The proven in use advantages of the arbitration over state court proceedings are: the speed, transparency, economy and confidentiality.
1. THE ARBITRATION IS FASTER.
The arbitration case is considered in one instance of the court proceedings. The arbitration decision may not be appealed and may be immediately enforced.
2. THE ARBITRATION IS A LESS LOAD TO THE PROPORTION OF STATE COURTS.
The scheduling of the meetings going on with regard to the needs of the case and not to the workload of the institution.
3. ARBITRATION IS LESS EXPENSIVE.
The amount of the arbitration fee is between 2% and 2.25%, while the court fee is always 4%. It should be noted that saves also the state fee for the appellate and cassation instance.
4. JUDICIAL CONTROL BY SUPREME COURT OF CASSATION
The arbitration decisions can be challenged only in an action brought before the Supreme Court on firmly established grounds referred to in Art. 47 of the ICAA, which may be the most common:
a) The absence of an arbitration agreement between the involved parties;
b) The subject matter of the dispute is not subject of an arbitration or the arbitration award is contrary to the public order of the Republic of Bulgaria;
c) Violations in the conduct of the arbitration proceedings. Off the provided reasons is excluded the substantive examination of the award. This ensures the stability of arbitration awards that are not exposed to the risk of a bad faith contestation and a stay of execution on the one hand and the possibility of control by the highest judicial institution when there are grounds for it on the other hand.
5. THE ARBITRATION IS CONFIDENTIAL.
The public hearing exposes the relations between the disputing parties and inevitably leads to a deterioration and often to the termination of the commercial relations between them. The arbitration case is non-public and confidential, and therefore the arbitration is able to avoid the deterioration of relations between the parties, as the meetings of the arbitration proceedings are held in camera (with the participation of the parties), as well as the arbitration case is granted only to the involved parties.
6. THE PARTIES CHOOSE ARBITRATORS.
In the arbitration proceedings each of the disputing parties choose an arbitrator, and they choose the chairman of the arbitration panel. It is possible that the parties agree to proceed to watch and decided by a sole arbitrator. All this increases the confidence in the decision-making body and enables to attract the best specialists in the field, which ensures the delivery of competent and correct decision.
7. THE PARTIES CHOOSE THE PROCEDURE.
The parties may agree on what procedure to be considered in their case, depending on the specifics of the dispute. This means that they can request the case to look at the rules that are differing from those provided in the Rules of the AC.
8. THE AWARD MAY BE EASILY ENFORCED ABROAD.
The enforcement of the arbitral awards abroad is facilitated greatly by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and the European Convention on Commercial Arbitration. The recognition and enforcement of judgments abroad is subject to the procedural rules of each country.
OUTSIDE THE JURISDICTION OF THE ARBITRATION COURT IS A DISPUTE OVER:
• disputes which have as their object rights in REM or possession over immovable property;
• claims that seek a support;
• disputes which have as their object the rights under the labor relations;
• public -legal disputes – a validity or infringement of administrative acts.
GROUNDS OF JURISDICTION OF THE ARBITRATION COURT
The Arbitration Court deals with disputes where an agreement provides for an arbitration or a party requests the dispute to be resolved by the AC and the other party does not object within the time given for a response. At this stage, the arbitration is used mainly in the private law, especially in the area of the commercial litigation. It is set out in our current legislation and has a long tradition in our country.
The advantages of the arbitration proceedings mainly consist of the following:
1. Avoid some shortcomings in the work of the regular state courts, as the both parties entrust the dispute to a non tribunal, they rely.
2. The Parties participate in the constitution of the Arbitral Tribunal by the choice of the arbitrators.
3. The settlement of the dispute becomes simplified, well-known by both sides. They can modify it and adjust it to the characteristics of the dispute.
4. The rapidity is one of the advantages of arbitration. The process occurs on one instance. The cases completed within a maximum period of 3 months.
5. The arbitration decisions are final, subject to a voluntary compliance and are distinguished by the stability.
6. The arbitration proceedings is more economical. The amount charged is not a constant rate, and decreases with increasing wants. The defense costs, expert witnesses, translators and others are made in only one instance.
7. The arbitration case is non-public and confidential, and therefore the arbitration is able to avoid the deterioration of relations between the parties.
8. For the arbitration shall not apply the restrictions on the international jurisdiction of the state courts.
9. The defaulting party of the contract may avoid the need, the inconvenience, the cost, and the inequality to a lawsuit against the delinquent party abroad.
10. Since the both parties voluntarily obeyed the arbitration, the greater is the likelihood that they will maintain good business relationships.