Assessment of Arbitration in Albania: A Focus on Law 52/2023
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Albania has recently enacted Law 52/2023, ushering in a new era for arbitration in the country. This legislation represents a strategic move to enhance the legal infrastructure surrounding arbitration, aiming to provide a more efficient and reliable dispute resolution mechanism.
General Provisions
Object and Purpose
The legislation is crafted to define the parameters for organizing and conducting arbitration, both domestically and internationally, within Albania’s borders. Beyond procedural aspects, the law envisions creating a framework that ensures the professional, qualitative, and effective execution of arbitration proceedings.
Scope of Application
Law 52/2023 applies comprehensively to arbitration activities within Albania. Interestingly, it extends its application beyond territorial boundaries, addressing cases where the seat of arbitration is outside Albania or remains unspecified in the arbitration agreement.
Role of Courts in Arbitration Procedures
One of the noteworthy aspects is the deliberate restriction on the court’s interference in arbitration matters, underscoring the autonomy and independence of arbitration proceedings.
Organization of Arbitration
The legislation provides flexibility by allowing arbitration to be conducted either through established permanent arbitration institutions or through an ad hoc mechanism. This approach caters to the diverse needs and preferences of parties engaged in dispute resolution.
Object of Arbitration Agreement
The legislation brings clarity by defining the scope of the arbitration agreement, emphasizing its applicability to pecuniary claims arising from commercial relationships. Exceptions are made where specific legislation expressly prohibits or restricts arbitration.
Form of Arbitration Agreement
A notable aspect is the recognition of various written communication methods, modernizing the traditional requirement for written agreements. This includes acknowledgment of fax, telegram, telex, email, or other documented means, provided they offer written proof of the arbitration agreement.
Appointment of Arbitrators
The legislation outlines transparent procedures for appointing arbitrators, offering flexibility through both institutional and ad hoc mechanisms. The emphasis on party autonomy in arbitrator selection adds a layer of fairness to the process.
Jurisdiction of the Arbitral Tribunal
The legislation reinforces the autonomy of the arbitral tribunal in determining its jurisdiction. The principle of Kompetenz-Kompetenz is upheld, empowering the tribunal to decide on its competence and the validity of the arbitration agreement.
Judicial Review
An interesting feature is the provision for judicial review, allowing parties dissatisfied with jurisdictional decisions to appeal within a defined timeframe. This balance between arbitral autonomy and judicial oversight enhances the credibility of the arbitration process.
Conduct of Arbitration Proceedings
General Rules
The legislation enshrines the principles of fairness and equality in arbitration proceedings. Parties are given ample opportunity to present their case, either personally or through authorized representatives, fostering a balanced and transparent process.
Procedural Rules
Flexibility is a key theme, allowing parties to set their procedural rules or refer to institutional rules. Where there is no agreement, the legislation steps in to provide a default framework, and the arbitral tribunal retains the authority to establish procedural rules as needed.
Conclusion
Albania’s new Arbitration Law is a pivotal development in the country’s legal landscape, promoting a modern and effective alternative dispute resolution mechanism. The legislation strikes a balance between autonomy and oversight, offering parties a reliable framework for fair and efficient arbitration proceedings. Its clarity and adaptability position Albania as an attractive destination for arbitration activities, fostering confidence among businesses and individuals alike.
- Kullat Binjake, Bulevardi "Dëshmorët e Kombit", Kulla 1, Kati 13, 1001, Tirane, Shqiperi
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