International arbitral tribunals are becoming increasingly important for dispute resolution. Liechtenstein has the requisite know-how for proceedings concerning the financial sector. The country now plans to join the Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The law on arbitration procedure, which originated in the year 1895, is currently being adapted to modern needs.
The Futuro project on perspectives for the future of the Liechtenstein financial center mentions the development of Liechtenstein as an international venue for arbitral boards as one way to diversify the financial center. According to Futuro, the country should consider setting up an international center for foundation and trust matters and on asset and succession planning outside of ordinary judicial proceedings. Other roles of the center could include a voluntary mediation body as a first resort as well as oversight of charitable foundations. This center would give "a unique position worldwide to a country focused on privacy and private autonomy," according to Futuro's vision for the future.
Arbitration proceedings have been available under Liechtenstein law for more than 100 years, but this type of dispute resolution has not played a significant role so far. With the adjustment of the Code of Civil Procedure to contemporary needs, the legal foundations are being created to utilize the instrument of arbitral tribunals. At the same time, these efforts fulfill the conditions necessary to join the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards, the New York Convention of 1958. Liechtenstein's arbitration procedure is based on the Model Law on International Commercial Arbitration developed in 1985 by UNCITRAL, the UN Commission on International Trade Law. By incorporating the key components of this model law, Liechtenstein will be able to carry out national and international arbitration proceedings in the future.
The Government envisages that the law on international arbitration based on the UNCITRAL model law will make Liechtenstein an attractive venue for arbitration and for arbitral tribunals. In principle, all proprietary claims that could be heard before ordinary courts may also be the object of an arbitration agreement. Under the draft law, an arbitration agreement is "an agreement between the parties to make all or some disputes subject to decision by an arbitral tribunal". The arbitration agreement may be concluded in the form of a separate agreement or in the form of a contract clause. Family law and tenancy claims are excluded from arbitration.
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