Arbitration in the Republic of Albania is governed by Part II, Title IV, Articles 400 – 439 of the AlbanianCode of Civil Procedure. The chapter contains provisions for the regulation of domestic arbitrationproceedings, i.e., when all parties are resident in or have the legal seats of their companies within theterritory of the Republic of Albania, and when the seat of arbitration is within this territory. The chapterdoes not apply to international arbitration proceedings. A draft arbitration law containing provisions forinternational arbitration proceedings, which is based on the UNCITRAL Model Law and sponsored by theWorld Bank is still being discussed. Albania currently does not have any domestic arbitral institution.
Generally, an arbitration agreement may be concluded for any monetary claim or dispute arising from acommercial transaction. Public law disputes, such as criminal law cases and family matters, includingdivorce, alimony or paternity disputes, are not arbitrable. An arbitration clause is deemed valid if it is madein writing and is included in the main agreement as part of this agreement, or in a separate agreementreferring back to the main agreement. Although the Code of Civil Procedure does not contain explicitcontent requirements, the clause should specify that any disputes between the parties will be settled bymeans of arbitration. In addition, the arbitration clause should indicate the parties to the agreement, thescope of the agreement, the arbitral institution or the basis for forming the arbitral tribunal (in case of adhoc arbitration).
The parties are free to decide on most aspects of the arbitration proceedings, including the seat ofarbitration, the language of arbitration, the substantive law and the procedural rules. The parties are alsofree to decide on the number of arbitrators, although there may only be an uneven number, and themethod of their appointment. Arbitrators are appointed by the court if the parties fail to do so.
The arbitral tribunal may, at the request of one of the parties and unless agreed otherwise, order anymeasure to preserve the interests of the parties in the arbitration. If the parties have not agreed on anyrules on this matter, the arbitral tribunal must apply the rules on interim measure that exist in the context ofa lawsuit in the court system (Article 418 CPC). Interim measures granted by arbitral tribunals must alwaysbe enforced by state courts. The following rules apply:
-at the request of the claimant the arbitral tribunal may grant interim measures to secure theexecution of the final award in the arbitration proceedings, if there are reasons to believe thatthe proper execution of an award in favour of the claimant may become impossible or difficult(Article 202 CPC); and
-a claimant may also request the court to stay the execution of an administrative act (i.e., adecision by ministers or other acts issued by the state administration as provided by the CPC inthe section on administrative disputes) (Article 329 CPC). The arbitral tribunal may grant suchstay if there is a risk of grave and irreparable harm to the claimant. The arbitral tribunal mustprovide reasoning for its decision.
Such interim measures are allowed for all kinds of claims and at any stage of the arbitration proceedings,until the decision becomes final and irrevocable. Interim measures preserving rights are also allowed inproceedings before the Court of Appeal, if the award is under its consideration (Article 203 CPC).
The claimant may also request interim measures to preserve its rights in the arbitration even before bringingthe claim before an arbitral tribunal. In such a case, the court determines a time period of not more than 15(fifteen) days within which a request for arbitration must be submitted (Article 204 CPC). If the claimant doesnot submit a request for arbitration for a claim regarding which a security measure has previously beengranted by a court within the relevant time period, the security measure is considered revoked.
If the arbitral tribunal rejects the claim or if the arbitration proceedings are stayed, the arbitral tribunal mustalso decide on the lifting of the interim measure, which will in any case take effect when the decision toreject the claim or to stay the proceedings becomes final and irrevocable (Article 211 CPC).
Arbitral awards are enforceable in the same way as court decisions. The courts may set aside arbitralawards only under a few conditions, in particular in case of:
-the invalid constitution of the arbitral tribunal;
-an incorrect declaration of the arbitral tribunal of its jurisdiction or lack of jurisdiction;
-the arbitral tribunal has exceeded the scope of the arbitration agreement or has not decided onone or more claims submitted to it;
-the equality of the parties and their right to be heard has not been respected;
-the lack of impartiality and independence of one or more arbitrators; or
-an infringement of Albanian public order.
2. ENFORCEMENT OF FOREIGNARBITRAL AWARDS
Regarding the enforcement of foreign awards, Albania is a party to the 1958 New York Convention on theRecognition and Enforcement of Foreign Arbitral Awards, with the reservation that the Convention will onlybe applied to the recognition and enforcement of awards made in the territory of another contracting state.
Albania is also a party to the European Convention of 1961 on International Commercial Arbitration.
PROCEDURE AND ASSUMPTIONS
PRACTICE TIPS
TYPE OF PROCEEDINGS
Approximate Duration
Document Production
Arbitration Proceedings
Limited.
The procedural costs depend on whether asole arbitrator or an arbitral tribunal of threemembers is appointed, the complexity of thecase, and the administrative charges.
Hourly fees or a fixed fee and success feemay be agreed upon between the attorneyand the client.
-The costs of arbitration depend on thearbitration agreement and the amountin dispute, the amount of documents,number of witnesses, and whetherexpert opinions are required. The costsof arbitration also include the fees ofarbitrators and administrative charges.
-The arbitrators have large discretionregarding the award of costs. Theaward of legal fees is usually notdetermined by reference to a statutorytariff.
-Currently there are no arbitration courtsin Albania.
Approximate Costs
PROCEDURAL COSTS
ATTORNEYS’ FEES (NET)
Simple and Complex cases
2-3 years.
Enforcement of Foreign Arbitral Awards
-For enforcement of awards under theNew York Convention, the creditor mustprovide the court with the authenticatedoriginal award or a duly certified copythereof, and the original of thearbitration agreement or a duly certifiedcopy thereof.
Court fees range from EUR 25 up to 1% ofthe contractual amount in dispute.
Hourly fees or a fixed fee and success feemay be agreed upon between the attorneyand the client.
Approximate Costs
COURT FEES
ATTORNEYS’ FEES (NET)
Simple and Complex cases
Approximate Duration
The enforcement of arbitral awards variesdepending on a series of factors including theidentification of the debtors’ assets, financialmeans, the response of the debtor, and theperseverance of the enforcement authoritiesin the fulfilment of their duties.
The information in this chapter was correct as of 1 January 2018. If you have any questions about the content of this chapter,
or would like further information about arbitration in Albania, please contact