Arbitration Law in Albania
Arbitration Law in Albania
Arbitration in Albania is governed by the Albanian Code of Civil Procedure and the country follows international arbitration principles. Here’s an overview of Albania’s arbitration framework:
1. Legal Framework
- Albanian Code of Civil Procedure (1996, as amended): Governs both domestic and international arbitration.
- Law on International Private Law (2011): Contains provisions regarding the recognition and enforcement of foreign arbitral awards.
- New York Convention (1958): Albania is a signatory, ensuring enforcement of foreign arbitration awards.
- UNCITRAL Model Law Influence: While Albania has not directly adopted the UNCITRAL Model Law, its arbitration regulations align with many of its principles.
2. Key Features of Arbitration in Albania
- Arbitration Agreement: Must be in writing and clearly state that disputes will be resolved through arbitration.
- Party Autonomy: Parties have the freedom to select arbitrators, the arbitration institution, and procedural rules.
- Arbitral Tribunal: Usually consists of one or three arbitrators, as agreed by the parties.
- Confidentiality: Arbitration proceedings are private unless the parties agree otherwise.
- Limited Court Intervention: Courts can assist with arbitrator appointments and enforce awards but generally do not interfere with proceedings.
3. Enforcement of Arbitral Awards
- Domestic Awards: Enforced through Albanian courts with minimal judicial review.
- Foreign Awards: Recognized and enforced under the New York Convention, unless they violate Albanian public policy.
4. Arbitration Institutions in Albania
- Albanian Chamber of Commerce and Industry Arbitration Tribunal: The primary institution handling arbitration in Albania.
- Ad Hoc Arbitration: Parties may also choose non-institutional arbitration by appointing arbitrators and setting their own rules.
5. Challenges and Considerations
- Limited Institutional Arbitration Framework: Albania lacks a well-established arbitration culture compared to other European countries.
- Judicial Interference Risks: While courts generally respect arbitration, delays in enforcement may occur.
- Lack of Awareness: Businesses often prefer litigation due to limited knowledge of arbitration benefits.
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