Arbitration In Albania

The purpose of this article is to provide a snapshot of the legal framework of domestic arbitration, recognition and enforcement of foreign arbitral awards in Albania.

Domestic Arbitration

Arbitration is not a common means for resolving disputes arising between local businesses in Albania. They continue relying in local courts, which are slow and subject to continuous reforming process.

The sporadic use of arbitration among local businesses could explain the poor legal framework available in Albania for governing domestic arbitration and the lack of offering such services by chambers and/or arbitration institutions in Albania.

The Code of Civil Procedure of the Republic of Albania contained a chapter (art. 400 to art. 438) that was applicable to arbitration taking place in Albania between parties residing in Albania. In order that parties arbitrate their disputes they must have in their written contract a valid arbitration clause or a separate written arbitration agreement. The arbitration clause or agreement is valid if it is in writing and provides for the rules of appointing arbitrator(s). Unless otherwise agreed by the parties (in the arbitration clause or arbitration agreement) the dispute should be resolved within six (6) months from the moment when the arbitral tribunal is duly established. The said term could, upon request of any of the parties or of the arbitral tribunal, be extended by the chairman of the first instance court of law of the district where the arbitration is taking place. The parties may agree to subject the arbitration to the rules of an arbitration institution.

The said provisions of the Code provide also for matters of appointment, challenge or replacement of the arbitrators, jurisdiction of arbitral tribunals, setting aside of the award and enforcement.

Currently, all the above-described chapter of domestic arbitration is repealed and Albania does not have law provisions to govern domestic arbitration. We hope that the Albanian parliament would pass soon the new law on arbitration. This does not mean that, until then, domestic arbitration cannot happen in Albania as the Code of Civil Procedure guarantees enforcement of the domestic arbitral awards. The parties should be careful when drafting the arbitration clause or agreement in order that they are very descriptive. The best would be to refer to rules of arbitration institutions such ICC or other institutions in the neighbour countries. However, due to the lack...