Available Methods
The main extra-judicial methods provided for by statute are arbitration, mediation (mainly in family law matters), and conciliation boards in housing or telecommunication matters. In addition, various professional bodies (lawyers, public notaries, doctors, civil engineers) provide for dispute resolution mechanisms concerning disputes between their members or between members and clients.
Is Alternative Dispute Resolution Compulsory in Austria?
ADR by design favors the principle of party autonomy. An Austrian court could, for example, recommend mediation between the parties during a pre-trial hearing. There is, however, no statutory obligation to pursue ADR before litigation. Prospective claimants and defendants however may consult their legal counsel about possible ADR solutions in addition to filing a claim in the courts.
Legal Framework
Arbitration law is contained in Sections 577-618 ACCP. These provisions regulate both domestic and international arbitration proceedings. Enforcement proceedings are regulated by the Austrian Enforcement Act. Moreover, Austria has ratified the following multilateral conventions relating to arbitration:
- the New York Convention, 31 July 1961 (Austria has made a notification under Article I(3), stating that it would only recognize and enforce awards rendered in other contracting states of this convention);
- the Protocol on Arbitration Clauses, Geneva, 13 March 1928;
- the Convention on the Execution of Foreign Arbitral Awards, Geneva, 18 October 1930;
- the European Convention on International Commercial Arbitration (and the agreement relating to its application), 4 June 1964; and
- the Convention on the Settlement of Investment Disputes, 24 June 1971.
Austria has also signed 69 bilateral investment treaties (BITs), of which 62 have been ratified. Recognition of foreign awards is regulated in the aforementioned multilateral and bilateral treaties Austria has acceded to.
Mediation in Austria is governed by the Civil Law Mediation Act (Zivilrechts-Mediations-Gesetz, ZivMediatG), which is the legal framework for central issues in mediation, including the definition of mediation, the training required to become a mediator in Austria, and the rights and duties of registered mediators.
Court Assistance
Austrian courts have limited management roles concerning ADR processes and court assistance to ADR is mostly reflected in the courts’ informal encouragement of parties to explore settlement options or turn to mediators first. However, this is by no means mandatory and there is no rule under Austrian law requiring parties to consider ADR before commencing arbitration or litigation.
Court intervention concerning arbitration proceedings is stipulated under Sections 577-618 ACCP, which authorize courts to issue interim measures, assist with the appointment of arbitrators, review challenge decisions, decide on the early termination of an arbitrator’s mandate, enforce interim and protective measures, carry out court assistance concerning judicial acts that the arbitral tribunal does not have the power to carry out, decide on an application to set aside an arbitral award, determine the existence or non-existence of an arbitral award, and recognize and enforce awards.
It is also worth noting that certain Austrian courts, including Vienna Commercial Court, offer court-annexed Mediation Programs providing the litigating parties the opportunity to opt for mediation as an alternative to the court process, provided that the judge finds that the case may benefit from mediation.
Legal Effect
Arbitral awards rendered in Austria, according to Section 607 ACCP, shall have the effect of a final court judgment between the parties. An arbitral settlement and award on agreed terms have an enforceable title (Section 1(16) Austrian Enforcement Act). However, only arbitral awards on agreed terms, not arbitral settlements, may be challenged per Section 611 ACCP.
Under Section 433a ACCP, a court settlement may be reached in any district court on the content of a written mediation settlement agreement. As such, a written mediation settlement agreement reached by the parties is enforceable.
Arbitral Institutions in Austria
The Vienna International Arbitral Centre (VIAC) is the primary institution in Austria and administers domestic and international arbitration and mediation proceedings. VIAC provides rules for arbitration (Vienna Rules) and mediation (Vienna Mediation Rules) and has, as of 1 July 2021, has adopted rules on Investment Arbitration and Mediation. Competent arbitrators are chosen by the parties themselves or by the VIAC Board from a list of arbitrators and mediators provided on VIAC’s website.
Austria has become a popular destination in the field of international dispute resolution. Apart from VIAC, further arbitral institutions in Austria are the Court of Arbitration of the Vienna Commodity Exchange and the Salzburg Court of Arbitration. Also, Austria is the host to the annual Willem C. Vis International Commercial Arbitration Moot Competition, the largest moot in the world for its field.
Awards
Article 6 (1.8) of the Vienna Rules provides for three categories of awards: interim, partial, and final. Awards shall be final and binding upon the parties.
Besides, the Vienna Rules explicitly provide that if the parties engaged in an arbitration settle while the proceedings are still pending, at the request of the parties, the arbitral tribunal may record an arbitral settlement and/or render an award on agreed terms (Article 37 of the Vienna Rules). Such an award on agreed terms has the same legal qualifications as a final award on the merits of the case.
Amendments, Explanations, and Supplementations of Awards
Once the award has been rendered, the arbitral tribunal becomes functus officio which implies that the award may not be altered by the tribunal. However, under the VIAC Rules, the parties may request the arbitral tribunal to issue corrections to errors in the award, any related explanations, or an additional award on claims made in the arbitration but not resolved in the awards. The arbitral tribunal shall decide on such an application. Meanwhile, the tribunal may issue such corrections or additions to the award on its own motion within four weeks of the date of the award.
A clarification and a correction constitute parts of the original award and do not have any effect on the running of the time limit for challenging the award and may not be set aside in independent proceedings. Nevertheless, an additional award represents a new, separate award. Therefore, it may be set aside in separate proceedings and the time limit for challenging it starts running upon receipt of the award by the party seeking to have it set aside.
Recognition, Enforcement, and Setting Aside of Arbitral Awards
The recognition and enforcement of arbitral awards are regulated by the Austrian Enforcement Act and specific provisions of the ACCP. Domestic awards by themselves represent executory titles and hence do not require prior recognition. However, international awards undergo a recognition procedure to acquire the status of executory titles in Austria. Partial and interim awards are also enforceable in Austria.
The rules on challenging arbitral awards are enshrined in the Austrian Arbitration Act 2013 (Sections 577-618 ACCP). According to Section 611(4) ACCP, the time limit for an action to set aside an award is three months starting from the date of notification of the award. Such action is subject to the review of the Austrian Supreme Court which acts as the first and final instance – except in consumer and labor law arbitrations.
The above-mentioned statutory laws are subordinate to international law. In case of conflict between the national rules and rules arising from the multitude of bilateral and multilateral treaties ratified by Austria and governing the recognition and enforcement of foreign arbitral awards, norms of international law prevail. In particular, where applicable, the New York Convention overrides most domestic provisions.
The main extra-judicial methods provided for by statute are arbitration, mediation (mainly in family law matters), and conciliation boards in housing or telecommunication matters. In addition, various professional bodies (lawyers, public notaries, doctors, civil engineers) provide for dispute resolution mechanisms concerning disputes between their members or between members and clients.
Is Alternative Dispute Resolution Compulsory in Austria?
ADR by design favors the principle of party autonomy. An Austrian court could, for example, recommend mediation between the parties during a pre-trial hearing. There is, however, no statutory obligation to pursue ADR before litigation. Prospective claimants and defendants however may consult their legal counsel about possible ADR solutions in addition to filing a claim in the courts.
Arbitration law is contained in Sections 577-618 ACCP. These provisions regulate both domestic and international arbitration proceedings. Enforcement proceedings are regulated by the Austrian Enforcement Act. Moreover, Austria has ratified the following multilateral conventions relating to arbitration:
- the New York Convention, 31 July 1961 (Austria has made a notification under Article I(3), stating that it would only recognize and enforce awards rendered in other contracting states of this convention);
- the Protocol on Arbitration Clauses, Geneva, 13 March 1928;
- the Convention on the Execution of Foreign Arbitral Awards, Geneva, 18 October 1930;
- the European Convention on International Commercial Arbitration (and the agreement relating to its application), 4 June 1964; and
- the Convention on the Settlement of Investment Disputes, 24 June 1971.
Austria has also signed 69 bilateral investment treaties (BITs), of which 62 have been ratified. Recognition of foreign awards is regulated in the aforementioned multilateral and bilateral treaties Austria has acceded to.
Mediation in Austria is governed by the Civil Law Mediation Act (Zivilrechts-Mediations-Gesetz, ZivMediatG), which is the legal framework for central issues in mediation, including the definition of mediation, the training required to become a mediator in Austria, and the rights and duties of registered mediators.
Austrian courts have limited management roles concerning ADR processes and court assistance to ADR is mostly reflected in the courts’ informal encouragement of parties to explore settlement options or turn to mediators first. However, this is by no means mandatory and there is no rule under Austrian law requiring parties to consider ADR before commencing arbitration or litigation.
Court intervention concerning arbitration proceedings is stipulated under Sections 577-618 ACCP, which authorize courts to issue interim measures, assist with the appointment of arbitrators, review challenge decisions, decide on the early termination of an arbitrator’s mandate, enforce interim and protective measures, carry out court assistance concerning judicial acts that the arbitral tribunal does not have the power to carry out, decide on an application to set aside an arbitral award, determine the existence or non-existence of an arbitral award, and recognize and enforce awards.
It is also worth noting that certain Austrian courts, including Vienna Commercial Court, offer court-annexed Mediation Programs providing the litigating parties the opportunity to opt for mediation as an alternative to the court process, provided that the judge finds that the case may benefit from mediation.
Arbitral awards rendered in Austria, according to Section 607 ACCP, shall have the effect of a final court judgment between the parties. An arbitral settlement and award on agreed terms have an enforceable title (Section 1(16) Austrian Enforcement Act). However, only arbitral awards on agreed terms, not arbitral settlements, may be challenged per Section 611 ACCP.
Under Section 433a ACCP, a court settlement may be reached in any district court on the content of a written mediation settlement agreement. As such, a written mediation settlement agreement reached by the parties is enforceable.
The Vienna International Arbitral Centre (VIAC) is the primary institution in Austria and administers domestic and international arbitration and mediation proceedings. VIAC provides rules for arbitration (Vienna Rules) and mediation (Vienna Mediation Rules) and has, as of 1 July 2021, has adopted rules on Investment Arbitration and Mediation. Competent arbitrators are chosen by the parties themselves or by the VIAC Board from a list of arbitrators and mediators provided on VIAC’s website.
Austria has become a popular destination in the field of international dispute resolution. Apart from VIAC, further arbitral institutions in Austria are the Court of Arbitration of the Vienna Commodity Exchange and the Salzburg Court of Arbitration. Also, Austria is the host to the annual Willem C. Vis International Commercial Arbitration Moot Competition, the largest moot in the world for its field.
Article 6 (1.8) of the Vienna Rules provides for three categories of awards: interim, partial, and final. Awards shall be final and binding upon the parties.
Besides, the Vienna Rules explicitly provide that if the parties engaged in an arbitration settle while the proceedings are still pending, at the request of the parties, the arbitral tribunal may record an arbitral settlement and/or render an award on agreed terms (Article 37 of the Vienna Rules). Such an award on agreed terms has the same legal qualifications as a final award on the merits of the case.
Once the award has been rendered, the arbitral tribunal becomes functus officio which implies that the award may not be altered by the tribunal. However, under the VIAC Rules, the parties may request the arbitral tribunal to issue corrections to errors in the award, any related explanations, or an additional award on claims made in the arbitration but not resolved in the awards. The arbitral tribunal shall decide on such an application. Meanwhile, the tribunal may issue such corrections or additions to the award on its own motion within four weeks of the date of the award.
A clarification and a correction constitute parts of the original award and do not have any effect on the running of the time limit for challenging the award and may not be set aside in independent proceedings. Nevertheless, an additional award represents a new, separate award. Therefore, it may be set aside in separate proceedings and the time limit for challenging it starts running upon receipt of the award by the party seeking to have it set aside.
The recognition and enforcement of arbitral awards are regulated by the Austrian Enforcement Act and specific provisions of the ACCP. Domestic awards by themselves represent executory titles and hence do not require prior recognition. However, international awards undergo a recognition procedure to acquire the status of executory titles in Austria. Partial and interim awards are also enforceable in Austria.
The rules on challenging arbitral awards are enshrined in the Austrian Arbitration Act 2013 (Sections 577-618 ACCP). According to Section 611(4) ACCP, the time limit for an action to set aside an award is three months starting from the date of notification of the award. Such action is subject to the review of the Austrian Supreme Court which acts as the first and final instance – except in consumer and labor law arbitrations.
The above-mentioned statutory laws are subordinate to international law. In case of conflict between the national rules and rules arising from the multitude of bilateral and multilateral treaties ratified by Austria and governing the recognition and enforcement of foreign arbitral awards, norms of international law prevail. In particular, where applicable, the New York Convention overrides most domestic provisions.