LUXEMBOURG Law and Practice Contributed by: Emilie Waty and Kloris Vjerdha, KLEYR_GRASSO
13. Miscellaneous 13.1 Class Action or Group Arbitration Class action arbitration as well as group arbitration are not contemplated under Luxembourg Arbitration Law. 13.2 Ethical Codes The arbitral framework in Luxembourg does not estab - lish specific ethical codes or professional standards governing arbitral proceedings. Legal practitioners such as lawyers are bound by the Luxembourg Bar Association’s ethical rules, which also encompass There are no specific rules under Luxembourg law excluding the possibility of third-party funding of dis - putes. In practice, third-party funding is available to the parties in the course of the arbitration proceed - ings. 13.4 Consolidation The Luxembourg Arbitration Law does not contain specific provisions regarding the consolidation of arbitral proceedings, and at the time of writing, no separate arbitral proceedings have been consolidated by a Luxembourg court. 13.5 Binding of Third Parties As a general rule, third parties are not bound by an arbitration agreement or an arbitral award, as arbitra - tion is founded on the consent of the parties. conduct in arbitration matters. 13.3 Third-Party Funding Nonetheless, in circumstances where an arbitral award impacts third parties to the proceedings, Article 1244 of the NCCP foresees that a third party may oppose the award that was rendered during the arbitration proceedings.
12.2 Enforcement Procedure Pursuant to Articles 1233 and 1245 of the NCCP, an arbitral award rendered in Luxembourg as well as in a foreign country may be enforced in Luxembourg upon the issuance of an exequatur order granted by the President of the District Court having territorial juris - diction over the domicile of the party against whom enforcement is sought. The exequatur of domestic arbitral awards may be set aside on the basis of six specific and limited grounds enumerated in Article 1238 of the NCCP, whereas the enforcement of foreign awards may be refused on the basis of the same six grounds as well as on four addi - tional grounds foreseen in Article 1243-1 of the NCCP, such as fraud. The order denying the enforcement of an arbitral award must be duly reasoned and may be appealed before the Luxembourg Court of Appeal. The appeal proceedings are adversarial and do not suspend the enforceability of the award except in cases where the enforcement of the award would be highly detrimental to one of the parties. In instances where the enforcement and recognition of an award do not fall within the scope of an interna - tional treaty (such as the New York Convention), the Court of Appeal may not refuse the exequatur of an arbitral award except on one of the grounds in Article 1246 of the NCCP. For instance, a refusal may arise in cases where the arbitral award is contrary to public order or where it is revealed that the opposing party obtained the arbitral award through fraud. 12.3 Approach of the Courts Luxembourg courts consistently uphold a stance in favour of arbitration and respect the principle of arbi - tration autonomy. Accordingly, as evidenced by case law on the matter, national courts will solely decline to enforce arbitral awards in circumstances where there is a clear and manifest breach of public policy.
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