LIECHTENSTEIN Law and Practice Contributed by: Moritz Blasy, Nicolai Binkert, Simon Ott and Christian Scheffknecht, Schurti Partners Attorneys at Law Ltd
4.4 Challenge and Removal of Arbitrators It is up to the parties to agree on a removal procedure. The Liechtenstein Arbitration Law, however, provides for a default procedure, in case the parties fail to agree on a removal procedure. According to the pertinent provisions, a party that applies to challenge an arbitrator must preliminarily file a written statement to the arbitral tribunal outlining the reasons for the challenge. The written statement must be filed within four weeks upon the notification of the constitution of the arbitral tribunal or upon the party becoming aware of the reasons for the challenge. An arbitrator may be challenged/removed if circum - stances exist/arise which can cast reasonable doubt on the impartiality or independence of the arbitrator, or if the arbitrator does not fulfil (or no longer fulfils) the conditions agreed by the parties. Upon submission of the written statement, the challenged arbitrator has the possibility to resign from their office, or the other party to the arbitration may agree that the arbitrator in question shall be removed. If the challenged arbitrator does not resign and the parties do not mutually agree on their removal, the arbitral tribunal must decide on the challenge. If the challenge to the arbitral tribunal does not lead to the dismissal of the challenged arbitrator, the chal - lenging party may then approach the Liechtenstein District Court within four weeks to decide on the chal - 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
Rules set forth that the number of arbitrators shall depend on the amount in dispute: the claim shall be decided by a three-member tribunal if the amount in dispute reaches or exceeds CHF1 million, but only one arbitrator shall be appointed if the amount in dis - pute is less than CHF1 million. If the parties agree in the arbitration agreement that an even number of arbitrators shall be appointed, the commissioner shall, upon request of an arbitrator (and not the parties), appoint a presiding arbitrator with a casting vote. As a matter of Liechtenstein law, the judges of the ordinary Liechtenstein courts cannot act as arbitra - tors. 4.2 Default Procedures If the parties fail to choose a method to appoint the arbitrators, or if the chosen appointing procedure fails, the Liechtenstein Arbitration Law provides for a default procedure. Most importantly, the default pro - cedure allows the appointment of one or more arbitra - tors by the Liechtenstein District Court as a fallback option regardless of whether it is a two-party or mul - tiparty arbitration. The Liechtenstein Rules provide for a default proce - dure as well: in the event that the parties fail to appoint arbitrators, the commissioner will appoint the arbitra - tors. 4.3 Court Intervention In principle, the ordinary courts do not intervene in the selection of arbitrators. However, there are two scenarios in which the ordinary courts can intervene: Firstly, if the parties fail to choose a method for the appointment of the arbitrators, or if the chosen meth - od fails, the ordinary courts are competent to appoint one or more arbitrators upon application of either par - ty. Secondly, the ordinary courts may dismiss an arbi - trator upon application of a party for certain reasons. Under the Liechtenstein Arbitration Law, the courts shall take into account any conditions laid down for the arbitrator in the arbitration agreement between the parties and any aspects ensuring the appointment of an independent and impartial arbitrator.
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