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ESTONIA ARBITRATION ACT

Act Of The Republic Of Estonia on the Court of Arbitration of the Estonian Chamber of Commerce and Industry

as amended by the "Act amending the Act of the Republic of Estonia on the Court of Arbitration of the Estonian Chamber of Commerce and Industry, the Code of Enforcement Procedure and the Value-Added Tax Act" passed on 10 February 1999

Consolidated text as of 10 February 1999

1. (1) The Court of Arbitration of the Estonian Chamber of Commerce and Industry (hereinafter "the Court of Arbitration") shall be a permanent court of Arbitration established by the Estonian Chamber of Commerce and Industry for the settlement of disputes arising out of contractual and other civil law relation-ships, including foreign trade and other international economic relations.
(2) The Court of Arbitration shall be a non-governmental institution.

2. The Court of Arbitration shall settle disputes on the basis of statements of claim provided that:
1) the parties have concluded a written agreement to refer an existing or possible dispute to the Court of Arbitration for settlement;
2) the agreement to settle the dispute in the Court of Arbitration has been ex-pressed by the claimant by submitting a claim and by the respondent by action evidencing its voluntary subjection to the jurisdiction of the Court of Arbitration;
3) the dispute falls within the jurisdiction of the Court of Arbitration under international agreements.

3. (1) The procedure for forming the arbitral tribunal and for settlement of disputes shall be regulated under the Rules of the Court of Arbitration, which shall be confirmed by the Council of the Estonian Chamber of Commerce and Industry.
(2) The Rules of the Court of Arbitration shall be prepared in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL) (adopted by Resolution 31/98 of the UN General Assembly of 15 December 1976).

31. (1) In settling disputes, the Arbitral Tribunal shall apply the legislation agreed between the parties. In the case of reference to the applicable law of a specific state, the agreement shall be regarded as not applicable to the conflict of laws rules of that state unless otherwise agreed by the parties.
(2) Where the parties have not agreed on the applicable law, the Arbitral Tribunal shall apply the Estonian law.
(3) The Arbitral Tribunal may settle any dispute ex aequo et bono where the par-ties have so agreed.
(4) In settling disputes, the Arbitral Tribunal shall take into consideration the good trade practices.

4. In the Court of Arbitration, disputes shall be reviewed by a sole arbitrator or several arbitrators elected by the parties or appointed by the Court of Arbitration.

41. (1) Unless otherwise agreed by the parties, the Court of Arbitration may, at the request of a party, apply the following measures to secure the action:
1) the entry of a transfer prohibition note, or the establishment of a judicial mortgage, on real property belonging to the respondent in the land register or the arrestment of movable property or money held by the respondent or other persons, taking account of the claim value;
2) prevention of the respondent from conducting certain transactions and acts.
(2) Any award of the Court of Arbitration specifying measures to secure the action shall be enforced in the same manner as a final award of the Court of Arbitration on the settlement of a dispute.
(3) For the recovery of possible damages caused by securing the action, the Court of Arbitration may demand from the applicant prepayment of a deposit with the Court of Arbitration.
(4) Where the Court of Arbitration denies the claim and where damages have been caused to the respondent by securing the action at the request of the claimant, the respondent may demand from the claimant the recovery of damages.

42. The Court of Arbitration may request from county or city courts assistance for the procedure of proof or other court procedures not falling within the jurisdiction of the Court of Arbitration. The court shall resolve the request in accordance with the procedural provisions applicable to the procedure of proof or other court procedures.

5. The arbitrators shall perform their duties independently.

6. Disputes shall be reviewed in the Court of Arbitration for a fee. The rate and the procedure for payment of arbitration fees shall be laid down in the Rules of the Court of Arbitration.

7. (1) Within one month after receipt of the award of the Court of Arbitration, any interested party may apply for such award to be set aside by the Tallinn Circuit Court where:
1) the person who concluded the agreement to settle disputes in the Court of Arbitration was not legally competent at the time of concluding such agreement;
2) the agreement to settle disputes in the Court of Arbitration is invalid under that state's law whereunder the parties have decided to evaluate the validity of the agreement or, where the parties have not agreed on such law, the agreement is invalid under the Estonian law:
3) the party was not given proper notice of the appointment of the arbitrator or of the Court of Arbitration proceedings or was for other reasons unable to present or defend its views on the case;
4) the award of the Court of Arbitration deals with a dispute not subject to settlement in the Court of Arbitration under the agreement between the parties;
5) the composition of the Arbitral Tribunal or the Court of Arbitration procedure was not in accordance with the agreement of the parties or with the Rules of the Court of Arbitration, and such infringement has substantially affected the award of the Court of Arbitration;
6) the settlement of the dispute does not fall within the jurisdiction of the Court of Arbitration under the Estonian law;
7) recognition or enforcement of the award of the Court of Arbitration would conflict with the Estonian constitutional order or public policy.
(2) Applications for setting aside awards of the Court of Arbitration shall be submitted to the Tallinn Circuit Court through the chairman of the Arbitral Tribunal. The chairman shall notify the application to the counter-party, who may present its views.
(3) Where the setting aside of an award of the Court of Arbitration is applied for under clause (1) 4) of this Section and the award settles several claims, certain of which fell within the jurisdiction of the Court of Arbitration, the Court shall set aside the award in relation to the claims not falling within the jurisdiction of the Court of Arbitration.
(4) At the request of the counter-party, the Court may suspend the proceedings of setting aside the award of the Court of Arbitration for a further award to be made by the Court of Arbitration.
(5) An application for setting aside an award of the Court of Arbitration shall be denied where the applicant refers to infringements, of which it may have notified the Court of Arbitration during the proceedings but has not done so in due time.
(6) An appeal against any award of the Court of Arbitration shall not suspend the enforcement of the award. The enforcement may be suspended by the Court
(7) Any court judgment setting aside an award of the Court of Arbitration shall not result in the invalidity of the agreement to settle disputes in the Court of Arbitration.

71. (1) In reviewing applications referred to in Subsection 7(1), the Tallinn Circuit Court shall apply the appellate procedure provisions of the Code of Civil Procedure insofar as this is in accordance with the meaning of the arbitral proceedings.
(2) The Circuit Court shall settle the application by judgment.
(3) The Circuit Court shall deny the application or set aside the award of the Court of Arbitration.
(4) The Circuit Court judgment shall be final and not subject to appeal.

8. Awards of the Court of Arbitration made in Estonia shall be enforced in respect of any person in Estonia in accordance with the procedure laid down in the Code of Enforcement Procedure.

9. Awards of the Court of Arbitration made in Estonia shall be enforced in respect of any person in a foreign country in accordance with the procedure laid down in the Code of Enforcement Procedure. Such awards shall be regarded as foreign arbitral awards within the meaning of § 74 of the Code of Enforcement Procedure.

 

A. Rüütel Chairman of the Supreme Council of the Republic of Estonia Tallinn, 14 August 1991

* - Sections as amended or inserted by the Act of 10 February 1999

Originally passed on 14 August 1991
Entered into force on 31 August 1991
Published in the State Gazette (RT) 1991, 25, 308

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