The Scope of the Preliminary Award
1. The Arbitrator renders this Preliminary Award on Jurisdiction and Applicable Substantive Law (henceforth, the Preliminary Award) in accordance with the Procedural Calendar1 for the abovementioned arbitration (henceforth, the Procedural Calendar).
2. Claimants in this arbitration are, jointly, (i) Nurhima Kiram Fornan; (ii) Fuad A. Kiram; (iii) Sheramar T. Kiram; (iv) Permaisuli Kiram - Guerzon; (v) Taj - Mahal Kiram - Tarsum Nuqui; (vi) Ahmad Nazard Kiram Sampang; (vii) Jenny K.A. Sampang; and (viii) Widz - Raunda Kiram Sampang (henceforth, jointly referred to as the Claimants). Respondent in this arbitration is Malaysia (henceforth, Malaysia or Respondent). Claimants and Respondent will henceforth also be referred to jointly as the Parties.
3. Respondent raised an objection on the jurisdiction of the Arbitrator, as it contended that it has been wrongly brought before the Spanish Courts and disagrees with the judicial appointment of the Arbitrator by said Courts. Respondent also questioned the characterisation of the arbitration agreement and its binding nature. Claimants challenged the objection and sought a preliminary award on jurisdiction and on the determination of the substantive law applicable to the dispute.
4. The Preliminary Award seeks to determine these issues at the outset of the present arbitration. The Arbitrator will decide on the admissibility of the Parties' respective allegations addressed during this incidental phase of the proceedings. The footnotes are to be considered part of the Preliminary Award.