Investment Arbitration Proceedings
Investment arbitration proceedings under the Vienna Investment Rules 2021 are clearly structured and efficient. The processes are designed to ensure fair, transparent and expeditious proceedings. Here is a step-by-step overview of a typical VIAC investment arbitration proceeding:
Investment arbitration agreement
Investment Arbitration Clause
The cornerstone of any investment arbitration under the Vienna Investment Rules 2021 is an arbitration agreement and a reference to the legal instrument in which the parties agree to resolve their disputes under the Vienna Investment Rules.
Submission of an Investment Arbitration Claim
The arbitration process is officially initiated with the filing of an Investment Claim. The Statement of Claim must contain certain information, such as the names and addresses of the parties, a statement of the facts, a specific request and information on the arbitration agreement and the arbitrators (Art 7 Vienna Investment Rules 2021).
Answer to the Statement of Claim
After receipt of the registration fee, VIAC forwards the Statement of Claim to Respondent. Respondent then has the opportunity to submit an Answer to the Statement of Claim within a specified period (generally 60 days).
Constitution of the Arbitral Tribunal
The arbitral tribunal is constituted in accordance with the criteria set out in the arbitration agreement or in accordance with the Vienna Investment Rules 2021. The arbitral tribunal can consist of a sole arbitrator or a panel of arbitrators consisting of three arbitrators.
Calculation of the Advance on Costs
Parties are requested to pay the anticipated costs of the proceedings, consisting of the administrative costs, arbitrators’ fees, VAT and costs for any cash expenses. The advance on costs generally needs to be paid within 30 days of receipt of the request. The cost calculator gives parties an overview of the estimated costs of the arbitration. The Secretary General will determine the advance on costs for the specific case after the proceedings have been initiated.
Transfer of File
As soon as the advance on costs has been paid in full and the arbitral tribunal has been constituted, the arbitration case is transferred to the arbitral tribunal. The course of the proceedings is then determined by the parties together with the arbitral tribunal.
Proceedings before the Arbitral Tribunal
At the beginning of the proceedings, the arbitral tribunal usually schedules a case management conference with the parties and issues a procedural order (PO1) together with a procedural timetable. Arbitration proceedings can be conducted purely in writing, but usually an oral hearing is scheduled. The Vienna Rules allow for the use of modern technology to make hearings efficient and cost-effective, including the possibility of virtual hearings.
Arbitration Award
Arbitrators are requested to render an arbitral award within six months after the oral hearing or after the last substantive submission in the proceedings. Arbitral awards are final and binding on the parties and can, if necessary, be declared enforceable before national courts.
