Dragomir Zhelyazkov, Chairman of the Arbitration Court Sofia, at “Club Investor” on December 19, 2015

If the judiciary has disadvantages, whether the arbitration courts are a real alternative. This question is answered in the weekly broadcast of Bloomberg TV Bulgaria “Club Investor” Dragomir Zhelyazkov, Chairman of the Arbitration Court Sofia at the “Legal Aid and Mediation” Non profit association.

The procedure is considerably simplified, as the proceedings are at one instance and the acts of the arbitration court can not be appealed. But that does not mean they can not be controlled. The control over court decisions is carried out by the Supreme Cassation Court, which watch for the correct application of the law and the conduct of the arbitration procedure.

Lawyers' fees are in the order of the Supreme Bar Council. Charges in the arbitration court are not as in the state judicial system, where at first instance 4% is paid on the material interest, but not less than a certain amount, 2% at the second and 1% at the third instance. In the Arbitration Court, they are a rock, with an increase in arbitration interest and a fee of less than 1%, Jelyazkov explained.

The court looks at civil and commercial disputes, and in the last over 4-5 years - and consumer.

There are some exceptions where arbitration proceedings are not applicable. Such are disputes concerning property rights in real estate. An arbitration case may be filed for the property or transfer obligation, but not for the property itself, Zhelyazkov said. Also cases of maintenance and family matters are excluded.

We have no jurisdiction for administrative and criminal law, he added.

It is not necessary to have a clause in advance signed that disputes are settled in an arbitration court. However, there are two options that allow for an arbitration procedure to be concluded, with a valid act - when one of the parties commences arbitration proceedings and the other does not object or consent.

Several tens of thousands of cases have been considered by arbitration court, Zhelyazkov said.

The most common dispute is whether the contract price is due or whether the contract is executed, for example, something is not delivered.

In addition, utilities and other service providers also include arbitration clauses. Insurance companies sometimes arbitration clause in their general conditions, if the client explicitly declares that they are familiar and accepts them.

According to Zhelyazkov, cases are completed within six months, whereas in the state court, even if the proceedings are in two instances, they end for a year and a half.

Disputes of up to BGN 25 000 are dealt with by one arbitrator, and over this amount - of three, the court chairman explained the procedure. In this case, each party shall indicate one and the Chairman of the Court shall appoint the Chief of the Arbitrator’s panel. They may be financiers and accountants.

Arbitrators are included in a list that is public and each party selects an arbitrator from that list. The opposite party may request a denial.

The same mechanisms of coercion, which the state has, are also available here under the Civil Procedure Code and the International Commercial Arbitration Act, Zhelyazkov explained. Upon receipt of the arbitration desicion, the party in whose favor is able to obtain a writ of execution from the Sofia City Court.

 Dragomir Zhelyazkov. photo: Bloomberg TV Bulgaria

Source: Bloomberg TV Bulgaria