Scheme of the Arbitral Proceedings
Arbitration is a procedure for resolving disputes before the Arbitral Tribunal that can be composed of one or more arbitrators. The Ljubljana Arbitration Rules enable the parties to agree on the number of arbitrators. Where the parties have not agreed on the number of arbitrators, the dispute is to be decided by a panel of three arbitrators unless the Board, taking into account the complexity of the case, the amount in dispute or other circumstances, decides that the dispute is to be decided by a sole arbitrator.
Where the Arbitral Tribunal is to consist of a sole arbitrator, the parties shall nominate the arbitrator jointly. Where the Arbitral Tribunal is to consist of more than one arbitrator, each party shall nominate an equal number of arbitrators. The arbitrators thus nominated shall nominate the arbitrator who is to act as the Chairperson of the Arbitral Tribunal.
Every arbitrator must be impartial and independent and the confirmation of a nominated arbitrator shall be decided upon by the Secretariat. Once all nominated arbitrators have been confirmed, the Arbitral Tribunal is constituted. As soon as the Arbitral Tribunal has been constituted and the advance on costs has been paid, the Secretariat shall transmit the file to the Arbitral Tribunal. The final award shall be made no later than nine months (six months in the case of expedited arbitral proceedings) from the date upon which the file was transmitted.
Arbitration enables the parties to agree on all relevant aspects of the proceedings (the number of arbitrators, procedural rules, the seat of the arbitration, the language of the proceedings, etc.).
Scheme of the Arbitral Proceedings According to the Ljubljana Arbitration Rules
(1)
The arbitral proceedings commence when the Request for Arbitration is received by the LAC.
Upon filing the Request for Arbitration, the Claimant must pay a registration fee. Until the registration fee has been paid, the Secretariat will not send the Request for Arbitration to the Respondent.
The Request for Arbitration (together with any attachments) must be submitted in a sufficient number of copies (for the LAC, each of the parties and each of the arbitrators), unless they are submitted by electronic means.
(2)
A so-called prima facie examination of jurisdiction is carried out. The LAC may refuse to administer a case in whole or in part if it is prima facie evident that there is no jurisdiction over the dispute under the Ljubljana Arbitration Rules or, where, in its discretion, the Board finds that any agreement by the parties would disproportionately hinder the proceedings or is incompatible with the Rules.
The Secretariat sends the Request for Arbitration to the Respondent. After receiving the Answer to the Request for Arbitration, the Secretariat sends it to the Claimant.
The Secretariat shall determine the amount to be paid by the parties as an advance on the costs of the arbitration.
(3)
The Respondent must submit an Answer to the Request for Arbitration within a time period set by the Secretariat, which as a rule, shall not be shorter than 30 days.
The Answer to the Request for Arbitration (together with any attachments) must be submitted in a sufficient number of copies (for the LAC, each of the parties and each of the arbitrators), unless they are submitted by electronic means.
The Respondent shall, as a rule, make any counterclaims or set-off claims upon the submission of the Answer to the Request for Arbitration.
If the Respondent fails to submit an Answer to the Request for Arbitration, the proceedings shall continue.
(4)
The parties may agree on the number of arbitrators. Where the parties have not agreed on the number of arbitrators, the Board shall decide whether the Arbitral Tribunal shall consist of a sole arbitrator or three arbitrators, having regard to the complexity of the case, the amount in dispute and any other relevant circumstances.
Where the Arbitral Tribunal is to consist of a sole arbitrator, the parties shall nominate the arbitrator jointly. If the parties fail to do so, the appointment shall be made by the Board.
Where the Arbitral Tribunal is to consist of more than one arbitrator, each party shall nominate an equal number of arbitrators. The arbitrators thus nominated shall, after their confirmation, within the time period set by the Secretariat, nominate the arbitrator who is to act as the Chairperson of the Arbitral Tribunal.
Where any of the arbitrators is not nominated within the time period agreed by the parties or set by the Secretariat, the appointment shall be made by the Board.
The nominated arbitrator must be confirmed by the LAC. Upon confirmation, the nominated arbitrator is considered appointed. Once all nominated arbitrators have been confirmed, the Arbitral Tribunal is constituted. The Secretariat shall notify the parties accordingly.
(5)
The Secretariat shall determine the amount to be paid by the parties as an advance on the costs of the arbitration.
The Claimant and the Respondent shall each pay half of the advance unless separate advances have been determined.
If a party fails to pay the required advance within the period of time determined by the Secretariat, the Secretariat shall direct the other party to make the payment and set a time period for payment. If the payment is not made, the Secretariat may terminate the proceedings in whole or in part. If the other party makes the payment, the Arbitral Tribunal may, at the request of that party, make a separate award by which it orders the defaulting party to reimburse the other party for the paid advance.
(6)
As soon as the Arbitral Tribunal has been constituted and the advance on costs has been paid, the Secretariat shall transmit the file to the Arbitral Tribunal. The Tribunal shall promptly hold a case management conference with the parties to organise, schedule and establish procedures for the conduct of the arbitration. During or promptly following the case management conference, the Arbitral Tribunal shall establish a procedural timetable for the conduct of the proceedings. By way of the procedural timetable, the Arbitral Tribunal shall set the periods of time for the submission of the Statement of Claim and the Statement of Defence as well as any further written submissions, the date(s) of the hearing, the date until which the Arbitral Tribunal shall make the final award and other particulars it deems necessary.
The Arbitral Tribunal shall send the procedural timetable and any amendments to the parties and the LAC.
(7)
The Claimant shall submit its Statement of Claim to the Respondent, each of the arbitrators and the LAC within the period of time determined by the Arbitral Tribunal.
Unless already contained in the Request for Arbitration, the Statement of Claim shall include:
i. the relief or remedy sought; and
ii. the statement of facts and legal grounds supporting the claim.
To the extent possible, the Statement of Claim shall be accompanied by all documents and other evidence on which the Claimant relies.
(8)
The Respondent shall submit its Statement of Defence to the Claimant, each of the arbitrators and the LAC within the period of time determined by the Arbitral Tribunal.
Unless already contained in the Answer to the Request for Arbitration, the Statement of Defence shall include:
i. a statement whether and to what extent the Respondent admits or denies the relief or remedy sought by the Claimant; and
ii. a statement of the facts and legal grounds supporting the defence.
To the extent possible, the Statement of Defence shall be accompanied by all documents and other evidence on which the Respondent relies.
The provisions pertaining to the Statement of Claim shall apply mutatis mutandis to a counterclaim and a set-off claim.
(9)
A hearing shall be held if requested by a party, or if deemed appropriate by the Arbitral Tribunal.
(10)
Before making the final award, the Arbitral Tribunal shall obtain from the Secretariat a final determination of the costs of the arbitration. Where the proceedings are terminated prior to the making of the final award by way of an order for termination of the proceedings or an award on agreed terms, the Secretariat shall finally determine the costs of the arbitration, having regard to the stage in which the proceedings have terminated, the work performed by the Arbitral Tribunal and any other relevant circumstances.
(11)
The final award shall be made no later than nine months from the date upon which the file was transmitted to the Arbitral Tribunal. For justified reasons, the Board may extend this time limit upon a reasoned request by the Arbitral Tribunal or of its own motion.
The Arbitral Tribunal may make separate awards on individual claims and issues.
An award shall be final and binding on the parties. As regards the parties, an award shall have the effect of a final and binding court judgment.
(12)
The Arbitral Tribunal shall include in the final award, the award on agreed terms or the order for termination of the proceedings the costs of the arbitration as finally determined by the Secretariat and specify the individual fees and expenses of each of the arbitrators and the LAC.
The LAC shall pay out the costs of the arbitration from the advance paid by the parties. After the proceedings have concluded, any unused amount of the advance shall be returned to the parties.