Comparative Guides
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Results: 4 Answers
International Arbitration
1.
Legal framework
1.1
What is the relevant legislation on arbitration in your jurisdiction? Are there any significant limitations on the scope of the statutory regime – for example, does it govern oral arbitration agreements?
 
Montenegro
The relevant legislation on arbitration is the Montenegrin Arbitration Act, enacted in 2015.

Under Article 9(3) of the Arbitration Act, an arbitration agreement must be in writing. An oral arbitration agreement shall be deemed to have been concluded in writing if:

  • one party sends written notice to the other party referring to a previous oral agreement and the other party fails timely to object to such notice (Article 9(4)(2)); or
  • the claimant initiates an arbitration in writing, based on an oral arbitration agreement, and the respondent fails to object to the tribunal’s jurisdiction before raising issues as to the merits of the case (Article 9(4)(5)).
For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
1.2
Does this legislation differentiate between domestic arbitration and international arbitration? If so, how is each defined?
 
Montenegro
The Arbitration Act differentiates between domestic and international arbitration, as follows (Article 2(1)):

  • An arbitration is deemed to be domestic if the parties are natural persons with their domicile or habitual residence in Montenegro and/or legal persons established under Montenegrin law; and
  • An arbitration is deemed international if it involves a foreign element (ie, if at least one of the parties is a natural person with his or her domicile or habitual residence in another state or a legal person established under a foreign law whose seat is in another state.

However, the difference between these two concepts seems to have lost its practical meaning. The only dichotomy that may be relevant in the current Montenegrin legislation is between domestic and foreign arbitrations in terms of arbitrations with their seat in Montenegro and those seated abroad, respectively.

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
1.3
Is the arbitration legislation in your jurisdiction based on the UNCITRAL Model Law on International Commercial Arbitration?
 
Montenegro
Yes, the Arbitration Act is based on the UNCITRAL Model Law on International Commercial Arbitration (as amended in 2006).

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
1.4
Are all provisions of the legislation in your jurisdiction mandatory?
 
Montenegro
No, the Arbitration Act allows the parties to agree on certain issues in line with the principle of party autonomy. Therefore, in many respects, the Arbitration Act provides only for default rules in cases where the parties have not agreed otherwise. For example, the parties are free to agree on the procedure for appointment of the arbitral tribunal; it is only if they fail to agree on such procedure that the tribunal will be appointed under the provisions of the Arbitration Act (Article 13(2)).

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
1.5
Are there any current plans to amend the arbitration legislation in your jurisdiction?
 
Montenegro
No, the Arbitration Act was enacted only recently (2015) and there are no known plans to amend it at the moment.

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
1.6
Is your jurisdiction a signatory to the New York Convention? If so, have any reservations been made?
 
Montenegro
Yes, Montenegro is a party to the New York Convention. Montenegro succeeded to the Convention on 23 October 2006, following its proclamation of independence from the Federal Republic of Yugoslavia, which had previously been a party to the New York Convention. On succession, Montenegro restated the following reservations declared by the Federal Republic of Yugoslavia as the predecessor state:

  • reciprocity;
  • non-retroactive application; and
  • applicability to commercial disputes.

However, with the adoption of the Arbitration Act, the reservations of reciprocity and applicability to commercial disputes have lost their practical effect, since the applicant for recognition may refer to the more favourable provisions of the Arbitration Act, which does not prescribe those two conditions.

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law
1.7
Is your jurisdiction a signatory to any other treaties relevant to arbitration?
 
Montenegro
Montenegro is also a party to:

  • the European Convention on International Commercial Arbitration (also succeeded to on 23 October 2006);
  • the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (entered into force on 10 May 2013); and
  • the Energy Charter Treaty (entered into force on 7 December 2015).

Additionally, Montenegro has concluded a number of bilateral investment treaties.

For more information about this answer please contact: Tanja Šumar from Schoenherr Attorneys at Law