LIECHTENSTEIN Law and Practice Contributed by: Moritz Blasy, Nicolai Binkert, Simon Ott and Kathrin Binder, Schurti Partners Attorneys at Law Ltd
lenge. Decisions of the Liechtenstein District Court on such challenges are final, and no ordinary appeal is admissible. However, a complaint to the Constitu - tional Court is possible in case of a violation of con - stitutional rights. The mechanism for the challenge/removal of an arbi - trator under the Liechtenstein Rules is very similar to that under the Liechtenstein Arbitration Law: a party has the right to challenge an appointed arbitrator if cir - cumstances exist/arise which cast doubt on the arbi - trator’s impartiality or independence. Within 15 days of the notification of the appointment or of the party becoming aware of the respective circumstances, the challenge must be made to the concerned arbitrator by indicating the relevant reasons. The challenged arbitrator can then either resign or communicate to the parties (and the other arbitrators) in writing their unwillingness to resign. If the challenged arbitrator refuses to resign, the challenging party has the opportunity to apply within seven days to the commissioner for the dismissal of the challenged arbitrator. The commissioner shall then decide within 30 days. 4.5 Arbitrator Requirements As a matter of both the Liechtenstein Arbitration Law and the Liechtenstein Rules, an arbitrator must be independent and impartial. Prior to the appointment as arbitrator, the prospective arbitrator must disclose all circumstances which might cast doubt on their independence and/or impartiality. This duty is an ongoing one, which means that if such circumstances arise during the proceedings, they must be disclosed by the appointed arbitrator.
An objection against the jurisdiction of an arbitral tri - bunal must be raised by a party no later than at the same time as the first pleading on the substance of the case. If a party fails to do so, the right to object to the jurisdiction of the arbitral tribunal is forfeited. However, the appointment of an arbitrator or the par - ticipation in the appointment of an arbitrator does not preclude a party from raising an objection against the jurisdiction of the arbitral tribunal. 5.2 Circumstances for Court Intervention The ordinary courts can only address issues of juris - diction of an arbitral tribunal upon request of a party. If an action is filed in a matter which is subject to an arbitration agreement, the ordinary courts will reject the respective claim unless the counterparty enters an appearance on the merits without objecting to the jurisdictions of the ordinary courts. If a claim is brought in a matter in which arbitration proceedings are already pending, the claim shall be rejected, unless the jurisdiction or the arbitral tribunal has been challenged and if it is not to be expected that the tribunal will render a decision within an appropri - ate period of time. The arbitral tribunal’s decision on its own jurisdiction is not final, since a judicial reversal action (against the award on the merits or the separate arbitral award dealing exclusively with the question of jurisdiction) may be brought before the Liechtenstein Court of Appeal. 5.3 Timing of Challenge As a general rule, an arbitral award is required in order to be able to challenge the jurisdiction of an arbitral tribunal before the Liechtenstein Court of Appeal. If a party has challenged the jurisdiction of the arbitral tribunal at the beginning of the proceedings, the arbi - tral tribunal may decide on the question of jurisdiction either in a separate arbitral award dealing exclusively with jurisdiction or in the final award. Both kinds of awards may then be challenged before the Liechten - stein Court of Appeal as the sole and last ordinary instance. The only further (extraordinary) remedy is a complaint against the respective decision of the Court
5. Jurisdiction 5.1 Challenges to Jurisdiction
As a matter of the Liechtenstein Arbitration Law, an arbitral tribunal has the competence to rule on its own jurisdiction – ie, whether it is competent to decide on the respective dispute (“competence-competence”). The arbitral tribunal may decide on its own jurisdiction together with the decision on the merits or by separate arbitral award.
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