International Commercial Arbitration at Georgia
Here’s a detailed overview of International Commercial Arbitration in Georgia:
International Commercial Arbitration in Georgia
Legal Framework
Arbitration in Georgia is governed by the Law of Georgia on Arbitration (2006), which closely follows the UNCITRAL Model Law on International Commercial Arbitration.
Georgia is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, ensuring the enforceability of arbitral awards internationally.
The law provides a modern and flexible framework for both domestic and international arbitration.
Key Features
Arbitration Agreement
Must be in writing.
Parties have freedom to agree on arbitration for resolving disputes.
Scope
Applies to disputes arising from commercial contracts, including international transactions.
Arbitration is often preferred for cross-border business disputes.
Seat of Arbitration
Parties are free to select the seat (legal place) of arbitration.
If no seat is agreed, the arbitration is considered to be seated in Georgia.
Arbitral Tribunal
Parties appoint arbitrators by agreement.
In case of disagreement, courts or designated appointing authorities can appoint arbitrators.
Court Support and Intervention
Georgian courts provide limited intervention, mainly to support arbitration (e.g., appointing arbitrators, granting interim measures).
Courts may annul arbitral awards only on narrow grounds such as procedural irregularities.
Enforcement
Arbitral awards are final and binding.
Enforcement in Georgia is straightforward and facilitated by the New York Convention.
Awards can be recognized and enforced in Georgian courts without re-examination of the merits.
Arbitration Institutions in Georgia
The Georgian Arbitration Association (GAA) is an active arbitration institution promoting arbitration in Georgia.
Parties may also opt for other international arbitration institutions (ICC, LCIA, etc.) or ad hoc arbitration under UNCITRAL rules.
Summary
Georgia has a modern, internationally harmonized arbitration framework aligned with global standards.
Arbitration is widely accepted and supported by the judiciary.
The legal environment is favorable for both domestic and international commercial arbitration.
The New York Convention membership ensures easy enforcement of awards worldwide.
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