2017 | Enero 30
While it is common knowledge for law professionals that parties bound by commercial contracts have, according to Romanian law, the legal option to defer their contractual disputes to arbitration as an alternative to state courts, such option remains rather unknown to the Romanian business environment. This explains why a number of misconceptions and myths about arbitration have appeared in time and – sadly – continue to deprive business entities from a method of commercial dispute resolution which can be competent, flexible, confidential, and efficient.
Considering its advantages over court litigation, arbitration is recognized and supported by the Romanian state as a private jurisdiction and as a method of alternative dispute resolution. This is done mainly by way of the norms of the Romanian Civil Procedure Code, drafted in accordance with international arbitration conventions to which Romania has adhered, with special regard to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, from 1958. However, the laws of arbitration, as any laws, are a useful tool only in the hands of those who know how they work and how to use them.