AUSTRIA Law and Practice Contributed by: Bettina Knoetzl, Katrin Hanschitz, Dr Kirstin McGoldrick and Natascha Tunkel, KNOETZL HAUGENEDER NETAL GmbH
TRAL Model Law, with a few minor deviations. Significantly, Austrian arbitration law does not differentiate between domestic and international arbitration. 13.2 Subject Matters Not Referred to Arbitration Under Austrian arbitration law, the definition of arbitrability is broad. The general rule is that pecuniary claims are usually considered arbitra- ble. Non-pecuniary claims are considered arbi- trable if the parties have the capacity to enter into a settlement agreement addressing the spe- cific claim. As a specific exception, family law matters, and all claims based on contracts that are – even partially – subject to the Tenancy Act ( Mietre- chtsgesetz ) or to the Non-Profit Housing Act ( Wohnungsgemeinnützigkeitsgesetz ), as well as all claims concerning condominium property, are precluded from being subject to an arbitration agreement. Moreover, certain collective labour and social security matters are not arbitrable. Although they are generally arbitrable, disputes involving consumers or employees may only be made subject to an arbitration agreement (with additional formal requirements) after the dispute has arisen. The additional formal requirements are extensive and lead to a very high threshold to validly conclude an arbitration agreement with consumers or employees, rendering arbitration agreements in these areas impracticable. 13.3 Circumstances to Challenge an Arbitral Award Within three months of receiving an arbitral award, a party is entitled to file an action to set
the award aside based on one or more of the following grounds. • A valid arbitration agreement does not exist, the arbitral tribunal has denied its jurisdiction despite the existence of a valid arbitration agreement, or a party was incapable of con- cluding a valid arbitration agreement under the law governing its personal status. • A party was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was for other reasons unable to present its case. • The award deals with a dispute not covered by the arbitration agreement, contains deci- sions on matters beyond the scope of the arbitration agreement or exceeds the relief requested; if the defect concerns only a part of the award that can be separated, only that part of the award shall be set aside. • The composition or constitution of the arbitral tribunal was contrary to a provision of Aus- trian arbitration law or with a permissible agreement of the parties. • The arbitral proceedings were conducted in a manner that conflicts with the fundamental values of the Austrian legal system (proce- dural ordre public ). • The decision was based on a fraudulent action or forged document or a criminal ver- dict that has since been reversed (the three- month period to file the action for setting aside does not apply to this ground). • The subject matter of the dispute is not arbi- trable under Austrian law. • The arbitral award conflicts with the funda- mental values of the Austrian legal system (substantive ordre public ). Additional grounds are available if a consumer or an employee is involved. Otherwise, the grounds are exhaustive. It is firmly established in the case
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