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Is it possible?
Yes, it is an established feature of the International
Arbitral Centre
of the Austrian Federal Economic Chamber in Vienna.
When is it appropriate?
- At any time on agreement
- When the language of the contract is English
- When a neutral venue is desirable
For which types of contract dispute resolution
is it most common?
- East West disputes. In particular, those
involving Russia, Middle Eastern and East European countries.
- Disputes involving parties from different
countries, using English as the language of the contract
- Disputes involving a party from a country
with an historical bias against an English speaking venue.
Can a party to a contract choose an arbitrator
or must a name be chosen from an approved list?
Free choice prevails. Parties may nominate
an arbitrator on or off the list, Austrian or non-Austrian, from
Vienna or London or elsewhere, as they choose.
In the case of a sole arbitrator, if parties
cannot agree, the Board ("Presidium") of the
Arbitral Centre will appoint an arbitrator from the list.
Can Austrian courts override an Award?
Only in certain very restricted circumstances,
i.e.
- lack of an agreed arbitration clause
- violation of due process
- improper conduct of an arbitrator
The decision of the Austrian Supreme Court,
ref. No. 4 Ob 1542/94 issued on 12 April 1994 states:
"The provisions of the Code of Civil
Procedure dealing with arbitral proceedings state clearly and
unambiguously that the state courts can interfere in arbitral
proceedings and review the award only in the instances listed
in the Code. A review of procedural orders of the arbitral tribunal
by the state courts is not provided for. It would also defeat
the spirit and purpose of arbitration."
How much does it cost?
A fixed scale based on the sum in dispute
applies for the arbitrators’ fees. Parties and their advisors
know in advance the total costs of both the arbitrators and the
administration by the Centre. The costs are fixed irrespective
of the actual workload involved for the arbitrators.
As at 30 June 1999, indicative charges for
an amount in dispute of US $ 5 million:
| Item |
US $
|
| Registration Fee |
1.000
|
| Administration Charge |
13.000
|
| Sole Arbitrator |
54.000
|
|
|
| Total |
68.000
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What conditions apply?
For full details of costs
and all other conditions, please see the current Vienna Rules,
available from International Arbitral Centre, Wiedner Hauptstrasse
63, Post Office Box 319, A-1045 Vienna, AUSTRIA. Tel.: +43
-1- 501 05/ 4397, 4398, 4399. Fax: +43 -1- 502 06/ 216. E-Mail:
schiedsg@wkoe.wk.or.at
What if I do not
speak German, but want to get further information?
- Most staff at the Arbitral Centre
speak English, so simply ask for what you want in English.
It is best to dial straight through to the extension.
Alternatively, send a fax, letter or E-Mail.
- Or, contact the Vienna
office of LAW OFFICES DR. F. SCHWANK.
What law applies?
A choice of law may be included
in the Arbitration Clause. Consideration should be given to
the possible application of the UN Convention on Contracts
for the International Sale of Goods, if applicable, when making
this choice.
Is there a sample clause
I could use?
Yes, as follows:
All disputes arising out of this
contract or related to its violation, termination or nullity
shall be finally settled under the Rules of Arbitration
and Conciliation of the Austrian Federal Economic Chamber
in Vienna (Vienna Rules) by one or more arbitrators appointed
in accordance with these rules.
(A) The number of arbitrators shall
be......... (1 or 3)
(B) The substantive law of .............
shall be applicable
(C) The language to be used in the
arbitral proceedings shall be English.
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