Tushar Katheria, Founder & Lead Counsel, Katheria Sports Law Offices-INDIA
Introduction
As the ticks at midnight hour on February 1 2024, the new rules of the Basketball Arbitration Tribunal will be implemented. The Basketball Arbitral Tribunal can resolve contractual (i.e., non-disciplinary, non-technical, and non-eligibility-related) disputes in basketball as long as FIBA, its divisions, or its disciplinary bodies are not directly involved. But now claimants can file under a new procedure for low-value and simple cases. The interesting part is the new POP, which the BAT has finally implemented.
POP or Payment Order Procedure
Under Article 19 of the Basketball Arbitration Tribunal, the POP or Payment Order Procedure is a new cost-efficient and fast-track procedure that has been introduced by the BAT for cases which are simple and low value, compared to the default judgement before the state courts.
It is important to note that, Articles 1-18 do not apply to the Payment Order Procedure unless stated otherwise in Article 19. Articles 1.1, 6.3, and 8.4 apply similarly to the Payment Order Procedure.
Article 19 of the Basketball Arbitration Tribunal has stated that a single claimant may file a Payment Order Request against a single respondent by fulfilling the following conditions: –
- Both parties have agreed to the dispute on an application of the POP in writing;
- The Claim shall be monetary in nature;
- The Respondent is a legal entity;
- The principal amount claimed (excluding any interest or late payment penalties) does not exceed EUR 15,000;
- The claim does not bundle multiple claims deriving from different legal relationships.
The POR shall be made through the online platform, as specifically provided by the BAT, and it shall contain the information as requested on said platform. [Article 19.2.2]
As the claimant filed a Payment Order Request, the claimant shall pay a non-reimbursable processing fee, amounting to EU 1,000 into the BAT bank account, as mentioned u/a. 17.1. The Secretariat may fix a final date for such non-reimbursable processing fee, filing may lead to withdrawal of the Payment Order Request. [Article 19.2.4]
Further, if any document is provided to BAT in a language other than English, it must accompanied by a certified translation into the English Language. [Art. 19.2.3]
Jurisdiction
The BAT has jurisdiction over disputes submitted in writing, including those referred to as “FIBA Arbitral Tribunal (FAT)” – as long as FIBA and its divisions are not directly involved. [Art. 1.1]
The BAT Arbitrator assigned to the individual case (hereinafter the “Arbitrator”) may refuse to proceed with the arbitration at any time if he or she believes that arbitration under these Rules is not appropriate to resolve the dispute. [Art. 1.2]
Further, the Arbitrator shall have the power to rule on his/her jurisdiction, including on any objection concerning the existence, scope or validity of the arbitration agreement. [Art. 1.3]
Seat of Arbitration Proceeding
According to the Art. 2.1, the seat of the BAT and each arbitral proceeding before the Arbitrator shall be Geneva, Switzerland, even if hearings, if any, are held in another place.
Applicable Law of the Land
Further, the Arbitrator will decide the dispute ex aequo et bono, applying general principles of justice and fairness without regard for any specific national or international law. [Art. 15.1 BAT]
Conclusion
This was a positive step taken by the Basketball Arbitration Tribunal to have fast arbitration proceedings which are simple and low value in monetary terms. Further, this will increase the effectiveness of the BAT and the remaining resources and time can further be utilised in other urgent matters.
We at the Katheria Sports Law Offices will help you get involved in such basketball dispute proceedings under the BAT. With our experience in the sports and gaming industry, we are willing to offer our legal service in such domain of law.
