The High Cost Of Arbitration, The Government Relies On Private Justice
Nga OraNews Përditësimi i fundit 20 Gusht 2020, 15:41
After losing millions of euros in internationalarbitration, the Albanian government has thought of another scenario to curbcommercial entities to address this institution. The executive intends tolegally establish the Arbitration Court in the country.
The bill passed by the Ministry of Justice requires thatcommercial disputes be reviewed in the country with a private justice, in orderto prevent the subjects from resorting to international arbitration.
After the failure of the Albanian state with the"Bechetti" case, the government seeks to curb the "exodus"of commercial issues towards international arbitration.
The Ministry of Justice has considered establishing bylaw the Arbitration Court in the country to review commercial disputes withparties and institutions.
According to the initiative, which is in the phase ofpublic consultation, the draft law "On Arbitrage" aims to givealternative options to the parties to resolve disputes not only to the courtsin the country but to have a special institution that will be taken with theseparticular issues.
Also, the executive seeks to convince stakeholders thatwith the arbitration institution in Albania will be created a more flexible andfunctional system with less costs, and it is thought that international tradeinvestments will be encouraged.
But this still remains an enigma as the costs of thisprocess will have to be regulated by normative acts. But the key to this billis to appeal the decision of the Arbitration Court, which does not happen basedon the model of the law on international arbitration.
The Court of Appeals may annul arbitral awards, anarticle which may lose the trust of the parties to undergo a private justiceprocess.
As soon as the parliamentary session starts, thegovernment will submit the draft law to the Assembly to be subject to thehearings and then go to the Parliament for approval.
After the loss with the Bechetti case, this draft lawhas been a request of Edi Rama, with the justification of avoiding theinternational trial, from which his government has emerged lost.
