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Arbitration is one of the most common ways of alternative resolution of business conflicts in Romania. The jurisdiction is working hard to form the correct pro-arbitration court practice. There are very positive developments in this matter.

Practice is being developed that is consistent with the best arbitration standards and principles. But it is important not only to form, but also to maintain and develop a new progressive pro-arbitration legal position in judicial practice, as well as to ensure that this becomes a stable practice in courts of all instances. Romania is on the right path of development of the pro-arbitration direction.

Today's blog post will help you understand the key aspects of the arbitration regulation in Romania, as well as the legal requirements for this type of ADR.

Legal and regulatory framework

If you intend to initiate arbitration proceedings in Romania, it should be borne in mind that although the country is a member of the EU, it has not yet incorporated UNCITRAL into its legislation. Therefore, the arbitration process in Romania is regulated autonomously by the local Civil Procedure Law, which differs significantly from the Model Law.

Replacement of arbitrators

If the arbitration agreement/clause does not mention the question of the composition of the arbitral tribunal, then automatically each party will be offered one arbitrator. The president of the court is appointed by the parties' arbitrators.

Those who plan to settle a dispute through arbitration in Romania should take into account that the parties are free to withdraw and replace the arbitrator for certain reasons, namely:

  1. Insufficient qualifications to deal with a specific dispute;
  2. Conflict of interest;
  3. Any relationship of the arbitrator with one of the parties or with a company controlled by that party;
  4. The arbitrator advised or represented one of the parties.

Features of the organization of the arbitration process in Romania

If the arbitration agreement refers to the dispute settlement in Romania in the context of the transfer of property rights, the agreement must be concluded in an authentic notarized form with a sanction of absolute invalidity.

Parties have the right to determine the procedural rules applicable to the arbitration proceedings, or can entrust such a choice to the arbitral tribunal.

The procedures chosen by the parties should not run counter to the principles of civil proceedings, namely:

  • dispute settlement by arbitration in Romania should ensure equal access to justice for all the conflict participants;
  • the parties can not be forced to initiate arbitration;
  • each party has to monitor the obligations and deadlines set by the court;
  • each party has the right to a defense and can have access to the case file, request evidence and present its oral and written arguments;
  • arbitration process in Romania is adversarial;
  • hearings are conducted in person, unless otherwise agreed in the agreement.

NOTE: A very specific feature of the Romanian arbitration is the fact that a decision of the arbitration court can be cancelled in case The Constitutional Court declared unconstitutional the law or any legal provision that constitutes a part of the law relating to arbitration after the date of the award has been announced.

Conclusion

Romania is becoming a more arbitration-friendly country and a more comfortable place to settle business conflicts through arbitration. The number of courts to consider issues of judicial control and support for arbitration has been reduced.

The courts of appeal will now consider applications for cancellation, recognition and enforcement of arbitral awards, applications for interim measures and applications for securing evidence. Of course, this will contribute to the speed and efficiency of the arbitration process in Romania.

If you have any questions on the topic of today's publication, you can contact us in any way convenient for you and sign up for a consultation on the commencement of arbitration proceedings in Romania. Qualified specialists from IQ Decision UK will advise you on the regulation of arbitration in the EU countries and provide assistance in resolving a business dispute in Romania.