ARMENIA Law and Practice Contributed by: Mesrop Manukyan, Maria Petrosyan, Grigor Grigoryan and Anahit Sargsyan, MB Legal
4. Other ADR Methods 4.1 ADR Procedures
with an arbitral tribunal, the court can issue orders to compel the production of documents or the attend- ance of witnesses. Furthermore, courts can grant interim measures (such as asset freezes) in support of both domestic and international arbitrations, ensur- ing that the subject of the dispute is preserved while Court intervention in arbitration is strictly limited by law to specific, enumerated instances. Armenian courts generally follow a “pro-arbitration” approach, meaning they will not interfere with the merits of an arbitrator’s decision or replace the tribunal’s judgment with their own. Intervention is only permitted for mat- ters such as challenging an arbitrator, determining a tribunal’s jurisdiction, or setting aside an award on procedural grounds. the tribunal is deliberating. 3.9 Court Intervention The grounds for setting aside an award are narrow and include things such as an invalid arbitration agree- ment, lack of proper notice to a party, or the award dealing with a dispute not covered by the agree- ment. A court may also intervene if the award violates Armenian public policy or if the subject matter is not legally capable of being settled by arbitration. Outside these specific grounds, the courts are prohibited from reviewing the arbitrator’s findings of fact or applica- tion of law. 3.10 Relief Arbitral tribunals have broad authority to grant a wide range of relief, including monetary awards, injunctions and specific performance. A tribunal can order a party to pay a specific sum, deliver property or cease a par- ticular activity. Tribunals also have the power to grant interim relief to preserve assets or evidence during the course of the proceedings. There are no major restrictions on a tribunal’s power to grant interim relief, provided the measure is neces- sary and related to the subject of the dispute. How- ever, unlike a court order, an arbitral interim measure is not directly enforceable by state bailiffs. If a party ignores the tribunal’s order, the prevailing party must seek judicial assistance to turn the tribunal’s order into an enforceable state court act.
Apart from arbitration, the primary formal ADR proce- dure in Armenia is mediation, which is governed by the Law on Mediation. Mediation is a process where an independent, neutral third party (the mediator) helps the parties negotiate a mutually acceptable settle- ment. Mediators do not impose a decision but facili- tate communication and creative problem-solving. Negotiation remains the most common informal ADR method, often used as a first step before any formal process is initiated. ADR methods are typically used when parties agree to them in their contract. 4.2 Requirements to Engage in ADR While engaging in ADR is generally voluntary, certain categories of disputes require a mandatory mediation attempt before a party can file a lawsuit. For example, certain family law matters (such as alimony or child custody) and some health insurance-related disputes now have mandatory mediation components. The goal is to filter out cases that can be settled amica- bly, thereby reducing the burden on the state judiciary. If a party fails to participate in mandatory mediation, the court may refuse to examine the claim or impose procedural sanctions. In voluntary ADR, the parties are free to withdraw from the process at any time with- out penalty. For commercial contracts, if a multi-tiered dispute resolution clause exists (requiring mediation before arbitration), the court or tribunal will typically stay the proceedings until the mediation requirement has been satisfied. 4.3 Impact of ADR Engaging in ADR does not result in a waiver of a party’s right to litigate or arbitrate if the process fails to produce a settlement. If mediation is unsuccess- ful, the parties can proceed to court or arbitration as if the ADR process had not occurred. However, if a settlement is reached and formalised into a written agreement, it can be submitted to a court for approval. Once a mediated settlement is approved by a court, it has the same legal force and effect as a final judg- ment. This means that it is binding on the parties and can be enforced through the Compulsory Enforce-
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