Resolve Contractual Disputes in Luxembourg
Resolve Contractual Disputes in LuxembourgUpdated on Thursday 25th August 2016
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Luxembourg is one of the most prosperous countries in Europe and many large companies are based here, which makes contract litigation quite common. This is also one of the reasons why the Grand Duchy has a well-established legal system which provides for the settlement of commercial disputes. It is also useful to know that Luxembourg is also preferred by companies operating in EU countries involved in international commercial litigation.
Our lawyers in Luxembourg can assist foreign investors dealing with contractual disputes in the Grand Duchy.
How to settle contractual disputes in Luxembourg
As mentioned above, the Grand Duchy has a very efficient legal system which enables various types of courts to conduct their activities. The Luxembourg judicial system is a two-tier system divided into judicial and administrative courts. Judicial courts are the ones trying contractual disputes in Luxembourg. While lower courts will try disputes with claims of maximum 10,000 euros, district courts will rule in contract litigation cases with claims above 10,000 euros. The statutes of limitation in commercial claims is 10 years, according to the Luxembourg Civil Code.
Our attorneys in Luxembourg can offer legal assistance in commercial litigation cases before the courts in the Grand Duchy.
Alternative dispute resolution in commercial litigation in Luxembourg
Apart from court procedures, arbitration and mediation have started to be taken more and more into consideration by Luxembourg companies involved in contractual disputes. While arbitration implies the case to be heard by an arbitrator, while the decision is enforced by the judge of the district courts in Luxembourg.
When it comes to mediation, Luxembourg now has a law related to these proceedings: the Mediation in Civil and Commercial Matters Law. According to it, there are two ways of settling contractual disputes:
- - through conventional mediation, which implies an arrangement between the litigant parties and the appointment of a mediator agreed upon by both parties;
- - through judicial mediation, which can be ordered by the judge. In this case too, parties are required to agree upon the mediator conducting the proceedings.
For complete information on the legal ways to resolve a contractual dispute, please contact our litigation lawyers in Luxembourg.