Arbitration Law in Montenegro
Montenegro has established a comprehensive legal framework for arbitration, aligning closely with international standards to facilitate both domestic and international dispute resolution.
Legal Framework
The cornerstone of Montenegro's arbitration system is the Arbitration Act enacted in 2015, which is based on the 2006 UNCITRAL Model Law on International Commercial Arbitration. This legislation governs the conduct of arbitration proceedings, the recognition and enforcement of arbitral awards, and delineates the jurisdiction and procedures of courts in relation to arbitration.
Scope and Application
The Arbitration Act differentiates between domestic and international arbitration:
Domestic Arbitration: Involves parties who are natural persons with domicile or habitual residence in Montenegro, or legal entities established under Montenegrin law.
International Arbitration: Involves a foreign element, such as at least one party being a natural person domiciled or habitually resident in another state, or a legal entity established under foreign law with its seat in another state.
Arbitration Agreement
An arbitration agreement must be in writing, either as a separate agreement or as an arbitration clause within a broader contract. The agreement is considered valid if it refers to a defined legal relationship, whether contractual or not, and pertains to disputes that are capable of settlement by arbitration under Montenegrin law.
Arbitral Tribunal
Parties have the autonomy to agree on the procedure for appointing arbitrators. In the absence of such agreement, the Arbitration Act provides default mechanisms to ensure the constitution of the arbitral tribunal.
Recognition and Enforcement of Arbitral Awards
Montenegro is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, facilitating the enforcement of foreign arbitral awards within its jurisdiction. Since adopting the Arbitration Act in 2015, Montenegrin courts have been gaining experience in recognizing and enforcing foreign arbitral awards, although certain challenges remain.
Recent Developments
In September 2024, the government of Montenegro appointed its conciliator and arbitrator to the OSCE Court of Conciliation and Arbitration for a new six-year mandate, reflecting the country's ongoing commitment to international arbitration mechanisms.
In summary, Montenegro's arbitration law provides a robust and internationally aligned framework for the resolution of disputes, offering parties flexibility and assurance in the arbitration process.
RELATED Blog
0 comments