Investment Arbitration Basics
In the context of investment proceedings, the Vienna International Arbitral Centre (VIAC) of the Austrian Federal Economic Chamber (WKO) supports parties by providing arbitration and mediation rules (Vienna Investment Arbitration Rules and Vienna Investment Mediation Rules 2021) for the settlement of disputes between foreign investors and host states.
What is investment arbitration and mediation?
Investment arbitration and mediation allows a foreign investor to directly invocate its claims against the host state in which it has invested in the event of a dispute. If investment arbitration or mediation proceedings are initiated, access is therefore provided to independent and qualified arbitrators who, in accordance with various standards of protection granted under international agreements, decide on the dispute and render an enforceable award.
Legal Certainty
Investment arbitration offers legal certainty and promotes private investments and successful business developments.
De-Politicisation
Investment arbitration de-politicises investment disputes.
The Vienna Investment Arbitration Rules 2021
VIAC provides access to independent and qualified arbitrators who decide disputes and issue decisions in accordance with protection standards based on international investment protection agreements.
The Vienna Investment Arbitration Rules 2021 take into account the special features of investment arbitration while preserving the procedural flexibility of the Vienna Rules.
As an effective alternative to the arbitration rules applied in traditional investment arbitration proceedings, they are particularly well suited to parties located in Central and Eastern Europe and Southern Eastern Europe and to smaller investment disputes.
The Vienna Rules apply if there is an agreement to arbitrate investment disputes arising out of a treaty, agreement, law or other instrument involving a state, state-controlled enterprise or intergovernmental organisation.
In addition, the Vienna Rules may be subsequently agreed by the parties.
VIAC provides access to independent and qualified arbitrators who decide disputes and issue decisions in accordance with protection standards based on international investment protection agreements.
Streamlined Proceedings with Lower Costs
The Vienna Investment Arbitration Rules 2021 take into account the special features of investment arbitration while preserving the procedural flexibility of the Vienna Rules. Some of the advantages of our professional support in investment arbitration proceedings:
Requirements for Parties and Disputes
As an effective alternative to the arbitration rules applied in traditional investment arbitration proceedings, they are particularly well suited to parties located in Central and Eastern Europe and Southern Eastern Europe and to smaller investment disputes.The Vienna Investment Arbitration Rules 2021 take into account the special features of investment arbitration while preserving the procedural flexibility of the Vienna Rules.
Streamlined Proceedings
Short time limits contribute to the speedy handling of proceedings. Any pleas concerning a lack of jurisdiction on the part of the arbitral tribunal must be raised at the latest with the first pleading in the case.
Amicus Curiae
In arbitration proceedings based on an agreement, parties not involved in the dispute, e.g. international organisations, may submit written statements on questions of fact or law. To do so, a party not involved in the dispute must submit an application to the arbitral tribunal. The latter decides on the application after hearing all of the parties (involved) and taking all of the circumstances into account. In addition, the arbitral tribunal may also invite parties not involved in the dispute to submit a statement.
Premature Dismissal
Obviously unfounded claims, counterclaims and defence statements may be dismissed prematurely. The arbitral tribunal must reach a decision within 60 days of receiving the last written statement.
Third Party Funding
The Vienna Rules provide for a disclosure obligation for litigation funders.
Fast Arbitral Awards
The arbitral tribunals must issue an award no later than six months after the last hearing or the submission of the last admissible pleading, whichever comes last.
Lower Costs
VIAC Investment Arbitrations are cost-effective and are particularly suited to smaller investment disputes.
The result of an investment arbitration is an arbitral award that can be enforced almost anywhere in the world with minimal scope for appeal.
The Vienna Investment Arbitration Rules facilitate the efficient resolution of investment disputes and solve two main problems of users: Duration and costs.
Further information
New York Übereinkommen über die Anerkennung und Vollstreckung ausländischer Schiedssprüche 1958
UNCITRAL Arbitration Rules
Vienna Rules for Investment Procedures
UNCITRAL Rules on Transparency in Treaty-Based Investor State Arbitration
Vienna Mediation Rules for Investment Proceedings
UNCITRAL Transparency Registry
Musterinvestitionsschiedsklauseln
Parties who wish to submit their investment dispute to the Vienna Rules, may make use of VIAC’s model arbitration clauses. A standard model investment arbitration clause and several investment model arbitration clauses for specific issues are available.
Resources for Arbitrators
VIAC regularly compiles resources for arbitrators to assist arbitrators in conducting proceedings under the Vienna Rules and to facilitate cooperation with the VIAC Secretariat.
Cost calculator
The cost calculator is only a working tool for parties and interested persons in order to gain an overview of the expected procedural costs for a VIAC arbitration with a particular amount in dispute. The actual calculation of the advance on costs shall be made by the Secretary General after the proceedings have been initiated.
Arbitrator Search
VIAC offers arbitration practitioners the possibility to create a profile and present themselves. Die profile sind nicht bindend und stellen keine Empfehlung dar. The parties and the VIAC Executive Committee are free to nominate and appoint arbitrators.
Mediation of investment disputes
New rules apply to the mediation of investment disputes and Arb-Med-Arb combinations.
