Arbitration Law in Greece
Arbitration Law in Greece
Arbitration in Greece is governed primarily by the Arbitration Law 2735/1999, which was later amended by Law 4655/2020 to modernize and align the legal framework with international standards, particularly the UNCITRAL Model Law on International Commercial Arbitration. Greece is also a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), which enhances the ability to enforce both domestic and foreign arbitral awards in Greece.
The Greek arbitration system is widely used for both domestic and international disputes, particularly in commercial matters.
1. Legal Framework for Arbitration in Greece
Arbitration Law 2735/1999
Arbitration Law 2735/1999 regulates all matters related to arbitration in Greece. This law covers the arbitration agreement, procedures, the role of courts, and the recognition and enforcement of arbitral awards.
In 2020, Law 4655/2020 amended the arbitration law, making Greece's framework more aligned with international standards, ensuring more flexibility, and reinforcing its commitment to arbitral independence.
International Agreements
- New York Convention (1958): Greece is a signatory to the New York Convention, which facilitates the recognition and enforcement of foreign arbitral awards in Greece. This means that arbitral awards made in another country that are recognized by the Convention can be enforced within Greek territory.
2. Arbitration Agreement
Written Agreement: The Arbitration Law 2735/1999 requires that the arbitration agreement be in writing. It can be a separate agreement or part of a larger contract. An arbitration agreement must clearly express the parties' intent to resolve disputes through arbitration.
Enforceability: Greek courts will generally enforce the arbitration agreement. If one party refuses to participate in arbitration despite agreeing to do so, the other party can seek a court order to compel arbitration.
3. Arbitrators
Appointment: The Arbitration Law allows the parties to freely choose their arbitrators. If the parties cannot agree, the law provides procedures for appointing an arbitrator, which may involve court intervention.
Impartiality and Independence: Arbitrators must be impartial and independent. They have a duty to disclose any potential conflicts of interest. If there is a challenge regarding an arbitrator's impartiality, the law allows the parties to seek the removal of the arbitrator.
Number of Arbitrators: The number of arbitrators is determined by the agreement between the parties. If the parties do not agree, the default is usually three arbitrators (one appointed by each party and one chosen by the two arbitrators).
4. Arbitration Procedure
Flexibility in Procedure: The Greek arbitration law provides flexibility in how arbitration is conducted. The parties can agree on the rules, procedures, and language of the arbitration. If no agreement is made, the arbitral tribunal has the power to establish the rules and procedures.
Default Rules: In the absence of an agreement on the procedure, the Arbitration Law 2735/1999 sets out default provisions for conducting arbitration, such as how the hearings should be conducted, the rights of the parties, and timelines.
Place of Arbitration: The place of arbitration is determined by the parties. If the parties cannot agree, the tribunal can determine the place of arbitration.
Interim Measures: The arbitral tribunal has the authority to order interim measures to preserve the status quo or protect the rights of the parties during arbitration. Greek courts may also intervene to issue interim measures, especially if the tribunal is unable to do so.
Conduct of Hearing: Arbitration hearings are usually held in private, and the process is generally faster and more flexible than court proceedings.
5. Judicial Role in Arbitration
Limited Court Intervention: Greek courts have a limited role in arbitration. They are generally only involved in enforcing arbitration agreements, supporting the arbitration process (e.g., appointing arbitrators), and reviewing the validity of arbitral awards.
Compelling Arbitration: If one party refuses to honor an arbitration agreement, the other party can ask the court to compel arbitration. This is done through a summary procedure before the court.
Setting Aside Arbitral Awards: An arbitral award can be challenged and set aside by the court on limited grounds, such as:
- Lack of Jurisdiction: The tribunal did not have the authority to hear the dispute.
- Improper Procedure: If the principles of natural justice or the arbitration agreement were violated during the arbitration.
- Public Policy: If the award is contrary to Greek public policy.
- Fraud or Corruption: If the award was obtained through fraudulent means.
Appeals: The Arbitration Law does not allow an appeal on the merits of the case. However, it does allow limited review of the arbitral award on procedural grounds.
6. Arbitral Awards
Binding Nature of Awards: Arbitral awards in Greece are binding once they are rendered. The party against whom the award is made is expected to comply with it voluntarily.
Enforcement of Awards: If a party refuses to comply with an award, the winning party can seek its enforcement in court. As Greece is a signatory to the New York Convention, foreign arbitral awards can also be enforced, provided they meet the criteria outlined in the Convention.
Setting Aside an Award: As mentioned earlier, an award can be set aside only on limited grounds, including jurisdictional issues, procedural irregularities, or if it violates public policy.
7. Confidentiality
Arbitration Law in Greece
Arbitration in Greece is governed primarily by the Arbitration Law 2735/1999, which was later amended by Law 4655/2020 to modernize and align the legal framework with international standards, particularly the UNCITRAL Model Law on International Commercial Arbitration. Greece is also a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), which enhances the ability to enforce both domestic and foreign arbitral awards in Greece.
The Greek arbitration system is widely used for both domestic and international disputes, particularly in commercial matters.
1. Legal Framework for Arbitration in Greece
Arbitration Law 2735/1999
Arbitration Law 2735/1999 regulates all matters related to arbitration in Greece. This law covers the arbitration agreement, procedures, the role of courts, and the recognition and enforcement of arbitral awards.
In 2020, Law 4655/2020 amended the arbitration law, making Greece's framework more aligned with international standards, ensuring more flexibility, and reinforcing its commitment to arbitral independence.
International Agreements
- New York Convention (1958): Greece is a signatory to the New York Convention, which facilitates the recognition and enforcement of foreign arbitral awards in Greece. This means that arbitral awards made in another country that are recognized by the Convention can be enforced within Greek territory.
2. Arbitration Agreement
Written Agreement: The Arbitration Law 2735/1999 requires that the arbitration agreement be in writing. It can be a separate agreement or part of a larger contract. An arbitration agreement must clearly express the parties' intent to resolve disputes through arbitration.
Enforceability: Greek courts will generally enforce the arbitration agreement. If one party refuses to participate in arbitration despite agreeing to do so, the other party can seek a court order to compel arbitration.
3. Arbitrators
Appointment: The Arbitration Law allows the parties to freely choose their arbitrators. If the parties cannot agree, the law provides procedures for appointing an arbitrator, which may involve court intervention.
Impartiality and Independence: Arbitrators must be impartial and independent. They have a duty to disclose any potential conflicts of interest. If there is a challenge regarding an arbitrator's impartiality, the law allows the parties to seek the removal of the arbitrator.
Number of Arbitrators: The number of arbitrators is determined by the agreement between the parties. If the parties do not agree, the default is usually three arbitrators (one appointed by each party and one chosen by the two arbitrators).
4. Arbitration Procedure
Flexibility in Procedure: The Greek arbitration law provides flexibility in how arbitration is conducted. The parties can agree on the rules, procedures, and language of the arbitration. If no agreement is made, the arbitral tribunal has the power to establish the rules and procedures.
Default Rules: In the absence of an agreement on the procedure, the Arbitration Law 2735/1999 sets out default provisions for conducting arbitration, such as how the hearings should be conducted, the rights of the parties, and timelines.
Place of Arbitration: The place of arbitration is determined by the parties. If the parties cannot agree, the tribunal can determine the place of arbitration.
Interim Measures: The arbitral tribunal has the authority to order interim measures to preserve the status quo or protect the rights of the parties during arbitration. Greek courts may also intervene to issue interim measures, especially if the tribunal is unable to do so.
Conduct of Hearing: Arbitration hearings are usually held in private, and the process is generally faster and more flexible than court proceedings.
5. Judicial Role in Arbitration
Limited Court Intervention: Greek courts have a limited role in arbitration. They are generally only involved in enforcing arbitration agreements, supporting the arbitration process (e.g., appointing arbitrators), and reviewing the validity of arbitral awards.
Compelling Arbitration: If one party refuses to honor an arbitration agreement, the other party can ask the court to compel arbitration. This is done through a summary procedure before the court.
Setting Aside Arbitral Awards: An arbitral award can be challenged and set aside by the court on limited grounds, such as:
- Lack of Jurisdiction: The tribunal did not have the authority to hear the dispute.
- Improper Procedure: If the principles of natural justice or the arbitration agreement were violated during the arbitration.
- Public Policy: If the award is contrary to Greek public policy.
- Fraud or Corruption: If the award was obtained through fraudulent means.
Appeals: The Arbitration Law does not allow an appeal on the merits of the case. However, it does allow limited review of the arbitral award on procedural grounds.
6. Arbitral Awards
Binding Nature of Awards: Arbitral awards in Greece are binding once they are rendered. The party against whom the award is made is expected to comply with it voluntarily.
Enforcement of Awards: If a party refuses to comply with an award, the winning party can seek its enforcement in court. As Greece is a signatory to the New York Convention, foreign arbitral awards can also be enforced, provided they meet the criteria outlined in the Convention.
Setting Aside an Award: As mentioned earlier, an award can be set aside only on limited grounds, including jurisdictional issues, procedural irregularities, or if it violates public policy.
7. Confidentiality
Arbitration proceedings in Greece are typically confidential unless the parties agree otherwise. Confidentiality applies to the proceedings and the arbitral award itself.
8. Arbitration Institutions in Greece
Greek Court of Arbitration (GCA): The Greek Court of Arbitration offers administrative support for domestic and international arbitration. It provides rules for arbitration and maintains a list of arbitrators.
Hellenic Arbitration Association (HAA): The HAA is another body that offers arbitration services in Greece. It provides a framework for resolving disputes in various fields, including commercial, construction, and maritime matters.
International Institutions: Greece is home to various international arbitration centers, such as the International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA), which are often chosen by parties to resolve disputes.
9. Advantages of Arbitration in Greece
Pro-Arbitration Legal Framework: Greece’s Arbitration Law 2735/1999, especially after its 2020 amendments, provides a flexible and modern system for resolving disputes through arbitration.
Recognition and Enforcement of Foreign Awards: As a signatory to the New York Convention, Greece allows for the recognition and enforcement of foreign arbitral awards, making it an attractive destination for international arbitration.
Legal Certainty: The involvement of Greek courts is limited, meaning that arbitration decisions are usually final and binding, reducing the potential for prolonged legal disputes.
Cost and Speed: Compared to litigation in Greek courts, arbitration is generally faster and more cost-effective, especially for commercial disputes.
10. Challenges of Arbitration in Greece
Costs: While arbitration is generally cheaper than court litigation, the costs associated with arbitrators, administrative fees, and legal representation can still be significant.
Enforcement Issues: Although Greece recognizes foreign arbitral awards, enforcement can sometimes face challenges if the award violates public policy or procedural requirements.
Limited Local Infrastructure: While Greece offers arbitration services through institutions like the Greek Court of Arbitration, it does not have as extensive an infrastructure as some other international arbitration hubs, such as London or Paris.
Conclusion
Arbitration in Greece is governed by the Arbitration Law 2735/1999, which provides a comprehensive and modern legal framework for resolving disputes through arbitration. The law is aligned with international standards, and Greece is a signatory to the New York Convention, facilitating the enforcement of both domestic and foreign arbitral awards.
Arbitration in Greece offers flexibility, confidentiality, and a pro-arbitration legal environment. While the system is generally efficient, the costs of arbitration and challenges related to enforcement remain factors to consider for parties choosing arbitration as a dispute resolution mechanism.
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