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Court or Arbitration - Pluses for Arbitration

 

An advantage of arbitration becomes immediately apparent. The court judges are appointed by the government and as a matter of public policy, the parties are not allowed to choose the particular judge to sit on the dispute.

Being more flexible and divorced from the rigidity of the court rules, the arbitration procedure allows the parties firstly to appoint judges of their own choice and secondly, to challenge them without being compelled to limit their rights to numerous clauses cases listed in the statute, for instance. This freedom is usually usually considered by lawyers when advising their clients to have recourse to one of the adjudication methods.

 

Particular Pluses for Arbitration

It is probably worth mentioning another inherent quality of arbitration in comparison to litigation. That is the confidential character of the proceedings, which are less likely to jeopardise the business relationships between the parties, as well as the position of the parties towards other parties in the international commercial arena.

The awards are only published where the parties' agreement is firstly obtained. Litigation as a matter of definition is subjected to strong public policy standards and the principle of publicity of the acting of the judiciary is supreme regarding the issue. This usually implicates more hostile relationships between the parties and decreases the chance for an out-of-court settlement.

Probably the most obvious advantage of arbitration in comparison to litigation is the shorter procedure. The former does not take years and it finishes in one single instance.

 

Enforceability

There is no problem with the worldwide enforceability of the arbitral award. Bulgaria is a state party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958. The Convention is designed to ensure for the states that are parties to it that the recognition and enforcement of arbitral awards issued in another state party is done through a relatively straight forward and simple procedure. The Convention enjoys almost universal application. The effect of the New York Convention is that in most of the main trading countries in the world, arbitration awards are more easily enforceable than judgments, which in itself supplies a great spur to arbitration.



Roumen V. Petrov
GPNG Law Firm, Sofia

www.gpng-law.org email : This email address is being protected from spambots. You need JavaScript enabled to view it.