International commercial arbitration:
One of the significant areas where common law and civil law currently converge is international commercial arbitration. Practicality can be one of the reasons for parties to agree that a dispute upon a contract shall be settled by a privately appointed arbitrator instead of state court. In the event a dispute is subject to a state jurisdiction, it is very likely that the dispute will not be settled by one judgment but will involve several jurisdictions.
Besides high costs, this also means a significant expenditure of time for the parties
which can be a remarkable disadvantage in the modern course of business.
Especially in common law, the discovery proceedings previously referred to can
escalate into cost-intensive as well as time-consuming proceedings.
An additional advantage of arbitration is that, unlike court proceedings, the matter
of the dispute is confidently in the sense that it is not accessible to the public.
In addition it is up to the parties to agree on rules for the arbitration. This means that the parties can agree in advance, on which amount documents shall be disclosed and also, of course the place of arbitration, the arbitrator, the language of the case and in particular the rules of procedure need to be agreed upon.
At this stage of beginning ICA, there can be direct clash between common and civil law, if one party belongs to a different system than the other. It is obvious that each party tends to choose the legal system and the rules of procedure it is familiar with. Since, in general, a compromise between both legal systems needs to be found, debates between different legal systems are inevitable and may result in a party questioning the merits of its own system. In this sense, international arbitration presents an important interface between
common and civil law.
The linking of common and civil law, however, goes beyond what has been
described above. Comparative lawyers aided in the drafting of trans-national agreements to bring further clarity to this already booming practice. Examples of these international agreements providing rules with relation to international arbitration are the following:
The “New York Convention” (Convention on the Recognition and Enforcement of Foreign Arbitral Awards) from 1958, initiated by the United Nations and the UNCITRAL (United Nations Commission in International Trade Law, founded by the General Assembly of the UN in 1996 to promote the progressive harmonization and unification of the law of international trade) Arbitration Rules from 1976 and the UNCITRAL Model Law on International Commercial Arbitration.
Insofar as the actual procedure of an international arbitration is concerned, the
Rules on the Taking of Evidence in International Commercial Arbitration (IBA
Rules of Evidence) which were set by the International Bar Association (IBA) in
1999 should be mentioned. These rules present a successful attempt to combine
the best parts of common and civil law and to harmonize them, to a certain degree,
in regard to rules of evidence. Further should be acknowledged that practitioners
consider the IBA Rules of Evidence a successful compromise of both law systems
and apply them increasingly in the field of international arbitration.
How far the IBA Rules of Evidence are accepted is proved by the fact that these
rules – initially considered as compromise for proceedings between common law
parties on the one hand and civil law parties on the other hand – are applied more
and more in arbitration proceedings in which all the participants belong only to
civil law systems. One possible reason for this phenomenon may be that
common law procedures and the role of the judge in common law correspond
more with the purpose of arbitration and the role of the arbitrator than do the
nature of civil proceedings and the role of judges in civil law.
In arbitration proceedings, the purpose of the proceeding is more a question of
‘finding the truth’ than ‘settlement of the dispute’. It is important to remember that
international arbitration agreements frequently provide for prior compulsory
mediation. If the parties are unable to compose their differences with the
assistance of a neutral mediator, then the purpose of arbitration is not to try to
bring them together but to decide who should prevail and to what extent.
The parties to arbitration will more likely accept the arbitrator as an impartial
person to decide who should prevail if the arbitrator does not interfere actively in
the proceedings and behaves in a somewhat reserved manner, as common law
judges typically do. Finally, the purpose of ‘finding the truth’ as opposed to
‘settlement of the dispute’ is also important, because the arbitrator’s decision
cannot be corrected as easily as in court proceedings, where often an appeal is
possible and the decision at first instance can be controlled by a higher court.
Of course a civil law arbitrator will apply common law principles only if this is
more effective to him and he will follow civil law rules for the rest.
Thus the area of international commercial arbitration is not merely a place of clash
and confrontation between common law and civil law but actually also a real point
of intersection where common law and civil law are fused together to a certain
degree.
How the creation of the EU has integrated legal systems:
The creation of European Union (EU) law has greatly contributed to the process of rapprochement between common law and civil law. The EU has brought together different legal systems under a single legislature, especially after 1973, when the UK and Ireland joined the EU. The membership of these common law countries, in addition to all other civil law countries opened the way for convergence within the EU of common law and civil law elements and creation of a common legal framework. Hence, the EU legal system represents a mixed system which contains elements of both civil law and common law systems.
The EU has been very active in adopting a great number of regulations and directives which have precedence over national laws. The legislation of the EU often incorporate elements specific for either civil law or common law. There are several examples of common law elements incorporated in the EU law. The European Parliament has adopted several resolutions calling for unification of private law, especially in the areas relevant to the development of common market. Also, the Commission on European Contract Law (the Lando Commission) has prepared the Principles of European Contract Law, which attempt to reconcile the differences between the civil law and the common law. These Principles presently have the status of 'soft law', but they may be the forerunner of a European Civil Code which would greatly contribute to the further convergence of civil law and common law
Of perhaps greater importance is the convergence that goes along with the unification of Europe. The work of such organs as the European Human Rights Commission and Court or the European Court of Justice is a unifying legal force, bringing the legal systems of member states, both Common Law and Civil Law, closer to each other. For instance, the European Court of Justice, in laying down principle and interpreting rules of the treaties, has lead to the development of relatively extended bodies of case law which play an important role every European citizen's daily life. Students of common law countries such as Ireland, are justly as likely to learn about the "Cassis de Dijon" or "Francovich" case, as they are to study Donoghue v Stevenson. A sign that EU law is becoming an intrinsic part in national thinking.
Further evidence of a convergence can be seen that the law of every European member state has increasingly become dominated by case law. It has also been argued that the EU law system has become more adversarial in nature. This has always been associated with the common law.
Civil Law jurists usually do not feel uneasy about that, perhaps because they
are reassured by the possible reliance on the EC treaty or treaty-executing law text.
This may be because the application of the EC treaty with its constitution-like features
requires the European member state jurisdictions to follow a path moving very closely
along familiar Civil Law practice.
Further examples of how the Civil Laws of the European Union have been
supplemented by common law elements include the concept of true and fair view in
accounting law, the evolution of due process in competition law, and an interpretation
of Article 81(1) of the EC Treaty – the provision prohibiting cartels- as a sort of a rule
of reason.
The English legal system, on the other hand, has been influenced by some Civil Law
concepts as well. Lord Denning M.R. stated as early as in 1977:"We know, of course,
that the practice on the continent of Europe is different. It seems to me that the time
has come we should revise our practice." Today, the main gateway for Civil Law
concepts into English Law are the EU directives, which are issued by the EC
Commission and Council in collaboration with the European Parliament.
Further convergence is achieved by means of European Conventions. For instance, the
Brussels Convention and its detailed, refined and complex elaborations by the
European Court of Justice have lead to the harmonisation of European Civil
Procedure. Accordingly, comparative legal scholars have frequently highlighted the
effect of convergence that goes along with the unification of Europe.
The precise limits, if any, of this trend towards convergence are difficult to formulate.
According to some commentators, certain areas of law – family law or inheritance
law, for example – are more resistant to a “ European standardisation” than others
such as commercial law. Supposedly, this has to do with differences in
fundamentally held values – for instance, on abortion or euthanasia – and ultimately,
with differences in outlook on life itself.
Nevertheless, the vast majority of scholars agree that the European Court has made a substantial contribution to the convergence of the Civil law and the Common Law and
the continued importance of its role is beyond doubt.
Conclusion:
I have explored two particular aeras of law where we have the comparative become essential in the ever changing climate of the social, poltical and ecomin order of the world.
See ‘Cultural Immersion’ by Vivian Grossworld Curran 46 American Journal of Comparative law 23 1998, for an understanding of how culture clashes influenced comparative lawyers.
Michael Joachim Bonell, “The UNIDROIT Principles of International Commercial Contracts Prepared by the Institute for the Unification of Private Law (UNIDROIT)”, in Transnational Law in Commercial Practice (CENTRAL ed., Quadis Publishing, 1999) at 8.
See the works of Professor Goldman and legal commentators of the era
Originated from the Phoenicians. They developed transnational rules of law probably built upon rules of law inherited from the Babylonians
Comparative Law Yearbook of International Business, Volume 29 page 43, Dennis Campbell
See ‘Some reflections on Teubnerian and Kelsenian Legal theory’- Conflict of laws (2007); for an excellent academic critique of the legal theory behind the choice process in ICA.
See ‘A common layer’s view of his civilian colleagues’ 57 Loisiana Law Review 227 (1996); for a firsthand account of the process of drafting these agreements and examples of the comparative method in action.
See Comparative law of international arbitration by Jean-François Poudret, Sébastien Besson
W Van Gerven "ECJ Case-Law as a Means of Unification of Private Law" (1997) 2 European Review of Private Law 293.
A Common law for Europe by Gian Antonio Benacchio, Barbara Pasa
For example, Resolution on Action to Bring into line the Private Law of the Member States, 1989 O.J. C158/400, and Resolution on the Harmonization of Certain Sectors of the Private Law of the Member States, 1994 O.J. C205/518.
See O Lando & H Beale (eds) Principles of European Contract Law (Kluwer, The Hague, 2000).
“rules of law which in principle have no legally binding force but which nevertheless may have practical effects” as defined in ‘Soft Law’ ELR 14
The State of the European Union: Law, Politics, and Society Vol. 6 (2003) p221
Zweigert K, Koetz H, supra note 40 at 261
See EC Competition Law Essay By Veronica Hagenfeldt
Nippon Yusen Kasha v. Karageorgis 1 W.L.R. 1093 at 1095-1095.
See Perspectives for the unification and harmonisation of family law in Europe By Katharina Boele-Woelk