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rbitration is the only alternative method of dispute resolution where the solution given by an impartial third party is binding and enforceable. With this feature, arbitration resembles traditional civil trial, taking over from it the contradictory nature (both sides present arguments and evidence) and active role (arbitrator’s involvement in finding the truth).

However, there are three elements that differentiate arbitration from the traditional court, namely it is effective, customized and flexible.

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Arbitration is effective as it has a legal deadline set at six months. That is, in principle, the arbitral tribunal must reach a solution within six months, under the sanction of arbitration nullity.  Deadlines and procedures are greatly simplified, and the Arbitration Court is close to both sides, indicating them the most effective methods to bring the process to an end.

Arbitration is customized, as the parties choose the arbitrator or arbitrators who will judge them. Thus, according to STARS Arbitration Rules, the parties may jointly appoint the sole arbitrator from a proposed list. They may also appoint one arbitrator each and the third is appointed by the first two, and cast lots. Or the parties may choose that the sole arbitrator is raffled. In this way, the parties shall ensure that the arbitral tribunal is composed of specialists, people with integrity, impartiality, in which the parties have confidence.

Arbitration is flexible because the parties can cooperate with arbitrators on the procedure side. For instance, they may jointly establish venues for meetings (such as locally, or in another city); they may set shorter time limits than required by procedure, they can choose the evidence to be submitted on- line, or select documents to be written in only one language. All these measures lead to a tailor-made process for parties.

11The STARS Arbitration Court is a new permanent arbitration institution in Romanian legal landscape. Founded by a team with experience in mediation and law, the STARS Arbitration Court is addressed to a target group too often ignored by state institutional structures – small and medium entrepreneurs. Through its tariffs and rules of procedure specifically designed, the Arbitration Court is your partner in resolving disputes efficiently and correctly.

Access to the Court is not difficult. It may be personal or by phone, through the Secretariat of the Court, which will further explain the steps to constitute the arbitral tribunal (the sole arbitrator or arbitrators who actually judge the process), to summon the opponent and to complete the other procedural documents on time and at low cost. Furthermore, communication can take place online or by fax or teleconference.

In order to resort to arbitration, however, there must be a consent of all parties. This can be obtained at any time, even when the request for arbitration is filled, by an act which is called compromise. Nevertheless, it is obvious that the chances to bring your opponent to justice (even private one) decrease significantly when there is a dispute already, especially if he/she knows he/she was wrong.

22Consequently, arbitration may be chosen in advance, when signing a contract. Thus, during negotiations with any business partners, you can proposes the insertion of an arbitration clause, according to which you choose that any dispute relating to the contract will be judged by an arbitral tribunal constituted under the aegis of our Court. Ask your lawyers to insert the following clause in your company’s contracts, in Litigations chapter:

Any dispute arising from, or related to, this Agreement (including any dispute concerning its conclusion, execution or termination) will be settled by the arbitration performed by STARS Arbitration Court in accordance with the Rules of Arbitration of the STARS Arbitration Court in force, published on”  

Once inserted in the contract, the arbitration clause remains binding even when one of the parties refuses, the future litigation being removed from state courts jurisdiction. If, however, one of the parties turns to court anyway, all you have to do is to invoke the exception to arbitration, asking the court to decline jurisdiction in favor of the STARS Court.

The arbitration clause is the most simple and effective way to ensure that all your business relationships will operate efficiently. If your business partners know that in case of dispute, it will be resolved quickly, fairly and impartially, and that there is no possibility to play out time, as happens in state courts, they will have every interest for things work as they should. Of course, arbitration is addressed to any other business operators, such as freelancers or family businesses, but also to large corporations, because it can accommodate the needs of any party, thanks to its flexibility.

President of the STARS Arbitration Court

Ioan-Luca Vlad