  tribunal  may  appoint  one  or  more
 8    experts to report to it on specific issues to  be  determined
 9    by the arbitral tribunal.
10        (b)  The  arbitral  tribunal  may require a party to give
11    the expert any relevant information or to produce or  provide
12    access  to  any  relevant documents, goods, or other property
13    for the expert's inspection.
14        (c)  If a party so requests or if the  arbitral  tribunal
15    considers  it  necessary, the expert shall, after delivery of
16    his or her written or oral report, participate in  a  hearing
17    where  the  parties  have the opportunity to put questions to
18    the expert and  to  present  expert  witnesses  in  order  to
19    testify on the points at issue.
20        Section 20-50.  Witnesses, subpoenas, depositions.
21        (a)  The arbitral tribunal may issue subpoenas to parties
22    or  third parties for the attendance of witnesses and for the
23    production of books, records, documents, and  other  evidence
24    and shall have the power to administer oaths.  The production
25    will  be  for  the  purpose  of  presenting  evidence  at the
26    arbitration hearing and will not include pre-trial  discovery
27    as  known in common law countries.  Subpoenas so issued shall
28    be served and, upon application to the court by  a  party  or
29    the  arbitral  tribunal,  enforced, in the manner provided by
30    law for the service and enforcement  of  subpoenas  in  civil
31    cases.
32        (b)  All  provisions  of  law  compelling  a person under
                            -14-               LRB9011645NTsb
 1    subpoena to testify are applicable.
 2        (c)  On application of a party and for use  as  evidence,
 3    the arbitral tribunal may permit a deposition to be taken, in
 4    the  manner and upon the terms designated by the arbitrators,
 5    of a witness who cannot be subpoenaed or is unable to  attend
 6    the hearing.
 7        (d)  No   other   discovery  shall  be  permitted  unless
 8    otherwise agreed by the parties.
 9        Section 20-55.  Court assistance in taking evidence.  The
10    arbitral tribunal  or  a  party  with  the  approval  of  the
11    arbitral  tribunal  may  request  from  a court assistance in
12    taking evidence.  The court may execute  the  request  within
13    its competence and according to its rules on taking evidence.
14                  ARTICLE 25.  MAKING OF AWARD AND
15                     TERMINATION OF PROCEEDINGS
16        Section 25-5.  Rules applicable to substance of dispute.
17        (a)  The  arbitral  tribunal  shall decide the dispute in
18    accordance with any rules of  law  that  are  chosen  by  the
19    parties  as  applicable to the substance of the dispute.  Any
20    designation of the law or legal system of a given country  or
21    jurisdiction  shall be construed, unless otherwise expressed,
22    as directly referring to the substantive law of that  country
23    or jurisdiction and not to its conflict of laws rules.
24        (b)  If the parties do not make the designation described
25    in  subsection  (a)  of  this  Section, the arbitral tribunal
26    shall apply the law as determined by  the  conflict  of  laws
27    rules that it considers applicable.
28        (c)  The arbitral tribunal shall decide according to what
29    is  just and good ("ex aequo et bono") or according to equity
30    and good conscience rather than by the strict rule of law (as
31    "amiable compositeur") only if  the  parties  have  expressly
                            -15-               LRB9011645NTsb
 1    authorized it to do so.
 2        (d)  In  all cases, the arbitral tribunal shall decide in
 3    accordance with the terms of the contract and shall take into
 4    account  the  usages  of  the   trade   applicable   to   the
 5    transaction.
 6        Section  25-10.  Decision making by panel of arbitrators.
 7    In arbitral proceedings with more than  one  arbitrator,  any
 8    decision  of  the  arbitral  tribunal  shall  be made, unless
 9    otherwise agreed by the parties, by a  majority  of  all  its
10    members.  However, questions of procedure may be decided by a
11    presiding  arbitrator, if so authorized by the parties or all
12    members of the arbitral tribunal.
13        Section 25-15.  Settlement.
14        (a)  With the agreement  of  the  parties,  the  arbitral
15    tribunal  may  use  mediation, conciliation, or other dispute
16    resolution  procedures  at  any  time  during  the   arbitral
17    proceedings to encourage settlement.
18        (b)  If,  during arbitral proceedings, the parties settle
19    the  dispute,  the  arbitral  tribunal  shall  terminate  the
20    proceedings and, if requested by the parties and not objected
21    to by the arbitral tribunal, record  the  settlement  in  the
22    form of an arbitral award on agreed terms.
23        (c)  An award on agreed terms shall be made in accordance
24    with  the  provisions  of Section 25-20 of this Act and shall
25    state that it is an award.  The award has the same status and
26    effect as any other award on the merits of the case.
27        Section 25-20.  Form and content of award.
28        (a)  The award shall be made  in  writing  and  shall  be
29    signed by the arbitrator or arbitrators.
30        (b)  In   arbitral   proceedings   with   more  than  one
31    arbitrator, the signatures of the majority of all members  of
                            -16-               LRB9011645NTsb
 1    the arbitral tribunal shall suffice, provided that the reason
 2    for any omitted signature is stated.
 3        (c)  The  award  shall state the reasons upon which it is
 4    based, unless the parties have agreed that no reasons are  to
 5    be  given  or  the  award  is  an award on agreed terms under
 6    Section 25-15 of this Act.
 7        (d)  The award shall state its  date  and  the  place  of
 8    arbitration  as  determined in accordance with subsection (a)
 9    of Section 20-15 of this Act.  The award shall be  deemed  to
10    have been made at that place.
11        (e)  After  the  award  is  made,  a  copy  signed by the
12    arbitrators in accordance with subsection (a) of this Section
13    shall be delivered to each party.
14        (f)  The arbitral tribunal may, at any  time  during  the
15    proceedings, make an interim award on any matter with respect
16    to which it may make a final award.  The interim award may be
17    enforced in the same manner as a final award.
18        (g)  Unless otherwise agreed by the parties, the arbitral
19    tribunal may award interest.
20        (h)  Unless otherwise agreed by the parties, the costs of
21    an   arbitration  are  at  the  discretion  of  the  arbitral
22    tribunal.
23        (i)  In making an order for costs, the arbitral  tribunal
24    may include as costs any of the following:
25             (1)  the  fees  and  expenses of the arbitrators and
26        expert witnesses;
27             (2)  legal fees and expenses;
28             (3)  any  administration  fees  of  the  institution
29        supervising the arbitration; and
30             (4)  any other expenses incurred in connection  with
31        the arbitral proceedings.
32        (j)  In  making an order for costs, the arbitral tribunal
33    may specify:
34             (1)  the party entitled to costs;
                            -17-               LRB9011645NTsb
 1             (2)  the party who shall pay the costs;
 2             (3)  the amount of costs or  method  of  determining
 3        that amount; and
 4             (4)  the  manner  in which the costs are to be paid.
 5        Section 25-25.  Termination of proceedings.
 6        (a)  The arbitral proceedings are terminated by the final
 7    award or by an order of the arbitral tribunal  in  accordance
 8    with subsection (b) of this Section.
 9        (b)  The  arbitral  tribunal shall issue an order for the
10    termination of the arbitral proceedings when any one  of  the
11    following events occurs:
12             (1)  The  claimant  withdraws  its claim, unless the
13        respondent objects  thereto  and  the  arbitral  tribunal
14        recognizes  a  legitimate  interest on his or her part in
15        obtaining a final settlement of the dispute.
16             (2)  The parties agree on  the  termination  of  the
17        proceedings.
18             (3)  The    arbitral   tribunal   finds   that   the
19        continuation of the proceedings has for any other  reason
20        become unnecessary or impossible.
21        (c)  Subject to Section 25-30 of this Act, the mandate of
22    the  arbitral tribunal terminates with the termination of the
23    arbitral proceedings.
24        Section 25-30.  Correction of  interpretation  of  award;
25    additional award.
26        (a)  Within  30  days of receipt of the award, unless the
27    parties agree to another period of time:
28             (1)  A party, with notice to the  other  party,  may
29        request the arbitral tribunal to correct in the award any
30        error  in  computation,  any  clerical  or  typographical
31        errors, or any errors of similar nature.
32             (2)  If  so  agreed  by  the  parties, a party, with
                            -18-               LRB9011645NTsb
 1        notice to the  other  party,  may  request  the  arbitral
 2        tribunal to give an interpretation of a specific point or
 3        part  of  the  award.  If the arbitral tribunal considers
 4        the request to be justified, it shall make the correction
 5        or give the interpretation within 30 days of  receipt  of
 6        the  request.   The interpretation shall form part of the
 7        award.
 8        (b)  The arbitral tribunal may correct any error  of  the
 9    type referred to in subdivision (1) of subsection (a) of this
10    Section  on  its  own initiative within 30 days of the day of
11    the award.
12        (c)  Unless otherwise agreed to by the parties, a  party,
13    with  notice  to  the  other  party,  may,  within 30 days of
14    receipt of the award, request the arbitral tribunal  to  make
15    an  additional  award  as to claims presented in the arbitral
16    proceedings but omitted from  the  award.   If  the  arbitral
17    tribunal considers the request to be justified, it shall make
18    the additional award within 60 days after the date of receipt
19    of the request.
20        (d)  The  arbitral tribunal may extend, if necessary, the
21    period of time within  which  it  shall  make  a  correction,
22    interpretation,  or an additional award under subsections (a)
23    or (c) of this Section.
24        (e)  The provisions of Section 25-20 of  this  Act  shall
25    apply to a correction or interpretation of the award or to an
26    additional award made under this Section.
27                     ARTICLE 99.  EFFECTIVE DATE
28        Section  99-99.  Effective  date.  This  Act takes effect
29    upon becoming law.

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