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CMS Guide to Arbitration - Volume I

Editors: Torsten Loercher
 
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Guy Pendell Jeremy Wilson
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CMS Guide to Arbitration online

Navigating the CMS Guide to Arbitration online

This CMS e-Guide contains an overview of international arbitration practice and chapters on the law and practice of arbitration in the jurisdictions covered. It is equivalent to Volume I of the printed version of the CMS Guide to Arbitration. To navigate, please click on the respective headings in the navigation bar on the left. Full chapters can be downloaded as PDFs which are available under each heading.
Click here if you are looking for a compilation of essential resources and materials arbitration practitioners should have at their disposal. You will be directed to the CMS e-Guide containing these materials, which is equivalent to Volume II of the printed version of the CMS Guide to Arbitration.

Table of Contents

Foreword

As shown by the recent financial crisis and global economic downturn, the worldwide business community is increasingly connected. The policies and activities in one area of the world can impact and shape the commercial realities for businesses everywhere. Reflecting this global market, the number and complexity of international business transactions is increasing.
In this environment, parties engaged in international commerce should be able to rely on efficient and reliable mechanisms to resolve their disputes. In this respect, arbitration has long been – and still is – the preferred method for resolving international commercial disputes. The reasons for the success of arbitration, particularly for international commercial relationships, include:
  • the neutral forum it creates for the resolution of disputes that transcends the restrictions of national court systems and procedural law;
  • the flexibility of the arbitral process, adaptable to the individual circumstances of the case and the needs and expectations of the parties;
  • the higher level of confidentiality of arbitration compared to state court proceedings; and
  • above all, the ease of enforcement of arbitral awards (compared to national court judgments) in almost 150 jurisdictions worldwide under the New York Convention.

The development of international arbitration has to a large extent been influenced by the work of the UNCITRAL, notably the UNCITRAL Model Law, which was first published in 1985 and revised in 2006. The Model Law now forms the basis of, or significantly influences, the arbitration laws of most major trading nations and the adoption of new laws of arbitration across the world invariably follow this pattern. The resulting harmonisation of national arbitration laws has increased the efficacy of arbitration as the preferred method for the resolution of international commercial disputes.
Even with the wide scale adoption of Model Law principles, if not the Model Law itself, certain key elements of arbitration law still vary across jurisdictions. This fourth edition of the CMS Guide to Arbitration provides insight into arbitration law in many jurisdictions. It does not seek to provide an exhaustive academic analysis of arbitration in each of the jurisdictions covered, but aims to provide the reader with a detailed overview of arbitration, written by practitioners from the relevant jurisdictions. In this fourth edition, new chapters have been added, including Australia, Singapore, India, New York, Portugal, Sweden and Turkey. All other chapters of the fourth edition have been updated to reflect developments in law and practice in the various jurisdictions covered in this work, including, for example, a revised French chapter that represents the new French arbitration law passed in 2011.
The CMS Guide to Arbitration now exists in two volumes. Volume I contains an overview of international arbitration practice and chapters on the law and practice of arbitration in the jurisdictions covered. Volume II provides a compilation of essential resources and materials arbitration practitioners should have at their disposal. It includes international arbitration conventions, the UNCITRAL Model Law, the most relevant international sets of arbitration rules, guidance materials and a compilation of model arbitration and ADR clauses.
I hope you will find the fourth edition of the CMS Guide to Arbitration to be a helpful and valuable resource for work in arbitration.


Klaus Sachs

International Arbitration – an Overview

“Arbitration” has both contractual and judicial elements. It is a private and consensual form of adjudicative dispute resolution based on an agreement between parties. An arbitration agreement refers a current or future dispute between parties that arises from a defined legal relationship to an impartial third party (the arbitral tribunal), typically appointed by the parties. The arbitral tribunal is tasked with settling the parties’ dispute in a judicial manner after hearing both sides and the parties agree to be bound by the result.
Pursuant to the Model Law (1985) promulgated by UNCITRAL, an arbitration may be defined as an “international” arbitration if:
  • the parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different states; or
  • one of the following places is situated outside the state in which the parties have their places of business:
    • the place of arbitration if determined in, or pursuant to, the arbitration agreement;
    • any place where a substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject matter of the dispute is most closely connected; or
    • the parties have agreed expressly that the subject matter of the arbitration agreement relates to more than one country.

Argentina

Arbitration in Argentina

By Marcelo Cippitelli and Sergio Villamayor Alemán, CMS

Arbitration in Argentina is based on Article 1197 of the Argentinian Civil Code, which provides that the terms of an agreement are binding in the same way as law. Consequently, contracting parties should be free to determine how they wish to resolve their disputes.
Pursuant to the Argentinian National Constitution, and because Argentina is a federal country, the National Congress can only enact international arbitration rules for the whole country. Each province has its own procedural code for arbitration.

Australia

Arbitration in Australia

By Peter Wood, Phillip Greenham and Roman Rozenberg, Minter Ellison

Australia’s legislative powers are divided between the Commonwealth of Australia (as the federal entity), the six states and the two federal territories. The provisions governing international arbitration in Australia are found in the International Arbitration Act (1974) (Australian Arbitration Act).
The Australian Arbitration Act came into force in 1974 and implemented Australia’s obligations under the New York Convention to enforce and recognise foreign arbitration agreements and awards.2 The Australian Arbitration Act also gave the force of law to the Model Law (1985) as the law governing international arbitrations in Australia.
The Australian Arbitration Act was amended in July 2010 to ensure that it remains at the forefront of international arbitration practice. This involved updating the Australian Arbitration Act to incorporate amendments made to the Model Law (1985) by the Model Law (2006), and also clarifying the circumstances in which a court may refuse to enforce a foreign award.

Austria

Arbitration in Austria

By Daniela Karollus-Bruner, CMS

Austria has a relatively long tradition of arbitration. The first provisions relating to arbitration were included within the Austrian Code of Civil Procedure from 1895. Austria has benefited and continues to benefit from its reputation as a neutral setting and convenient location in the centre of Europe, which is evidenced by the
continued increase in the number of international commercial arbitrations with the seat of the arbitration in Vienna. In many cases, the arbitral proceedings do not involve an Austrian party. The International Arbitral Centre of the Austrian Federal Economic Chamber, better known as the Vienna International Arbitral Centre (VIAC), has benefited from Vienna being an attractive, yet less expensive venue (compared to Zurich, Paris or Stockholm) and has recently celebrated its 35th anniversary.
In 2006, a new arbitration law came into effect, bringing the Austrian arbitration law in line with the Model Law (2006).

Belgium

Arbitration in Belgium

By Marie Canivet and Jean-François Goffin, CMS

The Belgian legislation on arbitration dates from 1972. It is contained in Articles 1676 – 1723 of the Code Judiciaire / Gerechtelijk Wetboek (Judicial Code). It is based on the model law annexed to the European Convention providing a Uniform Law on Arbitration (Strasbourg Convention) signed by Belgium on 20 January 1966.
The Belgian legislation on arbitration has been amended twice:
  • by the Law of 27 March 1985 concerning the annulment of awards, which provided that Belgian courts could hear applications to set aside an award only if one of the parties to the dispute was either: an individual with Belgian nationality or having a residence in Belgium; or a legal entity incorporated in Belgium or having a branch or place of business there; and
  • by the Law of 19 May 1998, which replaced the amendments introduced by the Law of 27 March 1985 in relation to proceedings for the setting aside of an award with a system of opting-out. It also introduced a number of amendments to the existing legislation, several of which were derived from the Model Law (1985), as well as from Dutch, French and Swiss arbitration laws, in order to make the legislation more flexible, to improve its efficiency and, generally speaking, to adapt it in line with the evolution of international arbitration.

The Belgian legislation on arbitration also reflects the provisions of certain international conventions to which Belgium is party. For example, the New York Convention and the 1927 Geneva Convention were implemented in Belgian legislation. Belgium has also signed bilateral agreements on the recognition and enforcement of awards with France, the Netherlands, Germany, Switzerland and Austria.

Bosnia and Herzegovina

Arbitration in Bosnia and Herzegovina

By Emina Saračević, Adis Gazibegović and Indir Osmić, CMS

Following the Dayton Agreement of 1995, Bosnia and Herzegovina consists of two entities, each presiding over one half of the territory of the Federation of Bosnia and Herzegovina and the Republic of Srpska. Together with the Brčko District, a self-governing administrative unit under the sovereignty of Bosnia and Herzegovina, all three entities have authority to legislate on matters of civil procedure. As a result, there are three separate acts governing the area of civil procedure. The law on arbitration is contained within the Civil Procedure Act of the Federation of Bosnia and Herzegovina 2003 (Federation CPA), the Civil Procedure Act of the Republic of Srpska 2003 (Republic CPA), and the Civil Procedure Act of the Brčko District 2003 (District CPA). As the provisions governing arbitration in each of these Acts are exactly the same, this Chapter will use the Federation CPA to analyse the issues concerning arbitration. The provisions on arbitral proceedings and the procedure for setting aside an award can be found in Chapter V of the Federation CPA. Additionally, the procedure for the recognition and enforcement of foreign awards can be found in Chapter IV of the Conflict of Laws Act (CLA).
In the same year as the new civil procedure acts were enacted, the Arbitration Court with the Foreign Trade Chamber of Bosnia and Herzegovina (Bosnia and Herzegovina Arbitration Court) adopted its Rulebook on Arbitration (Rulebook). The rules of arbitration for the Bosnia and Herzegovina Arbitration Court are set out in this Rulebook. The Rulebook covers issues regarding the organisation of the Bosnia and Herzegovina Arbitration Court, the language of arbitration, the jurisdiction of an arbitral tribunal, the commencement of arbitral proceedings, the appointment of an arbitral tribunal and arbitrators, the arbitral proceedings, the award and the costs of arbitration. However, it is only applicable where parties have contractually agreed that the matter in dispute shall be settled before the Bosnia and Herzegovina Arbitration Court.

Brazil

Arbitration in Brazil

By Marcelo Javier Cippitelli and Nirada Griffith, CMS

Historically, Brazil was well known within the international community for its hostility towards the enforcement of foreign awards. However, over the last two decades, the legal framework of international commercial arbitration in Brazil has improved remarkably. The enactment of a modern arbitration law in 1996, the Federal Supreme Court’s judgment confirming the constitutionality of that new arbitration law in 2001, and the ratification of the New York Convention in 2002 were all key milestones in making Brazil a more arbitration-friendly jurisdiction.
Brazil has experienced a very rapid expansion in the use of arbitration as a method of dispute resolution and has become one of the key centres for arbitration in Latin America. One of the main drivers behind this expansion has been the growth of the Brazilian economy over this period. With it, there has been an unprecedented surge in foreign investment and foreign acquisitions made by Brazilian multinational companies. These transactions almost invariably involve arbitration agreements.
Another important factor behind the growth in arbitration in Brazil is the crisis in the Brazilian judiciary. In 2010, some seventy million cases were pending before the Brazilian courts (one for every three people in Brazil). As a result of the backlog of pending cases, it currently takes, on average, ten years for a case to be finally decided by the Brazilian courts. Faced with the prospect of such delays, it is unsurprising that commercial parties are increasingly opting to have their disputes resolved though arbitration.

Bulgaria

Arbitration in Bulgaria

By Kostadin Sirleshtov and Pavlin Stoyanoff, CMS

For a considerable period of time (1952 – 1988), arbitration in Bulgaria was largely unregulated and domestic arbitration was forbidden.
The Bulgarian International Commercial Arbitration Act 1988 (Bulgarian Arbitration Act) (as amended), which adopted in large part, the provisions of the Model Law (1985), now regulates in detail international arbitration in Bulgaria. In 1989, the Bulgarian State Council issued Decree No 56 on Economic Activity allowing, for the first time since 1952, the arbitration of domestic disputes, although only between commercial entities. In the period 1992 – 1993, arbitration became an option for almost all civil disputes and the rules applicable to domestic arbitration were amended to bring them closer in line with the rules applicable to international arbitration.
Thus, despite its official title, the Bulgarian Arbitration Act now allows and regulates both international and domestic arbitration.

China

Arbitration in China

By Ulrike Glück and Falk Lichtenstein, CMS

The People’s Republic of China (PRC) Arbitration Law 1994 (PRC Arbitration Law) was promulgated by the Standing Committee of the National People’s Congress of the PRC on 31 August 1994 and came into force on 1 September 1995.
In the PRC, civil legal disputes that are not resolved through pre-action negotiations between the parties can be finally resolved by either litigation or arbitration. As a matter of principle, jurisdiction over civil cases will be exercised by the PRC People’s Courts.
Arbitration is the preferred method of dispute resolution for foreign parties and foreign-invested enterprises (FIE) in the PRC for the following reasons:
  • proceedings brought before the ordinary PRC People’s Courts can be risky, particularly for foreign parties and FIEs. Judges may be inclined to follow the instructions of PRC administrative bodies which may protect the interests of the local party or may be susceptible to outside influences;
  • whilst it is theoretically possible under PRC law to agree to submit a dispute to the jurisdiction of a foreign court, the judgments of most foreign courts are still not recognised and not enforceable in the PRC due to a lack of reciprocity;
  • arbitration offers the parties a means of resolving their disputes in private, whereas most PRC People’s Court proceedings are public; and
  • arbitration also offers more flexibility to parties in relation to procedures and formalities such as the adoption of proceedings in a foreign language.

Croatia

Arbitration in Croatia

By Hrvoje Bardek, CMS

The need for a new arbitration regime in Croatia emerged after the fall of communism. The unrestricted entrance of international capital and a new way of doing business in Croatia meant that drastic changes were required to the system that had been in place. This resulted in a new arbitration law.
The law on arbitration in Croatia is contained in the Croatia Arbitration Act NN 88 / 2001 dated 19 October 2001 (Croatian Arbitration Act). The new law has replaced parts of the Croatian Civil Procedure Act, the Conflicts of Law Act and the Obligations Act, which had previously regulated arbitration matters. Therefore, the new law not only amended, but also unified, provisions on arbitration into one single act. Organising the provisions on arbitration into one act created a more structured and identifiable environment for arbitration and promoted a better understanding of this area of legal practice.

Czech Republic

Arbitration in Czech Republic

By Tomáš Matějovský, CMS

Following the velvet revolution of 1989, as part of an extensive program of legal reform, a legislative commission was formed with the task of producing a new arbitration law. It was hoped that modernisation of the arbitration law would help to secure inward foreign investment by providing an internationally acceptable and politically neutral system of commercial dispute resolution. There was also a concern that, in the post-communist era, an increasing number of foreign investment contracts were providing for arbitration abroad (e.g. in Vienna or London) rather than in the Czech Republic.
As a result, the new Act No. 216 / 1994 Coll. on Arbitral Proceedings and Enforcement of Awards (Czech Arbitration Act) was adopted. The Czech Arbitration Act is based on the 1963 Czech Arbitration Act and, in contrast with the new arbitration laws in many jurisdictions elsewhere in Central and Eastern Europe, it is not based on the Model Law (1985). However, many of the underlying concepts and procedural provisions are similar.

England and Wales

Arbitration in England and Wales

By Guy Pendell and David Bridge, CMS

The Arbitration Act 1996 (English Arbitration Act) came into force on 31 January 1997. The English Arbitration Act:
  • consolidated and updated the existing legislation on arbitration;
  • codified legal rules and principles established by case law;
  • brought English law more into line with internationally recognised principles of arbitration law;
  • sought to make arbitration in England more attractive both to domestic and to international users;
  • is broadly based on the Model Law (1985), but applies equally to domestic and to international arbitration;
  • goes beyond the scope of the Model Law (1985) and contains a near-comprehensive statement of the English law of arbitration;
  • is intended to be user-friendly, has a logical structure and is written in plain English;
  • states what the objective of arbitration is, although it does not attempt a definition;
  • increases the scope of party autonomy;
  • strengthens the powers of the arbitral tribunal; and
  • limits judicial intervention in the arbitration process while preserving the courts’ powers to provide assistance where this is necessary to make arbitration a fair and efficient dispute resolution procedure.

France

Arbitration in France

By Jean de la Hosseraye, Stéphanie de Giovanni and Juliette Huard-Bourgois, CMS

France – which has hosted the International Chamber of Commerce in Paris since the 1920s – is well known as a favourable venue for arbitration. It has helped provide international arbitration with the means to become a trusted dispute resolution mechanism and to establish itself as an independent legal order.
The autonomy of the arbitration agreement, policies facilitating the enforcement of international awards, very limited court interference and party autonomy are some of the classic features of French law on international arbitration, which has been supported by the French courts for decades.
France adopted a new arbitration law in 2011, modernising the rules applicable to both domestic and international arbitration. This new law codifies the principles developed in case law and aims to preserve the trust of international arbitration users in the French legal system.

Germany

Arbitration in Germany

By Torsten Lörcher, CMS

Germany’s arbitration law in its current form entered into force on 1 January 1998. It largely follows the structure and the wording of the Model Law (1985) and is the result of a reform process that was initiated in the late 1980s and early 1990s. The main purpose of the reform was to modernise German arbitration law on the basis of the Model Law (1985) and to improve Germany’s position internationally as a suitable seat for arbitral proceedings.
German arbitration law is set out in the Tenth Book of the Code of Civil Procedure (Zivilprozessordnung (ZPO)). A comprehensive English commentary on the German law of arbitration was published in 2007.

Hungary

Arbitration in Hungary

By Zsolt Okányi and Péter Bibók, CMS

In 1994, as a result of democratic changes to Hungary’s political system, the new Act LXXI of 1994 on Arbitration (Hungarian Arbitration Act) was introduced. The Hungarian Arbitration Act, which is based on the Model Law (1985), has removed both the restrictions on arbitration contained in the Moscow Convention and the previous laws governing arbitration in Hungary.
The Hungarian Arbitration Act is supplemented by Section 376 of Act CXX of 2001 on the Capital Market (Capital Markets Act), which came into force on 1 January 2002, providing the framework for the establishment of the Permanent Court of Arbitration of the Money and Capital Markets.

India

Arbitration in India

By Chakrapani Misra and Sanjeev Kapoor, Khaitan & Co

The Arbitration and Conciliation Act 1996 (Indian Arbitration Act) came into force on 22 August 1996 and is deemed to have effect from 25 January 1996.
The Indian Arbitration Act is based on the Model Law (1985) and was the result of recommendations for reform, particularly concerning improving the efficiency of the arbitral process.
The Indian Arbitration Act sought to achieve the following main objectives:
  • to comprehensively cover international and domestic arbitration and conciliation;
  • to make provision for an arbitral process which is fair, efficient and capable of meeting the needs of each arbitral proceeding;
  • to ensure that the arbitral tribunal gives reasons for its award;
  • to ensure that the arbitral tribunal remains within the limits of its jurisdiction;
  • to minimise the supervisory role of the Indian courts in the arbitral process;
  • to permit an arbitral tribunal to use mediation, conciliation or other procedures during the arbitral proceedings to encourage settlement of disputes;
  • to provide that every final award is enforced in the same manner as if it were a decree of the court;
  • to provide that a settlement agreement reached by the parties as a result of conciliation proceedings will have the same status and effect as an award rendered by an arbitral tribunal; and
  • to provide that every award made in a country that is party to an international convention to which India is also a signatory will be enforceable as a foreign award.

Italy

Arbitration in Italy

By Maria Letizia Patania, CMS

Arbitration in Italy is governed by the Code of Civil Procedure – Book IV, Title VIII, Articles 806 – 840 (CPC)
The 2006 Reforms of the CPC rules introduced the possibility of referring all future disputes to arbitration which may arise from one or more given relationships not provided for in a contract. Indeed, by way of this new rule, a third type of arbitration (other than ordinary and free arbitration) was introduced. The parties are entitled to refer the dispute to arbitrators regardless of whether they are bound to each other by a contract. Such cases could occur, for example, in disputes concerning real rights, such as boundary regulations, neighbourliness or joint ownership.

The Netherlands

Arbitration in the Netherlands

By Mark Ziekman and Marlous de Groot, CMS

Every arbitration that takes place in the Netherlands is subject to the Netherlands Arbitration Act, even when the parties involved are foreign. The regulations contained in the Netherlands Arbitration Act often apply subject to the agreement of the parties and there is considerable scope for the parties to formulate their own arbitral procedure (most commonly by adopting a standard set of arbitration rules promulgated by a domestic or international arbitral institution, as appropriate).

New York

Arbitration in New York

By Jeremy Wilson and William Lowery, CMS

Arbitration in New York is governed by both federal and state law. Unlike many other jurisdictions, arbitration in New York is not based on the UNCITRAL Model Law. New York has developed a significant body of state law on arbitration, both through the common law and statutory modifications. However, due to the United States’ federalist structure and the supremacy of federal law, the Federal Arbitration Act (FAA) has been broadly applied to international arbitrations in New York. This has limited the number of arbitration agreements and disputes that are subject solely to New York state law. As a result, this chapter primarily considers the reach and import of the FAA on international arbitration agreements and arbitral proceedings seated in New York. Where New York state law is of particular importance, either because it supplements the application of the FAA or because the rule it offers is of particular note, it is briefly discussed.

Poland

Arbitration in Poland

By Joanna Młot and Katarzyna Kucharczyk, CMS

Domestic and international arbitration in Poland is regulated by the provisions of the Fifth Part of the Polish Code of Civil Procedure (CCP). The CCP came into force in 1964. However, the CCP provisions that are dedicated to arbitration were largely modified by an amendment dated 28 July 2005, which entered into force on 17 October 2005. This new arbitration legislation is based on the Model Law (1985). The recognition and enforcement of foreign awards is based either on the New York Convention or on the provisions of the CCP.

Portugal

Arbitration in Portugal

By Joaquim Shearman de Macedo and Rui Real, CMS

A new Voluntary Portuguese Arbitration Act, Law 63 / 2011 (the Portuguese Arbitration Act), was published in the Portuguese Official Gazette on 14 December 2011 and entered into force on 14 March 2012.
The much-awaited Portuguese Arbitration Act revoked the long-lived Voluntary Arbitration Act of 1986 (1986 Act). The approval of the new Portuguese Arbitration Act was a stipulation agreed between the Portuguese Government, the International Monetary Fund and the European Union’s institutions in order to modernise the alternative dispute resolution mechanisms available in Portugal and perfect them as an alternative to the slow paced Portuguese judicial system. This agreement was reached in the wider context of the structural reforms imposed on Portugal in order to repay its external debt. The reform also reflected the concern of harmonising the previous 1986 Act with the most common practices adopted internationally.

Romania

Arbitration in Romania

By Gabriel Zaharia Sidere, CMS

Arbitration in Romania has been regulated since 1865 by the provisions on arbitration contained in the fourth book of the Romanian Civil Procedure Code (CPC). Subject to various amendments, these provisions are still in force.
In 1953, the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania (International Arbitration Court) was established. During the communist era, the International Arbitration Court settled only international commercial disputes. In 1990, a new law establishing the International Arbitration Court was enacted, enabling this institution to also handle domestic commercial disputes. In 1993, the fourth book of the CPC was substantially amended. The Romanian legal provisions on arbitration now largely follow the principles and the structure of the Model Law (1985).

Russia

Arbitration in Russia

By Sergey Yuryev and Konstantin Kantyrev, CMS

On 14 August 1993, the Law of the Russian Federation on International Commercial Arbitration (Russian Arbitration Act) came into force. The Russian Arbitration Act was introduced to make international commercial arbitration in Russia more acceptable to foreign parties, with particular regard to investment and foreign trade disputes. The Russian Arbitration Act is based on the internationally recognised standard of the Model Law (1985).
The Ministry of Economic Development of the Russian Federation has recently proposed changes to the Russian Arbitration Act. The changes are aimed at updating the Russian Arbitration Act to reflect the amendments made by the Model Law (2006).

Scotland

Arbitration in Scotland

By Rob Wilson and Valerie Allan, CMS

The Scottish Arbitration Act radically overhauls the Scots law of arbitration and provides the first complete statutory framework for arbitration in Scotland. That framework seeks to adopt “best practice” from around the world. The drafters’ approach was to create a comprehensive, uniformly drafted Act. Therefore, the decision was taken to repeal the Model Law 1985, which was introduced into Scotland by the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990. Nevertheless, the principles that underpin the Model Law 1985 are still to be found in the Scottish Arbitration Act.

Serbia

Arbitration in Serbia

By Daniela Karollus-Bruner and Nedeljko Velisavljević, CMS

In Serbia, the law on arbitration is contained in the Serbian Arbitration Act 2006 (Serbian Arbitration Act). It was adopted through a process of legal reform to promote arbitration as the common way of settling commercial disputes in Serbia. The Serbian Arbitration Act summarises the provisions relating to arbitral proceedings that were previously contained in the Law on Civil Procedure 1996 and the Serbian Act on Conflict of Laws 1982 (as amended in 1996 and 2006). It is based on the Model Law (1985).

Singapore

Arbitration in Singapore

By Peter Wood, Phillip Greenham and Shlomit Raz, Minter Ellison

There are two separate legal regimes governing the arbitration process in Singapore:
  • the domestic regime, which concerns arbitrations that are conducted pursuant to domestic arbitration agreements and is governed by the Arbitration Act 2001 (Singapore Arbitration Act); and
  • the international regime, which concerns arbitrations that are conducted pursuant to international arbitration agreements and is governed by the International Arbitration Act.

The International Arbitration Act came into force in 1995 and has been amended several times, most recently by the International Arbitration (Amendment) Act 2009 (International Arbitration Act Amendments), which entered into effect from 1 January 2010. The International Arbitration Act gives effect to the Model Law (1985), with the exception of Chapter VIII, by setting it out in Schedule 1 to the International Arbitration Act.

Slovakia

Arbitration in Slovakia

By Peter Zilizi, CMS

Following the establishment of the Slovak Republic on 1 January 1993, arbitral proceedings were still regulated by the 1963 Czechoslovakian Arbitration Act, which prohibited domestic arbitration for entities that were not state owned. The entry into force of Act No. 218 / 1996 Coll. on Arbitration (1996 Slovakian Arbitration Act) re-introduced the possibility for parties to resolve domestic disputes by way of arbitration. However, contrary to the legislators’ expectations, the 1996 Slovakian Arbitration Act did not cause a significant increase in the number of domestic arbitral proceedings.
The 1996 Slovakian Arbitration Act was replaced by Act No. 244 / 2002 Coll. on Arbitration, which entered into force on 1 July 2002 (Slovakian Arbitration Act). The Slovakian Arbitration Act has subsequently been amended twice.

Slovenia

Arbitration of Slovenia

By Lea Vatovec, CMS

After gaining independence on 25 June 1991 following the dissolution of the Socialist Federal Republic of Yugoslavia (SFRY), Slovenia acknowledged the continuity of the rights and obligations under the international treaties concluded by the SFRY before 25 June 1991. Subsequently, Slovenia acceded to the New York Convention and the 1961 European Convention on 6 July 1992. On 7 March 1994 Slovenia ratified the Washington Convention.
On 9 May 2008 Slovenia enacted and entered into force its arbitration act (Slovenian Arbitration Act). The Slovenian Arbitration Act incorporates the principal features of the Model Law (1985) and some aspects of the Model Law (2006).

Spain

Arbitration in Spain

By Juan Ignacio Fernández Aguado, CMS

The new Spanish Arbitration Act 60 / 2003 (Spanish Arbitration Act) was officially published in the Official Gazette of the Spanish State on 26 December 2003 and came into force on 26 March 2004.
The changes brought about by the Spanish Arbitration Act responded to demands from international commercial parties who routinely choose arbitration to resolve disputes. There has been a notable expansion of domestic and international arbitration in Spain in recent years. Through the Spanish Arbitration Act, the Spanish legislator has made a firm commitment to fostering domestic arbitration and making Spain a centre for international arbitration, particularly for Spanish-speaking parties..

Sweden

Arbitration in Sweden

By Harald Nordenson and Marie Öhrström, Setterwalls

On 1 April 1999 the present Swedish Arbitration Act (Swedish Arbitration Act) came into force. Although Sweden did not formally adopt the Model Law (1985), it was an important source of inspiration when drafting the Swedish Arbitration Act. As a result, the Swedish Arbitration Act, to a great extent, contains identical or similar provisions to the Model Law (1985). Accordingly, the Swedish Arbitration Act should not present any major surprises. However, there are some features which deviate from the Model Law (1985).

Switzerland

Arbitration in Switzerland

By Philipp Dickenmann, CMS

Switzerland has codified its rules on international arbitration in Articles 176 – 194 (Chapter 12) of its Federal Code on Private International Law of 1987 (Swiss CPIL).
The law emphasises party autonomy by allowing the parties to determine the applicable procedural rules. The parties may create their own procedural rules or contractually refer to the procedural rules of a chosen arbitral institution, for example the Swiss Rules, the ICC Arbitration Rules3 or the UNCITRAL Arbitration Rules (1976).

Turkey

Arbitration in Turkey

By Ümit Hergüner, İpek Bozkurt, Hande Yayla and Noyan Göksu, Hergüner Bilgen Özeke Attorney Partnership

The main piece of legislation governing international arbitration in Turkey is the International Arbitration Law No 4686 (Turkish Arbitration Law). The Turkish Arbitration Law entered into force in 2001 and was modeled on the Model Law (1985) and the international arbitration section of the Swiss Federal Private International Law of 1987. The Turkish Arbitration Law governs arbitrations that are seated in Turkey and involve a foreign element. Even if the seat of arbitration is not Turkey, the parties can contractually subject the arbitration to the Turkish Arbitration Law, provided the dispute has a foreign element.

Ukraine

Arbitration in Ukraine

By Sergiy Gryshko and Oleksandr Gudko, CMS

The right for parties to arbitrate their disputes in Ukraine is enshrined in national legislation and in a number of international treaties. In the event of a conflict between the national legislation and the provisions of a treaty to which Ukraine is a party, the treaty prevails.
The treaties to which Ukraine is a party include, amongst others, the New York Convention; the 1961 European Convention; and the Minsk Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal Matters (Minsk Convention).

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