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Arbitration in the EU is one of the priority methods of alternative dispute resolution (ADR) in the territory of all member states. If you need to settle a dispute through arbitration in Malta, this article will help you familiarize yourself with the procedural features of such proceedings.

Features of arbitration agreements in Malta

The whole point of international arbitration is for the parties to agree on a neutral forum to peacefully resolve a dispute on their own terms.

Therefore, it does not matter in which countries the parties are registered in this context - they have the right to choose any substantive law and any place of arbitration.

Each arbitration clause consists of three elements: substantive law (which applies to the contract of which the clause is part), place of arbitration (whose procedural law applies to this arbitration), and arbitration rules / rules (which may or may not be the same as the previous two elements). The combinations can vary.

If you intend to register a Maltese company and start a business in this jurisdiction, it is important to note that a written agreement must be signed by the parties and is considered valid if:

  • there are no objections within thirty days;
  • the contract refers to a document with an arbitration clause;
  • a bill of lading has been issued with reference to the arbitration clause in the charter. The bill of lading is then accepted as an arbitration agreement.

The right place to arbitrate

If you need to choose a place for arbitration in Malta, then you can't go wrong with choosing the Malta Arbitration Center, which is the most reputable on the island.

Before you start arbitration proceedings in Malta, please note that the local arbitration center has created the necessary conditions for the arbitration proceedings in Malta to be conducted at the highest professional level. For this, various specialized commissions for domestic and international arbitration have been created, such as:

  • Trade Group;
  • Financial Group;
  • Construction Group;
  • Marine group;
  • Medical group, etc.

Accredited arbitrators can be selected from the above-mentioned commissions.

Unexpected challenges

Despite the continuous improvement of the arbitration process in Malta and transformation towards greater efficiency, the parties to the dispute may face unforeseen challenges. One of them, for example, is due process paranoia.

This is the reluctance of the arbitral tribunal to act decisively in certain circumstances due to the fear of canceling the arbitral award on the grounds of not allowing the party to present its position on the case. Accordingly, it is necessary to find out what should be done to reduce the threats to the procedural effectiveness of arbitration proceedings in Malta.

If you would like advice on starting arbitration in Malta, you can fill out the form below to contact IQ Decision UK specialists. Our experts will provide the necessary information and comprehensive assistance in the settlement of a dispute in the EU countries.