Regulated by the LCCP, the procedure for resolving commercial disputes by arbitration in Liechtenstein underwent a major overhaul in the year twenty ten. The idea behind was to ensure that arbitration law was consistent with applicable provisions of Austrian legislation.
Those interested in settlement of investment disputes through arbitration in Liechtenstein should keep in mind that the country hasn’t signed any 2-party investment agreements; however, it has entered into a number of 2-party tax treaties that provide for arbitration.
The main pieces of legislation regulating arbitration include:
Normally, those are agreements signed by multiple parties whereby they agree on particular circumstances, arisal of which make the agreements non-applicable. For how long an agreement will be valid is to be decided separately (that also applies to independent arbitration agreements & arbitration agreements which are part of the main agreement).
The LCCP doesn’t contain any specific provisions regarding confidentiality of arbitration; however, that doesn’t mean that Liechtenstein doesn’t comply with international standards in that regard. In fact, confidentiality of arbitration proceedings is guaranteed in all respects & ensured by Article VI of the Arbitration Rules. Pursuant to it, appointing an arbitrator in Lichtenstein is only possible if an arbitrator undertakes not to disclose any confidential information pertaining to settling a dispute by arbitration in Lichtenstein.
Awards become valid & enforceable if the majority of an arbitration panel’s members vote for them. To be considered as such, awards are to be in written form & made available to both parties. Should an arbitrator(s) fail to show up for voting & cannot cite a valid reason for that, a decision can be made by other arbitrators without them.
If you decide to initiate arbitration in Liechtenstein, you'll have 4 weeks to request a court of appeal to set aside an arbitral award. The latter has the ultimate power to either grant or deny applications for appeal. Unless other conditions apply, filing a claim with the Constitutional Court is impossible.
Because Liechtenstein is a party to NYC, it only recognizes & enforces arbitral awards made in countries that have signed NYC.
Funding by 3rd Parties
Those seeking to resolve a dispute by litigation in Liechtenstein should keep in mind that it’s funded by parties; hence, it’s generally assumed that they have sufficient resources to conduct an arbitration in Lichtenstein.
If a defendant refuses to reimburse a plaintiff’s costs, it’s presumed that there’s been a departure from an arbitration agreement. Please, keep in mind that a party having no funds doesn’t render an arbitration agreement ineffective.
Because Liechtenstein legislation contains no specific provisions regarding 3rd party financing, general provisions should be considered in this regard. Lawyers are forbidden to charge fees for incidental expenses; they aren’t permitted to acquire any claims that are a subject of ongoing proceedings, either. If litigation is a success, only a surcharge to fees is allowed.
Considering settling a business dispute in Liechtenstein? Need advice on arbitration regulation in Liechtenstein? Why not reach out to IQ Decision UK? Our experts will also be happy to provide you with an individual consultation on execution of foreign decisions in Liechtenstein.