Legal ResourcesArbitration

April 30, 20210

Arbitration is an alternative way to resolve disputes between the parties outside the courts. In other terms, arbitration can be defined as a mechanism or a procedure to resolve conflicts between parties, who through an agreement foresee the possibility that an actual or future dispute arising between them can be resolved through one or several arbitrators.

Arbitration is a private and consensual procedure that bases the dispute resolution entirely on the parties’ will through guaranteeing the outcome of a final award that is unlikely to be achieved in other forms of alternative dispute resolution. Having in consideration its characteristics, at the core of arbitration, unlike litigation, remains the principle of freedom of the parties and its contractual character. Consequently, in arbitration the parties are free to decide between them the place of arbitration, the law on the validity of the arbitration agreement, the procedural law, as well as the law that will resolve the basis of the dispute. On the other side, it is the consent of the parties that derives through the contractual relationship, the one that gives power to the arbitrators or restricts it in resolving the concrete dispute.

The freedom and flexibility guaranteed by the arbitration procedure, affect the variety of types and forms that an arbitration procedure can have. Among others, depending on the characteristics that distinguish it, the arbitration can be:

  • domestic and international arbitration
  • ad hoc and institutional arbitration
  • commercial or investment arbitration etc.

Despite the importance and the use of arbitration as an efficient way of resolving disputes along with the judicial system, actually the Albanian legislation lacks a law on international arbitration and with the 2017’s amendments the provisions of the Civil Procedure Code for domestic arbitration have also been repealed. In these repealed provisions it is mentioned that international arbitration is regulated by a specific law and yet despite the fact that a draft law is issued for “International Arbitration” since 2016, it has not yet been approved of the Assembly, leaving a legal vacuum that remains an obstacle for increasing foreign investment in Albania and guaranteeing a fair legal process in general.

Leave a Reply

Your email address will not be published. Required fields are marked *

Legal ResourcesArbitration

April 30, 20210

Arbitration is an alternative way to resolve disputes between the parties outside the courts. In other terms, arbitration can be defined as a mechanism or a procedure to resolve conflicts between parties, who through an agreement foresee the possibility that an actual or future dispute arising between them can be resolved through one or several arbitrators.

Arbitration is a private and consensual procedure that bases the dispute resolution entirely on the parties’ will through guaranteeing the outcome of a final award that is unlikely to be achieved in other forms of alternative dispute resolution. Having in consideration its characteristics, at the core of arbitration, unlike litigation, remains the principle of freedom of the parties and its contractual character. Consequently, in arbitration the parties are free to decide between them the place of arbitration, the law on the validity of the arbitration agreement, the procedural law, as well as the law that will resolve the basis of the dispute. On the other side, it is the consent of the parties that derives through the contractual relationship, the one that gives power to the arbitrators or restricts it in resolving the concrete dispute.

The freedom and flexibility guaranteed by the arbitration procedure, affect the variety of types and forms that an arbitration procedure can have. Among others, depending on the characteristics that distinguish it, the arbitration can be:

  • domestic and international arbitration
  • ad hoc and institutional arbitration
  • commercial or investment arbitration etc.

Despite the importance and the use of arbitration as an efficient way of resolving disputes along with the judicial system, actually the Albanian legislation lacks a law on international arbitration and with the 2017’s amendments the provisions of the Civil Procedure Code for domestic arbitration have also been repealed. In these repealed provisions it is mentioned that international arbitration is regulated by a specific law and yet despite the fact that a draft law is issued for “International Arbitration” since 2016, it has not yet been approved of the Assembly, leaving a legal vacuum that remains an obstacle for increasing foreign investment in Albania and guaranteeing a fair legal process in general.

Leave a Reply

Your email address will not be published. Required fields are marked *

http://blog.legit.al/wp-content/uploads/2020/12/logit-white-red-icon.png
Tirana, Albania & Pristina, Kosovo
+ 355 69 634 0059
info@legit.al

Follow us:

STAY INFORMED

Subscribe


Legit.al. Calls may be recorded for quality and training purposes.

Copyright © Legit 2020