Arbitration Law in Armenia

Arbitration Law in Armenia

Armenia’s Arbitration Law is governed by the Arbitration Law of the Republic of Armenia (2006), which provides a legal framework for both domestic and international arbitration. Armenia is a signatory of the New York Convention (1958), ensuring the recognition and enforcement of foreign arbitral awards. The law is structured to align with international arbitration standards, particularly the UNCITRAL Model Law.

1. Legal Framework

  • Arbitration Law of the Republic of Armenia (2006)
    • Governs arbitration agreements, arbitration procedure, and the enforcement of awards.
    • The law applies to both domestic and international arbitration cases.
    • The 2006 law modernized the arbitration process and enhanced its alignment with international norms.
  • New York Convention (1958)
    • Armenia is a signatory, and as such, it enforces foreign arbitral awards based on the New York Convention provisions.
  • UNCITRAL Model Law:
    • The Armenian arbitration law is largely influenced by the UNCITRAL Model Law on International Commercial Arbitration, promoting international consistency and best practices.

2. Key Features of Arbitration in Armenia

  • Arbitration Agreement:
    • Must be in writing, indicating a clear intention to resolve disputes via arbitration.
    • Can be included as part of a larger contract or as a standalone clause.
  • Party Autonomy:
    • Parties have the freedom to determine arbitration procedures, including selecting arbitrators, the governing law, and the applicable rules of procedure.
  • Arbitral Tribunal:
    • Can consist of a single arbitrator or a panel, depending on the agreement of the parties.
    • If the parties do not agree on the number of arbitrators, the court or the arbitration institution can step in to appoint them.
  • Judicial Intervention:
    • Courts have limited intervention in the arbitration process but can be involved in matters like the appointment of arbitrators, setting aside or enforcing awards, and dealing with public policy issues.
  • Confidentiality:
    • Arbitration proceedings are generally private, unless parties have agreed to open proceedings or are subject to disclosure under law.

3. Enforcement of Arbitral Awards

  • Domestic Awards:
    • Domestic awards are enforced in Armenia with minimal court interference, in line with the Arbitration Law.
  • Foreign Awards:
    • Foreign arbitral awards are enforced in Armenia under the New York Convention, unless the award violates Armenia’s public policy.
    • Armenia courts may set aside or refuse enforcement of foreign awards only on specific, narrow grounds.

4. Arbitration Institutions in Armenia

  • Armenian International Commercial Arbitration Court (AICAC):
    • The primary arbitration institution in Armenia for resolving commercial disputes. It operates in accordance with the Armenian Arbitration Law and is a member of the International Chamber of Commerce (ICC) and the International Court of Arbitration.
  • Yerevan Court of Arbitration:
    • Another important institution offering arbitration services within Armenia, typically focusing on both national and international commercial disputes.
  • Ad Hoc Arbitration:
    • Parties are free to agree to conduct ad hoc arbitration using rules such as the UNCITRAL Arbitration Rules.
  • International Arbitration Institutions:
    • Armenia also recognizes and allows the use of international institutions such as ICC, LCIA, or AAA for handling disputes.

5. Challenges and Considerations

  • Limited Local Arbitration Infrastructure:
    • While the AICAC is the primary arbitration institution, there is relatively limited use of arbitration in some sectors, with litigation still being a preferred method of dispute resolution in Armenia.
  • Judicial Supervision:
    • While courts generally respect arbitration, there is still the potential for judicial interference in enforcement cases or in setting aside awards.
  • Public Policy Exceptions:
    • As with many jurisdictions, enforcement of foreign arbitral awards can be refused if the award contravenes Armenia’s public policy or fundamental legal principles.

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