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<p class="MsoPlainText"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Dear CCWG and Legal Subteam,
<o:p></o:p></span></p>
<p class="MsoPlainText"><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoPlainText"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"">Below please find the Sidley and Adler & Colvin response to the question assigned in the email that follows regarding the potential binding effect of the IRP:<o:p></o:p></span></p>
<p class="MsoPlainText"><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">Yes, the outcome of the IRP process can generally be binding against all parties who have agreed to its terms, subject to two exceptions discussed below.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2">
<![if !supportLists]><span style="font-size:12.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">The agreement to be bound by the IRP process would be expressed in the ICANN Bylaws, applicable to the Board, directors, officers, staff, and members
or designators; it would also be part of any separate contract among the members or designators pertaining to ICANN governance. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2">
<![if !supportLists]><span style="font-size:12.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">Any third party that agreed to be bound by the IRP process could also use the mechanism.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2">
<![if !supportLists]><span style="font-size:12.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">Judgments of the IRP functioning in a manner constituent with the Federal Arbitration Act would be enforceable in the U.S. courts (and<a name="_GoBack"></a>
in the courts of other countries that accept international arbitration results).
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2">
<![if !supportLists]><span style="font-size:12.0pt;font-family:Symbol;color:black"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">Two exceptions exist:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">1. Members. Those specific matters reserved to the members of the entity in the articles or bylaws. For example, if the budget
is reserved to final approval of the members, and the members chose to overrule the Board on the budget, then the members would have the final word and IRP could not arbitrate the budget. If the members, and not the Board, are to decide an issue, then the
IRP process would not apply because the power of the members is superior to the powers of both the Board and the IRP, based on the bylaws established by the members.
<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:1.0in"><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">2. Board Fiduciary. Those matters that are so material to the Board that it would undermine its statutory obligations and
fiduciary roles to allow the IRP to bind the board. The Board cannot contract with another party to have its exercise of management responsibilities arbitrated. <o:p></o:p></span></p>
<p class="MsoPlainText"><span style="font-size:12.0pt;font-family:"Times New Roman","serif";color:black">These exceptions exist because some fundamental limits on the jurisdiction of the IRP are necessary to avoid having the IRP become unaccountable. If such
a quasi-judicial function had unlimited jurisdiction, it could effectively become a super-board or a super-member (but without all the checks and balances that have been laboriously developed by the CCWG). Even in areas at the core of ICANN governance, however,
the IRP could issue advisory rulings that would need to be reviewed and considered in good faith by the Board.</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p></o:p></span></p>
<p class="MsoPlainText"><b><i><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></i></b></p>
<p class="MsoPlainText"><b><i><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Holly J. Gregory<o:p></o:p></span></i></b></p>
<p class="MsoPlainText"><b><i><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Sidley<o:p></o:p></span></i></b></p>
<p class="MsoPlainText"><b><i><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></i></b></p>
<p class="MsoPlainText"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoPlainText"><b><i><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">]
</span></i></b>-----Original Message-----<br>
From: <a href="mailto:ccwg-accountability5-bounces@icann.org">ccwg-accountability5-bounces@icann.org</a> [<a href="mailto:ccwg-accountability5-bounces@icann.org">mailto:ccwg-accountability5-bounces@icann.org</a>] On Behalf Of List for the work of CCWG-Accountability
Legal SubTeam<br>
Sent: Thursday, April 16, 2015 9:11 AM<br>
To: <a href="mailto:ccwg-accountability5@icann.org">ccwg-accountability5@icann.org</a><br>
Subject: [Acct-Legal] IRP question<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">Counsel,<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">As discussed in our call yesterday and with the prioritization set in mind, can I kindly ask you to provide us with a high level and very concrete answer on whether the IRP can be binding whether by statute, contract or otherwise?<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">This will help us a lot on our discussion in our Tuesday call.<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">As always, we appreciate your work under pressure.<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">Best regards,<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">León<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">_______________________________________________<o:p></o:p></p>
<p class="MsoPlainText">Ccwg-accountability5 mailing list<o:p></o:p></p>
<p class="MsoPlainText"><a href="mailto:Ccwg-accountability5@icann.org"><span style="color:windowtext;text-decoration:none">Ccwg-accountability5@icann.org</span></a><o:p></o:p></p>
<p class="MsoPlainText"><a href="https://mm.icann.org/mailman/listinfo/ccwg-accountability5"><span style="color:windowtext;text-decoration:none">https://mm.icann.org/mailman/listinfo/ccwg-accountability5</span></a><o:p></o:p></p>
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