What arbitration procedures achieve
Arbitral tribunals are private courts established outside of state courts, designed to definitively resolve or mediate economic disputes and conflicts, both international and domestic, often of a complex nature, between parties from Liechtenstein and abroad, based on a freely agreed-upon arrangement of parties.
Enforceable judgments under the umbrella of the New York Convention
By acceding to the New York Convention on Arbitration in 2011, Liechtenstein took the historic step of enabling the enforcement of such arbitral awards abroad—in the other 145 states that have also ratified this convention. This is one of the many advantages of arbitration awards compared to judgments and decisions of Liechtenstein’s state courts, which generally cannot be enforced abroad or only to a limited extent.
The Liechtenstein Rules
Similar to other internationally recognized arbitration venues such as Paris, Vienna, Stockholm, Zurich, or Geneva, the Liechtenstein Chamber of Commerce and Industry (LCCI) ensures the proper conduct of such arbitration proceedings. To this end, the LCCI has implemented its own set of rules, the Liechtenstein Rules, which can be agreed upon by international and national parties (individuals, economically active companies, legal entities, and trusts from Liechtenstein and abroad). Through these rules, in addition to the internationally oriented arbitration process embedded in Liechtenstein’s Civil Procedure Code, which was recently completely revised in line with the OECD Model Rules, a maximum level of legal certainty is provided.
For more information about the Liechtenstein Rules and Liechtenstein’s arbitration system, please visit www.lis.li. The Liechtenstein Arbitration Association, an initiative of Liechtenstein lawyers specializing in civil litigation and arbitration, works closely with the LCCI in this area.
Ad Hoc Arbitral Tribunals—Knowledgeable Experts Mediating Disputes—Discreet, Competent, Independent, and Cost-Effective
Arbitration procedures are not only characterized by international recognition and enforceability. They offer the significant advantage of prompt and usually relatively cost-effective dispute resolution by experts who can be autonomously selected by the parties involved. These experts are bound by strict confidentiality obligations.
Unlike some chambers of commerce abroad, the LCCI has decided not to maintain a permanent institution dedicated to arbitration but rather to have experienced experts conduct and finalize arbitration proceedings on an ad hoc basis, case by case. The LCCI ensures that any difficulties arising in individual arbitration proceedings are resolved and definitively decided by appropriately experienced experts.
The Secretary of the Arbitration Association (email@example.com) is responsible for appointing a commissioner specifically for a particular arbitration proceeding. This commissioner intervenes, in particular, when single arbitrators or arbitrators of a three-member tribunal need to be nominated due to the failure of the parties to agree. The commissioner can also remove biased arbitrators or replace arbitrators who no longer fulfill their obligations.
An Enhancement for Liechtenstein’s Financial Centre and Economic Location
Liechtenstein’s financial centre and economic location have a proven tradition dating back to the 1920s. Legal certainty, flexibility, and international orientation are parameters of reliability for anyone engaged in economic thinking and action. However, a strong economic location with an international focus is also defined by the ability to quickly and economically resolve complex economic disputes. The Liechtenstein Rules provide parties with a framework to autonomously and expeditiously bring such disputes to a resolution through the expertise of professionals.