MOLDOVA Trends and Developments Contributed by: Vladislav Roșca and Ina Jimbei, EFRIM, ROŞCA & Associates
Dispute Resolution: Courts, Arbitration and Other Alternative Methods Judicial reform in the Republic of Moldova is unfolding in a context where traditional court litigation continues to be the primary mechanism for resolving disputes, although the legal landscape is gradually diversifying. The judiciary is structured into three levels: • first-instance courts; • courts of appeal; and the • Supreme Court of Justice, which functions as a court of cassation. At present, the Republic of Moldova does not have fully separate courts specialised by subject matter; however, at the level of the courts of appeal and the SCJ, specialisation emerges through the work of judg- es in designated panels, meaning that they are already grouped into broad areas, primarily civil and criminal. In practice, judicial specialisation also exists within first-instance courts. Although an explicit obligation to maintain specialised judges is formally established only for administrative litigation, in reality judges are assigned to various areas – general civil jurisdiction, administrative disputes, insolvency, criminal matters or, where applicable, the role of investigating judge. This internal organisation contributes to a more con- sistent and efficient application of the law. The Civil Procedure Code provides detailed rules on the circumstances in which Moldovan courts may adjudicate disputes involving a foreign element (Arti- cle 460 of the CPC), as well as situations of exclusive jurisdiction (Article 461). Under these provisions, Mol- dovan courts have both the right and the obligation to examine cases that involve the following, among others: • assets located on Moldovan territory; • contracts to be performed in Moldova; • insolvency proceedings of local companies; or • family law matters in which at least one party is domiciled in the Republic of Moldova. Exclusive jurisdiction is mandatory and cannot be waived by agreement between the parties. Therefore, even if a matter falling under exclusive Moldovan
jurisdiction is brought before a foreign court, initiat- ing the same action in the Republic of Moldova does not violate the principle of respect for foreign jurisdic- tion (Article 461 (3) of the CPC). Consequently, foreign judgments issued in disregard of the exclusive juris- diction of Moldovan courts cannot be recognised or enforced in the Republic of Moldova (Article 471 (1) (c)). At the same time, jurisdictional rules reflect the prin- ciples of state sovereignty and party autonomy, as national courts respect valid forum selection clauses and arbitration agreements, insofar as they do not conflict with the exclusive jurisdiction established by law. Arbitration In recent years, arbitration has begun to gain ground in the Republic of Moldova as an alternative method of dispute resolution, although its practical use remains limited compared to Western jurisdictions. Parties may resort to both institutional arbitration and ad hoc arbitration, depending on the nature and value of the dispute. Foreign investors, in particular, frequently include arbitration clauses in their commercial con- tracts in order to benefit from neutrality, confidentiality and the enforceability of arbitral awards. The Republic of Moldova is currently reforming its arbitration framework. The draft of the new Arbitra- tion Law, developed by a working group under the auspices of the Ministry of Justice, aims to replace the current dual system (Law No 23/2008 on Arbitra- tion and Law No 24/2008 on International Commercial Arbitration) with a unified law inspired by the UNCI- TRAL Model Law. The new framework introduces sev- eral improvements, including: • reducing the time limit for challenging arbitral awards from three months to 30 days; • enabling the consolidation of proceedings; • establishing a mandatory procedural timetable to increase efficiency; and • in certain cases, allowing for the appointment of a sole arbitrator in low-value disputes.
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