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Lex Mundi Global Arbitration Institutions Guide

Slovenia

(Europe) Firm Šelih & Partnerji Law Firm

Contributors Gregor Simoniti

Updated 29 Oct 2018
Name of Arbitral Institution; with abbreviation, if any.

Ljubljana Arbitration Centre at the Chamber of Commerce and Industry of Slovenia ("LAC")

Where is the seat of the Arbitral Institution?

The city of Ljubljana, Republic of Slovenia

Is there an umbrella organization for the Arbitral Institution?

The Chamber of Commerce and Industry of Slovenia ("CCIS")

How is the Arbitral Institution structured?

The Board (consisting of the Chairperson, Vice-Chairperson and five members, all appointed by the Board of Directors of the CCIS for a four-year-term) and the Secretariat (professional staff managed by the Secretary General)

Is there a compulsory list of arbitrators that parties are required to choose from?

No. However, the LAC Secretariat has a broad international network of experts from more than 30 different countries, with experience from different legal environments and variety of legal and technical expertise, and they can assist the parties by identification of suitable persons who shall be appointed as arbitrators.

Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration?

Where the parties have not agreed on the seat of the arbitration, it shall be determined by the Board, unless the Board finds it more appropriate, in view of the circumstances of the case, for the seat of the arbitration to be determined by the Arbitral Tribunal.

What is the amount of the registration fee?

EUR 1000 + 22%VAT if applicable 

The registration fee is included in the administrative fee of the LAC and is part of the advance on the costs of the arbitration paid by the Claimant.

What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million

Approx. 37.146 USD + 22%VAT if applicable

What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million

Approx. 174.617 USD + 22% VAT if applicable

What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million

If the amount in dispute exceeds EUR 50.000.000 (approx. 58.449.067 USD) the costs of the arbitration shall be determined by the Board for each individual case.

Who pays advances on costs? What happens in the event of default?

The Claimant and the Respondent shall each pay half of the advance unless separate advances have been determined.

If a party fails to pay the required advance within the period of time determined by the Secretariat, the Secretariat shall direct the other party to make the payment and set a time period for payment. If the payment is not made, the Secretariat may terminate the proceedings in whole or in part. If the other party makes the payment, the Arbitral Tribunal may, at the request of that party, make a separate award by which it orders the defaulting party to reimburse the other party for the paid advance.

Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones?

A so-called prima facie examination of jurisdiction is carried out. The LAC may refuse to administer a case if it is prima facie evident that there is no jurisdiction over the dispute under the Ljubljana Arbitration Rules or the parties have agreed on procedural rules that deviate from the provisions of the Ljubljana Arbitration Rules to such a degree that the proceedings would be disproportionately hindered. 

The Secretariat sends the Request for Arbitration to the Respondent. After receiving the Answer to the Request for Arbitration, the Secretariat sends it to the Claimant. 

The Secretariat shall determine the amount to be paid by the parties as an advance on the costs of the arbitration.

Which languages can be used for communication with the Arbitral Institution?

Communication between the parties and the LAC shall be in Slovenian or English.

Who is the main point of contact for the parties within the Arbitral Institution?

The parties can contact the LAC Secretariat that ensures the day-to-day case management, supervises the efficiency of the proceedings and the work of the arbitrators and performs other tasks associated with the administration of dispute resolution (arbitraza.lj@gzs.si).

Are there restrictions on the language that the arbitration may be conducted in?

The parties may agree in which language or languages the arbitration procedure will take place. If there is no such agreement, the arbitration panel shall determine the language of the proceedings. 

The arbitration procedure concerning a consumer dispute shall be conducted in the Slovene language unless the parties expressly agree otherwise differently.

Who appoints substitute arbitrators?

Where an arbitrator is released from appointment or where an arbitrator dies during the course of the proceedings, the same provisions as for the appointment of arbitrator (Articles 13-17 of LAC Rules) apply mutatis mutandis.

Are there specific regulations for multi-party arbitrations or joinders to the proceedings?

The Arbitral Tribunal may, at the request of any party, allow one or more third persons to be joined in the proceedings as a party provided such person is bound by the arbitration agreement. The Arbitral Tribunal may, after giving all parties, including the person or persons to be joined, the opportunity to submit comments, decide not to permit the joinder, if doing so would cause disproportionate prejudice to any of the parties.

Where there are multiple Claimants or Respondents, the arbitrators shall be appointed pursuant to Article 14 of LAC Rules. Where the Arbitral Tribunal is to consist of more than one arbitrator and there are multiple Claimants or Respondents, the multiple Claimants, jointly, and the multiple Respondents, jointly, shall nominate an equal number of arbitrators. If either side fails to make such joint nomination within the time period, agreed upon by the parties or set by the Secretariat, the arbitrator or arbitrators shall be appointed by the Board. In exceptional circumstances, the Board may, after having given the parties an opportunity to submit comments, revoke the appointments already made and appoint a new arbitrator or all arbitrators and designate an arbitrator among them who is to act as the Chairperson of the Arbitral Tribunal.

Are oral hearings compulsory?

No. A hearing shall be held if requested by a party, or if deemed appropriate by the Arbitral Tribunal.

What are common evidence-taking practices?

The Arbitral Tribunal shall determine the admissibility, relevance, materiality, and weight of any evidence.
At any time during the proceedings, the Arbitral Tribunal may require any party, within a set period of time: to identify evidence that the party relies on and specify the circumstances to be proven by such evidence; to produce any documents or other evidence that the Arbitral Tribunal may consider relevant for the outcome of the case.

In accordance with article 31 of the Slovenian Arbitration Act (ZArbit), the Arbitral Tribunal or one of the parties with the permission of the Tribunal may request the court to assist in the production of evidence or to carry out another act that the arbitration itself cannot do. If the court grants the request exposes evidence or performs other acts in accordance with its rules of procedure. Arbiters may be present in the exercise of evidence and may raise questions.

What is the average duration of arbitration proceedings?

264 days.

What is the timeframe for rendering the award?

The final award shall be made no later than nine months from the date upon which the file is transmitted to the Arbitral Tribunal pursuant to Article 20 of LAC Rules (i.e. as soon as the Arbitral Tribunal has been constituted and the advance on costs has been paid).

Are extensions to time limits permissible?

For justified reasons, the Board may extend this time limit upon a reasoned request by the Arbitral Tribunal or of its own motion. In doing so, it may require from the Arbitral Tribunal explanations as to the status of the case and the reasons for its inability to render the award within the time limit.

Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures?

The Arbitral Tribunal may, at the request of a party, grant an interim measure it considers appropriate. 

A request for an interim measure or other conservatory measure addressed by a party to a judicial authority shall not be deemed incompatible with the arbitration agreement or LAC Rules, nor does it constitute a waiver to the arbitration agreement.

The execution of an interim measure ordered by a domestic or foreign arbitration shall be decided by the court having jurisdiction under the rules on execution and insurance.

Do the institutional rules provide for an emergency arbitrator?

Yes. A party that needs an urgent interim measure that cannot await the constitution of an Arbitral Tribunal may initiate Emergency Arbitrator Proceedings in accordance with Appendix III to the LAC Rules.
The provisions on the Emergency Arbitrator Proceedings shall not apply if the parties have agreed to opt out of Appendix III to the LAC Rules.

Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award?

Yes, the Rules for Expedited Arbitral Proceedings shall apply where the parties expressly agree on expedited proceedings either in the arbitration agreement or at a later stage (for Rules for Expedited Arbitral Proceedings see Article 48 of LAC Rules).
The final award shall be made no later than six months from the date upon which the file is transmitted to the Arbitral Tribunal pursuant to Article 20  of LAC Rules (i.e. as soon as the Arbitral Tribunal has been constituted and the advance on costs has been paid).

Are arbitral awards submitted for scrutiny? If so, to whom?

The arbitral awards are not submitted for scrutiny. However, the District Court of Ljubljana decides on the annulment of the arbitration award (paragraph 2 of Article 40 of the Slovenian Arbitration Act (ZArbit)) and declares the enforceability of domestic (Article 41 of ZArbit) and the recognition of foreign arbitration awards (Article 42 of ZArbit).

Do costs necessarily follow the event?

Yes. The costs of the arbitration consist of the fees of the Arbitral Tribunal, the administrative fee of the LAC; and
the expenses of the Arbitral Tribunal and the LAC and will be included in the final award, the award on agreed terms or the order for termination of the proceedings.
Where the proceedings are terminated prior to the making of the final award by way of an order for termination of the proceedings or an award on agreed terms, the costs are determined to have regard to the stage in which the proceedings have terminated, the work performed by the Arbitral Tribunal and any other relevant circumstances.
Unless otherwise agreed by the parties, the Arbitral Tribunal shall, at the request of any party, allocate the costs of the arbitration between the parties having regard to the outcome of the case and any other relevant circumstances.

In relation to the costs incurred by the parties; unless otherwise agreed by the parties, the Arbitral Tribunal shall in the final award, the award on agreed terms or the order for termination of the proceedings, upon the request of a party, decide on the reimbursement of any reasonable costs incurred by the parties, including costs for legal representation. In doing so, it shall have regard to the outcome of the case and other relevant circumstances.

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, the arbitral award can be annulled pursuant to paragraph 2 and 3 of Article 40 of the Slovenian Arbitration Act (ZArbit), Official Gazette of the Republic of Slovenia, no. 45/2008. 
These reasons for annulment correspond to the reasons for the denial of enforcement according to the New York Convention, except point e) of paragraph 1 of Article 5 of the New York Convention.

There are some additional provisions for the annulment of the arbitral award in consumer disputes (stipulated in Article 47 of ZArbit).

Link to institutional rules

http://www.sloarbitration.eu/en/Arbitration/Arbitration-Rules/English

Link to model clause

http://www.sloarbitration.eu/en/Arbitration/Standard-Clauses/English

Lex Mundi Global Arbitration Institutions Guide

Slovenia

(Europe) Firm Šelih & Partnerji Law Firm

Contributors Gregor Simoniti

Updated 29 Oct 2018