LIECHTENSTEIN Law and Practice Contributed by: Moritz Blasy, Nicolai Binkert, Simon Ott and Christian Scheffknecht, Schurti Partners Attorneys at Law Ltd
Schurti Partners Attorneys at Law Ltd Zollstrasse 2 9490 Vaduz Liechtenstein
Tel: +41 44 244 2000 Fax: +41 44 244 2100
Email: mail@schurtipartners.com Web: www.schurtipartners.com
1. General 1.1 Prevalence of Arbitration
in the banking and finance sector is the confidentiality of arbitral proceedings. Further, Liechtenstein’s highly export-orientated manufacturing industry regularly relies on arbitration clauses in agreements with foreign suppliers and cus - tomers. Apart from the arbitration matters which stem from the Liechtenstein fiduciary industry, the Liechtenstein banking and finance sector and the manufacturing industry, Liechtenstein has, over the years, established itself as an attractive place for international arbitration in matters which have, aside from the arbitration itself, no link to Liechtenstein. 1.2 Key Industries The Liechtenstein banking and finance sector, as well as the heavily export-orientated manufactur - ing industry, heavily rely on arbitration in all kinds of agreements. Further, arbitration in relation to trust and foundation matters has become very common in the past few years. Liechtenstein has also established itself as a neutral jurisdiction for international commercial arbitration in which neither of the involved parties has a connection to the Principality. 1.3 Arbitration Institutions The Liechtenstein Chamber of Commerce and Indus - try (LCCI), together with the Liechtenstein Arbitration Association (LIS), published a set of arbitration rules in 2012 (the “Liechtenstein Rules”).
Liechtenstein is well known for its fiduciary indus - try (eg, Liechtenstein foundations and Liechtenstein trusts) and for its strong banking and finance sector. Arbitration clauses in trust deeds and foundation stat - utes are becoming increasingly popular in Liechten - stein. As a result, more and more disputes regarding foundation and trust matters are resolved in arbitra- tion proceedings. Most of these trust and foundation matters are international in nature since the settlors, founders, beneficiaries and creditors of such Liechten - stein private asset structures are often from abroad. The banking and finance sector in Liechtenstein also heavily relies on arbitration clauses in all kinds of agreements. The main reason for the popularity of arbitration in the banking and finance field is that Liechtenstein does not enforce foreign judgments (apart from Austrian and Swiss judgments and child support judgments), and likewise Liechtenstein judg - ments are not enforceable in many foreign jurisdic - tions. However, Liechtenstein is a member of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”). Therefore, unlike ordinary Liechtenstein judgments, Liechtenstein arbitral awards are enforceable in most foreign jurisdictions and, unlike foreign ordinary judg - ments, most foreign arbitral awards are enforceable in Liechtenstein. Another reason for the increasing pop - ularity of arbitration as a means of dispute resolution
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