Bulgaria's full membership in the European Union sets many challenges to all sectors of the socio-economic and political life in the country. The successful integration into the EU requires a significant effort by both the public institutions on the one hand, and the business circles and citizens on the other.
The advantages that have been proven true in the practices of arbitration court over regular court proceedings are as follows: speed, transparency, economy and confidence.
At this stage arbitration is applicable mainly in private law, especially in the field of commercial disputes. It is regulated within the framework of the existing applicable law and has long term traditions in our country.
The main advantages of arbitration proceedings can be summarized as follows:
1. Avoiding the competence of ordinary civil courts, both parties entrust the dispute to a non-governmental judicial authority that they have confidence in.
2. Parties participate in the constitution of the decision making authority by appointing arbitrators.
3. The resolution of the disputes follows a straightforward procedure, transparent and made known to both parties. They have the opportunity to amend and adjust it to the specificities of the dispute.
4. The speed is one of the great advantages that arbitration can offer. The proceedings operate at the level of one court instance only. Cases are completed within a maximum term of six months.
5. Arbitration decisions are final, subject to voluntary compliance and are distinguished by stability, as they can be attacked only by way of a claim.
6. Arbitration proceedings are more economical. The rate of the fee charged is not based on a flat percentage, but decreases as the claim increases. The costs of defense, expert witnesses, translators and the likes are made only in one instance.
7. The arbitration case is private and confidential and therefore the arbitration can help avoid potential deterioration of relations between the parties.
8. For the arbitration the restrictions of the international subordination of state courts does not apply.
9. The correct party in a contract can avoid the need, the inconvenience, the expenses and the inequality of having to conduct a court case against the defaulting party abroad.
10. Since both parties have chosen to voluntarily obey the arbitration, they have good chances to remain in good business relations.