Rules of Procedure for Arbitration and Mediation

Chapter 1 General Provisions

Article 1 (Purpose)

These Rules set forth matters of proceedings for the resolution of civil disputes through arbitration and mediation conducted at the Daini Tokyo Bar Association Arbitration and Mediation Center (the "Center").

Article 2 (Conduct of Proceedings)

1. Arbitration and mediation proceedings are to be conducted by arbitrator(s) or mediator(s) respectively, who are selected pursuant to the provisions of Article 6 (in this Chapter, and Chapters 2 and 5, the "Arbitrator(s)/Mediator(s)"). 2. In arbitration proceedings and mediation proceedings, the parties and other interested persons shall comply with the directions of the Arbitrator/Mediator.

Article 3 (Responsibility of Arbitrator/Mediator)

The Arbitrator/Mediator shall, independently and in accordance with these Rules, work to investigate the facts and resolve the dispute, and shall aim for fair and speedy disposition of cases.

Article 4 (Privacy of Proceedings)

1. Arbitration and mediation proceedings at the Center shall not be open to the public.
2. Arbitrators, Mediators, Professional Advisors, Assistants, officers of the Daini Tokyo Bar Association, members of the Arbitration and Mediation Center Operation Committee and the Center secretariat staff shall not disclose to any other person the status, details or results of the proceedings or any other facts and information of which they become aware in the performance of their duties. Such restriction does not apply where both parties agree to disclosure, or where the cases are introduced for academic research or equivalent purposes to a limited circle of persons without disclosing the identity of the parties and the subject matter of the dispute.

Article 5 (Single Arbitrator/Mediator; Panel)

1. Arbitration or mediation shall be performed by a single Arbitrator/Mediator who is a lawyer, provided that the proceedings may be conducted by a panel consisting of three (3) Arbitrators (in the case of arbitrations), or two (2) or three (3) Mediators (in the case of mediations), in any of the cases below regardless of the stage of the proceedings. At least one Arbitrator/Mediator on the panel shall be a lawyer.
(1) Where mutually requested by the parties;
(2) Where the Center deems it appropriate; or
(3) When Sentence 3 or 4 of Paragraph 2 of Article 28 applies.
2. Where mediation is conducted by a panel of two (2) Mediators or arbitration or mediation is conducted by a panel of three (3) Arbitrators or Mediators, the panel shall elect a chairperson of the panel by vote, provided that where the panel is formed pursuant to the proviso to Paragraph 3 of Article 6, an Arbitrator/Mediator selected by the Center, or an Arbitrator/Mediator selected by mutual agreement between the two (2) party-selected Arbitrators/Mediators, shall be appointed as chairperson of the panel.
3. The chairperson of the panel shall preside over the proceedings at arbitration or mediation hearings and any preparations outside the hearings, provided that the chairperson of the panel may cause one of the other members of the panel to preside over any preparations outside the hearings.
4. Where mediation is performed by a two (2) person panel, procedural matters regarding the mediation shall be decided by mutual agreement of the members of the panel following discussion.
5. Where arbitration or mediation is performed by a three (3) person panel, procedural matters regarding the arbitration or mediation and the arbitration award shall be decided by majority vote of the members of the panel following discussion.

Article 6 (Selection of the Arbitrator/Mediator)

1. The Arbitrator(s)/Mediator(s) shall be selected by the parties or by the Center in accordance with the following Paragraphs.
2. Where the parties select a single Arbitrator/Mediator, such selection shall be made by mutual agreement of the parties from the list of candidates for arbitrators and mediators referred to in Article 4 of the Arbitration and Mediation Center Regulations (the "List"). When there is no such selection by the parties, the Center shall select a person from the arbitrator candidates.
3. The preceding Paragraph shall apply to the selection of Arbitrators/Mediators in the case of mediation by a two (2) person panel or in the case of arbitration or mediation by a three (3) person panel, provided that in the case of arbitration or mediation by a three (3) person panel, each party may select one (1) Arbitrator/Mediator respectively, and such party-selected Arbitrators/Mediators may select the third Arbitrator/Mediator from the List by mutual agreement, or failing such mutual agreement, the Center may select the third Arbitrator/Mediator from the List.
4. Notwithstanding the preceding two Paragraphs, if the parties agree and the Center deems it appropriate, the Arbitrator(s)/Mediator(s) may be selected from persons who are not on the List.
5. The person selected under the preceding three Paragraphs shall assume the office of Arbitrator/Mediator when being appointed by the Center as an Arbitrator/Mediator pursuant to Article 5 of the Arbitration and Mediation Center Operating Rules and entering into a case assignment agreement with the Center.

Article 7 (Resignation, Exclusion and Dismissal by Agreement of Arbitrator/Mediator)

1. The Arbitrator/Mediator may resign from his/her office for justifiable cause and with the approval of the Center.
2. The Arbitrator/Mediator shall not perform their duties in the following circumstances:
(1) Where the Arbitrator/Mediator or his/her spouse is a party to the case, or is related to a party as co-creditor, co-debtor or a person bound to make reimbursement;
(2) Where the Arbitrator/Mediator is or was a blood-relative within the fourth degree of kinship, a relative by marriage within the third degree of kinship, or a cohabiting relative, of a party to the case;
(3) Where the Arbitrator/Mediator is a guardian (kouken-nin), supervisor of a guardian (kouken kantoku-nin), curator (hosa-nin), supervisor of a curator (hosa kantoku-nin), assistant (hojonin) or supervisor of an assistant (hojo kantoku-nin) of a party to the case;
(4) Where the Arbitrator/Mediator acted as a witness or an expert witness in the case; or
(5) Where the Arbitrator/Mediator is or was an attorney or assistant to a party to the case.
3. The Center shall dismiss the Arbitrator/Mediator when the parties mutually agree to request dismissal.
4. Where an Arbitrator/Mediator leaves his/her office pursuant to the provisions of this Article or the Arbitration Act (Law No. 138 of 2003) (the "Arbitration Act"), a substitute Arbitrator/Mediator shall be selected pursuant to the provisions of Article 6.

Article 8 (Challenge against Arbitrator)

1. The parties may challenge Arbitrators in the following cases:
(1) Where the Arbitrator does not meet the requirements as agreed between the parties; or
(2) Where there is sufficient reason to doubt the fairness or independence of the Arbitrator.
2. A party who wishes to challenge an Arbitrator pursuant to the preceding Paragraph must submit an application form to the Center describing the reason for the challenge within 15 days from the later of (i) the date on which such party became aware of the appointment of the Arbitrator; or (ii) the date on which such party become aware of existence of the reason referred to in the preceding Paragraph.
3. If an application referred to in Paragraph 1 is made, three members of the Arbitration and Mediation Center Operation Committee appointed by the chairman of the Arbitration and Mediation Center Operation Committee shall decide the validity of the reason of the challenge.

Article 9 (Application for Dismissal of Arbitrator)

The parties may request the court to dismiss an Arbitrator in the following cases:
(1) Where it has become impossible for the Arbitrator to pursue the case by reason of law or circumstance; or
(2) Apart from the cases mentioned in the preceding item, where the Arbitrator has been unduly delayed in the performance of his/her duties.

Article 10 (Disclosure of Information about Arbitrator's Interests)

1. A person who is offered the office of Arbitrator and intends to accept it must disclose to the Center all facts that may cause people to doubt his/her fairness or independence.
2. During the course of arbitration proceedings, an Arbitrator must disclose to the parties all the facts (except those already disclosed) that may cause people to doubt his/her fairness or independence.

Article 11 (Hearings)

1. Arbitration and mediation hearings ("Hearings") shall be held privately at the Center in the presence of both parties; provided that Hearings may be held where only one party is present where the consent of the other party has been obtained, where the other party does not appear despite duly receiving notice of the Hearing, or in such other cases as the Arbitrator/Mediator deems it appropriate.

2. The Arbitrator/Mediator may hold Hearings in places other than the Center when it is necessary to conduct an on-site inspection or when similar necessity arises.

Article 12 (Notice of Hearing)

Absent special circumstances, the Arbitrator/Mediator shall notify the parties of the date and place of the Hearing at least seven (7) days in advance.

Article 13 (Participation of Interested Persons)

The Arbitrator/Mediator may, when he/she deems it appropriate and with the consent of both parties, allow or request the attendance at the proceedings of interested persons other than the parties.

Article 14 (Preparations Outside Hearings)

The Arbitrator/Mediator may proceed with preparation procedures, such as requesting the parties to clarify and supplement their claims, submission of evidentiary and reference materials, and other necessary preparations, outside the Hearings (whether before the first Hearing or otherwise).

Article 15 (Record of Hearing)

1. The Arbitrator/Mediator shall prepare a Hearing Record for each Hearing held in accordance with these Rules and sign his/her name on such Hearing Record. 2. The Hearing Record under the preceding Paragraph shall set out the date, time and place of the Hearing, names of attendees, and an outline of the matters heard.

Article 16 (Service of Materials, Etc.)

1. Materials relating to arbitration or mediation proceedings shall be sent by the Center to the addresses of the parties or such other places as specifically designated by the parties, provided that such materials may be hand-delivered in exchange for delivery of a receipt or affixing a seal of receipt by the party. 2. Notices of Hearing and other necessary procedures shall be given by the Center orally, in writing or in any other appropriate manner.

Article 17 (Submission of Materials)

1. Materials to be submitted to the Center may be sent by post or by facsimile, provided that the documents referred to in Items 3 and 4 of Article 19 and the power of attorney may be sent by facsimile as a copy only if the original is submitted by post or hand-delivery without delay. 2. Materials mentioned in the preceding Paragraph shall be deemed to be submitted to the Center when delivered to the Center (if sent by post) and when received by the Center (if sent by facsimile).

Article 18 (Secretariat)

Clerical work regarding arbitration or mediation proceedings shall be undertaken by the Center secretariat.

Chapter 2 Request and Assignment

Article 19 (Request)

A party wishing to request arbitration or mediation shall pay to the Center a filing fee as set forth separately, and submit the following materials to the Center:
(1) Request;
(2) Copy of the evidentiary materials, if any, to support the basis for the Request;
(3) If one of the parties is a legal entity, a document certifying the authority of the representative of the legal entity; and
(4) A document evidencing any arbitration agreement between the parties.

Article 20 (Items to be Set Out in the Request and Number of Copies to be Submitted)

1. The following items shall be set out in the Request:
(1) Names or trade names and addresses of the parties;
(2) Name and address of the attorney(s)-at-law;
(3) Place of service;
(4) Relief or measure sought; and
(5) Basis for the Request and methods of proof.
2. The number of copies of the Request and evidentiary materials shall be determined by the Center or by the Arbitrator/Mediator.

Article 21 (Acceptance of the Request)

The Center shall accept the Request if the Request meets the requirements of the preceding two Articles; provided, however, that the Center may refuse to accept the Request if it determines that the subject matter of the Request is not suitable for either arbitration or mediation.

Article 22 (Assignment)

1. If there is an arbitration agreement between the parties at the time of acceptance of the Request, the arbitration proceedings set out in Chapter 4 shall commence and the Arbitrator(s) shall be selected without delay in accordance with the provisions of Article 6.
2. If there is no arbitration agreement between the parties at the time of acceptance of the Request, the mediation proceedings set out in Chapter 3 shall commence and the Mediator(s) shall be selected without delay in accordance with the provisions of Article 6.

Chapter 3 Mediation Proceedings

Article 23 (Commencement of Mediation Proceedings)

1. Mediation proceedings shall commence when the Center accepts a Request for mediation or a Request for arbitration without an accompanying arbitration agreement.
2. The Center shall, promptly after the commencement of the mediation proceedings, notify both parties of the name(s) of the Mediator(s), date and place of the mediation Hearing, outline of arbitration and mediation proceedings and other necessary items.
3. The Center shall, promptly after the commencement of the mediation proceedings, send to the Respondent copies of the Request and the evidentiary materials submitted by the party requesting arbitration or mediation (the "Claimant"), provided that, if the Mediator deems it appropriate, may send to the Respondent only part of such materials, or may withhold sending all the materials to the Respondent and instead relay to the Respondent an outline of the Request using an appropriate method.

Article 24 (Agreement on Procedural Matters)

Mediation proceedings shall be conducted in accordance with these Rules and such other rules as the Arbitration and Mediation Center Operating Committee adopts; provided, however, that the Mediator may, when he/she deems it appropriate after hearing the parties' opinions, decide upon procedural matters fairly and at his/her own discretion to the extent that such decision does not harm the spirit of the mediation.

Article 25 (Submission of Answer)

1. If a copy of the Request is sent to the Respondent, the Center may request the Respondent to submit an Answer prior to the first Hearing.
2. The following items shall be set out in any Answer made under the preceding Paragraph:
(1) Names or trade names of the parties;
(2) Name and address of the attorney(s)-at-law;
(3) Place of service;
(4) Answer to the relief or measure sought; and
(5) Basis for the Answer and methods of proof.

Article 26 (Hearing of Views, Investigation)

1. To the extent deemed necessary for the mediation, the Mediator may hear the views of the parties, interested persons and third parties at mediation Hearings, as well as undertake all necessary investigation, in the presence of both parties and in a fair and proper manner, provided that such hearing of views and investigation shall not be conducted against an express objection of a party. 2. Where the Mediator deems it appropriate, hearing of views at the mediation Hearing may be conducted individually.

Article 27 (Settlement)

1. When a settlement is made between the parties to mediation proceedings, the Mediator shall cause the parties to prepare and execute a settlement agreement and witness such settlement agreement with its sign and seal or its name and seal, unless the contents of the settlement violate mandatory laws, public order or good morals, or are otherwise improper. Delivery of the settlement agreement to the parties shall be in accordance with the provisions of Article 45.
2. Allocation of the share of the resolution fee payable by each party shall be determined and set forth in the settlement agreement under the preceding Paragraph.
3. If both parties request a decision as to the details of the settlement set out in Paragraph 1, upon entering into an arbitration agreement and submission of such agreement, the Mediator(s) may become Arbitrator(s) and render an arbitration award to that effect pursuant to Paragraph 4. Even if the decision is made based on a settlement agreement made through mediation by a panel of two Mediators, there is no need to appoint another Mediator.
4. In order to render the decision in Paragraph 3, the Arbitrator(s) must execute an arbitration award stating the date and place of the execution, indicating that such decision is an arbitration award.
5. The arbitration award in Paragraph 4 shall carry the signature(s) of the Arbitrator(s) who made the decision; provided, however, that in the case where the arbitration is conducted by a panel, the arbitration award may be executed by the majority of Arbitrators, and stating the reason for the absence of the signature of the other Arbitrator.

Article 28 (Conversion to Arbitration Proceedings)

1. The Mediator may at any stage of the mediation procedure ask both parties whether or not they wish to agree to arbitration and convert the procedure to the arbitration procedure.
2. If in the mediation procedure the parties agree to arbitration and submit an arbitration agreement, the mediation procedure shall be converted to the arbitration procedure. In such case the Mediator(s) who has(have) undertaken the mediation procedure shall serve as the Arbitrator(s). If a mediation by two (2) person panel is changed to an arbitration under this Paragraph, another Arbitrator shall be appointed pursuant to the provisions of Article 6 and the arbitration shall be conducted by three (3) person panel. If a mediation by single Mediator is changed to an arbitration under this Paragraph, the mediation may be changed to the three (3) person panel arbitration pursuant to the opinion of the Mediator. 3. In case of the preceding Paragraph, should either or both of the parties wish to have different Arbitrator(s), such new Arbitrator(s) shall be selected in accordance with the provisions of Article 6.

Article 29 (Advisory Opinion)

1. The Mediator may render an advisory opinion ("Advisory Opinion", which term shall include draft settlement agreement) in respect of all or any part of the case. If both parties wish to receive an Advisory Opinion, the Mediator shall make every effort to render an Advisory Opinion.
2. The Advisory Opinion shall in principle be delivered to both parties in writing. When the Mediator deems it appropriate, the Mediator shall explain the reasons for the Advisory Opinion orally or in writing.
3. The parties are free to accept or refuse the Advisory Opinion.
4. If the Advisory Opinion is accepted by both parties, a settlement agreement having the same contents shall be prepared and executed, or the arbitration award having the same contents shall be rendered, in accordance with the provisions of Article 27.
5. Even in case either or both of the parties refuse the Advisory Opinion, the Mediator may continue the mediation proceedings.

Article 30 (Termination of Mediation Proceedings)

1. Mediation proceedings shall be terminated in the following circumstances, upon the passing of 5 months from the date of the Center's acceptance of the Request or it being determined by the Mediator that the mediation proceedings should be terminated even prior to the passing of 5 months from the date of the Center's acceptance of the Request.
(1) When the Center may not deliver the notice referred to in Article 23, Paragraph 2 or the documents referred to in Article 23, Paragraph 3 because the address of the Respondent is unknown;
(2) The Respondent send an answer rejecting mediation;
(3) The Respondent does not attend the first Hearing of the mediation proceedings without sending an answer accepting mediation; or
(4) The Respondent does not send an answer accepting mediation.
2. If the mediation proceedings are terminated pursuant to the preceding Paragraph, the Center shall inform the Claimant in a proper manner of such termination without delay.

Article 30-2 (Termination of Mediation Proceedings by the Mediator)

1. The Mediator shall terminate mediation proceedings if one of the parties expressly requests the termination of the proceedings after the Respondent has accepted mediation.
2. The Mediator may terminate the mediation proceedings in the following circumstances:
(1) The Mediator determines after certain mediation proceedings that it is unlikely that the case will reach settlement;
(2) The mediation becomes difficult because the parties do not appear at the mediation Hearings or the parties otherwise fail to comply with the Mediator's instructions; or
(3) The Mediator determines that the case is not suitable for mediation. 3. Where the Mediator terminates the mediation proceedings pursuant to the preceding two Paragraphs, the Mediator shall inform the parties in a proper manner of the termination of the proceedings without delay.

Article 31 (Alteration and Withdrawal)

1. The Claimant may alter its Request with the Respondent's consent.
2. The Claimant may withdraw its Request at any time.

Chapter 4 Arbitration Proceedings

Article 32 (Commencement of Arbitration Proceedings)

1. Arbitration proceedings shall commence when a Request for arbitration is filed with an accompanying arbitration agreement or when an arbitration agreement is submitted in the course of the mediation proceedings pursuant to Article 27, Paragraph 3, or Article 28, Paragraph 2.
2. The Center shall, promptly after the commencement of the arbitration proceedings, notify both parties of the name(s) of the Arbitrator(s), date and place of the Hearing, outline of arbitration proceedings and mediation proceedings and other necessary items, except where mediation proceedings are converted to arbitration proceedings pursuant to the provisions of Article 28.
3. The Center shall, promptly after the commencement of arbitration proceedings, send to the Respondent copies of the Request and evidentiary materials, except where mediation proceedings are converted to arbitration proceedings pursuant to the provisions of Article 28 and the Respondent has already received such materials.

Article 33 (Allegation concerning Arbitrator's Authority)

1. If a party makes an allegation about the existence or validity of an arbitration agreement, the Arbitrator may make a decision about the allegation or the Arbitrator's authority to arbitrate.
2. The allegation in the preceding Paragraph must be made promptly after the cause of the allegation arises where such cause arises during the course of the arbitration proceedings, and in all other cases, by the time the first brief for the case is submitted (or the first time claims are made orally at a Hearing in the case).
3. If the Arbitrator made an independent decision that he/she has the authority to arbitrate before making an arbitration award, a party may, within 30 days of its receiving the notice of the decision, request the court to decide whether the Arbitrator has authority to arbitrate.

Article 34 (Agreement on Procedural Matters)

Arbitration proceedings shall be conducted in accordance with these Rules and such other rules as the Arbitration and Mediation Center Operating Committee adopts. Matters which are not covered by these Rules shall be governed by the provisions of the Arbitration Act. If the parties agree to the procedural matters without violating the mandatory provisions of the Arbitration Act, the parties and the Arbitrator shall be bound by such agreement to the extent the Arbitrator consider that it does not harm the spirit of these rules. In addition, the Arbitrator may, when he/she deems it appropriate upon hearing the parties' opinions, voluntarily decide procedural matters, provided that such decision shall be fair and shall not harm the spirit of the arbitration.

Article 35 (Period of Arbitration)

The Arbitrator shall conclude deliberations within three (3) or less Hearings and render an arbitration award within two (2) weeks of the conclusion of deliberations, provided that this shall not apply where the matter is complicated, there are many parties involved, or there is another appropriate reason.

Article 36 (Submission of Answer)

1. The Center may order the Respondent to submit an Answer prior to the first Hearing, except in the case the Request is one provided for in Article 3, Paragraph 3 of the Supplementary Provisions to the Arbitration Act.
2. The following items shall be set out in the Answer under the preceding Paragraph:
(1) Names or trade names of the parties;
(2) Name and address of the attorney(s)-at-law;
(3) Place of service;
(4) Answer to the relief or measure sought; and
(5) Basis for the answer and methods of proof.

Article 37 (Deliberations)

1. The Arbitrator shall treat the both parties equally in the arbitration proceedings.
2. At the Hearings, the Arbitrator shall hear the parties' views, seek necessary clarifications and identify the issues.
3. At the arbitration Hearings, the Arbitrator shall examine the evidence and, if necessary, at the motion of a party or at his/her own discretion, examine witnesses and experts attending the Hearings and make other investigations.
4. If the conduct of the parties contravenes the spirit of speedy and fair arbitration, such as by the tardy submission of claims and/or evidence, the Arbitrator may, after hearing the views of the parties, restrict the activities of the parties in the proceedings.

Article 38 (Temporary/Provisional Measure)

1. The Arbitrator may, where he/she deems necessary, at the request of a party, order a temporary or provisional measure in connection with the subject matter of the case against any of the parties.
2. The Arbitrator may order any of the parties to provide proper security for taking a temporary or provisional measure referred to in the preceding Paragraph.

Article 39 (Alteration and Withdrawal)

1. The Claimant may, with the consent of the Respondent, alter its Request, provided that the Arbitrator may restrict the alteration if it deems that it contravenes the spirit of speedy and fair arbitration, such as by the tardy alteration of the claim and/or evidence.
2. The Claimant may withdraw its Request, except in the case that the Respondent objects to the withdrawal and the Arbitrator deems that the Respondent has a legitimate interests in resolving the case.

Article 40 (Counter-claim)

1. The Respondent may file a counter-claim arising from the same subject matter only before a declaration of conclusion of deliberations.
2. Absent special circumstances, deliberations in respect of any counter-claim filed pursuant to the preceding Paragraph shall be combined with the deliberations in respect of the Claimant's Request.
3. The provisions of Items 1 and 2 of Article 19, Article 20, Article 21 and Article 39 shall apply to the filing of a counter-claim.

Article 41 (Conclusion of Deliberations)

1. The Arbitrator shall declare that deliberations are concluded when the Arbitrator determines that the parties have exhausted their arguments and evidence. 2. If the Arbitrator deems it necessary, the Arbitrator may reopen the deliberations even after declaring the conclusion of deliberations.

Article 42 (Settlement and Recommendation of Settlement)

1. The parties may, at any stages of the arbitration proceedings, resolve the dispute by settlement.
2. The Arbitrator may, regardless of the progress of the arbitration proceedings, and by obtaining the written or oral consent of the parties, recommend the parties to resolve all or part of the dispute by settlement.
3. When settlement is reached between parties to arbitration proceedings, the provisions of Article 27 shall apply.

Article 43 (Advisory Opinion)

The Arbitrator may, in the case of Paragraph 2 of Article 42, render an Advisory Opinion referred to in Article 29 in respect of the entire case or any part of it, even after the commencement of the arbitration proceedings.

Article 44 (Arbitration Award and Items to be Included)

1. The Arbitrator shall render an arbitration award in writing, which shall be signed; provided, however, that in the case where the arbitration is conducted by a panel, the arbitration award may be executed by the majority of Arbitrators, and stating the reason for the absence of the signature of the other Arbitrator.

2. The arbitration award shall set out the following items, provided that item (5) may be omitted if the parties so agree:
(1) Names or trade names and addresses of the parties;
(2) Name and address of their attorney(s)-at-law;
(3) Text of the award;
(4) Share of the burden in the resolution fee;
(5) Reasons for the award;
(6) Date and place of execution of the award; and
(7) Date of conclusion of the deliberation.

Article 45 (Service of the Arbitration Award)

A copy of the arbitration award shall be served on the parties by one of the following methods:
(1) Registered mail with certification of delivery; or
(2) Delivery by hand to the parties.

Article 46 (Dismissal of Arbitration Proceedings)

1. The Arbitrator shall dismiss a Request for arbitration when the Arbitrator determines that the arbitration agreement is void or it is no longer binding due to termination or rescission.
2. The Arbitrator may dismiss a Request for arbitration in the following circumstances:
(1) When neither party attends the arbitration Hearings;
(2) When it is difficult to adequately hear the case by reason of the parties' failure to comply with the Arbitrator's instructions;
(3) When the Arbitrator determines that there is just cause for rescission of the arbitration agreement and it is improper to proceed with the arbitration; or (4) When the Arbitrator determines that the case is not suitable for arbitration.
3. The Arbitrator shall order the conclusion of the proceedings where the Arbitrator dismisses the proceedings pursuant to the preceding two Paragraphs or in the case provided for in the main provision of Article 39, Paragraph 2 (including the case to which Article 40, Paragraph 3 applies mutatis mutandis).

Chapter 5 Costs of Arbitration or Mediation

Article 47 (Costs of Arbitration or Mediation) 1. The costs of arbitration or mediation other than fees shall be paid in advance by the parties to the Center, in the amount, at the time, and in the allocated share, determined by the Arbitrator/Mediator.
2. If both or one of the parties do not pay the fees for arbitration or mediation or the costs referred to in the preceding Paragraph in a timely manner, the Arbitrator/Mediator may suspend the proceedings until payment is made, or may dismiss the Request.
3. Where the proceedings are suspended or dismissed pursuant to the preceding Paragraph, the Arbitrator(s)/Mediator(s) shall order the conclusion of the proceedings.