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Arbitration in Italy

Arbitration in Italy

Arbitration is a method for settling a dispute that is chosen by many entrepreneurs who are running different types of businesses abroad and who don’t want to go in court to solve varied problems. Trials might take to long, therefore, arbitration might be the optimal solution. Arbitration can be applied for civil and commercial disputes in Italy, no matter if foreign or local citizens or entities are involved. We invite you to discuss with our Italian lawyers and see how you can be helped from a legal point of view.

Choosing arbitration to solve disputes

If you choose the arbitration instead of a trial in court, you will save time and money. The procedure is simpler than in courts – the parties involved in a dispute appoint the arbitrators who have a strong experience in the field related to such matters. They have a deadline for settling the cause, unlike the courts where a trial can last for years.

More people these days choose the arbitration due to its benefits, but there is an important number of businessmen who prefer the litigation in court especially if they have very good lawyers in Italy and they count on them to obtain a positive decision.

For local and foreign citizens who choose the arbitration, there are important advantages, except the saving of time and money. The arbitrators have a high expertise in the field of the dispute and the parties have the right to choose the arbitrators they want. The arbitrators must be neutral and they must ensure full confidentiality.

If you would like to buy a house in Italy, we advise you to contact our local specialists to discover the legal services you need. Property must be checked that it is not involved in litigation, before buying. Also, a sale-purchase contract will be drawn up, which will contain the history of the respective property, the name of the seller and the buyer, the purchase price as well as the transfer conditions. We, therefore, invite you to contact our team of lawyers for more details.

The calculation of the costs

The costs of the arbitrations in Italy can be considered expensive by many entrepreneurs compared to the fees they have to pay if they choose a trial in court. The arbitrators may ask a fee that is calculated as a percentage of the amount that is in dispute.

One of the most reliable entities for arbitration in Italy is the Milan Chamber of Arbitration that handles both local and international disputes and it has an experience of over 15 years. Many international disputes are settled here.

Applicable legislation for arbitration in Italy

Italy is part of several bilateral and multilateral treaties that are respected and enforced when arbitration comes into play. These important conventions include the 1961 European Convention on International Commercial Arbitration, the 1927 Geneva Convention on the Execution of Foreign Arbitral Awards, and the 1965 Washington Convention on the Settlement of Investment Disputes. In addition, we mention the Civil Procedure Code in Italy which applies to arbitration cases that are resolved in Italy.

It is also important to note that the Milan Chamber of Commerce and the Milan Chamber of Arbitration, together with the Associazione Italiana per l’Arbitrato, are the relevant authorities dealing with arbitration cases. Although there is no special court to resolve arbitration issues or disputes, such cases can also be resolved with recognition of foreign awards. However, in order to better understand the steps to be followed in arbitration in Italy, we invite you to talk to our team of lawyers in Italy and benefit from legal advice.

Settlement steps involving arbitration

Arbitration is often the best way to resolve disputes that arise between different entities or individuals. There are a number of steps that must be followed in this process in order to have optimal solutions to extinguish the problems. Among them, the following are important:

  1. One of the parties involved in the conflict will complete a request to start the process.
  2. The parties involved also deal with the choice of arbitrators. They must be accepted from the beginning and check the type of conflict that is brought to their attention.
  3. We move on to the preliminary hearing where the situation is presented, the evidence, various information, and even witnesses if any.
  4. The arbitrators will then exchange information about the case and then provide one or more solutions.
  5. If necessary and the arbitrator requests, more information will be provided.
  6. Once the arguments and information related to the conflict are verified, the decision is made, also called the award.
  7. If the parties involved agree on a solution, the case is closed.

It is important to note that arbitration cases are not as formal as litigation cases. Moreover, the judge’s place is taken by the arbitrator, who is obliged to listen to the parties involved and to offer the best solutions. We remind you that you can rely on our lawyers in Italy for all the details regarding conflict mediation. We can offer you specialized legal advice, so do not hesitate to get in touch with us.

Situations that require mediation

Most disputes can be resolved through mediation, especially if this seems to be the best choice instead of litigation. Problems related to work, construction, suppliers, leases, real estate, insurance, industrial matters, corporate or it can be easily solved with the help of mediation. What you need to know is that arbitrators must be neutral, experienced, efficient, and confidential.

New arbitration regulations in Italy

The way arbitration is applied continues to develop and present simplified procedures so that each case can be resolved easily and quickly. For example, it is enough for an arbitrator to handle mediation, and then give a final verdict in no more than 3 months. Moreover, from 2020 it is allowed to resolve online conflicts that require mediation and that do not present a high degree of complexity. We invite you to talk to us about arbitration in Italy and the new regulations.

The arbitration agreement in Italy

The arbitration clause may be mentioned in a contract between the parties. Thus, in case of a conflict, before litigation, one can go directly to mediation for a better and faster solution to the problems. We emphasize that cases related to citizenship, nationality, or parenthood are exceptions to mediation, therefore, they cannot be solved with this method. Here are some facts about mediation cases settled in Italy in 2020:

  • There were about 120 mediation cases that came to the attention of the authorities in Italy.
  • 36 corporate cases have been successfully resolved through mediation.
  • In construction, too, some conflicts were resolved through mediation. There were about 10 situations.

If you need more information about the arbitration in Italy, you may contact our lawyers in Italy who will offer you legal assistance and guidance for settling rapidly and cost efficient a dispute with your partners in Italy.