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Arbitration in Luxembourg

Arbitration in Luxembourg

Updated on Wednesday 02nd November 2016

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In Luxembourg, arbitration is an alternative to the judicial procedures and consists in depositing the details of a dispute in front of one or more arbitrators who make a binding decision. Only if both parties consent arbitration can take place. Any dispute may potentially be subject to arbitration. In practice, arbitration is justified in the following cases: the dispute may be of international interest; the amounts involved are of a certain size, the dispute has some technical complexity.

The advantages of choosing this form of judgment are: the confidentiality and discretion, the fast procedures (the maximum necessary to reach a decision is 6 months), the fact that the award can be quickly performed in all 145 countries of the world have acceded to the New York Convention of 10 June 1958 which provides for the recognition of foreign arbitration awards, professional referees from people with all the guarantees professionalism in a specific area subject of the dispute and not last the arbitration is generally less expensive than the legal procedures.

Our attorneys in Luxembourg can offer more information on the laws related to arbitration.

The arbitration procedure in Luxembourg

The Luxembourg Civil Code contains articles dedicated to arbitration. In 2012, these articles were amended in order to introduce mediation as a means through which a legal dispute could be settled without appealing to solutions offered by Luxembourg courts.

The arbitration process is carried through the Arbitration Court in Luxembourg which is specialized in handling commercial disputes. The arbitration procedure consists in the parties involved in the litigation presenting their cases before the arbitrators they have chosen by agreement. The arbitrators can be either lawyers in Luxembourg or experts in their field. They will try the case and issue an award. It is good to know that a court of law will decline to try a case if an arbitration clause or agreement has been introduced in a contract by the parties. The court will only judge the matter if the result of the arbitration proceedings were unsatisfying for one of the parties.

Arbitration bodies in Luxembourg

With regard to future disputes arising from a contract, the parties may choose to insert an arbitration clause for this purpose in the contract. Even in the absence of such a clause in the contract, it is open to parties to have recourse to arbitration after the dispute has arisen by using a signed ad hoc arbitration agreement.

The Chamber of Commerce of the Grand Duchy of Luxembourg is the body involved in resolving the dispute between parties through arbitration pursuant to the regulations of the International Court of Arbitration of the International Chamber of Commerce parts. 

The Arbitration of the Chamber of Commerce of the Grand Duchy of Luxembourg Centre was founded in 1987 and operates under the authority of an Arbitration Council composed of five members, which are the President of the Luxembourg National Committee the International Chamber of Commerce (ICC) - as Chairman, the Luxembourg member of the Court of Arbitration of the ICC, the Dean of the Bar Association of Luxembourg, the Director General of the Chamber of Commerce and the President of Institute of Auditors (IRE).

The Court is responsible for organizing and ensuring the smooth running of the arbitration proceedings pending before the Arbitration Centre, in the manner set out in the Arbitration Rules of the Centre.

For complete information on arbitration laws and procedures, please contact our law firm in Luxembourg.




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