Lex Mundi Global Arbitration Institutions Guide |
|
Malta |
|
|
(Europe)
Firm
Ganado Advocates
Contributors
Antoine Cremona |
|
| Name of Arbitral Institution; with abbreviation, if any. | Malta Arbitration Centre ("MAC"). |
| Where is the seat of the Arbitral Institution? | Palazzo Laparelli, 33, South Street, Valletta, VLT1100, Malta. |
| Is there an umbrella organization for the Arbitral Institution? | The MAC is publicly owned by the Republic of Malta. |
| How is the Arbitral Institution structured? | The MAC is led by a 5-member Board of Governors which handles the Centre’s policy and general administration of business. The MAC also has a Registrar who handles the day-to-day operations of the MAC and who is also secretary to the Board. |
| Is there a compulsory list of arbitrators that parties are required to choose from? | No. The MAC does have panels of arbitrators (which are not disclosed)the and in practice, it refers to the arbitrators on those panels when it is asked to appoint a sole or presiding arbitrator. |
| Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | The default venue is the Malta Arbitration Centre, but parties are free to choose an alternative venue, whether in Malta or elsewhere. |
| What is the amount of the registration fee? | With respect to international arbitration, filing fees are calculated according to the following table: • Claims for an amount of up to USD 10,000 - Filing fees shall be USD 500 • Claims for an amount of more than USD 10,000 up to USD 50,000 – Filing fees shall be USD 750 • Claims for an amount of more than $50,000 up to $100,000 – Filing fees shall be USD 1,250 • Claims for an amount of more than USD 100,000 up to USD 250,000 – Filing fees shall be USD 2,000 • Claims for an amount of more than USD 500,000 up to USD 1,000,000 – Filing fees shall be USD 4,000 • Claims for an amount of more than USD 1,000,000 up to USD 5,000,000 – Filing fees shall be USD 6,000 • Claims for an amount of more than USD 5,000,000 – Filing fees shall be negotiable. Based on our experience in the past, the Registrar roughly charges a filing fee of USD 6,000 for every USD 5,000,000 increment. With respect to domestic arbitration, the filing fee for a claim, counter-claim, or additional claim is 25% of the equivalent ad valorem registry fees due to the Superior Courts of Malta under the relative legal notices issued in terms of the Code of Organisation and Civil Procedure (Chapter 12 of the Laws of Malta). In any case, the minimum fee is nominal, roughly €100. |
| What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | Generally speaking, the arbitrators’ fees may be agreed between the arbitral tribunal and the parties. If there is no agreement, the amount due to the sole arbitrator would be roughly €12,000 while recoverable legal costs would be roughly €10,000. |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | In case of no agreement between the parties and the arbitral tribunal, each arbitrator would be entitled to roughly €35,000 while recoverable legal costs would be roughly €100,000. |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | In case of no agreement between the parties and the arbitral tribunal, each arbitrator would be entitled to roughly €305,000 while recoverable legal costs would be roughly €1,000,000. |
| Who pays advances on costs? What happens in the event of default? | The arbitral tribunal, upon its establishment, may require all parties to deposit an equal sum between them as an advance payment for the tribunal’s fees and any expert advice required. In the event of default, the arbitral tribunal shall inform the parties so that any one of them may make the required payment. If default subsists, the tribunal may order the suspension or termination of arbitral proceedings. |
| Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | No, although, it does have standard forms parties tend to use. You will find them here (https://mac.org.mt/en/ArbitrationForms/Pages/Application-Forms.aspx). |
| Which languages can be used for communication with the Arbitral Institution? | English. |
| Who is the main point of contact for the parties within the Arbitral Institution? | Dr. Fiona Galea Farrugia, the Registrar of the Malta Arbitration Centre, is the main point of contact. Her e-mail address is fiona.galeafarrugia@mac.com.mt. |
| Are there restrictions on the language that the arbitration may be conducted in? | No. |
| Who appoints substitute arbitrators? | Chairman of the MAC's Board of Governors. The Chairman is appointed by the President of Malta upon the advice of the Prime Minister and he/she must have been practicing as a lawyer for over 12 years. |
| Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | The Malta Arbitration Act lays down the procedure for appointment of arbitrators by multiple parties, however, apart from that, there are no specific regulations. |
| Are oral hearings compulsory? | No. |
| What are common evidence-taking practices? | The parties to the arbitration proceedings submit their evidence, whether it is documentation or witnesses (by affidavit or viva voce), within time periods prescribed by the arbitral tribunal followed by a round of cross-examination of the same witnesses produced by both parties. The MAC does have facilities to hear witnesses via videoconference. The arbitral tribunal is also allowed to demand the assistance of the Superior Courts of Malta in the collection of evidence, in particular, the issue of subpoenas for witnesses residing in Malta (or even possibly residing abroad under international legal conventions). There is no framework for the disclosure/discovery of documents in the initial stages of the proceedings. |
| What is the average duration of arbitration proceedings? | Naturally, this varies depending on the parties and the arbitral tribunal, however, in our professional experience, international arbitration proceedings are concluded within 1-2 years. |
| What is the timeframe for rendering the award? | There is no mandatory time frame imposed by law or by the MAC. However, upon the registration of the arbitration proceedings, it is customary for the MAC to issue a tentative time schedule for the conclusion of the arbitration proceedings within a period of 10 - 14 months. Parties do not tend to follow this proposed time schedule. |
| Are extensions to time limits permissible? | NA |
| Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | Arbitral tribunals are able to issue an interim order against any one of the parties in the case of international arbitration proceedings on the basis of Article 17 of the 1985 UN Model Law. In case of non-compliance, the interim order may be enforced on the defaulting party through the Superior Courts of Malta (or any Contracting Party to the 1958 New York Convention). Parties to arbitration proceedings may also ask for the Superior Courts of Malta to issue interim measures against the parties to the arbitration and even third parties in support of the pending arbitration proceedings, including, a warrant of prohibitory injunction, a garnishee order (attaching funds held in third parties), warrants of seizure/arrests of vessels/aircraft (attaching things whether movable or immovable). |
| Do the institutional rules provide for an emergency arbitrator? | No. |
| Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | No. |
| Are arbitral awards submitted for scrutiny? If so, to whom? | No formal secretariat or Board of Governor's scrutiny. However, arbitral awards are at times informally proof-read by the Registrar of the MAC. |
| Do costs necessarily follow the event? | Yes. An award will not be issued by the MAC prior to the settlement of costs. |
| Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes, awards can be set aside on grounds roughly identical to the grounds for denial of enforcement under the 1958 New York Convention. |
| Link to institutional rules | |
| Link to model clause | https://mac.org.mt/en/Arbitration/Pages/Arbitration-Clauses.aspx |
Lex Mundi Global Arbitration Institutions Guide
Malta Arbitration Centre ("MAC").
Palazzo Laparelli, 33, South Street, Valletta, VLT1100, Malta.
The MAC is publicly owned by the Republic of Malta.
The MAC is led by a 5-member Board of Governors which handles the Centre’s policy and general administration of business. The MAC also has a Registrar who handles the day-to-day operations of the MAC and who is also secretary to the Board.
No. The MAC does have panels of arbitrators (which are not disclosed)the and in practice, it refers to the arbitrators on those panels when it is asked to appoint a sole or presiding arbitrator.
The default venue is the Malta Arbitration Centre, but parties are free to choose an alternative venue, whether in Malta or elsewhere.
With respect to international arbitration, filing fees are calculated according to the following table: • Claims for an amount of up to USD 10,000 - Filing fees shall be USD 500 • Claims for an amount of more than USD 10,000 up to USD 50,000 – Filing fees shall be USD 750 • Claims for an amount of more than $50,000 up to $100,000 – Filing fees shall be USD 1,250 • Claims for an amount of more than USD 100,000 up to USD 250,000 – Filing fees shall be USD 2,000 • Claims for an amount of more than USD 500,000 up to USD 1,000,000 – Filing fees shall be USD 4,000 • Claims for an amount of more than USD 1,000,000 up to USD 5,000,000 – Filing fees shall be USD 6,000 • Claims for an amount of more than USD 5,000,000 – Filing fees shall be negotiable. Based on our experience in the past, the Registrar roughly charges a filing fee of USD 6,000 for every USD 5,000,000 increment. With respect to domestic arbitration, the filing fee for a claim, counter-claim, or additional claim is 25% of the equivalent ad valorem registry fees due to the Superior Courts of Malta under the relative legal notices issued in terms of the Code of Organisation and Civil Procedure (Chapter 12 of the Laws of Malta). In any case, the minimum fee is nominal, roughly €100.
Generally speaking, the arbitrators’ fees may be agreed between the arbitral tribunal and the parties. If there is no agreement, the amount due to the sole arbitrator would be roughly €12,000 while recoverable legal costs would be roughly €10,000.
In case of no agreement between the parties and the arbitral tribunal, each arbitrator would be entitled to roughly €35,000 while recoverable legal costs would be roughly €100,000.
In case of no agreement between the parties and the arbitral tribunal, each arbitrator would be entitled to roughly €305,000 while recoverable legal costs would be roughly €1,000,000.
The arbitral tribunal, upon its establishment, may require all parties to deposit an equal sum between them as an advance payment for the tribunal’s fees and any expert advice required. In the event of default, the arbitral tribunal shall inform the parties so that any one of them may make the required payment. If default subsists, the tribunal may order the suspension or termination of arbitral proceedings.
No, although, it does have standard forms parties tend to use. You will find them here (https://mac.org.mt/en/ArbitrationForms/Pages/Application-Forms.aspx).
English.
Dr. Fiona Galea Farrugia, the Registrar of the Malta Arbitration Centre, is the main point of contact. Her e-mail address is fiona.galeafarrugia@mac.com.mt.
No.
Chairman of the MAC's Board of Governors. The Chairman is appointed by the President of Malta upon the advice of the Prime Minister and he/she must have been practicing as a lawyer for over 12 years.
The Malta Arbitration Act lays down the procedure for appointment of arbitrators by multiple parties, however, apart from that, there are no specific regulations.
No.
The parties to the arbitration proceedings submit their evidence, whether it is documentation or witnesses (by affidavit or viva voce), within time periods prescribed by the arbitral tribunal followed by a round of cross-examination of the same witnesses produced by both parties. The MAC does have facilities to hear witnesses via videoconference. The arbitral tribunal is also allowed to demand the assistance of the Superior Courts of Malta in the collection of evidence, in particular, the issue of subpoenas for witnesses residing in Malta (or even possibly residing abroad under international legal conventions). There is no framework for the disclosure/discovery of documents in the initial stages of the proceedings.
Naturally, this varies depending on the parties and the arbitral tribunal, however, in our professional experience, international arbitration proceedings are concluded within 1-2 years.
There is no mandatory time frame imposed by law or by the MAC. However, upon the registration of the arbitration proceedings, it is customary for the MAC to issue a tentative time schedule for the conclusion of the arbitration proceedings within a period of 10 - 14 months. Parties do not tend to follow this proposed time schedule.
NA
Arbitral tribunals are able to issue an interim order against any one of the parties in the case of international arbitration proceedings on the basis of Article 17 of the 1985 UN Model Law. In case of non-compliance, the interim order may be enforced on the defaulting party through the Superior Courts of Malta (or any Contracting Party to the 1958 New York Convention). Parties to arbitration proceedings may also ask for the Superior Courts of Malta to issue interim measures against the parties to the arbitration and even third parties in support of the pending arbitration proceedings, including, a warrant of prohibitory injunction, a garnishee order (attaching funds held in third parties), warrants of seizure/arrests of vessels/aircraft (attaching things whether movable or immovable).
No.
No.
No formal secretariat or Board of Governor's scrutiny. However, arbitral awards are at times informally proof-read by the Registrar of the MAC.
Yes. An award will not be issued by the MAC prior to the settlement of costs.
Yes, awards can be set aside on grounds roughly identical to the grounds for denial of enforcement under the 1958 New York Convention.