R E G U L A T I O N S
OF THE INTERNATIONAL ARBITRATION COURT
AT THE ASSOCIATION LEGAL INTERACTION ALLIANCE
- GENERAL PROVISIONS
Article 1 (1) The International Arbitration Court at the Association Legal Interaction Alliance is a court institution independent from it. The organization of the International Arbitration Court at the Association Legal Interaction Alliance and the statute of its arbitrators, conciliators and mediators shall be governed by the Court’s Statutes.
(2) The International Arbitration Court at the Association Legal Interaction Alliance /IAC at ALIA/ resolves civil and commercial disputes, as well as disputes for filling gaps in contracts or their adaptation to new circumstances, irrespective if the seat, place of residence or the usual place of abode of one or of the two parties is in the Republic of Bulgaria or not.
(3) The IAC at ALIA resolves other disputes, assigned to it with an arbitration agreement, which have contractual or non-contractual grounds, and also organizes assisted arbitration and arbitration “ad hoc”.
(4) The IAC at ALIA organizes conciliation proceedings in regard to domestic and international civil disputes.
(4) An arbitration agreement represents the parties’ agreement to assign to the IAC at ALIA the resolution of an existing or a future dispute between them arising from certain contractual or non-contractual relations.
(6) The agreement for mediation represents the parties’ agreement to resolve the disputes, which have arisen or may arise between them, by means of voluntary settlement through mediator/mediators.
(7) The agreement for conciliation represents the parties’ agreement to resolve the disputes, which have arisen or may arise between them, by means of conciliation through conciliator/conciliators.
Grounds for the Arbitration Court’s competence.
Article 2 (1) The IAC at ALIA resolves the disputes under Article 1 (2) and (3), if these disputes have been assigned to it with an arbitration agreement or with an international contract.
(2) The arbitration agreement must be in writing. The agreement is considered to be in writing when it is contained in letters, telegrams or other means of written communication exchanged between the parties, or in general terms and conditions which a written contract between the parties refers to.
(3) It is deemed that there is an arbitration agreement in writing when the applicant files a claim in front of the IAC at ALIA and the defendant, in writing or with a statement recorded in the protocol of the arbitration hearings, accepts that the dispute will be resolved by the IAC at ALIA, or performs an action aiming at addressing the dispute on its merits without challenging the competence of the IAC at ALIA.
Admissibility of the arbitration proceedings
Article 3 (1) Arbitration proceedings may be commenced, prolonged and a resolution may be enacted on them, even though there are pending proceedings on the same dispute in front of a domestic or foreign court.
(2) In case the proceedings as per the above paragraph are pending in front of a domestic court and there is doubt whether there is a valid arbitration agreement, the IAC shall suspend the proceedings in front of it till the first court hearings, and if a challenge for an arbitration agreement is made – till the ruling of the court which regards the challenge enters into force. If no challenge is made or if the challenge is overruled, the IAC at ALIA shall dismiss the proceedings.
(3) If there are pending court or arbitration proceedings on the same dispute, this shall not be considered an obstacle for commencing a conciliation and mediation proceedings under the present Regulations.
Article 4 (1) The parties may come to an agreement for a procedure which to be followed by the court when examining the case, provided that it does not contradict the present Regulations and the imperative provisions of the law applicable to the arbitration.
(2) The absence of other arrangements shall mean that the present Regulations, as well as the Statutes of the IAC at ALIA in respect to the arbitrators, are accepted.
(3) In case of matters not regulated by the present Regulations, by the International Commercial Arbitration Act (ICAA) or by the parties’ agreement, the arbitrators shall proceed according to their judgment, guided by the nature of arbitration and the dispute’s subject and in any case securing equal possibility for each party to protect its rights and interests.
(4) On cases based on arbitration agreements, the rules of the present Regulations which are in force at the commencement of the arbitration proceedings shall apply, unless both parties have requested to apply the rules, which were in force at the conclusion of the arbitration agreement or have entered into force after the commencement of the arbitration proceedings.
(5) If the respective party does not immediately proclaim, in writing or during arbitrational hearings, against a violation of the procedural rule under paragraph 1 and 2, it is deemed that it has waived its right to invoke this violation.
(6) The arbitrators, conciliators and mediators are obliged to keep confidential all data which they receive in regard to performing mediation, conciliation or arbitration. After the relevant proceedings are concluded, only the materials which do not contain professional or trade secrets of the parties shall be kept.
Rules for conciliation
Article 5 (1) Conciliation proceedings may be commenced by mutual agreement of the parties or upon request by one of them.
(2) The parties may file a request to the Secretariat of the IAC at ALIA for commencing conciliation, in three copies, in which they explain briefly the dispute’s subject and their opinion on it. They shall pay a fee for commencement of conciliation proceedings, as defined in the Tariff to the present Regulations.
(3) When the request for conciliation is filed by one of the parties, the Secretariat of the Arbitration Court shall send immediately a copy of this request to the other party, giving it a 15-day term as from the receipt of the notice to state whether it accepts or refuses to participate in the conciliation. In case of refusal, or if no statement is received, conciliation proceedings shall not be commenced. The Secretariat notifies the applicant for this and reimburses to it 50 % of the paid fee.
(4) If the other party accepts to participate in the conciliation, it shall notify in writing the Secretariat for its consent. The Secretariat institutes conciliation proceedings and immediately sends a copy of the applicant’s opinion.
(5) After conciliation proceedings have commenced, the Chairperson of the Arbitration Court shall determine the advance payment for expenses, which must be paid within a respective term by the parties on an equal basis. If any of the parties does not pay its share in the expenses, but is willing to participate in the conciliation, the other party may pay the first party’s share. If the full amount of the due advance is not paid, the conciliation proceedings shall be dismissed and the parties shall be notified for this immediately.
Article 6 (1) If the parties have not elected a conciliator/conciliators amongst the List of mediators and conciliators, the Chairperson of the Arbitration court shall elect a conciliator/conciliators, having in mind the character of the dispute and the qualification of the conciliator/conciliators. The Secretariat shall notify the parties and the conciliator/conciliators for this and shall specify a term, within which they must substantiate their opinions.
(2) The elected conciliator/conciliators present to the Secretariat and to the parties, which participate in the conciliation proceedings, a written declaration for independence and objectivity in the conciliation, as well as for confidentiality in regard to the facts and circumstances which have become known in this respect.
(3) Unless the parties have agreed otherwise, the conciliator/conciliators shall not act as an arbitrator, representative or adviser to any of them in arbitration proceedings on the same dispute.
(4) The parties are obliged not to summon the conciliator/conciliators as a witness to a court or arbitration proceedings on the dispute which is subject to conciliation, unless mutually agreed otherwise.
Article 7 (1) For the purpose of clarifying the disputable circumstances and discussing the possible concessions which each party is willing to make for the voluntary settlement of the dispute, a mediator or a conciliator may separately meet any of the parties, before inviting them to a mutual discussion of the available options for conciliation.
(2) In the proposal for a possible settlement, the conciliator/conciliators are guided by the facts, the applicable law and by justice.
(3) The parties shall participate in the conciliation proceedings in person or via authorized representatives. The parties may be assisted by advisers. Third persons may be present at the meetings with the conciliator/conciliators only if the parties have agreed so.
(4) If the conciliation trial is successful, the reached settlement shall be signed by the parties and the conciliator/conciliators. A copy of it shall be enclosed to the conciliation file.
(5) When conciliation is reached on a case that is pending in front of the IAC at ALIA, and if the parties have requested so, the concluded settlement shall be reproduced in the arbitration resolution upon stipulated conditions.
(6) The parties are obliged not to use as evidence in any court or arbitration proceedings: 1. the opinions or proposals rendered by the other party at the conciliation trial; 2. the proposals rendered by the conciliator/conciliators; 3. the fact that any of the parties was willing to accept the proposal of the conciliator/conciliators to reach settlement.
Article 8 (1) The conciliation trial shall end: 1. with signing a settlement under Article 7 (4); 2. with the conciliator/conciliators being notified by both parties or by one of them for their refusal to reach conciliation; 3. with a protocol of the conciliator/conciliators ascertaining that the conciliation trial was not successful.
(2) If there are conciliation proceedings in front of other organizations, this shall not be considered an obstacle for conciliation proceedings under the present Regulations.
Article 9 (1) The expenses for the conciliation proceedings shall include: 1. administration fee amounting to 20 % of the arbitration fee set in the Tariff which is an inseparable part of the present Regulations, but not less than BGN 50; 2. the expenses incurred by the conciliator/conciliators for business trips if such were needed; 3. the remuneration of the conciliator/conciliator.
(2) The expenses for the conciliation proceedings shall be borne by the parties on an equal basis, unless agreed otherwise.
(3) Apart from the expenses defined in paragraph 1 of the present provision, each party shall bear the expenses incurred by it in relation to the conciliation.
(4) The remuneration of the conciliator/conciliators shall be determined in accordance with the Tariff.
Article 10 (1) The rules for conciliation proceedings shall be applied accordingly to mediation proceedings.
(2) For any matters not defined herein, the Mediation Act shall apply.
- CLAIM. ANSWER TO THE FILED CLAIM.
Filing a claim
Article 11 (1) The arbitration proceedings shall begin with filing a claim to the IAC.
(2) The claim is considered to be filed on the day it has been entered in the Secretariat of the IAC, or if sent by mail – on the day it has been submitted as set on the postmark in the place of shipment.
Content of the claim
Article 12 (1) The claim shall contain:
- indication of the IAC;
- full name/title of the parties, address of the parties (court address, respectively address for receiving summons), telephone, fax, email;
- the cost of the claim;
- narrative of the circumstances which the claim is based upon;
- the nature of the demand;
- all evidences supporting the claim;
- the name of the arbitrator or a demand he/she to be appointed by the Chairperson of the IAC;
- list of the documents attached to the claim;
- signature of the claimant.
(2) The following shall be attached to the claim:
- the arbitration agreement and all written evidence specified in the list as per paragraph 1, p. 8;
- power-of-attorney, in case the claim is filed by an attorney;
- all other evidence necessary for the active and passive legitimation of the parties;
- copies of the claim and its attachments as per the number of the respondents;
- documents for the payment of the arbitration fee.
(3) If possible, the parties shall present a soft copy of the text of the claim, its attachments, the answer to the claim and its attachments, for the purposes of maintaining an electronic file of the case.
Cost of the claim. Setting the arbitration fee.
Article 13 (1) The cost of the claim shall be equal to the monetary sum or the value of the rights which are claimed. The cost of the claim shall be specified by the claimant in the claim.
(2) In case of claims for determining or altering relations, the cost of the claim represents the value of the relation’s subject at the time the claim is filed; in case of claims regarding rental agreements with indefinite term – the cost of the rent for one year, preceding the year of filing the claim; in case of claims for periodic payments with indefinite term – the total of payments for three years, before the year of filing the claim; in case of claims for certain actions or inactions – the value of the claimant’s material interest.
(3) When several claims are presented at one time, the cost of each claim should be specified separately.
(4) In case of claims where the cost may not be defined accurately or where it is of substantial difficulty for the claimant to define the cost of claim, as well as in case of claims where the cost is not defined properly by the claimant or is not defined at all, the cost shall be defined by the Chairperson of the IAC.
(5) If it is found at examining the case that the cost of the claim has not been defined as per the rules set in the preceding paragraphs, the Resolving body shall define the final cost of the claim.
(6) The above rules shall also apply to defining the cost of the opposition for set-off.
(7) The claimant shall pay an arbitration fee which is determined based on the total cost of all claims, and the respondent pays an arbitration fee which is determined based on the cost of the counter claims or the opposition for set-off. The arbitration fee is determined in accordance with the Tariff for arbitration fees and expenses on the cases resolved by the IAC at ALIA.
(8) The claimant shall pay a deposit for expenses, determined by the IAC at the commencement of the proceedings and defined as per the complexity of the case, but not less than BGN 100.
Verification of the Arbitration court’s competence
Article 14 (1) The Resolving body shall decide on the competence of the IAC also in cases when it is contested on the grounds of non-existence or invalidity of the arbitration agreement. The arbitration agreement which is a part of a contract is not dependent on its other arrangements. The invalidity of the contract does not lead to invalidity of the arbitration agreement included in it.
(2) The opposition that the IAC is not competent to resolve the dispute, entirely or partially, should be made with the answer to the claim at the latest and written evidence for this should be attached to the answer.
(3) When a matter outside the IAC’s competence is raised in the course of the arbitration proceedings, the opposition that the IAC is not competent should be made immediately.
(4) The Resolving body may sustain an opposition for incompetence made at a later stage, if there are valid reasons for the delay or if the continuation of the proceedings may lead to a resolution that is inadmissible or void. In the last case the Resolving body may ex officio decide on its competence.
(5) The opposition that the IAC is not competent shall be examined by the Resolving body which shall decide on it with а ruling at the preparatory session or at the hearing during which the opposition is made, unless the resolution of the dispute regarding the competence depends on the resolution of the dispute on the case’s substance.
(6) In case the Resoling body overrules the opposition that the IAC is not competent, the arbitration proceedings shall commence even if the respondent refuses to, or refrains from, participating in it.
Rectification of the claim’s non-conformities
Article 15 (1) In case it is established that the claim does not conform to the requirements of Article 12, the claimant shall be given a term to rectify the respective non-conformities. The term shall be no longer than seven days for domestic cases, respectively fifteen days for cases between parties where at least one of them has its seat or its place of residence or its usual place of abode outside the Republic of Bulgaria, as from the day when the notice, or the message sent through telecommunication means, was received.
(2) Until the non-conformities of the claim are rectified, no progress shall be made on it.
(3) If the claimant does not rectify the claim’s non-conformities, the claim, together with its attachments, shall be returned to the claimant with an order of the IAC’s Chairperson.
Answer to the claim
Article 16 (1) In case of a conforming claim and an arbitration fee that is duly paid, the IAC shall notify the respondent for this. The Chairperson of the IAC shall institute a case and shall order a copy of the claim and its attachments to be served to the respondent together with the list of the arbitrators.
(2) Simultaneously with the above, the respondent shall be notified that within 14-day term as from the receipt of the claim’s copy it may file an answer to the claim. The answer shall contain all oppositions and arguments, to which the party shall refer during the proceedings, and all written evidence should be attached to it.
(3) At the respondent’s request the stipulated terms may be prolonged by the Chairperson of the IAC, if there are valid reasons for this.
(4) Within the same term the respondent shall name the arbitrator elected by it and the reserve arbitrator, or shall leave for the Chairperson of the IAC to appoint them.
(5) Within the term for answering the claim, the respondent may file а counter claim or an opposition for set-off, if the dispute regarding its receivable is within the competence of the IAC. With regard to the counter claim, the provisions of Article 12 shall apply. If the opposite receivable is established res judicata or is not contested by the claimant, the opposition for set-off may be made at any time during the proceedings.
(6) In case no answer to the claim is filed, this shall not be considered as an admission of the claim.
(7) Within a 7-day term as from the notice that the answer is entered in the IAC, the claimant may file an opposition.
III. PAPERS, NOTIFICATIONS AND SERVING OF DOCUMENTS
Presentation of documents regarding the case
Article 17 (1) Copies of the claim, the answer to it and all attachments shall be presented in such numbers so that each party shall have one copy.
(2) The documents as per paragraph 1, excluding the written evidence, shall be presented in the language of the contract or in the language of the correspondence exchanged between the parties, or in the Bulgarian language. The written evidence presented by the parties in the course of proceedings shall be presented in the original and in a translated version made by an authorized interpreter, in case it is in a foreign language. The translation of these papers shall be at the expense of the party which has presented the papers.
Sending and serving of documents
Article 18 (1) The Secretariat of the IAC shall send to the parties all papers, notifications and summons relevant to them to the addresses pointed by them or to the addresses of their duly authorized representatives.
(2) The claim, the answer to the claim, the arbitration resolutions and the rulings shall be sent via post or via courier service through registered mail with a receipt of delivery. Summons and other notifications may be sent via telephone, or to an email pointed by the party. They are deemed to be delivered with their receipt in the respective information system.
(3) Serving of documents via post shall be certified with the receipt of delivery. Serving via telephone or via fax shall be certified in writing by the server. Serving via email shall be certified with the copy of the electronic record for that.
(4) The server certifies with his/her signature the date and the method of serving, as well as all actions in relation to the serving. The recipient also certifies with his/her signature that he/she has received the notification. The refusal to accept the notification shall be recorded in the receipt of delivery and shall be certified with the signature of the server. The refusal of the recipient does not affect the conformity of the serving.
Article 19 (1) The notification shall be served to the recipient in person. The serving to a representative shall be deemed to be serving in person.
(2) Serving to merchants and legal entities shall be performed at their business offices to any employee or officer who is willing to accept them.
(3) When the notification cannot be served to the recipient in person, it may be served to a third person who has agreed to accept it. A third person may be any person who has come of age and belongs to the recipient’s household, or is an employee, officer or an employer of the recipient. The person through whom the serving is performed shall sign the receipt of delivery under the obligation to deliver the summons to the recipient. It shall not be allowed to serve documents to persons who participate in the case as an opposing party of the recipient.
(4) Upon the delivery of the notification to the third person, it shall be deemed delivered to the recipient. The recipient may move for resumption of the term limit if it certifies that the recipient was absent from the address and was unable to learn of the serving in due course of time.
(5) The request for resumption of the term limit shall be filed to the IAC within a 7-day term. The term shall start as from the moment the recipient was able to learn of the serving.
Receipt of the papers, summons and notifications
Article 20 (1) When after a due search the recipient cannot be found at the address pointed in the claim, at its seat or address pointed in the Trade register, or at any other address pointed in the case file, all papers, notifications or summons are deemed to be delivered, if they are sent to the above addresses.
(2) If a legal entity has left its address and its new address is not registered with the register, all notifications shall be enclosed to the case file and shall be presumed to be duly served.
(3) If the person has left the address which was pointed by it in regard to the case, or at which a notification was already served, all notifications shall be enclosed to the case file and shall be presumed to be duly served.
(4) The summons under paragraph 1 are presumed to be duly served also in case the recipient has refused or has not appeared before the postal service to accept the summons, if this could be certified by the postal service.
(5) All term limits for any procedural actions of the parties begin as from the day when the recipient has received the notification. If the last day of the term limit is a non-working day, the term limit shall expire on the first succeeding working day.
- RESOLVING BODY
Article 21 (1) The Arbitration court shall examine and resolve all disputes assigned to it via a Resolving body which may consist of one arbitrator or of three arbitrators.
(2) The chairperson of the IAC may propose to the parties to agree that the case shall be examined and resolved by one arbitrator, who will be elected by mutual agreement of both parties or the parties will leave to the Chairperson of the IAC to elect the arbitrator.
(3) The provision of the preceding paragraph shall apply to disputes where the cost of claim is up to BGN 50,000.
Article 22 (1) If the Resolving body consists of three arbitrators, each party shall elect one arbitrator, and the two arbitrators shall elect from the list of the arbitrators the chairperson of the Resolving body within 7-day term as from the notification of their election.
(2) In case there are several claimants or several respondents, they should elect one arbitrator by mutual consent. If consent cannot be reached amongst the claimants or the respondents, the arbitrator shall be appointed by the Chairperson of the IAC.
(3) In case the claimant or the respondent does not elect an arbitrator, or in case the arbitrators fail to elect chairperson of the Resolving body within the term as per paragraph 1, the Chairperson of the IAC shall appoint the arbitrator or the chairperson from the list of the arbitrators within a 7-day term.
(4) The decision of the IAC’s Chairperson under paragraph 2 and 3 shall be final.
(5) When the persons elected for arbitrators are not included at the IAC’s lists, but have accepted to act as arbitrators, they shall fill in a declaration in writing explicitly stating that they shall adhere to the Regulations of the IAC.
Article 23 (1) The parties may agree that the case may be examined and resolved by one arbitrator who shall be elected by the parties from the list of arbitrators. If the parties fail to agree on the arbitrator, the arbitrator shall be appointed by the Chairperson of the IAC.
Replacement of an arbitrator
Article 24 (1) If an arbitrator does not accept his/her election, deceases, is hindered from performing his/her obligations, or fails to perform his/her obligation for more than twenty days, then a new arbitrator shall be elected pursuant to the provisions of Article 22 and 23.
(2) The provision of the preceding paragraph shall apply also in cases when there are grounds for incompatibility under Article 25 or when a request for recusal by any of the parties has been sustained.
(3) Pursuant to the conditions of the preceding paragraphs, the chairperson of the Resolving body shall be replaced according to the procedure for his/her election. The replacement of an arbitrator who has been appointed as a chairperson of the Resolving body shall not lead to the replacement of the chairperson.
(4) If necessary and after taking the opinion of the parties, the Resolving body may, in the cases referred to in paragraphs 1, 2 and 3, examine once again the matters which have been already examined on previous hearings that were preceding the replacement.
Recusal of an arbitrator
Article 25 (1) When a person is proposed to be an arbitrator, he/she shall reveal all circumstances which may give rise to grounded doubts regarding his/her impartiality or independence by presenting to the IAC’s Secretariat a declaration signed by him/her in person. The arbitrator has the same obligation after his/her election.
(2) The arbitrator or the chairperson of the Resolving body are obliged to exclude themselves under the conditions set in paragraph 1.
(3) Each party is entitled to request recusal of the arbitrator or of the Resolving body’s chairperson, if there is information that they are in person, directly or indirectly interested in the outcome of the dispute.
Procedure for recusal
Article 26 (1) Recusal of an arbitrator may be requested only if there are circumstances which give rise to grounded doubts regarding his/her impartiality or independence, or if the he/she does not have the necessary qualification stipulated between the parties.
(2) A party may request the recusal of an arbitrator who is elected by it or in whose election the party has participated, only on account of grounds which have become known to the party after the election.
(3) The parties may agree on a procedure for recusal.
(4) If there is no agreement, recusal of an arbitrator may be requested no later than 7 days after the party has learnt for the constitution of the Resolving body or after it has learnt about the circumstances which give grounds for the recusal.
(5) The request for recusal shall be made in writing to the Resolving body and the grounds for the recusal shall be stated in it.
(6) If the arbitrator does not exclude himself/herself and the opposing party does not agree to the recusal, the Resolving body shall decide on the recusal.
(7) If the opposing party agrees to the recusal or if the recusal has been sustained, the new arbitrator or the new chairperson of the Resolving body shall be elected or appointed as per the provisions of the present Regulations.
(8) A recusal cannot be made after the factual and legal aspects of the case have been clarified and the Resolving body has moved to rule the final act with which the proceedings shall be concluded.
Recusal of expert witness and interpreters
Article 27. A recusal of an expert witness or an interpreter may be made based on the grounds stipulated in Article 25 and 26. The Resolving body shall make the final ruling on the recusal.
- EXAMINATION OF THE CASE
Preparation for examination of the case and scheduling
Article 28 (1) The resolving body shall verify whether the case has been prepared for examination and shall take appropriate measures for clarifying the circumstances of the case and filling in with evidence so that it could be speedily, economically and properly resolved.
(2) The court may also enact a resolution on the dispute’s substance, if all conditions for ruling a proper, grounded and lawful act are met, in the cases when: 1. the claim will be admitted by the respondent in the answer to the claim; 2. the parties have agreed in the claim and in the answer that the court will enact a resolution in their absence.
Article 29. When the Resolving body is in the opinion that the applicable conditions are met, it schedules hearings with a ruling and summons the parties, the expert witnesses, the interpreters and all other persons participating in the proceedings.
Place of holding court hearings
Article 30 (1) The hearings in front of the IAC will be held at its seat in Sofia.
(2) At the request of the parties or at its own discretion the Resolving body may hold the hearings at another place, if necessary.
Summoning to hearings
Article 31 (1) Summons shall be sent to the parties and the date, time and place of the hearings should be specified in them. The summons and the notifications shall be send in such way, so that each party shall have at least ten days to prepare and participate in the examination of the case. For cases between parties which have their seat or place of residence in different countries, this term shall be no less than thirty days.
(2) Upon adjournment of the case, the parties which have been duly summoned shall not be summoned for the next hearing if its scheduled date has been announced during the hearing.
Language of the case examination
Article 32. The case shall be examined in the Bulgarian language, but if any of the parties has its seat or place of residence abroad, they may agree to use another language, unless the case falls within the mandatory competence or the representative of the party from abroad possesses knowledge in the Bulgarian language. The respective agreement must be reached before constituting of the Resolving body. It shall appoint an interpreter for the party that does not possess knowledge in the Bulgarian language. The remuneration of the interpreter shall be at this party’s expense, notwithstanding the outcome of the dispute.
Examination of the case
Article 33 (1) The case shall be examined at hearings, in which the parties may participate in person or through duly authorized representatives.
(2) The case shall not be examined publicly. Only the parties and their representatives, as well as the persons directly engaged in the arbitration proceedings, shall be allowed to the examination of the case. With a ruling of the Resolving body and with the parties’ agreement, other persons who do not participate in the case may be present during the hearings.
(3) Upon agreement between the parties, the case may be examined and resolved without them being summoned to hearings, based entirely on the written evidence and written opinions presented by them.
(4) In case all evidences have been presented with the exchange of papers and if the court finds that it is not necessary to perform hearing of the parties, it may examine the case in camera and shall give to the parties the possibility to present a written defense and replicas.
(5) The court shall examine and resolve the case in camera, if the parties request so.
(6) The Resolving body may nevertheless summon the parties to hearings, if it finds that the case needs additional clarifications.
(7) The case shall be examined without summoning the parties, if the respondent has admitted the claim in the answer to the claim.
Non-appearance of a party
Article 34 (1) The non-appearance of a party which is duly notified for the time and place of the arbitration hearings does not represent grounds for adjournment of the case. The case may be adjourned only if the non-appearing party has requested the adjournment of the hearings for valid reasons.
(2) Each party may request that the case will be examined in this party’s absence.
Article 35 (1) After the opening of the hearings, the Resolving body shall propose to the parties to solve the dispute through settlement.
(2) The Resolving body may propose settlement at any time before the resolution on the case is enacted.
(3) If the parties reach settlement in front of the Resolving party, it shall be recorded in the protocol for the hearings and shall be signed by the parties and the arbitrator or the arbitrators.
(4) The parties may request that the settlement is reproduced in the arbitration resolution upon stipulated conditions.
Securing of the claim and of the evidence
Article 36 (1) Unless the parties have agreed otherwise, the Arbitration court may, at any party’s request, oblige the other party to take appropriate measures for securing the claim of the applicant. The securing measures cannot affect third persons. Upon the admission of such measures, the arbitration court may determine a guarantee that shall be presented by the applicant.
(2) Where there is a risk that some item of evidence may be lost or the taking thereof may be impeded, the party may request from the Arbitration court its preliminary taking.
(3) The request under the preceding paragraphs shall be examined by the Resolving body, and if it has not been constituted yet – by the Chairperson of the International Arbitration Court at the Association Legal Interaction Alliance.
(4) The ruling under paragraph 1 and 2 is final and is not subject to appeal.
Article 37 (1) Each party has to prove the circumstances on which it has based its claim or its opposition.
(2) The party may present the written evidence in the original or in a copy certified by it. The Resolving body is entitled to require translation of the evidence which is presented in another language if this would be in the interest of the case examination. The written evidence presented by one of the parties shall be in due course served to the other party.
(3) The Resolving body may accept that certain facts are already proven if any of the parties has created with its actions or inactions impediments to the taking of the admitted evidence in regard to these facts.
(4) Written and oral evidence, appointment of expert witnesses and inspections are admissible in the arbitration proceedings.
(5) The parties are entitled to replicas, including written pleadings.
(6) The arbitrators shall weigh all evidence, guided by their inner conviction.
Taking of evidence. Verification.
Article 38 (1) The verification of evidence shall be performed under a procedure set by the Resolving body. It may assign the verification to one of the arbitrators. The parties shall be duly notified for the verification of goods and effects, as well as for inspection.
(2) The Resolving body may require the parties to present other evidence, may appoint expert witnesses or may require from third persons certifications or document that are in their possession, if this will be necessary for establishing the truth on the case. For the evidence taken ex officio, the parties shall be notified in due course and shall be given a reasonable term to render an opinion on it and to present counter evidence.
(3) The resolving body may order the parties to present to the expert witnesses the necessary data or to allow them access for verification of documents, goods and other effects, when this will be necessary for their conclusion. It may, upon request by any of the parties or at its own discretion, oblige the expert witness, after presenting his/her conclusion, to participate in the hearings in order to render clarifications. Upon request by the parties, other expert witnesses may be appointed to present conclusions on the disputable matter.
(4) For the purposes of taking evidence abroad, the Resolving body may delegate one of its members, and the expenses for this shall be paid in advance by the party that has requested the taking of the respective evidence.
(5) Witnesses shall be interrogated if brought by the party that has named them and has clarified what circumstances shall be certified through their testimony.
(6) The Resolving body or the interested party, with its consent, may request the court competent in the country or abroad to take any evidence which is necessary for the case.
Modification of the claim
Article 39. The claimant may modify the claim without the consent of the respondent. The Resolving body may decline the requested modification of the claim, if it would unduly impede the respondent’s defense or the timely resolution of the dispute. These rules shall also apply in case of modification of the counter claim.
Participation of third persons
Article 40. Intervention and impleader of any third person is admissible only with the agreement of the parties, and in case of impleader – also with the agreement of the person that is impleaded. Same shall apply in case of filing a recourse claim against the impleaded person. Impleader shall be admissible only before the term set for answering the claim has expired. The agreement shall be in writing.
EXAMINATION OF THE CASE
Article 41 (1) The Resolving body may at its own discretion adjourn the case for succeeding hearings if it finds that this is necessary for clarification of the factual situation.
(2) Upon request by the parties or at its own discretion, the Resolving body may suspend the case with a ruling or may adjourn it for a specific term which may be no longer than six months.
(3) The suspended case shall be dismissed, if within a 6-month term as from its suspension neither of the parties has requested its resumption.
Article 42 (1) A protocol for the arbitration hearings shall be prepared within a 3-day term by the appointed Secretary under the supervision of the chairperson of the Resolving body and shall be signed by both of them immediately after it was prepared.
(2) Upon request by the party, the protocol may be amended or supplemented with a ruling of the Resolving body in case of errors or omissions. The other party shall be notified for the amendment and may render oppositions till the succeeding hearings at the latest, and if the case is proclaimed to resolution – till expiration of the term for enactment at the latest.
- ENACTING OF RESOLUTIONS OR DISMISSAL OF THE PROCEEDINGS.
Article 43 (1) The Resolving body shall apply the law that is chosen by the parties. Unless not stipulated otherwise, the choice of law shall refer to material law and not to collusion norms.
(2) If the choice of law is inadmissible or if the parties have not chosen applicable law, the Resolving body shall apply the law as per the collusion norms it deems to be applicable. If the parties have their seat, place of residence or place of abode in one and the same country, the collusion norms of this country shall give the applicable law. When the disputable relation is settled by an international contract, this contract shall apply.
(3) In any case the Resolving body shall apply the conditions of the contract and shall take into account the commercial custom and the bona fide commercial practices.
Article 44 (1) The arbitration proceedings shall be concluded with a resolution when there are no impediments for resolving the case on the merits.
(2) Resolution shall be enacted not only in case the claim was admitted, but also in case of abandonment of the claim. When the circumstances on the case impose so, a preliminary or partial resolution may be enacted on it.
(3) The resolution that reproduces the settlement reached by the parties has the effect of an ordinary resolution.
(4) When the arbitrators are not included in the list of the IAC at ALIA, the Chairperson of the IAC at ALIA appoints a commission consisting of three arbitrators who shall verify whether the act with which the proceedings were concluded is compliant with the formal requirements of the ICAA and the Statutes of the IAC at ALIA. The Commission shall render its decision in writing within a 3-day term as from entering the act in the Secretariat by the Resolving body. The Resolving body is obliged to comply with the prescriptions and to remove any formal faults of the act within a 3-day term as from entering the Commission’s prescriptions in the Secretariat. The act shall be entered in the appearance docket only after the faults have been removed.
Enactment of resolution
Article 45 (1) After the Resolving body finds that all circumstances related to the dispute have been clarified, it shall proclaim the arguments concluded and shall move to enact the resolution. The resolution shall be enacted no later than thirty days as from the last hearings.
(2) The resolution shall be ruled in camera by a majority of the Resolution body’s members. The chairperson shall vote last. If a majority cannot be formed, the resolution shall be enacted by the chairperson.
(3) The resolution shall be motivated, unless it reproduces a settlement reached between the parties.
(4) The resolution shall be drafted by the arbitrator reporting the case and shall be signed by the chairperson and the members of the Resolving body. If any of the arbitrators is unable or refuses to sign the arbitration resolution, the chairperson of the Resolving body shall certify this with his/her signature on the resolution with pointing the reasons for this.
(5) The arbitrator who dissents from the opinion of the majority shall sign the resolution immediately and shall indicate his/her position by the initials “d.o”. Within a 7-day term as from the signing, the arbitrator is obliged to present in writing his/her dissenting opinion which shall be attached to the resolution. After the above term has expired, it is deemed that the arbitrator has given up his/her dissenting opinion and in this case the expiry of the term shall be certified by the chairperson of the Resolving body.
(6) When the case is resolved by one arbitrator, the resolution shall be drafted and signed by him/her.
(7) If before the expiration of the term for presenting written opinions on the case which was rendered to the parties by the Resolving body, it is found that the right of any of the parties to be heard has been violated, that it was not able to appear before the court for valid reasons and to notify the Arbitration court for this, that the case requires additional evidence or further clarifications of the circumstances which are of importance for its proper resolving, then the Resolving body shall resume the proceedings for examination of the case.
(8) The arbitration resolution is final and puts an end to the dispute.
(9) The International Commercial Arbitration Act shall apply on matters related to the invalidity or inadmissibility of the resolution, to any restriction of the parties’ rights to equally participate in the defense of their interests in front of the court, as well as to the enforcement of the resolution.
Content of the resolution
Article 46. The resolution shall contain: 1. name of the IAC; 2. date and place of the resolution’s enactment; 3. names of the arbitrators; 4. name/title of the parties and the other persons participating in the proceedings; 5. the case which is subject to dispute, and a short summary of its circumstances; 6. operative part of the resolution containing explicitly the name/title of the person against which the claim has been sustained – physical person or legal entity, fully individualized according to the relevant Bulgarian legislation; 7. motives to the resolution; 8. signature of the arbitrators.
Recording of the resolution. Entry into effect.
Article 47 (1) After the resolution has been signed as per Article 45, it shall be entered in the Secretariat by the chairperson of the Resolving body, respectively by the one arbitrator, and shall be recorded in his/her presence in the book for resolutions at the IAC and as of this moment the resolution is considered enacted and irrevocable.
(2) The book for resolutions shall be at disposal of the parties and their representatives.
(3) The resolution shall be recorded within 10 days after the term under Article 45 (1) has expired, and in the case of Article 45 (5) – upon presentation of the dissenting opinion, respectively upon certification by the chairperson of the Resolving body that such was not presented after the 7-day term set in the same paragraph has expired.
(4) The Chairperson of the IAC may, if necessary, prolong the term as per the preceding paragraph.
(5) The resolution shall enter into force after it was received by the parties, and if it cannot be served to any of the parties, the provisions of Article 18-20 shall apply.
Copy of the resolution
Article 48 (1) A copy of the resolution shall be sent to the parties as per Article 18-20.
(2) In case the parties have not agreed on the language in which the resolution shall be drafted, a translation of the resolution shall be sent to the party that has its seat abroad at this party’s expense and if it has requested so.
(3) If the preparation of the translation is delayed, the Secretary of the court shall send the foreign party an excerpt of the resolution.
(4) All copies and translations shall be certified by the Secretary of the IAC with his/her signature and the seal of the IAC.
(5) Copies of the resolution shall be served to the parties after the arbitration expenses have been paid to the IAC in full.
Correction and interpretation of the resolution
Article 49 (1) The Resolving body may, upon request by any of the parties or at its own discretion, correct the resolution in respect to any apparent error of fact which it has made. The other party shall be notified for the requested correction by the applicant or by the Resolving body, if the latter is acting at its own discretion.
(2) Each party may request the Resolving body to interpret the resolution. Interpretation shall not be requested if the resolution is already enforced.
(3) In regard to the correction or interpretation of the resolution, the Resolving body shall hear the parties or shall give them the possibility to present within a certain term their opinion in writing. It shall decide with regard to the correction or the interpretation within a 7-day term as from the request. The ruling on these matters shall be enacted as per the provisions of Article 44 – 46.
(4) The correction of the resolution in its part relating to the arbitration expenses shall be made with a ruling pursuant to the requirements of paragraph 1 and 3.
(5) The correction and the interpretation shall become an inseparable part of the resolution.
Article 50. The Resolving body may, upon request by the parties, enact an amplification of the resolution on matters which were raised by the parties in the course of proceedings, but on which it has not enacted. The party that has requested the amplification shall notify the other party for its request within a 7-day term as from receiving the resolution. In case of a valid request, the Resolving body shall enact an amplified resolution in compliance with Article 44 – 46 respectively.
Enforcement of the resolution
Article 51 (1) An arbitration resolution or a ruling which concludes the proceedings shall be final and mandatory for the parties.
(2) If there is no term for enforcement specified in the resolution or the ruling, it shall be enforced immediately.
(3) The arbitration shall be subject to enforcement pursuant to the ICAA and the Civil Procedure Code.
Conclusion of the proceedings with a ruling
Article 52 (1) In case a resolution cannot be enacted on the case, the arbitration proceedings shall be concluded with a ruling, for which the provisions of Article 45 and 46 shall apply.
(2) A ruling for conclusion of the proceedings shall be enacted: 1. upon withdrawal of the claim; 2. upon settlement reached between the parties, if they have not requested its reproducing in the arbitration resolution; 3. if there are no prerequisites for examination of the case and resolving it on its merits, and also if the case has been left without progress due to inactions of the claimant in the course of six consecutive months.
(3) If the Resolving body has not been constituted yet as per the relevant procedure, the ruling for conclusion of the arbitration proceedings shall be enacted by the Chairperson of the IAC.
Safekeeping of cases and resolutions
Article 53. The Secretariat of the IAC shall keep the closed cases for a term of ten years as from the proclamation of the resolutions or the rulings. After the above term has expired, the cases shall be destroyed, with the exception of the resolutions and the motives to them, as well as the reached settlements, which will be kept for an indefinite term.
VII. FEES, EXPENSES AND REGISTER INDEX
Arbitration fees and expenses
Article 54 (1) The arbitration fees and the expenses of the IAC shall be calculated and distributed in accordance with the Tariff for arbitration fees and expenses on the cases resolved by the IAC at ALIA.
(2) The Secretary of the IAC or the Resolving body shall instruct the party that has requested taking of evidence to pay a deposit for the expenses that will be incurred for taking of the requested evidence.
(3) If the required deposit has not been paid, the requested actions shall not be performed.
(4) Remunerations of the interpreters, of the secretary recording the protocol and of the expert witnesses, as well as the expenses for their business trips when such are necessary, shall be determined by the Resolving body.
Article 55 (1) The Secretariat of the IAC, under the instructions of the Chairperson of the IAC, shall keep a register index of the resolutions in which excerpts from the motives of principal importance shall be recorded.
(2) The register index may be accessed by anyone interested in it. Copies from it may be issued against a fee.
- 1.It is deemed that arbitration agreements, concluded before the present Regulations and its amendments have entered into force, shall refer to the present Regulations.
The latest amendment of the present Regulations is approved by the Executive Board of the Association Legal Interaction Alliance on 01.11.2012 and will enter into force as from 10.11.2012.