The Court of arbitration is constituted with the aim to be a modern instrument for solvation of commercial disputes as well as disputes for supplement of deficiencies in agreements or their adaptation to newly emerged circumstances between parties – physical or juridical persons, with place of residence and seat both in the Republic of Bulgaria and abroad.

Reasons to choose arbitration

  • The arbitration is a modern, fast, confidential, flexible and financially beneficial form for settlement of property disputes.

  • Through arbitration the disputes are settled completely as the arbitration decision is subject to implementation the same way as each court decision.

  • The arbitration procedure is faster as it is of first instance – the arbitration decisions are not subject to appeal in front of a state court or another body. The entered into force arbitration decisions cannot be disaffirmed by court except for exclusively restricted cases and by a claim in front of the Supreme Court of Cassation.

  • The arbitration procedure is more economical. The arbitration fee is determined on the basis of the claim value and the fee is not a constant percentage but decreases with increasing of the claim value. That is to say, in case of high value claims, the arbitration fee is lower from the state fee which the state courts would collect.

  • The arbitration decisions are stabilized faster than the state court decisions because they can be attacked only by a claim and on the basis of specific statutable grounds. In contrast to it, the decision of the state court becomes stable after expiry of the term of appeal and in case of an appeal – only after the final termination of all stages of the court procedure.

  • In contrast to the state court procedure, here the parties can determine directly a number of elements of the arbitration procedure – they can negotiate the number of the arbiters; the procedure for formation of the arbitration structure; the procedure for challenge of a member of the arbitration body; the procedure which the arbitration court must observe in leading the suit, etc. The parties can agree on definite rules for the admissible proofs in the arbitration as well as on the means of service of communication in the arbitration procedure.

  • The implementation of the arbitration decisions abroad is ensured by the New York Convention in a much bigger extent than the implementation of the state court decisions abroad. Arbitration clause

This is the clause which should be included in each agreement – transport contracts, leasing contracts, insurance contracts, rent contracts and all the other contracts which do not have as a subject property rights or possession over a real estate, sustenance or rights in employment relations:

All the disputes which have emerged from this agreement or related to it, including the disputes emerged or related to its interpretation, invalidity, fulfillment or termination as well as the disputes for supplement of deficiencies in the agreement or for its adaptation to newly emerged circumstances, will be settled by Court of Arbitration by Association for development of law with BULSTAT: 176925654 and seat and registered office: Plovdiv, 91 Maritsa Blvd., according to its Statute for suits based on arbitration agreements.”

In case of lack of arbitration clause in already concluded contracts a subsequent arbitration agreement can be made, which concedes competence of the Court of Arbitration, with the following text sample:

AGREEMENT

/to Contract № ……………………/…………………….., concluded between ………………………………………………………………….., in his/her quality of……………………………….. and ………………………………….., in his/her quality of …………………………………./

Today, ……………………………………., in the city/town of………………………………………. between

1 ………………………………………….., BULSTAT ………………………………………, with seat and registered office: ………………………………………………………………………………….., represented by …………………………………………., Identification number…………………………………….. from ONE HAND, and

2. ………………………………………….., BULSTAT ………………………………………, with seat and registered office: ………………………………………………………………………………, represented by …………………………………………., Identification number…………………………………….. from OTHER HAND,

the present agreement was concluded:

І. CONSTATIVE PART:

The parties accept for indisputable and established the following circumstances:

1. ………………………………………………, in his/her quality of ………………………………………….. and ……………………………………………………….., in his/her quality of …………………………………………… have concluded a contract on …………………………….. with subject: ………………………………………………

ІІ. DISPOSITIVE PART:

Based on the thus established, the parties agreed on the following:

2. All the disputes which have emerged from this agreement or related to it, including the disputes emerged or related to its interpretation, invalidity, fulfillment or termination as well as the disputes for supplement of deficiencies in the agreement or for its adaptation to newly emerged circumstances, are assigned for settlement by Court of Arbitration by Association for development of law with BULSTAT: 176925654 and seat and registered office: Plovdiv, 91 Maritsa Blvd., according to its Statute for suits based on arbitration agreements.