The Federal Supreme Court recently judged the effect of novation agreements on arbitration clauses, holding that an original arbitration clause remains valid if it is merely supplemented by the novation agreement, with no mention of jurisdiction.
The Federal Supreme Court recently decided the extent to which rent disputes may be subject to arbitration. Arbitrability is determined not only by the scope of the parties' agreement to arbitrate, but also by the law of the place where the arbitration takes place and the law applicable to the substance of the parties' dispute.
Following the Austrian Association of Arbitration's first symposium, a working group is preparing an amendment to the arbitration provisions of the Austrian Civil Code.
The amended Vienna Rules 2001 better serve the needs and interests of parties that choose Vienna as the venue for arbitral proceedings administered by the Vienna Arbitral Centre.
There are two types of optional arbitration clauses: bilateral and unilateral. Problems can arise if the relevant clause is ambiguous as to which party shall have a right of choice.
The issue of arbitral awards on agreed terms is a timely one, given that Germany has only recently legislated on it. The update outlines potential problems of enforceability for such awards in Austria and abroad.
Including: Institutions; Ad Hoc Arbitration; The Tribunal; Agreements; Proceedings; Awards; Enforceability
Arbitration clauses which provide for the settlement of potential conflicts must be carefully drafted with regard to the provisions of both the Civil Procedure Code and the Civil Law Code. Failure to comply with these provisions can lead to defective arbitration clauses.
On December 10 1998 the Austrian Supreme Court held that disputes based on legitimate claims for the annulment of a partner's resolution may be decided by an arbitral tribunal. This decision ended the ongoing debate which had been conducted in Austrian legal literature.
Article 577 of the Code of Civil Procedure has relaxed the rules on validating an arbitration clause slightly. Now an exchange of telegram or fax is sufficient, where formerly, both parties had to sign the clause by hand.
Under the Austrian Code of Civil Procedure, it is possible to overturn an arbitral decision if it violates a mandatory law of public policy. However, as EEC law becomes part of public policy, the opportunities of annulling arbitral decisions becomes greater and a measure that was intended as an emergency could become commonplace.
Setting aside an award for violation of public policy does not preclude it from being enforced in another country. The enforcement of a foreign arbitral award is only at risk if there are grounds for refusal on the basis of an international treaty.
Where is an arbitral award recognized: where it was awarded, or where it must be enforced? The Austrian Supreme Civil Court will recognize a foreign award if the certification complies with the local rules and procedures where the award was rendered.
Including: Arbitration Institutions; Ad Hoc Arbitration; The Arbitral Tribunal; The Arbitration Agreement; The Course of the Proceedings; The Arbitral Award / The Decision of Costs; The Setting-Aside-Procedure; Enforceability of the Arbitration Award