Arbitration Law in Artsakh
Arbitration Law in Artsakh
Artsakh (also known as Nagorno-Karabakh) is a disputed territory with limited international recognition and is de facto governed by local authorities. The legal framework in Artsakh, including arbitration law, is influenced by the Armenian legal system, as it is governed by the laws of the Republic of Armenia due to its political and administrative ties. There is no separate, distinct arbitration law in Artsakh, but arbitration procedures are guided by principles derived from Armenian law and international agreements to which Armenia is a party.
1. Legal Framework
Armenian Arbitration Law:
- Since Artsakh follows the Armenian legal system, the Arbitration Law of the Republic of Armenia (2006) is effectively applied. This law governs arbitration agreements, the composition of arbitral tribunals, procedural rules, and the enforcement of arbitration awards.
- As Artsakh is not internationally recognized as a sovereign state, there is no independent arbitration legislation. Local practices and decisions are typically influenced by the Armenian model, and cases may be treated similarly to those in Armenia.
New York Convention (1958):
- While Artsakh itself is not a signatory of the New York Convention, Armenia (the de facto legal authority) is a signatory. As such, international recognition of arbitral awards in Artsakh may be indirectly influenced by Armenia’s adherence to this convention.
- Foreign arbitral awards could be enforced in Armenia, and by extension in Artsakh, based on the laws of Armenia.
2. Key Features of Arbitration in Artsakh (Based on Armenian Law)
- Arbitration Agreement:
- Arbitration agreements in Artsakh would follow the same principles as those in Armenia. The agreement must be in writing, clearly expressing the intent to resolve disputes via arbitration, and it can be incorporated into contracts or as a separate clause.
- Party Autonomy:
- Parties in Artsakh have the right to choose their arbitrators, define arbitration procedures, and agree on the applicable law.
- Arbitral Tribunal:
- Arbitrators can be selected by the parties, and if there is no agreement, the court or arbitration institution may intervene to appoint the arbitrators.
- Judicial Intervention:
- Similar to Armenia, judicial intervention in Artsakh is limited to enforcement issues, the appointment of arbitrators, and setting aside or challenging awards.
- Confidentiality:
- Arbitration proceedings are generally private unless the parties agree to disclose information or are required to do so by law.
3. Enforcement of Arbitral Awards
- Domestic Awards:
- Arbitral awards issued within Artsakh would follow the enforcement procedures similar to those in Armenia. Domestic awards would generally be enforceable in Artsakh through local courts, with minimal judicial review.
- Foreign Awards:
- Foreign arbitral awards may be recognized and enforced in Artsakh, particularly if they are consistent with Armenian laws. Since Artsakh is not internationally recognized, enforcement might depend on the political and legal relationship between Artsakh and Armenia.
4. Arbitration Institutions in Artsakh
Armenian Arbitration Institutions:
- Due to Artsakh’s close legal and administrative ties to Armenia, institutions such as the Armenian International Commercial Arbitration Court (AICAC) and the Yerevan Court of Arbitration are the main bodies that would be used for arbitration involving Artsakh-based disputes.
- There are no independent arbitration institutions specifically within Artsakh.
Ad Hoc Arbitration:
- As in Armenia, parties in Artsakh can opt for ad hoc arbitration, following internationally recognized rules such as the UNCITRAL Arbitration Rules or those agreed upon by the parties.
5. Challenges and Considerations
- Lack of International Recognition:
- Artsakh's lack of international recognition complicates the enforcement of awards or the use of foreign arbitration institutions. Parties may prefer to resolve disputes through Armenian institutions, but recognition of awards outside Armenia could be limited.
- Political and Legal Uncertainty:
- Given the political instability and legal challenges Artsakh faces, its arbitration framework remains intertwined with Armenia's legal system, but practical challenges may arise in cross-border disputes or enforcement in other jurisdictions.
- Judicial Oversight:
- Local courts in Artsakh may play a role in the appointment of arbitrators or enforcement of awards, but they are influenced by the judicial processes of Armenia.
Conclusion
Arbitration in Artsakh is effectively governed by Armenian arbitration laws, and its legal framework is aligned with international norms through Armenia's adherence to the New York Convention and UNCITRAL Model Law. However, due to Artsakh's political status, there are practical limitations in recognizing and enforcing arbitral awards outside the region, particularly in foreign jurisdictions. Arbitration disputes involving Artsakh would likely be managed through Armenian institutions or ad hoc procedures.
RELATED Blog
0 comments