Refineries of Homs and Banias (Syria) v. International Chamber of Commerce

Arbitration proceedings were initiated concerning a dispute between a Yugoslav party and Refineries of Homs and Banias (Refineries) (plaintiff), a Syrian party. The arbitration occurred before the International Chamber of Commerce (ICC) (defendant) pursuant to a contract containing an agreement that specified arbitration had to be conducted under ICC’s arbitration rules. During the arbitration process, the ICC Court of Arbitration removed an arbitrator appointed by Refineries in accordance with the ICC rules. Refineries filed an action in the Paris Judicial Court requesting that the court annul the ICC court’s decision to remove Refineries’ appointed arbitrator and find the ICC liable for committing a tort against Refineries. The court found that because the agreement explicitly identified the ICC rules of arbitration, it was the common will of Refineries and the Yugoslav party to vest the ICC with the power to decide disputes related to the appointment of arbitrators and for the ICC to apply its own rules. The court held that the Refineries-appointed arbitrator was properly removed according to the ICC rules, which were specifically selected by Refineries and the Yugoslav party to apply, and the court dismissed Refineries’ claims. Refineries did not argue that the ICC court violated its own rules in removing the Refineries-appointed arbitrator, but that the decision was improper even if it was made in accordance with the ICC rules. Refineries appealed.