THE CODE OF CIVIL PROCEDURE OF JAPAN

PART VIII (Article 786-805)
ARBITRATION PROCEDURE


Article 786

An agreement to submit a dispute to one or more arbitrator shall be valid only where the parties have a right to make a compromise with regard to the subject matter in dispute.


Article 787

An agreement to submit a future dispute to arbitration shall not be valid unless it relates to a specific legal relationship and a dispute arising therefrom.


Article 788

In the absence of any agreement as to the appointment of arbitrators, each party shall appoint one arbitrator.


Article 789
  1. Where both parties are entitled to appoint arbitrators, the party initiating the arbitration procedure shall notify the other party in writing of the arbitrator he has appointed, and call upon the latter to do the same within a period of seven (7) days.
  2. In default of appointment of an arbitrator within the said period, the competent court shall, upon the application of the party initiating the arbitration procedure, appoint an arbitrator.


Article 790

A party having appointed an arbitrator shall be bound by his appointment in relation to the other party after he has notified the other party of such appointment.


Article 791

When an arbitrator appointed otherwise than by the arbitration agreement dies, otherwise goes out of office, or refuses to accept or serve the office, the party who has appointed him shall, upon the demand of the other party, appoint another arbitrator within a period of seven (7) days. In default of replacement within the said period, the competent court shall, upon the application of the demanding party, appoint an arbitrator.


Article 792
  1. The parties may challenge an arbitrator on the same grounds and conditions as they might challenge a judge (*).
  2. Apart from the provisions of the preceding paragraph, the parties may challenge an arbitrator appointed otherwise than by the arbitration agreement, if he unduly delays the performance of his duties.
  3. The parties may challenge an arbitrator who is legally incapable, deaf, dumb, or deprived of, or suspended from the exercise of, his civil rights.


Article 793

The arbitration agreement shall be void unless provisions are made therein by mutual consent of the parties against the following contingencies:
  1. Where, specified persons being appointed arbitrators in an arbitration agreement, any of the arbitrators dies, otherwise goes out of office, refuses to accept the office, cancels the arbitrator contract, or unduly delays the performance of his duties;
  2. Where the arbitrators notify the parties that their opinions are equally split.


Article 794
  1. The arbitrators, before making an award, shall hear the parties, and, insofar as they deem it necessary, investigate the facts that formed the cause of the dispute.
  2. In the absence of the agreement between the parties on the arbitration procedure, the arbitrators shall determine such procedure at their own discretion.


Article 795
  1. The arbitrators may examine witnesses and experts who voluntarily appear before them.
  2. The arbitrators have no power to administer an oath to any witness or expert.


Article 796
  1. Any act which the arbitrators consider necessary for the making of the award, but which they have no power to perform shall, on the application of the parties, be performed by the competent court, provided that the court deems such application proper.
  2. The court which ordered a witness or an expert to give testimony or expert opinion shall, in case he refuses to do so, have the power to make a decision as may be necessary.


Article 797

The arbitrators may continue the arbitration procedure and make the award, even where the party asserts that the arbitration procedure is not permissible, or, in particular, that no legally valid arbitration agreement was concluded, that the arbitration agreement has no relation to the dispute to be decided, or that the arbitrators have no power to perform the office.


Article 798

When the award is to be made by several arbitrators, it shall be decided by a majority vote of the arbitrators, unless otherwise provided in the arbitration agreement.


Article 799
  1. The award shall bear the date on which it was drawn up, and shall be signed and sealed by the arbitrators.
  2. Authentic copies of the award signed and sealed by the arbitrators shall be served on the parties, and the original thereof, with certificates of service, shall be deposited with the competent court.


Article 800

The award shall have between the parties the same effect as a final and conclusive judgement of the court.


Article 801
  1. Application to set aside the award may be made in any of the following cases:
    1. Where the arbitration procedure was not permissible;
    2. Where the arbitration award ordered a party to do an act prohibited by law;
    3. Where a party was not represented in the arbitration procedure in accordance with the provision of law;
    4. Where a party was not heard in the arbitration procedure;
    5. Where the award is not accompanied by reasons;
    6. Where there is any of the grounds for an action for a new trial under Article 420, items 4 to 8 (**).
  2. The award cannot be set aside on the grounds mentioned in Article 801, paragraph 1, Nos. 4 and 5, where otherwise agreed between the parties.


Article 802
  1. Execution by virtue of the award can be carried out only when such execution has been declared permissible by an execution judgement.
  2. The foregoing execution judgement shall not be rendered where there is any ground for making an application to set aside the award.


Article 803

After the execution judgement has been rendered, an application to set aside the award may be made only on the ground stipulated in Article 801, paragraph 1, item 6, provided that it is shown that the party has been unable to plead in the previous procedure the ground for setting aside the award without any fault on his part.


Article 804
  1. In the case mentioned in the preceding article, an action for setting aside the award must be instituted within a peremptory term of one month.
  2. The foregoing term shall begin to run from the day on which the party has come to know the ground for setting aside the award, but not before the execution judgement becomes final. After the expiration of five (5) years from the day on which the execution judgement becomes final, the action may not be instituted.
  3. When setting aside the award, the court shall also declare that the execution judgement is set aside.


Article 805
  1. The court competent to entertain actions for the appointment of, or challenge to, arbitrators, the termination of the arbitration agreement, the disallowance of arbitration, the setting aside of the award, or the rendering of the execution judgement shall be the summary court or district court designated in the arbitration agreement. In the absence of such designation, the summary or district court, which would be competent in case the claim was judicially made, shall have jurisdiction.
  2. In case there are two or more courts having jurisdiction under the preceding paragraph, the court to which the parties or arbitrators first resorted shall be competent.






(*) Article 35

A judge shall be excluded from performing his office by operation of law in the following cases:
  1. In case a judge or his spouse or former spouse is a party to the case or is related to a party to the case as a co-creditor, co-debtor or a person bound to make a reimbursement;
  2. In case a judge is or was a blood-relation within the fourth degree of relationship, a relation by affinity within the third degree of relationship to a party or a relative to a party with whom he resides;
  3. In case a judge is the guardian, supervisor of guardianship, or curator of a party;
  4. In case a judge acted as a witness or an expert in the case;
  5. In case a judge is or was the representative or assistant of a party to the case;
  6. In case a judge participated in the arbitral award in the case or in the decision of the previous instance against which the appeal has been filed: Provided that this shall not preclude him from performing his office as an entrusted judge by the entrustment of another court.


Article 37
  1. Where there are such circumstances on the side of a judge as may prejudice the impartiality of decision, a party may challenge him.
  2. Where a party has, before a judge, entered upon oral argument or present a statement in preliminary proceedings, such judge may not be challenged, except where a cause of challenge has arisen thereafter or where the existence of such cause was unknown to the party at that time.



(**) Article 420
  1. A conclusive and final judgement may be appealed against in the form of an action for a new trial for any one of the reasons, except where the party has in an appeal asserted it or knowingly has not asserted it.
    1. , ii. and iii. omitted.
    1. If a judge who participated in a decision was guilty of an offence relating to his official duties in connection with the case tried before him;
    2. If a party was, by a criminally punishable act of another person, led to make confession or prevented from producing a means of attack or defence which may affect a judgement;
    3. If a document or any other object which was produced in evidence and on which the judgement was based was a forged or fraudulently altered matter;
    4. If the judgement was based on a false statement of a witness, expert, or interpreter or a sworn party or legal representative;
    5. If a civil or criminal judgement or any other judicial decision or an administrative decision on which the judgement was based has been altered by a subsequent judicial or administrative decision;
    6. and x. omitted.
  2. and 3 omitted.