Arbitration

What is Arbitration?

Arbitration is a process by which, in accordance with an agreement between the parties, a dispute is submitted to one or more arbitrators who make a binding and final decision. Arbitration can only take place if the parties have so agreed. With a view to any future disputes arising from a contract, the parties can agree in advance that these will be submitted to an arbitration tribunal, which will decide in accordance with the chosen arbitration regulation, by including a corresponding arbitration clause in the contract. Even without such a contractually agreed clause, the parties are permitted to utilise the services of the arbitration board and sign an arbitration agreement in the event of a dispute.

Frequent use cases :

• It is an international legal dispute;
• The value in dispute has a certain amount;
• The legal dispute is technically relatively complicated;
• The parties wish the matter to be treated confidentially.

The procedure can be carried out according to fixed rules that are either agreed by the parties or specified by an institution such as the Luxembourg Arbitration Centre (“LAC” – see below)