ARMENIA Law and Practice Contributed by: Mesrop Manukyan, Maria Petrosyan, Grigor Grigoryan and Anahit Sargsyan, MB Legal
merits review on appeal, parties must accept the risk of an unfavourable decision even if they believe that the arbitrator made an error in interpreting the law or facts. Another potential disadvantage is that arbitral tribu- nals lack the state’s coercive power to directly enforce their own orders. For example, if a party refuses to comply with an arbitrator’s order to produce evidence or maintain a certain status quo, the other party may still need to approach a state court for assistance for awards higher than AMD5 million. This can lead to additional time and legal costs if one party is deter- mined to be uncooperative. While the law provides for expedited judicial support for interim measures, in practice obtaining a state court order to freeze assets in support of an ongo- ing arbitration can still take two to four weeks due to court backlogs. 3.5 Arbitral Institutions The most popular arbitral institutions in the country are the Arbitration and Mediation Center of Armenia and the Arbitration Institution at the Chamber of Com- merce and Industry of the Republic of Armenia. These institutions provide a structured set of rules, a list of qualified arbitrators, and administrative support for both domestic and international cases. Many Arme- nian contracts also opt for prestigious international institutions, such as the International Chamber of Commerce (ICC) or the London Court of International Arbitration (LCIA), particularly in large-scale foreign investments. Parties are also free to conduct ad hoc arbitration, where they create their own procedural rules for a spe- cific case rather than using an institution. However, institutional arbitration is generally preferred for its predictability and the existence of “emergency arbi- trator” provisions that can provide quick relief even
and the procedural schedule agreed upon by the par- ties and the tribunal. Institutional rules often set clear deadlines for the submission of pleadings and the issuance of the final award. The finality of the arbitral award is a major factor in reducing the overall time for dispute resolution. Since an award cannot be appealed on its merits, the time that would otherwise be spent in the Court of Appeal and the Court of Cassation is eliminated. Once the award is issued, the process for recognition and enforcement in the state courts is also designed to be expedited. 3.7 Regulation of Arbitration Arbitration in Armenia is regulated by the Law on Com- mercial Arbitration, which is closely modelled after the UNCITRAL Model Law on International Commercial Arbitration. This law provides a comprehensive and modern legal framework for both domestic and inter- national arbitrations seated in Armenia. It covers eve- rything from the formation of the arbitration agreement to the conduct of proceedings and the enforcement of awards. In addition to national law, Armenia is a signatory to the 1958 Convention on the Recognition and Enforce- ment of Foreign Arbitral Awards (the “New York Con- vention”). This treaty ensures that arbitral awards ren- dered in Armenia are enforceable in over 160 other countries, and conversely that foreign awards are rec- ognised and enforced by Armenian courts. The Civil Procedure Code also contains specific chapters that co-ordinate the relationship between the state courts State courts in Armenia have significant powers to support and facilitate the arbitration process. Key powers include the appointment of arbitrators when the parties cannot agree on a candidate or when the agreed-upon mechanism fails. Courts also have the authority to decide on challenges to an arbitrator’s independence or impartiality if the internal arbitration process does not resolve the issue. and arbitral tribunals. 3.8 Court Powers Courts play a vital role in the taking of evidence. If a party or a third-party witness refuses to co-operate
before a full tribunal is formed. 3.6 Length of Proceedings
Arbitral proceedings are generally significantly faster than litigation through three court tiers, typically last- ing between six and 12 months. The specific timeline is largely determined by the complexity of the case
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