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Domestic Arbitration

How fast is domestic arbitration in Georgia?

Domestic arbitration is significantly faster than court litigation, often resolving disputes within 2-4 months, depending on the complexity and institutional rules.

Can I appeal a domestic arbitration award?

No, arbitration awards are final. You can only apply to a court to set aside the award on limited procedural grounds (e.g., lack of valid agreement, violation of due process).

Is domestic arbitration confidential?

Yes, confidentiality is a standard feature of arbitration in Georgia, whereas court proceedings are generally open to the public.

What if the contract does not specify an arbitration institution?

If the arbitration clause is vague ("pathological clause"), you may need legal assistance to interpret it or agree with the other party on an institution post-dispute.

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Domestic Arbitration Services

Domestic arbitration is a dispute resolution mechanism where both parties are local entities within the jurisdiction of Georgia, and the dispute is heard in accordance with Georgian legislation. For local businesses, this is an alternative to court litigation, offering less bureaucracy, time savings, and process confidentiality. Domestic arbitration is particularly relevant for local commercial contracts, real estate, labor, and family property disputes where parties desire a quick outcome. Legal.ge gives you access to qualified arbitrators and lawyers specialized in domestic arbitration proceedings.

Domestic arbitration is quite developed in Georgia, with several reputable arbitration institutions operating. The assistance of a qualified lawyer is important to ensure that the arbitration agreement is valid and that the subsequent award is enforced without issues. Our platform offers services tailored to the needs of local businesses, ensuring a fair outcome.

What Does Domestic Arbitration Service Cover?

Domestic arbitration services focus on the local legal reality and include:

  • Drafting Domestic Arbitration Clauses: Inserting clauses in contracts that preclude court litigation and designate a specific Georgian arbitration institution.
  • Representation in Permanent Arbitration Institutions: Protecting the client in proceedings conducted under the rules of arbitration centers operating in Georgia (e.g., DRC, GIAC).
  • Organizing Ad Hoc Arbitration: Arranging arbitration that is not tied to a specific institution and is created solely for a specific dispute.
  • Expedited Proceedings: Utilizing fast-track arbitration procedures for small claims disputes.
  • Enforcement of Arbitral Awards: Obtaining a writ of execution through the local court and interacting with the National Bureau of Enforcement.

Common Real-World Scenarios

Domestic arbitration is often used in the following cases:

  • Lease Agreement Disputes: A dispute between a commercial landlord and a tenant over unpaid rent or property damage. Arbitration allows for a quick resolution and eviction/repossession if necessary.
  • Distribution Disputes: Conflict between a local manufacturer and a distribution company regarding product sales terms.
  • Service Contracts: A dispute between an IT company and a client regarding the quality of work performed or payment.
  • Property Division Between Business Partners: When founders of a Georgian company dissolve their partnership and wish to divide assets confidentially before registering changes in the Public Registry.

Georgian Legal Framework

Domestic arbitration activities are regulated by the Law of Georgia on Arbitration, which applies to both international and domestic arbitration. The law defines the rules for forming arbitration, procedural guarantees, and decision-making standards. For domestic disputes, the Civil Code of Georgia, which regulates contractual relationships, is significant.

The court's role in domestic arbitration is minimal and limited to supportive functions (e.g., compelling witness attendance, securing claims) and the procedure for recognition and enforcement of the award, as outlined in the Civil Procedure Code.

Step-by-Step Process

  1. Filing a Claim: The claimant submits a claim to a local arbitration institution.
  2. Payment of Fees: Arbitration fees are usually lower or comparable to court fees.
  3. Appointment of Arbitrator: One or three arbitrators are appointed (depending on the complexity of the dispute).
  4. Hearing: The process may be conducted solely on the basis of documents (without an oral hearing), which speeds up the case.
  5. Award: The arbitration issues an award within a short timeframe (often 1-3 months).
  6. Enforcement: The court formally verifies the award and issues a writ of execution.

Why Use Legal.ge?

In local disputes, knowledge of not only the law but also the Georgian business reality is crucial. Legal.ge offers access to specialists who are well-versed in the specifics and practice of local arbitration. By using our platform, you can avoid year-long court queues and receive a fair decision in the shortest possible time.

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