Common use of Preliminary Objections Clause in Contracts

Preliminary Objections. 1. The respondent may, no later than 30 days after the constitution of the tribunal, file an objection that a claim is manifestly without merit or is otherwise outside the jurisdiction or competence of the tribunal or that, as a matter of law, a claim submitted is not a claim for which an award in favour of the claimant may be made under Article 21 (Awards). The respondent shall specify as precisely as possible the basis for the objection. 2. The tribunal shall address any such objection as a preliminary question apart from the merits of the claim. For this purpose, the tribunal shall suspend any proceedings on the merits. The parties shall be given a reasonable opportunity to present their views and observations to the tribunal. If the tribunal decides that the claim is manifestly without merit, or is otherwise not within the jurisdiction or competence of the tribunal, it shall render a decision to that effect. 3. The tribunal may, if warranted, award the prevailing party reasonable costs and fees incurred in submitting or opposing the objection. In determining whether such an award is warranted, the tribunal shall consider whether either the claim or the objection was frivolous or manifestly without merit, and shall provide the parties a reasonable opportunity to comment.