1. Vienna as an international
arbitration venue

2. VIAC Founded in 1975 Jurisdiction:
November 2012
VIAC
Founded in 1975
Jurisdiction:
one of the parties has its place of business or usual residence outside Austria; or
disputes of an „international character“
about 1,500 disputes since its formation

3. Development of Arbitration
Cold war period SIAC and VIAC preferred ADR
Accepted by foreign trade monopolies because of the neutral
status of Austria and Sweden.
Phase 1 ca.1990 – 1994 old laws remained in force
Phase 2 from 1995 onwards adoption of the UNCITRAL Model Law and transformation into national law, UNCITRAL, ICC and LCIA accepted widely, formalistic interpretation of arbitration by national Courts
Phase 3 appearance of new administering institutions , widespread acceptance of arbitration as ADR, improvement of enforcement of awards.

4. Growing number of VIAC-arbitrations:

5. Number of parties in VIAC-arbitrations:
2008
2009
2010
2011
2012
111
130
155
156
193

6. Origin of parties (2012): 25 % Austria 32 %
with some overlap
25 %
Austria
32 %
Western Europe (except for Austria)
27 %
East, South and Central Europe
4 %
Mediterranean States
3 %
Asia
7 %
North and South America
2 %
Other countries

7. Origin of arbitrators in VIAC-arbitrations (2012):
Countries of origin of foreign arbitrators (2012):
Austria, Switzerland, Germany, Czech Republic, Hungary, Slovakia, Spain, China, Poland, Slovenia, United Kingdom, Ukraine, Bulgaria, United Arab Emirates, Greece, Rumania, Serbia, USA
Austria
Foreign countries
65 %
35 %

8. Main Changes
in the Vienna Rules 2013

9. Issues in Arbitration Proceedings
Duration
Cost
Comprehensive dispute resolution
Quality of Arbitrators

10. Confirmation of the nomination of arbitrators (Art 19)
Expediting measures
Expedited procedure (Art 45)
Removal of arbitrators in case of inactivity (Art 21 para 2)
Announcement of anticipated issuance of the final award (Art 32)
The constitution of the arbitral tribunal in multi-party proceedings (Art 18)
Confirmation of the nomination of arbitrators (Art 19)
Joinder of third parties and consolidation of proceedings (Art 14 – 15)
Costs and the power of arbitral tribunal to order the non- paying party to reimburse the paying party for the advance on costs (Art 10, 42-44)

11. Expedited Procedure (Art 45)
November 2012
Expedited Procedure (Art 45)
Opt in – provision
Shorter time limits for payment of the advance on costs
 15 days
Counterclaims admissible only until the time-limit for submission of the Reply to the Statement of Claim
Sole arbitrator, unless parties agreed otherwise
Shorter time-limits for the nomination of arbitrators
Time-limit for the issuance of the final award  6 months

12. II. Expedited Procedure (Art 45)
Unless otherwise determined by the arbitral tribunal:
After Statement of Claim and Answer thereto, only one further exchange of written submissions
Factual arguments and written evidence attached to the written submissions
Only one oral hearing (if any)
No written submission after the oral hearing

13. Removal of arbitrators (Art 21 para 2)
either party may submit a request to the Secretariat:
if the arbitrator is prevented from exercising his tasks for more than a temporary period of time; or
if an undue delay of the proceedings occurs
the Board may remove an arbitrator without a party‘s request:
if the incapacity is not merely temporary; or
if the arbitrator is not fulfilling his duties
before deciding on the removal the Board must grant the parties and respective arbitrators the opportunity to comment

14. Announcement of the anticipated issuance of the final award (Art 32)
After closure of the proceedings, the arbitral tribunal must inform the Secretary General and the parties of the anticipated date by which the final award will be rendered.

15. Constitution of the arbitral tribunal in general (Art 17)
The parties are free to decide on the manner of appointment
The parties are free to decide:
sole arbitrator; or
panel of three arbitrators
If no agreement on the number was reached, Board decides:
complexity of case; or
amount in dispute;
parties‘ interest in expeditious and cost-efficient decision

16. II. Constitution of the arbitral tribunal in general (Art 17)
Sole arbitrator:
parties agree on an arbitrator; or
appointment by the Board if the arbitrator is not nominated within the time period
Panel of arbitrators:
Each party shall nominate his/her arbitrator;
Otherwise: the Board appoints the arbitrator for the defaulting party;
Co-arbitrators shall jointly nominate chairman;
Otherwise: the Board appoints the chairman

17. Constitution of the arbitral tribunal in multi-party proceedings (Art 18)
Principles of Art 17 apply with following supplements:
Panel of arbitrators:
Regular case:
Each side shall jointly nominate their arbitrator, otherwise Board appoints the arbitrator for the defaulting party.
In exceptional cases:
Appointment of all arbitrators by the Board (after granting the parties the opportunity to comment)

18. I. Confirmation of the Nomination of Arbitrators (Art 19)
November 2012
I. Confirmation of the Nomination of Arbitrators (Art 19)
Requirements:
Acceptance of office
Declaration of impartiality and independence
Declaration of availability
Declaration of submission to the Vienna Rules
No doubts as to impartiality or independence of the arbitrator to carry out his mandate
Art 16 para 3

19. II. Confirmation of the Nomination of Arbitrators (Art 19)
Confirmation by the Secretary General
If deemed necessary by the Secretary General:
confirmation by the Board
If the Board refuses the confirmation:
new nomination of the arbitrator by the party
If the Board again refuses the confirmation of the new arbitrator: appointment by the Board

20. I. Joinder of Third Parties (Art 14)
The arbitral tribunal decides on the
admissibility of the joinder as well as on the
manner of such joinder
after
hearing all parties and the third party to be joined and
considering all relevant circumstances

21. II. Joinder of Third Parties (Art 14)
Joinder with Statement of Claim requires
submission of the Statement of Claim to the Secretariat
hearing of all parties and the third party
and allows
third party to participate in the constitution of the arbitral tribunal if no arbitrator has yet been appointed (Art 18)

22. III. Joinder of Third Parties (Art 14)
 The arbitral tribunal may return the Statement of Claim with a request for joinder of a third party to the Secretariat to be treated in separate proceedings, if joinder is not granted or not possible.
 The Board may in this case order the new appointment of the arbitral tribunal(s) in the separated proceedings.

23. Consolidation of proceedings (Art 15) The Board decides on consolidation after
hearing the parties and the arbitrators already appointed and
considering all relevant circumstances

24. Consolidation of proceedings (Art 15) “Relevant circumstances” may be:
compatibility of the arbitration agreements,
respective stage of the proceedings,
composition of the arbitral tribunal etc

25. Consolidation of proceedings (Art 15) Requirements are:
same place of arbitration in all of the arbitration agreements, and
agreement of the parties; or
nomination or appointment of the same arbitrators

26. Advance on costs – power of arbitral tribunal to order the non-paying party to reimburse the paying party (Art 42)
The parties mutually undertake to bear the advance on costs in equal parts (para 2)
If the advance on costs is not received in full within the time limit specified, the outstanding amount is to be paid by the opposing party (para 3)
The arbitral tribunal may order the non-paying party to reimburse the paying party (provided it has jurisdiction over the main dispute) (para 4)

27. Main differences to other institutional rules

28. Conscious decision against emergency arbitration
November 2012
Conscious decision against emergency arbitration
Counterclaim may be filed until end of proceedings, but returned to Secretariat if it would lead to substantial delay of the proceedings (Art 9)
Power of arbitral tribunal to order non-paying party to reimburse paying party for advance on costs (Art 42)
Explicit rules on remission of arbitral proceedings to the arbitral tribunal in case arbitral award is set aside (Art 40)
Art 25 et seq)

29. Austrian Supreme Court as first and final instance
November 2012
Austrian Supreme Court
as first and final instance
for annulment claims

30. Historical Background:
Austrian Arbitration Act 2006 based on the UNCITRAL Model Law
three court instances for annulment proceedings
lengthy and expensive
main competitors have shorter annulment proceedings
Arbitration Amendment Act 2013: in force as from 1 January 2014

31. Austrian Supreme Court as first and final instance
§ 615 ACCP
for claims challenging an arbitral award,
claims regarding the declaration of the existence or non- existence of an arbitral award and
for proceedings as to the formation of the arbitral tribunal
appointment of a(n) (substitute) arbitrator
challenge of an arbitrator
early termination of arbitrators‘ mandates
appointment of substitute arbitrators

32. Austrian Supreme Court as first and final instance
The current procedural levels remain in force for disputes involving a consumer and labor law disputes (§§ 616, 617 ACCP)
County Courts remain competent for:
recognition and enforcement of arbitral awards
enforcement of interim and protective measures
judicial assistance

33. III. Austrian Supreme Court as first and final instance
(4) The provisions of the Austrian Act on Non-Contentious Matters (“Außerstreitgesetz”) apply to disputes regarding the formation of the arbitral tribunal (§ 616 para 10 ACCP)
(5) Court fees: 5 % of the value in dispute (with a minimum fee of EUR 5,000)
(6) Appointment and challenge of an arbitrator and the early termination of an arbitrator‘s mandate: € 2,010