LIECHTENSTEIN Law and Practice Contributed by: Moritz Blasy, Nicolai Binkert, Simon Ott and Christian Scheffknecht, Schurti Partners Attorneys at Law Ltd
2. Governing Legislation 2.1 Governing Law
A peculiarity of the Liechtenstein Rules is the absence of an actual administration. The LCCI – contrary to most other arbitral institutions – does not maintain a permanent (and costly) body with regard to arbitration. Rather, the LCCI merely appoints a secretary for arbi - tral proceedings who has minimal duties. The activ - ity of the secretary is limited to the appointment of a commissioner upon application of a party to arbitral proceedings. The duties of the commissioner are to decide on the appointment or dismissal of arbitrators and to review the costs of arbitral proceedings upon request of a party. In fact, the function of the commissioner, according to the Liechtenstein Rules, is similar to that of an arbitra - tion commissioner or a secretary general of a typical institutional arbitration. Consequently, it is possible to conduct arbitral proceedings without the involvement of the secretariat and the appointment of a commis - sioner. If any problems arise and the support of a third party is required, the Liechtenstein Rules provide for a mechanism to appoint an independent person who in turn is subject to a legal confidentiality obligation. This is a major advantage of the Liechtenstein Rules, since the benefits of institutional arbitral proceed - ings and of ad hoc proceedings (ie, flexibility, cost- efficiency and confidentiality) are combined. The fact that the LCCI does not maintain any expensive per - manent infrastructure with regard to arbitration is in line with one of the most important goals of the Liech - tenstein Rules – namely, to provide for cost-efficient The Liechtenstein Court of Appeal has exclusive juris - diction to set aside an arbitral award, and a decision of the Court of Appeal setting aside an arbitral award or dismissing an action for the award to be set aside cannot be appealed. However, a complaint to the Constitutional Court is possible in case of a violation of constitutional rights. The Liechtenstein District Court has jurisdiction to order judicial auxiliary measures during pending arbi - tration proceedings (ie, default procedures, and pre - liminary and interim relief). high-quality arbitration. 1.4 National Courts
If Liechtenstein is the seat of the arbitration, the arbi - tration proceedings are governed by the Liechtenstein Arbitration Law set forth in the Liechtenstein Civil Pro - cedure Code (Articles 594 to 635). These provisions are mostly non-mandatory, and the parties may auton - omously agree for specific arbitration rules to apply. The Liechtenstein Arbitration Law is largely based on the UNCITRAL Model Law on International Commer - cial Arbitration (the “UNCITRAL Model Law”) and the respective provisions of the Austrian Civil Procedure Code (which in turn are also based on the UNCITRAL Model Law). The fact that Liechtenstein adopted many provisions from the Austrian Arbitration Law has the advantage that in the absence of specific Liechtenstein case law and legal doctrine, one can refer to Austrian case law and legal doctrine for the construction of the Liechten - stein Arbitration Law. This is a huge asset for a small jurisdiction such as Liechtenstein. Divergence From the UNCITRAL Model Law The Liechtenstein Arbitration Law is based on the UNCITRAL Model Law but diverges in a few note - worthy areas. Significantly, the Liechtenstein Arbitra - tion Law does not distinguish between national and international arbitration proceedings. Also, a chal - lenge of an arbitral award must be submitted within four weeks of the date of receipt of the award, as opposed to the three months the UNCITRAL Model Law provides for. Another example of divergence is that the Liechtenstein Arbitration Law does not con - tain specific conflict-of-laws rules, leaving the choice of law to the arbitral tribunal if no choice has been made by the parties. 2.2 Changes to National Law The most recent change to the Liechtenstein Arbitra - tion Law, by which the restriction on consumers par - ticipating in arbitration proceedings has been eased, came into effect on 1 August 2017. The change had a major impact on arbitration in corporate, foundation and trust matters, since it is now explicitly stipulated that arbitration clauses included in articles of associa - tion, trust deeds or foundation statutes are binding
527 CHAMBERS.COM
Powered by FlippingBook