Arbitration is a method of dispute resolution whereby the parties to a dispute confer upon a third party the authority to resolve it.
The Arbitration Court at the Association “Legal Aid and Mediation” (SPPM) was established specifically to meet the needs of parties involved in private-law property relations by providing an effective means of resolving disputes arising between them.
The Arbitration Court resolves civil and commercial disputes involving property and financial interests, as well as disputes concerning the filling of contractual gaps or the adaptation of contracts to newly arising circumstances. The parties may be natural persons or legal entities domiciled or established either in the Republic of Bulgaria or abroad.
Disputes concerning rights in rem or possession of immovable property, as well as disputes arising from employment relationships, may not be submitted to arbitration.
The Arbitration Court considers the aforementioned disputes where jurisdiction has been conferred upon it by an arbitration clause or an international agreement. The arbitration agreement must be made in writing. An agreement shall also be deemed to be in writing where it is contained in correspondence exchanged between the parties.
By agreeing to submit a dispute to the Arbitration Court, the parties also accept the Arbitration Court’s Rules of Procedure.
Any objection to the jurisdiction of the Arbitration Court must be raised no later than the submission of the statement of defence. The Arbitration Court shall rule on an objection to its jurisdiction by means of a procedural order or in its award on the merits of the case.
Proceedings must be duly initiated before the Arbitration Court by submitting a written application in accordance with its Rules of Procedure. The Arbitration Court hears and determines the disputes referred to it through its arbitral tribunal, which may consist of either a sole arbitrator or three arbitrators.
The case may be heard and determined by a sole arbitrator appointed by mutual agreement of the parties from the Arbitration Court’s List of Arbitrators, or designated by the President of the Arbitration Court at the parties’ request.
If the parties fail to reach an agreement on the appointment of a sole arbitrator, the arbitral tribunal shall consist of three arbitrators. Each party shall appoint one arbitrator and one alternate arbitrator from the Arbitration Court’s List of Arbitrators, while the President of the Arbitration Court shall appoint the presiding arbitrator. Hearings of the Arbitration Court shall be held at a designated venue, of which the parties shall be notified in the summons scheduling the hearing. Proceedings shall be conducted in Bulgarian. The case shall be heard at a hearing attended by the parties either in person or through duly authorised representatives.
Hearings of the Arbitration Court shall be held in private. Proceedings before the Arbitration Court are confidential. Case materials shall be provided only to the relevant party, its legal representative or its duly authorised representative in the proceedings.
Arbitration proceedings conclude with the issuance of an arbitral award where no procedural impediments prevent the case from being decided on its merits.
The award shall be deliberated upon in a closed session and adopted by a majority vote of the members of the arbitral tribunal.
The arbitral award is final and brings the dispute to an end. The Arbitration Court’s Rules of Procedure provide for expedited proceedings, enabling claims submitted to the Court to be examined and awards to be issued within shorter timeframes.