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Commercial Arbitration

Is arbitration faster than going to court in Georgia?

Generally, yes. Arbitration avoids the lengthy appeals process found in the court system, as arbitral awards are typically final and binding, leading to a quicker resolution.

Can I choose who decides my dispute?

Yes, one of the key benefits of arbitration is the ability to select an arbitrator with specific expertise relevant to your dispute, unlike in court where judges are assigned randomly.

Are arbitration proceedings confidential?

Yes, unlike court trials which are generally public, arbitration proceedings are private and confidential, protecting sensitive business information and reputation.

Is a foreign arbitral award enforceable in Georgia?

Yes, Georgia is a signatory to the New York Convention, meaning foreign arbitral awards are recognized and enforceable in Georgian courts, subject to standard procedural verification.

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Commercial Arbitration Services in Georgia

Commercial arbitration is an alternative, flexible, and effective dispute resolution mechanism that is becoming increasingly popular among the business sector in Georgia. It is a process where parties agree to have their dispute resolved not by a court, but by a private arbitrator or tribunal, whose decision is final and binding. The institution of arbitration is developing rapidly in Georgia, contributing to a healthier business environment and attracting investment. Commercial arbitration is particularly attractive for companies that wish to avoid public court litigation, maintain confidentiality, and receive a swift decision from qualified specialists. On Legal.ge, you can find experienced lawyers and arbitrators to assist you at every stage of the arbitration process.

Arbitration proceedings require specific knowledge and expertise, as they are regulated by both local legislation and international conventions. The involvement of a qualified lawyer is essential from the correct drafting of the arbitration agreement to the enforcement of the arbitral award. This service is designed for both local and international companies seeking effective resolution of business disputes.

What Does Commercial Arbitration Service Cover?

Legal services in the field of commercial arbitration are complex and include assistance before the dispute arises, during the process, and after its conclusion. Specialists offer:

  • Drafting Arbitration Agreements (Clauses): Formulating precise and enforceable arbitration clauses in contracts, defining the seat of arbitration, language, and applicable law.
  • Representation in Arbitration: Protecting client interests before the arbitral tribunal, preparing claims, submitting evidence, and participating in oral hearings.
  • Selection of Arbitrators: Identifying arbitrator candidates with appropriate qualifications and reputation based on the specifics of the dispute and participating in the appointment process.
  • Requesting Interim Measures: Filing motions before the arbitral tribunal or court for interim measures to secure the claim when necessary.
  • Recognition and Enforcement of Arbitral Awards: Enforcing decisions made by arbitration within the territory of Georgia or abroad, in accordance with the New York Convention.
  • Set-Aside Proceedings: Applying to the court to set aside an arbitral award in exceptional cases provided by law.

Common Real-World Scenarios

The need for commercial arbitration arises in various business scenarios. Here are a few real-life examples:

  • International Trade Dispute: A dispute arose between a Georgian company and a foreign partner due to a violation of product delivery deadlines. The contract specified that the dispute should be resolved by arbitration to avoid the bias of national courts in either country.
  • Investment-Related Dispute: A foreign investor believes that a local partner violated the terms of a shareholders' agreement. To protect confidentiality, the parties resort to arbitration.
  • Construction Contract Breach: A dispute arose between a developer and a contractor regarding the quality of work performed. The dispute requires technical expertise, leading the parties to choose an arbitrator who is a specialist in the field.
  • Credit Dispute with a Financial Institution: A dispute between a bank and a corporate client regarding loan restructuring terms. To achieve a quick resolution, the case is heard in arbitration.

Georgian Legal Framework

In Georgia, the field of arbitration is regulated by modern and liberal legislation based on international standards. The primary regulatory act is the Law of Georgia on Arbitration, which is based on the UNCITRAL (United Nations Commission on International Trade Law) Model Law. This law ensures the autonomy of arbitration and limits court intervention in the arbitral process.

Additionally, the Civil Procedure Code of Georgia is important, as it regulates the procedures for the recognition and enforcement of arbitral awards in court. Georgia is also a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which means that an arbitral award made in Georgia is enforceable in over 170 countries worldwide, and vice versa.

Step-by-Step Process

The commercial arbitration process usually involves the following stages:

  1. Initiating Arbitration: The claimant submits a request for arbitration to an arbitration institution or a private arbitrator based on the arbitration agreement.
  2. Formation of the Tribunal: An arbitrator or panel of arbitrators is appointed according to the parties' agreement or arbitration rules.
  3. Exchange of Written Submissions: Parties submit statements of defense, evidence, and legal arguments.
  4. Oral Hearing: A hearing is held (if necessary) where parties and witnesses provide testimony.
  5. Issuance of Award: The tribunal issues a final award, which is binding on the parties.
  6. Enforcement: If not complied with voluntarily, a party applies to the court for a writ of execution.

Why Use Legal.ge?

Legal.ge is the most comprehensive platform in Georgia connecting you with qualified arbitrators and arbitration law specialists. Lawyers registered in our database possess deep knowledge of both local and international arbitration practices. Finding a specialist on Legal.ge allows you to select a professional based on the specifics of the particular dispute (e.g., construction, banking, trade), which increases your chances of success.

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