By entering into an arbitration agreement, you can provide for the resolution of disputes with your counterparty in one of the world's arbitration centers operating on a permanent basis. Another option is to establish an ad hoc court ( i.e. on occasion). Such a court is created to consider your dispute and ceases to exist immediately after that.
If you decide to resolve a commercial dispute by arbitration in Romania, you will automatically receive the right to request an amendment to the decision announced by the court or, if there are still "blank spots" in the reasoning of the decision, then to request its interpretation. Below we will tell you more about how arbitral awards are recognized and enforced in Romania.
How foreign and local awards are enforced
The parties need not only to study in advance, but also to foresee possible ways how events may develop after the issuance of a specific decision by the arbitral tribunal, being aware of this when choosing the jurisdiction.
If the settlement of a conflict situation was carried abroad, any foreign arbitral award may be recognized and enforced in the territory of the jurisdiction. This is possible provided that the court's opinion does not violate the country's public order. Failure to comply with this requirement constitutes a refusal to enforce the award in Romania.
Typically, international arbitration can be subject to monitoring from the local courts’ side. This comprises interim measures for arbitration; provision of assistance by the court in obtaining and securing evidence for arbitration. Separately, the procedure for recognizing and enforcing decisions of international commercial arbitration in Romania, regardless of the place of arbitration, and the procedure for canceling decisions of international commercial arbitration, if the place of arbitration is located in the country, is regulated. The grounds for canceling the decision of international arbitration and for refusing to recognize and enforce an arbitral award have been determined.
Describing the current state of affairs in the field of the recognition and enforcement of foreign arbitral awards, it is worthwhile to unconditionally state a certain degree of harmonization of the relevant legal norms achieved by the states, which, undoubtedly, took place on the basis of the New York Convention, of which Romania is also a signatory among many states. On this basis, the jurisdiction is allowed to recognize and enforce both local and foreign arbitral awards.
When serious claims for large sums are filed in international arbitration courts, you need to be ready to instantly deploy a team of experienced solicitors who know foreign law, are fluent in the process, are able to choose the right arbitrators, promptly resolve issues of counterclaiming, etc. It is highly recommended that parties to arbitration are legally represented to ensure their best interests are met. The IQ Decision UK team has extensive experience in providing assistance in the settlement of arbitration disputes in the EU.
Consider starting arbitration in Romania but still have some doubts? Take the opportunity to order a consultation on the arbitration proceedings in Romania and find out more details before you make a final decision. Reach out to us by filling out a short form below.