Developed commercial arbitration will promote Armenian businesses: Deputy Justice Minister

YEREVAN, February 22. /ARKA/. A developed commercial arbitration will help promote Armenian businesses, a deputy justice minister Aram Orbelian told a news conference today. He said a developed commercial arbitration is an alternative way to resolve business disputes, and alternative solutions have a positive influence on these disputes.

Commercial arbitration is a means of resolving business disputes between two or more parties outside of a formal court system. Generally, the arbitration works similarly to a court trial, although the setting is more informal. 

An arbitrator or a panel of arbitrators usually serves as both judge and jury. Typically, each company is represented by an arbitration lawyer, who presents the company's side of the case to the arbitrator. After reviewing all of the evidence, the arbitrator renders a decision in the case. 

Orbelian said this system of dispute resolution is more appropriate, since disputes are resolved quickly and efficiently.

"But since commercial arbitration by its ideology is an alternative private activity, it can not completely replace courts as the parties must always retain the right to appeal to courts if they do not trust the arbitration," he said.

Orbelian said underdeveloped commercial arbitration in Armenia is primarily due to high costs and the prevailing public distrust in the judicial system as a whole.

"In 2011 the arbitration court of the Chamber of Commerce and Industry of Armenia heard only three cases. I think we need to work hard to increase the level of public confidence in the arbitration system," he said.

The European Union is showing support for a special program designed to develop commercial arbitration in Armenia. The Arbitration Court of Armenia was established in 2007. -0-