Arbitration Law in Romania
Arbitration law in Romania is governed primarily by the Romanian Civil Procedure Code and the Arbitration Law (Law No. 243/2005). Romania's legal framework on arbitration is designed to offer an efficient and flexible alternative to traditional litigation, encouraging dispute resolution through arbitration. Below is an overview of the key points of arbitration law in Romania:
1. Legal Framework
- Arbitration Law (Law No. 243/2005): This law regulates domestic and international arbitration in Romania. It is largely based on the UNCITRAL Model Law on International Commercial Arbitration.
- Civil Procedure Code: Provisions related to arbitration in Romania can also be found in the Civil Procedure Code, which includes rules on the recognition and enforcement of arbitral awards.
2. Arbitration Agreement
- Arbitration in Romania is based on the principle of consensuality, meaning that disputes can be resolved by arbitration only if the parties have agreed to it. This agreement can be made in writing before or after a dispute arises.
- The agreement can take the form of a clause in a contract (arbitration clause) or a separate agreement to arbitrate a specific dispute.
3. Arbitral Tribunal
- The arbitral tribunal is composed of one or more arbitrators. The parties to the arbitration have the freedom to agree on the number of arbitrators, and in the absence of agreement, the default is usually a panel of three arbitrators.
- Arbitrators must be impartial, independent, and qualified to handle the specific dispute. They are appointed by the parties, or, if the parties fail to agree, the appointment can be made by the arbitral institution or a court.
4. Arbitration Procedure
- The procedure for arbitration can be agreed upon by the parties. If there is no agreement, the procedure is typically determined by the arbitral institution, or the tribunal itself if no institution is involved.
- Arbitration is meant to be faster and more flexible than court proceedings. While the proceedings can be tailored to the parties' needs, they must respect principles such as the right to be heard, fairness, and equality of the parties.
5. Arbitral Awards
- Once the arbitration process is concluded, the arbitral tribunal issues an award. This decision is binding on the parties, and the arbitral tribunal can award damages, enforce actions, or declare the rights and obligations of the parties.
- An arbitral award is final and enforceable unless it is annulled under specific circumstances (e.g., if the award violates public policy or if there was a lack of jurisdiction).
6. Recognition and Enforcement of Arbitral Awards
- Romania is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958). This means that arbitral awards rendered in other countries that are party to the Convention can be recognized and enforced in Romania.
- Domestic arbitral awards can be enforced through the Romanian courts, and foreign arbitral awards can be enforced after a recognition procedure in a Romanian court.
7. Judicial Review
- Arbitral awards may be subject to judicial review under limited grounds. A party can challenge an award on the following bases:
- Lack of an arbitration agreement.
- Arbitrator misconduct.
- Violation of public policy or procedural irregularities.
- This process typically involves applying to the Romanian courts for setting aside the award. The courts have limited grounds for refusal, which aligns with the principles of international arbitration.
8. Institutional vs. Ad Hoc Arbitration
- Institutional Arbitration: In Romania, arbitration can be conducted through various arbitration institutions. The Romanian Arbitration Court is one of the most well-known institutions. Additionally, international institutions like the International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA) may be involved in cases that have an international dimension.
- Ad Hoc Arbitration: Alternatively, parties can choose ad hoc arbitration, where they select the arbitrators and agree upon the procedure independently, without the involvement of an institution.
9. International Arbitration
- Romania recognizes and enforces international arbitration, adhering to the principles established in the New York Convention.
- The jurisdiction of Romanian courts extends to international arbitration awards, and they are usually recognized and enforced unless specific exceptions apply.
10. Recent Developments
- Romania has consistently aligned its arbitration framework with international standards, ensuring that arbitration is an efficient and viable alternative to court litigation.
- Romania has also been part of initiatives aimed at strengthening the regional arbitration framework in Central and Eastern Europe.
In conclusion, Romania’s arbitration law offers a comprehensive and internationally recognized framework for resolving disputes, with a strong emphasis on party autonomy, efficient dispute resolution, and the recognition of arbitral awards.
RELATED Blog
0 comments