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The EOS Core Arbitration Forum is a mode of dispute resolution relating to the EOS blockchain and its community. These disputes may include ,but are not limited to, the following:

  • Classical disputes when an asset holder claims damage and demands remedies;
  • Requests for emergency intervention for bug issues or account freezes;
  • Requests from interested parties to data on or related to the EOS blockchain;
  • Requests including legal processes from foreign courts

Arbitrators

The Forum is managed by active arbitrators. Arbitrators are appointed by community referenda and can be revoked with the approval of two of the three heads of power: Block Producers, Community, and the Forum.

In the case of Disciplinary action against an Arbitrator, the forum may intervene and remove the arbitrator against he or she’s will. The forum may also establish a process to replace an arbitrator who is unfit to conduct a particular case.

Filing a Dispute

Any community member or interested party may file a dispute. The dispute must specify:

  • Claimants: the filing party(s)
  • Respondents: the party(s) to whom the complaint is addressed.
  • The Complaint: Examples include bugs in smart contracts, or being defrauded
  • The Relief: the actions requested by the claimant(s)

All disputes are recorded. If the filing is inadequate for lack of information or poor formatting it may be rejected with explanation. Those who abuse the right to file disputes will be fined.

Upon acceptance, a notice of arbitration is sent to all parties. The notice is sent to the Member’s account on the blockchain and a messages record of delivery is recorded.

If a party fails to respond without sufficient cause, the Arbitrator may continue with the proceedings.

Cases of Emergency

An emergency measure of protection may be issued by any party during proceedings. If it is issued before arbitral proceedings begin, then an arbitrator will be appointed to consider the request for emergency relief.

The emergency arbitrator has the authority to order or award any interim measures deemed necessary. Once the emergency has be processed, the arbitrator assigned may decide to continue the case if further urgency is required, otherwise the case will continue normally.

The Arbitration

Composition of an Arbitral Tribunal

One Arbitrator is appointed. The Forum selects the Arbitrator and he or she must be independent from the parties and any other relevant processes. The Arbitrator may refuse to handle a case due to conflict of interest or may resign if a conflict arises. Parties may choose to challenge an Arbitrators appointment, but must do so conservatively, with substantial evidence to back up the claim.

Appeals and Disciplinary cases are heard by a panel of three, led by a senior Arbitrator. In special circumstances, the Arbitrator may request two additional arbitrators to join.

Procedure

The Arbitrator is required to do the following:

  • Be independent;
  • Maintain a balance of power between parties;
  • Give each party the ability to present their case fairly and respond to claims made by opposing parties;
  • Conduct a fair and expeditious process, without undue expense and burden;
  • Maintain a record of all communications

Legal Framework

The Constitution is the zenith of governing law. But, additional governing law may be chosen as a public good. This does not enter the parties into the jurisdiction of the governing law.

The Arbitrator, without disadvantaging any parties involved, may incorporate elements of other laws for parts or all of the case where:

  • It is deemed important to the substance of the case by the Arbitrator.
  • an applicable contract varies the choice of law and the substance of the case is found within that contract.

Jurisdiction

Jurisdiction is established by the Constitution. It must establish:

  • who members of the Community are;
  • that all members agree to binding Arbitration in the Forum of dispute resolution;
  • the governing law;
  • that all members are obliged to maintain good working communication pursuant to 3.4

External Courts

An external court may exert jurisdiction to decide on issues needing legal remedies. These include:

  • When a party to the dispute is not a member of the community, and therefore not bound to its agreements.
  • Criminal actions likely to result in criminal proceedings.
  • Where a directly relevant law may speak against arbitration.
  • Legal process (subpoenas, etc.) delivered by an external court.

When an external court or other authoritative body asserts is jurisdiction on a matter arising out of the blockchain to a member of the Community, the order is to be filed as a dispute with the external court as the Claimant.

Members of the Community, including Block Producers and Developers, are granted no authority by the Community to act on the basis of any external court order and must await the Arbitrators decision.

Transparency

The following information in a case must be published:

  • The existence and nature of a case;
  • The name of the Arbitrator;
  • The general status and progress;
  • The existence of any orders; and
  • The existence of any submissions by an external court

The Forum is transparent as well, and the following are usually published to the community:

  • A reference to the parties
  • The detailed status and progress of the case, including a summary of communication
  • Any emergency measures, orders, or rulings
  • The final ruling

Specific submissions and evidence typically remains confidential, but the decision is at the Arbitrators discretion. The Arbitrator must seek to strike a balance between transparency of the Community without violating the privacy interests of the parties involved. If relevant elements of the ruling are to be kept private, the public should be informed of the reasoning behind the decision.

The Ruling

The ruling contains:

  • The identification of the Parties;
  • The facts as established by the Arbitrator;
  • The logic of the rules and law;
  • The directions and actions taken by each party (the ruling);
  • The date that the ruling is rendered; and
  • The distribution costs for the case.

Appeal and Judicial Review

A review may be requested of a case by filing a dispute. These appeals must outline:

  • The claimed defect of the case or ruling;
  • How these defects affect the ruling;
  • That the effect is relevant and materially damaging; and
  • What improvements to the ruling are sought.

All appeals should be filed within a reasonable time after the issue becomes known to the Party. Filings that do not address the above will not be accepted. Issues that were believed to be addressed sufficiently within the original case should not be accepted. An Appeal Panel will hear the case and deliver a final, binding Ruling.

Parties have the right to seek judicial review from their local court, including petition to overturn a ruling. But it should be noted that courts will typically enforce the previous rulings.


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