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  • Arbitration with ECDR - 100 Q&A

Arbitration with ECDR - 100 Q&A



1. What is arbitration?

Arbitration is a consensual dispute resolution process where the parties agree to submit their present or future disputes to be resolved by arbitrator or arbitral senate, by way of final and legally binding arbitral award.

2. How is arbitration different from mediation?

Mediation is a consensual dispute resolution procedure where a mediator assists the parties to form a mutually acceptable settlement, whereas a mediator cannot impose a settlement, which the parties do not wish to accept. The settlement may be concluded in the form of court-approved settlement, out-of-court settlement, enforceable notarial note or consensual arbitral award. Arbitration always reaches a final decision, while in mediation a final solution is reached only if the parties agreed to it.

3. How is arbitration different from litigation?

Arbitration proceedings are conducted in private, while litigation is public. Arbitration procedure is heard by arbitrators, which were previously chosen by the parties themselves. Arbitration procedure is less formal, faster and generally less expensive than litigation.

4. What are the main advantages of arbitration?

The parties may alone or with assistance of the ECDR choose to appoint one or more arbitrators, who may be experts from the relevant field. Arbitration can be conducted in a neutral venue in a confidential procedure, which is more flexible, faster and less expensive than litigation. Arbitral award has the same legal effects as a court judgment and may be therefore enforced in the same way as a court judgment. In international disputes an arbitral award may be even easier to enforce, than a court judgment.

5. Why is an arbitral clause frequently included in the contracts?

In domestic, especially in commercial disputes, an arbitral clause is generally included in the contracts because the parties do not wish to resolve their disputes in a public court procedure and because they wish to nominate one or more arbitrators, who can be trusted for their expertise and experience, thus quickly reaching a final solution of the dispute. In cross-border and international disputes, arbitration is an attractive dispute resolution method mainly because of unpredictability of national courts and their jurisprudence. Arbitration enables the parties to agree on applicable material law and procedural rules.

6. What are the potential disadvantages of arbitration?

Arbitration has no power to make decisions affecting third parties, who are not parties to the arbitration agreement. They also do not have the power to compel witnesses to attend the procedure and testify, unless they agreed voluntarily to it.

7. What is institutional arbitration?

Institutional arbitration proceedings are managed and administered by an arbitration institution, such as the ECDR and other similar institutions. Normally, institutional arbitration has its own procedural rules. The ECDR is an institutional arbitration. The parties may choose the ECDR arbitration rules (which were inspired by the UNCTIRAL and HKIAC arbitration rules) to govern their procedure  or any other rules.

8. What is “ad hoc” arbitration?

Ad hoc arbitration is established on a case-to-case basis by way of agreement between the parties and the arbitrators. Any arbitration rules can be used in an ad hoc arbitration. The parties may also set special arbitration rules, adjusted to their interests.

The ECDR provides assistance with the establishment and management of ad hoc arbitration.

9. What are the main advantages of institutional arbitration?

Using the same arbitration rules, institutional arbitration provides uniformity and predictability of the procedure and use of methods, which are recognized domestically and internationally. By using a system of accreditation requirement and responsibilities of the arbitrators, institutional arbitration also provides a certain degree of quality control.

10. What are the main advantages of ad hoc arbitration?

Ad hoc arbitration provides the parties with flexibility to devise rules and procedures appropriate to their interests and content of the disputes. However, devising and agreeing to a set of ad hoc procedural rules procedures requires time, engagement of experts and negotiations between the parties. The parties sometimes choose ad hoc arbitration because they think it is less expensive than institutional arbitration. Ad hoc arbitration however involves many procedural risks, which are difficult to handle, especially if the parties and the arbitrators are not very experienced. Consequently, institutional arbitration is recommended and normally administrative costs of institutional arbitration are in fact lower than the costs of ad hoc arbitration.

11. Is arbitration cheaper than litigation?

It depends on the fees and administrative costs, which are charged by the institutional arbitrations, and also depends on the number of arbitrators and their fees.

Because of its flexibility and informality, arbitration at the ECDR can be conducted for lower costs than ordinary court proceedings. The ECDR offers attractive prices based on low administrative costs, no fees for the commencement of the procedure and fixed fees for the arbitrators. The costs may get even lower if the parties opt for the accelerated arbitration proceedings or for a single arbitrator. Because there is no possibility of appeal or case revision, no extra costs can be incurred.

12. Is arbitration faster than litigation?

Because of its procedural flexibility, the accelerated arbitration at the ECDR is finished within 6 months and ordinary arbitration is finished within 1 year from the commencement of the procedure. There is no possibility of appeal, which in comparison to court litigation saves time, measured in years.

13. Does an arbitral award create a legally binding legal precedent?

No, the arbitral procedure is normally confidential and the parties do not disclose the content of the arbitral award. Arbitral award has legal effects only on the parties of the procedure.

14. Are arbitral awards subject to appeal?

Arbitral awards are final and are not subject to any further review on the merits.


Arbitration at the ECDR

15. Why to choose arbitration at the ECDR in Ljubljana?

Ljubljana is conveniently located on the crossroads from west to east and from south to north Europe. Slovenia has adopted a modern and arbitration friendly legislation and has ratified the New York Convention. Arbitral awards can be easily enforced in Slovenia. When the parties cannot reach an agreement on specific elements of the arbitral agreement, only one specialized court has the jurisdiction to rule on that dispute, and the Supreme Court has a final saying in the matter in the case of appeal. Registry of accredited arbitrators at the ECDR offers a wide range of distinguished domestic and foreign experts.

16. What is the role of the ECDR in arbitration proceedings?

The ECDR is independent and non-profit institute for promotion of wide use of arbitration. The ECDR offers organizational and administrative support to the arbitration proceedings. If the parties cannot agree on whom to nominate for an arbitrator, the ECDR may appoint one or more arbitrators.

17. Does the ECDR have its own arbitration rules?

Yes. The ECDR arbitration rules are predominantly based on the UNCITRAL arbitration rules. The ECDR also offer a possibility of accelerated arbitration following the example of the Hong Kong International Arbitration Centre. The parties are free to choose any arbitration rules they want.

Unless the parties agree differently, UNCITRAL arbitration rules are applied in cross-border or international arbitration disputes at the ECDR.

18. Does ECDR organize and offer administrative support to arbitration proceedings?

The ECDR offers administrative support to arbitration. Administrative support includes providing a suitable venue, “case management”, acting as a conduit for communications between the parties and the arbitrators.

The ECDR may, based on a contractual agreement with the parties, provide administrative support to “ad hoc” arbitration as well.

19. Must arbitrations conducted in Slovenia be administered by the ECDR?

No. The parties are free to choose any arbitration institution, which offers administrative support to arbitration procedure in Slovenia and may also choose not to have their dispute administered by an arbitration institution at all.

20. Must arbitration procedures, administered by the ECDR, be held at the ECDR’s venue?

No. Hearings in a procedure, administered by the ECDR, may be held at any place or venue convenient to the parties and the arbitrators.

21. Must arbitration procedure at the ECDR be conducted in accordance with the ECDR arbitration rules?

No, the parties are free to choose the ECDR arbitration rules or any other rules they find suitable.

22. Must the parties in arbitration at the ECDR in cross-border dispute engage a Slovenian counsel or attorney?

No, the parties may engage Slovenian or foreign attorneys, who are not necessarily lawyers.

23. Where can I find more information on arbitration at the ECDR?

Please, visit the ECDR web site on


Legislation and rules governing arbitration at the ECDR

24. What rules govern the arbitration at the ECDR?

Arbitration procedure conducted in Slovenia is primarily governed by the Arbitration Act, which provides for the main principles and adopts the rules of the UNCITRAL Model Law on International Commercial Arbitration. The detailed arbitration rules are determined by the set of arbitration rules chosen by the parties (usually in their arbitration agreement). If the Arbitration Act and the chosen arbitration rules are silent on a question, the arbitrators have the discretion to decide in a way to ensure fair and efficient arbitration procedure.

25. What arbitration rules will be applied if the parties have not agreed on any?

In domestic disputes, the ECDR Arbitration Rules will be applied. In International and cross-border disputes the UNCITRAL Arbitration Rules will be applied.

26. Is there a difference in how the rules govern international and domestic arbitrations?

No, the Arbitration Act, inspired by the UNCITRAL Model Law on International Commercial Arbitration, provides the same provisions for both, domestic and international arbitration.

27. What are the key features of the Arbitration Act?

The Arbitration Act has been adopted the structure of the UNCITRAL Model Law on International Commercial Arbitration and it explicitly highlights the party autonomy in applying or derogating from the provisions of the Arbitration Act, which enables the parties to tailor the arbitration procedure to their needs. The Arbitration Act also provides for a possibility of interim measures to secure parties’ claims and a limited possibility of challenging the arbitral award in front of a specialized court.

28. What does UNCITRAL Model Law on International Commercial Arbitration provide?

The Model Law was adopted by the United Nations Commission on International Trade Law (UNCITRAL) and it serves as a model for an effective and comprehensive legal regime with limited powers of the national courts to intervene in the arbitration procedure. Slovenia has adopted the Model Law, mainly through the provisions of the Arbitration act and also the ECDR Arbitration Rules.

29. What do the UNCITRAL Arbitration rules provide?

These rules provide for procedural rules, suitable for application in arbitration procedure in international and cross-border disputes.


Arbitration Agreement

30. Is it necessary to have an arbitration agreement?

Yes. As arbitration is a consensual dispute resolution mechanism the arbitrators have no power to rule in a dispute unless the parties have agreed to institutional or ad hoc arbitration. The parties normally agree on arbitration before a dispute arises by way of contractual clause, but they may also conclude an arbitration agreement after the dispute has arisen.

31. What are the legal consequences of an arbitration agreement?

An arbitration agreement excludes jurisdiction of national courts to rule in a dispute. At the same time it provides the arbitrators with the jurisdiction to rule in a dispute. The parties usually agree on the rules of the procedure and applicable law in the arbitration agreement.

32. Can an arbitration agreement cover different kinds of claims, including those in relation to the fulfilment of the contract, its validity, termination and damages claim?

Yes. An arbitration agreement is usually drafted to include claims arising “out of or in connection with” a particular contract. This wording is broad enough to cover different kinds of claims, including damages and tort.

33. What happens if one party attempts to bring a dispute, which is covered by the arbitration agreement, to court?

The court should, following a response from the opposite party, declare itself not to have jurisdiction and reject the claim, unless it is established that the arbitration agreement does not exist, is null, has come out of force or cannot be enforced.

34. What are the conditions for the validity of the arbitration agreement?

An arbitration agreement has to be concluded in writing. Only exceptionally, if the contract could have been concluded orally, an arbitration agreement may be concluded orally as well, but it has to be recorded in writing later.

35. What are the elements of an arbitration agreement?

An arbitration agreement should determine the seat of the arbitration, procedural rules, number of arbitrators, procedure of appointing arbitrators and language of the procedure.

36. Is it necessary to use the ECDR model clauses for arbitration agreement?

No. As many other arbitration institutions, the ECDR offers different model arbitration clauses and agreements. The parties may use them literally, tailor them to their own needs or draft their own ones. The parties are advised to get legal advice on their clause if they wish to draft it by themselves.

37. Should an arbitration agreement provide for one or three arbitrators?

There are several factors to be considered. A three-arbitrator-tribunal will result in higher arbitration costs and may make it difficult to schedule hearings at short notice. A three-arbitrator panel is more appropriate for complex or technical disputes and in cases where the parties are from jurisdictions with different legal systems or commercial customs.

38. What language should be chosen for the procedure?

In principle, the parties are free to agree to conduct the arbitration in any language they wish. In practice, the parties should consider the languages spoken by the parties, the languages that the agreements and the evidence will likely be in, and the extent to which the choice of language may affect the choice of arbitrators.

39. What happens if the parties agree to conduct the arbitration in two languages?

This is possible and arbitration is then conducted in both languages. However, such an arrangement may increase the costs of arbitration procedure due to translation of all documents and interpretation of oral hearings.

40. What happens if a contract containing an arbitration clause is found to be null/void?

If a contract, containing an arbitration clause, is by a court or arbitration tribunal found null, the arbitration clause and arbitration procedure remain valid, because an arbitration clause is an agreement concluded independently of the contract, which contains such a clause.

41. Why is the seat of arbitration important?

The seat of the arbitration has two important legal consequences. Firstly, it determines applicable procedural arbitration legislation and jurisdiction of courts, which may exercise supportive and supervisory powers over the arbitration. Secondly, it determines the seat of the arbitration award for the purposes of international enforcement of the arbitral award.

42. Can the hearings be held elsewhere than in the seat of arbitration?

The arbitrators may conduct hearings and other acts of procedure wherever they find it suitable and in compliance with the procedural rules, also outside of Slovenia, without any impact on the agreed seat of arbitration in Ljubljana.


The applicable substantive law

43. Does it mean that choosing by Ljubljana as the seat of arbitration, Slovenian substantive law will be applied to the dispute?

No, the applicable law is not determined by the seat of arbitration.

44. Do the arbitrators apply Slovenian law or the governing law of the contract?

The arbitrators decide based on the rules, which were chosen by the parties. In any case, the arbitrators have to decide in accordance with the provisions of the contract. If the chosen law was foreign law and the arbitrators do not have sufficient knowledge of that law, they may propose an expert opinion on questions related to that foreign applicable law.

45.  What if the contract or the arbitration agreement does not provide what the applicable law is?

In this case, the arbitrators will decide what is the applicable law based on the conflict of laws rules. Normally, the applicable law would be the law of a country which has the closest connection to the contract. If the contract provides, that any dispute arising out of it would be resolved at the ECDR, the arbitrators would use such fact as decisive in applying Slovenian law to the dispute.

46. Which law would be used in cases of damages claims?

The arbitrators would apply the law, which is in accordance with legislation applicable to the dispute. Consequently, a foreign law may be applied as well.


Commencement of the arbitration procedure

47. How is the arbitration procedure commenced?

If the parties have not reached a different agreement, the arbitration procedure begins on the day when the respondent receives claimant’s request for the referral of the dispute to the ECDR.

48. Are there any deadlines for the request for the commencement of the arbitration procedure?

The deadline may be determined by the arbitration agreement or by the arbitrators.


Appointment of the arbitrators

49. How is the number of arbitrators determined?

The parties may appoint one or more arbitrators. The parties agree on the number of arbitrators in the arbitration clause or arbitration agreement before or after the dispute arose.

50. What if the parties cannot agree on the number of arbitrators?

In such case, the ECDR would determine the number of arbitrators, taking into account all the relevant facts, complexity and other circumstances of the dispute.

51. How are the arbitrators appointed?

Normally the parties agree on the appointment of one arbitrator. If such an agreement is not possible, they may authorize a third person or the ECDR to choose and appoint an arbitrator.

If the arbitration tribunal consists of 3 arbitrators, each party appoints one arbitrator, and then the two appointed arbitrators choose and appoint the third arbitrator to preside the tribunal. It can also be agreed that the ECDR appoints the third arbitrator.

52. Who can be appointed as an arbitrator?

The parties may, in their arbitration agreement, provide criteria for arbitrators to be appointed, such as nationality or professional background. When the ECDR is asked to appoint one or more arbitrators, the ECDR would appoint an arbitrator, who has been previously accredited by the ECDR or approved on per-case basis by the ECDR.

53. Are the arbitrators required to be independent?

The arbitrators have to be independent regardless of whether they were appointed by a single party or jointly by both parties. They are requested to disclose any circumstance that could have raised doubts as to their impartiality and independence. They are not allowed to discuss the substance of the dispute privately with any of the parties.

54. Can a party challenge appointment of an arbitrator?

A party may request removal of an arbitrator if he or she believes, that there are circumstances rising justifiable doubts as to the arbitrator’s impartiality and independence. The arbitration senate would then decide on such a request. If the party, requesting the removal, does not agree with the decision of the arbitration senate, he or she may challenge the appointment of an arbitrator in court.

55. Within what time limit is it possible to challenge appointment of an arbitrator?

If no deadline was agreed, a party, wishing to challenge the appointment of an arbitrator, has to file a request within 15 days from the day he/she was notified about the appointment or became aware of any circumstance rising doubt as to the arbitrator’s impartiality or independence.


The Arbitration Procedure

56. What are the duties of the arbitrators?

An arbitrator is required to enable fair and speedy resolution of the dispute without unnecessary costs, act fairly and impartially, enable the parties to present their arguments, evidence and claims, manage the procedure in a way suitable to the circumstances of the dispute and without any unnecessary delay.

57. What happens after an arbitrator is appointed or an arbitration tribunal constituted?

Firstly, a meeting with the clients is held to set the timeline of the procedure and prepare everything required for the hearings.

58. What happens if the opposing party challenges the jurisdiction of the tribunal?

If the opposing party challenges the jurisdiction of the tribunal and argues, that the arbitration agreement does not cover the dispute in question or that the dispute requires a decision, which exceeds the powers granted to the arbitration tribunal by the arbitration agreement or that the arbitration agreement is null or void, an arbitral senate rules on such a challenge. The challenge must not be raised later than in the statement of defence.

59. Is it possible to challenge arbitral’ tribunal decision, that it has the jurisdiction over the dispute in question?

Yes, within 30 days from the day such a decision was received, a party may file a challenge in a specialized district court in Ljubljana. The arbitration tribunal may proceed with the arbitration procedure and issue an arbitral award.

60. What kind of procedural powers do the arbitrators have?

In the absence of a different agreement, an arbitration tribunal may conduct the procedure in a way it considers appropriate. Conducting the procedure also covers making decisions about whether to allow the proposed evidence, decide on the strength of evidence etc. The arbitration tribunal may also order any party to pay or offer insurance for the costs of the procedure, to disclose documentation and may as well grant interim measures.

61. In what circumstances can the tribunal order the claimant to give security for the costs of the procedure?

The tribunal may request security for the costs of the procedure whenever the opposing party substantiates that the claimant is not likely to be able to pay the costs of the procedure due to its weak financial position.

62. What powers can a court exercise in support of the arbitration?

A court may, following a request from the arbitration tribunal or one of the parties with the permission of the arbitration tribunal, execute certain procedural acts, which cannot be executed by the arbitration tribunal itself. The arbitrators may be present during such procedure and ask questions.

63. How do the parties bring their claim or present their defence?

The claimant firstly files a statement of claim, and the respondent then files a statement of defence or a counter-claim. Both parties are allowed to file more written submissions. The deadlines for submissions are determined in the arbitration agreement, rules of the procedure or set out by the arbitrators.

64. Which submissions are exchanged?

All of them, including the attached documents, which are considered to be of relevance.

65. What happens if the respondent does not file a statement of defence in time?

Unless the parties have agreed otherwise or unless the failure to file a statement of defence in time was not caused by a justifiable reason, the arbitration tribunal proceeds with the arbitration procedure and does not render an award based on the respondent’s default.

66. Are the parties entitled to access each other’s documents, which are relevant to the dispute?

It is common practice that the parties in international and cross-border disputes have the right to discovery, subject to the agreed applicable arbitration rules.

67. What kind of discovery may be ordered or granted?

The extent of discovery may be agreed by the parties or ordered by the arbitration tribunal. If the tribunal orders the parties to disclose their documentation, the parties have to follow such order regardless of whether the relevant documentations improves or harms their position in the procedure.

68. Do the rules of privilege apply in international and cross-border disputes?

Yes. The most important types of privilege are legal advice privilege, litigation privilege and “without prejudice” privilege. If a document is privileged, a party is not required to disclose it, even if it is relevant to the dispute.

69. What is legal advice privilege?

Legal professional privilege protects from disclosure of the communications between clients and their lawyers made for the purpose of giving or receiving legal advice. It may only be waived by the client.

70. What is litigation privilege?

Litigation privilege protects from disclosure of the documents prepared in preparation for, or in anticipation of, litigation proceedings. It applies equally to documents prepared in preparation for arbitration proceedings. Litigation privilege may only be waived by the party for whom the document was produced.

71. What is the “without prejudice” privilege?

“Without prejudice” privilege protects from disclosure of the communications made between the parties to a dispute (or their lawyers) in attempting to reach a settlement of the dispute. It applies whether or not the documents or discussions are formally stated to be without prejudice. “Without prejudice” privilege may only be waived by the agreement of both parties.

72. Do the rules of evidence apply in arbitration proceedings?

An arbitral tribunal is not bound by any rules of evidence that apply in court proceedings (except for the rules relating to privilege) and the tribunal freely decides what evidence to admit and then how that evidence should be weighed in reaching its findings of fact.

73. Can the tribunal investigate the facts on its own initiative or is it limited to the parties’ proposals?

The arbitration tribunal has the powers to investigate on its own initiative. In such case, the tribunal has to disclose the evidence to the parties and provide them with the opportunity to make submissions.

74. Are the witnesses cross-examined?

In international and cross-border arbitration procedures the parties normally exchange written witness statements before the hearing. At the hearing, witnesses are usually cross-examined in order to find any possible inconsistencies.

75. May expert witnesses be used in arbitration procedure?

The ECDR arbitration rules refer to the application of The Arbitration Act, which in article 30 provides for a possibility of appointment of independent expert witness. The Arbitration act also allows the parties to invite other expert witnesses to the hearings to provide their expert opinion.

76. Is an oral hearing mandatory?

No. The parties may agree differently and the arbitration tribunal may decide whether the procedure will be conducted only in writing. If a party requests an oral hearing, the arbitration tribunal has to arrange it.

77. In what order do the parties present their cases?

It is generally accepted that the claimant presents it statement of claim first. Then the respondent presents its statement of defence. It is only important, that the tribunal provides the parties with equal opportunities to present their case.

78. What case management techniques may the tribunal employ?

The arbitrators may speed up the procedure by holding separate hearings for preliminary issues and discrete questions. The question of liability and question of quantum may be dealt with in two separate hearings. The tribunal may request written statements of the witnesses and may fix time frames for oral statements. The tribunal may also set a cap on the parties’ recoverable costs in the arbitration.

79. What is the purpose of splitting a hearing between liability and quantum phases?

By determining the question of liability before proceeding to the question of damages, the tribunal seeks to avoid the cost to the parties of obtaining expert evidence related to the quantum in the event that the respondent is found not to be liable.

On the other hand, interim decision on liability facilitates the possibility for the parties to negotiate on the amount of damages.

80. Can an arbitrator in a dispute also act as mediator?

It is possible for a mediator to act as an arbitrator (med-arb) or an arbitrator to act as a mediator (arb-med). In these types of procedures it is crucial, that the parties reach an agreement in advance on how the arbitrator has to protect confidential information he/she receives from either party in the absence of the other party.


The arbitral award

81. What remedies may an arbitration tribunal grant?

An arbitration tribunal may grant all remedies as a national court, except for a remedy binding a third party, who was not a party to the arbitration agreement.

82. Within what time limit does the arbitration tribunal render an arbitral award?

In case of accelerated arbitration the arbitral award has to be rendered within 6 months. In case of ordinary arbitration, the arbitration tribunal is bound to issue an award within reasonable time period.

83. Does the tribunal have the power to award interest?

Yes, in terms of awarding interest an arbitration tribunal has the same powers as a national court.

84. What powers does the arbitration tribunal have with respect to costs?

The arbitration tribunal has the power to decide which party is liable to pay the costs of the arbitration or what percentage of the costs, the amount of costs and on what basis. Normally the losing party is required to pay the winning party’s costs.

85. What does the decision on the costs entail?

It entails costs, incurred by the parties, including lawyers’ fees, arbitrators’ fees, administrative costs, costs of administration procedure and other procedural costs.

86. How is the amount of costs determined?

Prior to the end of the procedure, the parties file a list of costs stating the costs and their amounts. The party is entitled to the reimbursement of all urgent and necessary costs.


Enforcing or challenging an arbitral award

87. How is an arbitral award enforced?

An ECDR arbitral award is enforced, when a court declares it as enforceable. A court may deny a request for declaring an arbitral award as enforceable if it discovers, that the subject of the dispute is not covered by the arbitration agreement or if the arbitral award is contrary to the public order of the Republic of Slovenia.

88. What if the parties reach an agreement on settlement before the arbitration tribunal issues an arbitral award?

The parties may request the tribunal to record their settlement in an arbitral award, which then has the same legal effects as all other arbitral awards. The parties may also record their settlement in notarial form, or can submit it to the court to obtain a court-approved settlement.

89. When is it possible to challenge an arbitral award?

An award may be set aside on the grounds relating to invalidity/nullity of arbitration agreement, lack of jurisdiction, improper constitution of the tribunal or arbitral procedure not conducted in accordance with the agreement of the parties, if the award is made in relation to a dispute, which is not covered by the arbitration agreement, if a party was not properly notified about appointment of an arbitrator or about the procedure itself or if any party was deprived of any right related to making submissions or statements in front of the arbitral tribunal.

An award may also be set aside if the court establishes that the subject of the dispute cannot be subject to arbitration procedure or if the arbitral award is contrary to the public order of the Republic of Slovenia.

90. What is the New York Convention?

The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, signed in New York in 1958, provides the foundation for cross-border enforcement of arbitral awards. There are over 140 parties to the Convention, each of whom undertakes to recognise and enforce in their local courts arbitral awards made in other member states.

91. Is the New York Convention applicable in Slovenia?

Yes, its applicability is determined explicitly in the provision of the second paragraph of Article 42 of the Arbitration Act. A party, seeking recognition of a foreign arbitral award provides the original or a copy of the arbitral award. The court may request a translation of the arbitral award into Slovene language.

92. How can a foreign arbitral award be enforced in Slovenia?

Foreign arbitral awards can be enforced in the same manner as domestic arbitral awards. They have the same effects as a court judgment based on a court’s declaration of enforceability of such arbitral award.

93. When can recognition and enforcement of a foreign arbitral award be refused?

A request for recognition and enforcement of foreign arbitral award may be refused in cases and under the conditions determined by the New York Convention.

94. How can arbitral awards, rendered in Slovenia, be enforced in other countries?

Arbitral awards, rendered and issued by the ECDR as an institutional arbitration, are enforceable in all countries, who have signed the New York Convention. In all other countries, they are enforceable under the conditions of their national legislation.

95. How are arbitration awards, rendered in a country, which has not signed the New York Convention, enforceable in Slovenia?

Provisions of the New York Convention are used regardless of the country, where the arbitral award was rendered.


Characteristics of arbitration procedure at the ECDR

96. What are the features of the accelerated arbitration?

The procedure is managed by a single arbitrator and is conducted in writing. The arbitral award has to be rendered and issued within 6 months. The costs of the procedure are substantially lower in comparison to the costs of classical arbitration procedure or court litigation.

97. What is the advantage of the arbitration within monetary constraints?

This type of arbitration gives the parties more control over the final and binding decision of the arbitration tribunal. In arbitration within monetary constraints the parties reach an agreement and set a minimum and maximum quantum, which can be awarded by the arbitration tribunal. The tribunal is not informed about these limitations and has to adjust the final award, if it originally did not meet the agreed constraints.

98. What is the advantage of the arbitration with a last offer possibility?

This type of arbitration also gives the parties more control over the final decision. The parties notify the ECDR in writing about their final offer, which they are willing to accept or pay and they reasonably believe that it meets the standards, decisive for the Arbitral Award to be rendered.

99. What kind of powers does the arbitration tribunal have in such cases?

If the Arbitrators were notified about the last offer in writing, they are required to choose the offer, which is the most reasonable and meets the standards of decision-making in an arbitral procedure.

If the Arbitrator was not notified about the last offers and consequently, the rendered Arbitral Award differentiates from the exchanged last offers between the parties, the Arbitrator alters the Arbitral Award in a way to order payment of the amount of money as suggested in the last offer, which is closer to the amount of money ordered by the rendered Arbitral Award.

100. Does an arbitral award, rendered in such case, include reasoning?

The Arbitral Award, rendered in accordance with previously stated rules, does not need to include reasoning. 

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European Centre for Dispute Resolution

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