Question

The principle of "Kompetenz-Kompetenz" allows a tribunal to:

• A. Overrule the Supreme Court of a country.
• B. Force parties to settle without a hearing.
• C. Decide on its own jurisdiction.
• D. Hire its own legal counsel at the parties' expense.

Hint:

The principle is now standard in most modern arbitration laws, ensuring that the arbitral tribunal is the first forum to examine any jurisdictional objections.

Answer 1

The Correct Option is C

Concept: The German phrase "Kompetenz-Kompetenz" (Competence-Competence) refers to the authority of an arbitral tribunal to determine its own scope of authority, specifically whether it has the jurisdiction to hear the dispute in question.

Step 1: The functional necessity of this principle.
Without this principle, every time a party questioned whether the tribunal had the legal right to preside over a specific dispute (jurisdictional challenge), the proceedings would have to halt and wait for a national court to intervene. This would lead to massive delays and allow parties to misuse jurisdictional challenges to obstruct the process.

Step 2: Operationalizing Kompetenz-Kompetenz.
This principle grants the tribunal the "competence to determine its own competence." The tribunal can receive evidence and arguments regarding its jurisdiction and issue a preliminary ruling. While this ruling can often be reviewed by a court later, it allows the arbitration to proceed efficiently in the first instance.

Step 3: Conclusion.
It is the power of the arbitral tribunal to rule on its own jurisdiction, which is a vital safeguard for the autonomy and efficiency of arbitration. equation Definition of Kompetenz-Kompetenz = Power to decide on its own jurisdiction equation center Decide on its own jurisdiction. center