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"Reproduced with permission from Law Business Research. This article was first published in Getting the Deal Through - Arbitration 2010, (published in March 2010; contributing editors: Gerhard Wegen and Stephan Wilske). For further information please visit www.GettingTheDealThrough.com."
Greece
Stelios H Gregoriou
Gregoriou & Associates Law Offices
Laws and institutions:
1. Multilateral conventions
Is your country a contracting state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards? Since when has the Convention been in force? Were any declarations or notifications made under articles I, X and XI of the Convention? What other multilateral conventions relating to international commercial and
investment arbitration is your country a party to?
Greece is a contracting state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, pursuant to Law No. 4220/1961, ratified without any declarations or reservations, in force since 14 October 1962.
Before that ratification Greece had been a contracting party to the Geneva Protocol of 24 September 1923, pursuant to Legislative Decree No. 4/1926 and, later, to the Geneva Convention of 1927 for the Enforcement of Foreign Arbitral Awards, pursuant to Law No. 5013/1931.
The New York Convention replaced the Geneva Protocol of 1923 and the Geneva Convention of 1927 and, therefore, the states that have signed the former are now bound only by it, unlike those states that have not yet signed the New York Convention (eg, the Bahamas, Iraq) that are still bound by the latter.
Greece is also a contracting party to the Washington Convention of 1968 on the settlement of investment disputes between states and nationals of other states (the ICSID Convention), ratified by Compulsory Law 608/1968, in force since 21 May 1969. Finally, Greece is a signatory state of the UNCITRAL Model Law on International Commercial Arbitration, adopted by the United Nations Commission on International Trade Law on 21 June 1985.
2 Bilateral treaties
Do bilateral treaties relating to arbitration exist with other countries?
Greece is party to various bilateral treaties or agreements concerning arbitration. Bilateral treaties that were ratified before the ratification of New York Convention are the following:
• Greece–Czechoslovakia Convention of 7 April 1927, on the ‘recognition and enforcement of judicial decisions’ (Law No. 3617/1928).
• Greece–US Convention of 3 August 1951, on ‘Friendship, Commerce and Navigation’ (Law No. 2893/1954); and
• Greece–Federal Republic of Yugoslavia Agreement of 18 June 1959, on the ‘Agreement on mutual recognition and execution of judicial decisions’ (Law No. 4009/1959).
Bilateral treaties that have been ratified after the ratification of the New York Convention are the following:
• Greece–Federal Democracy of Germany Convention, ‘on the Agreement about mutual recognition and enforcement of the judicial awards etc.’ (Law No. 4305/1963);
• Greece–Socialist Republic of Romania Convention of 19 October 1972 , ‘on rogatory commission on civil and penal cases’ (Decree No. 429/1974);
• Greece–Lebanon Convention of 5 April 1975, ‘on rogatory commission on civil and penal cases and arbitration’ (Law No. 1099/1980);
• Greece–Hungary Convention of 8 October 1979, ‘on rogatory commission on civil and penal cases’ (Law No. 1149/1981);
• Greece–Syria Convention ‘on rogatory commission on civil and penal cases’ (Law No. 1450/1984);
• Greece–Cyprus Convention, on legal collaboration on matters of civil, familiar, commercial and penal law (Law No. 1548/1985);
• Greece–Tunisia Convention, on rogatory commission on civil and commercial cases and on arbitral awards (Law No. 2228/1994);
• Greece–Albania Convention, on rogatory commission on civil and commercial cases (Law No. 2311/1995);
• Greece–Popular Republic of China Convention, on rogatory commission on civil and penal cases (Law No. 2358/1995);
• Greece–Georgia Convention, on rogatory commission on civil and commercial cases (Law No. 2813/2000); and
• Greece–Armenia Convention, on rogatory commission on civil, family and penal cases (Law No. 3007/2002).
3 Domestic arbitration law
What are the primary domestic sources of law relating to domestic and foreign arbitral proceedings, and recognition and enforcement of awards?
The primary domestic source of law relating to domestic arbitral proceedings, recognition and enforcement of awards is articles 867 to 903 of the Code of Civil Procedure, enacted by Law No. 503/1985.
Foreign commercial arbitration is governed by Law No. 2735/1999, which introduced for the first time in the corpus of Greek legislation the notion of foreign arbitration and the rules of international private law that directly regulate arbitration issues, without recourse to rules of conflict of laws. Issues related to foreign civil arbitration remain outside the scope and application of this law.
Arbitration proceedings are considered foreign if one or both of the litigant parties is established outside Greek territory, if the place of arbitration or execution of a commercial agreement is located outside Greek territory or if the subject matter of the arbitration agreement is more closely connected with one or more other countries.
4 Domestic arbitration and UNCITRAL
Is your domestic arbitration law based on the UNCITRAL Model Law?
What are the major differences between your domestic arbitration law and the UNCITRAL Model Law?
Greece adopted the UNCITRAL Model Law on International Commercial
Arbitration of 21 June 1985 by Law No. 2735/1999 on
GREECE Gregoriou & Associates Law Offices
152 Getting the Deal Through – Arbitration 2010
Foreign Commercial Arbitration as a whole, as explained in its preamble,
with some minor amendments and improvements that originated
from the existing Greek legislation and case law.
5 Mandatory provisionsGreece
Stelios H Gregoriou
Gregoriou & Associates Law Offices
Laws and institutions
1 Multilateral conventions
Is your country a contracting state to the New York Convention on
the Recognition and Enforcement of Foreign Arbitral Awards? Since
when has the Convention been in force? Were any declarations or
notifications made under articles I, X and XI of the Convention? What
other multilateral conventions relating to international commercial and
investment arbitration is your country a party to?
Greece is a contracting state to the New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, pursuant
to Law No. 4220/1961, ratified without any declarations or reservations,
in force since 14 October 1962.
Before that ratification Greece had been a contracting party to
the Geneva Protocol of 24 September 1923, pursuant to Legislative
Decree No. 4/1926 and, later, to the Geneva Convention of 1927 for
the Enforcement of Foreign Arbitral Awards, pursuant to Law No.
5013/1931.
The New York Convention replaced the Geneva Protocol of
1923 and the Geneva Convention of 1927 and, therefore, the states
that have signed the former are now bound only by it, unlike those
states that have not yet signed the New York Convention (eg, the
Bahamas, Iraq) that are still bound by the latter.
Greece is also a contracting party to the Washington Convention
of 1968 on the settlement of investment disputes between states and
nationals of other states (the ICSID Convention), ratified by Compulsory
Law 608/1968, in force since 21 May 1969.
Finally, Greece is a signatory state of the UNCITRAL Model Law
on International Commercial Arbitration, adopted by the United
Nations Commission on International Trade Law on 21 June 1985.
2 Bilateral treaties
Do bilateral treaties relating to arbitration exist with other countries?
Greece is party to various bilateral treaties or agreements concerning
arbitration. Bilateral treaties that were ratified before the ratification
of New York Convention are the following:
• Greece–Czechoslovakia Convention of 7 April 1927, on the
‘recognition and enforcement of judicial decisions’ (Law No.
3617/1928).
• Greece–US Convention of 3 August 1951, on ‘Friendship, Commerce
and Navigation’ (Law No. 2893/1954); and
• Greece–Federal Republic of Yugoslavia Agreement of 18 June
1959, on the ‘Agreement on mutual recognition and execution
of judicial decisions’ (Law No. 4009/1959).
Bilateral treaties that have been ratified after the ratification of the
New York Convention are the following:
• Greece–Federal Democracy of Germany Convention, ‘on the
Agreement about mutual recognition and enforcement of the
judicial awards etc.’ (Law No. 4305/1963);
• Greece–Socialist Republic of Romania Convention of 19 October
1972 , ‘on rogatory commission on civil and penal cases’ (Decree
No. 429/1974);
• Greece–Lebanon Convention of 5 April 1975, ‘on rogatory
commission on civil and penal cases and arbitration’ (Law No.
1099/1980);
• Greece–Hungary Convention of 8 October 1979, ‘on rogatory
commission on civil and penal cases’ (Law No. 1149/1981);
• Greece–Syria Convention ‘on rogatory commission on civil and
penal cases’ (Law No. 1450/1984);
• Greece–Cyprus Convention, on legal collaboration on matters of
civil, familiar, commercial and penal law (Law No. 1548/1985);
• Greece–Tunisia Convention, on rogatory commission on
civil and commercial cases and on arbitral awards (Law No.
2228/1994);
• Greece–Albania Convention, on rogatory commission on civil
and commercial cases (Law No. 2311/1995);
• Greece–Popular Republic of China Convention, on rogatory
commission on civil and penal cases (Law No. 2358/1995);
• Greece–Georgia Convention, on rogatory commission on civil
and commercial cases (Law No. 2813/2000); and
• Greece–Armenia Convention, on rogatory commission on civil,
family and penal cases (Law No. 3007/2002).
3 Domestic arbitration law
What are the primary domestic sources of law relating to domestic
and foreign arbitral proceedings, and recognition and enforcement of
awards?
The primary domestic source of law relating to domestic arbitral
proceedings, recognition and enforcement of awards is articles 867 to
903 of the Code of Civil Procedure, enacted by Law No. 503/1985.
Foreign commercial arbitration is governed by Law No.
2735/1999, which introduced for the first time in the corpus of Greek
legislation the notion of foreign arbitration and the rules of international
private law that directly regulate arbitration issues, without
recourse to rules of conflict of laws. Issues related to foreign civil
arbitration remain outside the scope and application of this law.
Arbitration proceedings are considered foreign if one or both of
the litigant parties is established outside Greek territory, if the place of
arbitration or execution of a commercial agreement is located outside
Greek territory or if the subject matter of the arbitration agreement is
more closely connected with one or more other countries.
4 Domestic arbitration and UNCITRAL
Is your domestic arbitration law based on the UNCITRAL Model Law?
What are the major differences between your domestic arbitration law
and the UNCITRAL Model Law?
Greece adopted the UNCITRAL Model Law on International Commercial
Arbitration of 21 June 1985 by Law No. 2735/1999 on
GREECE Gregoriou & Associates Law Offices
152 Getting the Deal Through – Arbitration 2010
Foreign Commercial Arbitration as a whole, as explained in its preamble,
with some minor amendments and improvements that originated
from the existing Greek legislation and case law.
5 Mandatory provisions
What are the mandatory domestic arbitration law provisions on
procedure from which parties may not deviate?
The parties to arbitral proceedings have the discretion to agree freely
to the rules of procedure that will govern the proceedings, provided
they are in compliance with the public policy of Greece and with the
rules of due process. If the parties do not select any rules before the
beginning of the proceedings, then the arbitrators can choose the
rules of procedure they deem most appropriate to the case (article
19 No. 2735/1995).
The following can be considered mandatory provisions:
• the scope of the arbitration extends only to cases of a commercial
and economic nature and not to civil law cases;
• there must be a written compromissory clause inserted in the
context of a contract providing for the obligation of the parties
to recourse to an arbitral tribunal if there is a dispute between
them;
• if there is an arbitration clause in the contract the ordinary courts
have no competence to adjudicate the case;
• the arbitrators must be independent and impartial third persons
and their award must be issued in writing, sufficiently reasoned
and signed by at least the majority of arbitrators; and
• the arbitral award is mandatory and binding for the litigant parties,
it is definite in the sense there is no remedy against it, and
can be directly enforced against the adversary party.
6 Substantive law
Is there any rule in your domestic arbitration law that provides the
arbitral tribunal with guidance as to which substantive law to apply to
the merits of the dispute?
The parties have the discretion to choose the substantive law of the
case to be applied by the arbitral tribunal. In domestic arbitration
Greek law applies, unless the parties agree to apply a different set of
substantive rules.
7 Arbitral institutions
What are the most prominent arbitral institutions in your country?
The most prominent arbitral institutions include:
• the Athens Chamber of Commerce and Industry (www.acci.
gr), governed by Presidential Decree 31/1979, which sets out
its rules, tasked with resolving commercial disputes between its
members;
• the Greek Centre of Mediation and Arbitration (www.sae-epe.
gr), established by the Association of Societes Anonymes and
Limited Liability Companies;
• The Hellenic Chamber of Shipping (www.nee.gr); it is governed
by Royal Decree 447/1969 and tasked with resolving maritime
disputes between its members;
• the Piraeus Association for Maritime Arbitration (PAMA) (www.
pama.gr), is a private non-profit association founded in 2005 to
promote the resolution of maritime disputes by arbitration in
Piraeus in view of its growing recognition as a major shipping
centre;
• the Organisation of Mediation and Arbitration was established
by the Law for Free Collective Bargaining (1876/1990) and its
main purpose is to support collective bargaining by providing
independent mediation and arbitration services to social
partners;
• the Athens Bar has the competence to resolve disputes between
its members lawyers and their clients.
• the Technical Chamber of Greece has the competence to resolve
disputes between its members (engineers) and their clients (Presidential
Decree 723/1979); and
• the Stock Exchange of Athens has the competence to resolve
disputes between stock exchange brokers and their clients (Presidential
Decree 637/1977).
Arbitration agreement
8 Arbitrability
Are there any types of disputes that are not arbitrable?
The Greek legal system tends to favour the arbitrability of cases. All
private disputes are arbitrable, except for those where the subject
matter concerns private legal rights that cannot be freely disposed of
by the parties (GCCP, article 867, section 1).
However, Greek legislation explicitly prohibits the resolution by
arbitration of public interest matters, which are not disposable, such
as insolvency, family law disputes (divorce, relations between parents
and their children and adoption), labour law disputes (apart from
collective bargaining), the civil status and legal capacity of individuals,
etc.
It is important to note that issues of competition law are not
arbitrable (unlike unfair competition), since they are connected with
the operation of the free market, which is of public interest.
9 Requirements
What formal and other requirements exist for an arbitration
agreement?
The arbitration agreement must be always in writing and can be
inserted in the terms and conditions of a contract as a separate and
severable clause determining explicitly the matters to be resolved by
arbitration. The requirement that an agreement should be in written
form is satisfied by an exchange via telegrams, teletypes, faxes
or electronic means, provided that the digital signature is lawfully
accepted.
Therefore, an oral agreement for arbitration is considered null
and void as well as an agreement without the proper and original
signature of the parties. All changes to the arbitration agreement
must also be in writing.
The issue of a bill of lading in which there is an express reference
to an arbitration clause contained in a carriage of goods contract,
constitutes an arbitration agreement (article 7, paragraph 6, Law
No. 2735/99).
The nullity of an arbitration agreement clause not meeting the
requirements for its form (usually the writing requirement), can be
resolved if the parties unreservedly participate in arbitral proceedings
(article 7, paragraph 7, Law No. 2735/99).
An arbitration agreement stipulated without a formal requirement
may exist, but will not always have the desired effect. The power
of attorney of the representatives of the signatory parties for the arbitration
agreement must also be in writing; however, the absence of a
written power of attorney can be resolved if the party to the arbitration
agreement participates in the arbitration proceedings.
10 Enforceability
In what circumstances is an arbitration agreement no longer
enforceable?
Greek law ensures the strict enforcement of arbitration agreements,
before and after the arbitral proceedings begin.
An arbitration agreement is no longer enforceable if the parties
agree to terminate it, if both parties file with the ordinary judge or if
the defendant does not challenge in due time the lack of competence
of the ordinary judge by invoking the arbitration clause.
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The termination of the underlying contract does not necessarily
affect the arbitration clause, unless parties agree that it will.
Corporate insolvency, death or the legal incapacity of one party do
not directly affect the enforceability of a pre-existing arbitration
clause.
11 Third parties
In which instances can third parties or non-signatories be bound by an
arbitration agreement?
An arbitration agreement is only ever binding between the signatory
parties. In some exceptional cases third parties can be bound by an
arbitration agreement, for example:
• voluntary assignment of the underlying contract or claim, provided
that the arbitration clause is expressly included in such
assignment; or
• succession due to death or to insolvency, after which the arbitration
proceedings are continued by the heirs of the deceased party
or the receiver of the bankrupted property respectively.
12 Third parties – participation
Does your domestic arbitration law make any provisions with respect
to third-party participation in arbitration such as joinder or third-party
notice?
Third parties are allowed to participate in the arbitration proceedings.
Although there is not an explicit statutory provision, once there
is a valid arbitration clause signed by the litigant parties and the third
party, or a third party has a direct legal interest (ie, if the arbitral
award might jeopardise its legal position), it may participate in the
arbitration proceedings.
The participation of the third party is ensured by submitting
the relevant joinder or third-party notice to join the proceedings to
the arbitrators with the consent of either the litigant parties or the
arbitrators.
A third party may also be brought mandatorily before the arbitration
tribunal if one of the litigant parties has a legal case against
the third party should the arbitral tribunal rule against it. An example
would be the contractual relationship between a manufacturer, seller
and end-user, where the seller might want to bring the manufacturer
into a pending arbitration between the seller and end-user to pay
damages to the end-user instead of the seller should the seller lose
the case.
13 Groups of companies
Do courts and arbitral tribunals in your jurisdiction extend an
arbitration agreement to non-signatory parent or subsidiary companies
of a signatory company, provided that the non-signatory was somehow
involved in the conclusion, performance or termination of the contract
in dispute, under the ‘group of companies’ doctrine?
The ‘group of companies’ doctrine is not known in Greek legislation
as such, in the sense that an arbitration agreement cannot be
extended to either a non-signatory parent or a subsidiary of a signatory
company (except in the case of some tax disputes).
Therefore, the arbitral award is binding only between signatory
parties and non-signatory parent or subsidiary companies of the signatory
parties are exempt from its legal effects.
14 Multiparty arbitration agreements
What are the requirements for a valid multiparty arbitration
agreement?
Once there is more than one petitioner or respondent in an arbitration
agreement, each party has the right to appoint its own arbitrator,
unless parties with common interests agree jointly on the appointment
of one arbitrator for their parties.
Constitution of arbitral tribunal
15 Appointment of arbitrators – restrictions
Are there any restrictions as to who may act as an arbitrator?
The arbitrators can be freely selected by the parties at their discretion
and not from a list, since international commercial arbitration
in Greece does not require such a list. There are also no restrictions
on the persons that are entitled to act as arbitrators. However, an
arbitrator must be independent and impartial towards the litigant
parties, as well as civil and politically capable.
If the parties choose to follow the procedures set by established
arbitral institutions (see question 7) then the selection can be made
from a list of proposed arbitrators.
Most often, university professors or honorary judges are selected
as arbitrators. Judges who have the status of civil servants may be
appointed as chairmen of an arbitral tribunal or as sole arbitrators,
provided that they are selected from a list pre-designated either by
the president or by the three-member council of the tribunal where
they serve.
16 Appointment of arbitrators – default mechanism
Failing prior agreement of the parties, what is the default mechanism
for the appointment of arbitrators?
The parties are free to choose the number of arbitrators hearing their
case, as well as the procedure by which they will be appointed.
If the parties have not agreed on the number of arbitrators, then
they must be three, pursuant to article 10 of Law No. 2735/99. If
the parties have not agreed on the procedure for appointment of
arbitrators, they will be appointed in accordance with article 11 of
Law No. 2735/99.
When there are three arbitrators, each party appoints one and
these two arbitrators have the discretion to appoint the third (the
umpire). If one party fails to appoint an arbitrator within 30 days
after the request of the other party, or if the two arbitrators cannot
reach an agreement as to the third arbitrator within 30 days of
their appointment, the one-member court of first instance of the area
where the arbitration takes place will be responsible for the appointment
of the arbitrators, upon a request being filed by either party.
Similarly, when there is a sole arbitrator and the parties cannot
reach an agreement as to his or her appointment, the arbitrator will
be appointed by the court of first instance of the area where the
arbitration takes place.
In appointing arbitrators, the court of first instance considers
the qualities that the parties are looking for according to their agreement,
while taking care to ensure the appointment of independent
and impartial arbitrators.
If such an appointment is made by the court of first instance, its
judgment is not subject to appeal by the parties.
17 Challenge and replacement of arbitrators
On what grounds and how can an arbitrator be challenged and
replaced?
The appointment of an arbitrator may be challenged only if there
are facts or information raising justified doubts as to the arbitrator’s
impartiality, independence or possession of the qualities that the parties
have agreed (article 12, Law No. 2735/99).
A party may ask for the exclusion of the arbitrator that it had
appointed, or in whose appointment it participated, only for reasons
that come to light after the appointment.
The arbitrator is obliged to declare any details that might raise
reasonable doubts about his or her impartiality or independence,
even during the arbitral proceedings.
The parties may remove an arbitrator by agreement, but if the
arbitrator refuses to resign then it is up to the court of first instance
to decide on the matter.
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154 Getting the Deal Through – Arbitration 2010
One party may challenge the appointment of an arbitrator for
reasons that have arisen after the appointment and during the arbitral
proceedings. In the case of disagreement between the parties regarding
removal of the arbitrator, it is up to the court of first instance to
decide on the matter.
18 Relationship between parties and arbitrators
What is the relationship between parties and arbitrators?
The power of the arbitrators derives from the arbitral agreement,
therefore it is of a contractual nature. However, once the arbitrators
are appointed, then their role is reduced to a statutory role and they
must act entirely impartially and independently towards all parties,
including the party that appointed them.
Arbitrators must perform their duties in good faith, indicate due
diligence and render the award in compliance with the formal requirements
provided by the law and the purpose of receptum arbitri.
The arbitrator is liable if he or she violates the contractual obligations
deriving from the appointment, for example: the arbitrator
violates the confidentiality of the proceedings; refuses to render an
award or prevents the award from being rendered within the time
agreed; does not act duly or causes delays; resigns without any reasonable
cause; or fails to disclose information that would have led
to his or her dismissal.
The arbitrators are also liable for wilful misconduct, gross negligence
or bribery during the conduct of their duties.
If the arbitrators commit a violation of their contractual obligations
or commit a tort, the arbitrators are liable for damages towards
the litigant parties, if there is no other remedy.
The question of costs is dealt with in article 32 of Law No.
2735/99 in a very flexible and general manner. The arbitral tribunal
apportions the costs of the arbitration on a case-by-case basis, taking
into account the issues raised and the final outcome of the case.
The arbitrators’ fees and expenses can be agreed with the parties
at the inception of the proceedings. They can also be designated and
allocated between the parties by the arbitral tribunal itself when it
renders its arbitral award, but in that case the allocation is subject to
being challenged in the relevant court of first instance.
Jurisdiction
19 Court proceedings contrary to arbitration agreements
What is the procedure for disputes over jurisdiction if court
proceedings are initiated despite an existing arbitration agreement,
and what time limits exist for jurisdictional objections?
If ordinary court proceedings are initiated despite an existing arbitration
agreement, the defendant has the right to raise the objection
of lack of jurisdiction due to the arbitration agreement in its first
defence document, requesting that the court should stay the proceedings
and refer the case to the designated arbitration, unless the court
ex officio or after an objection by a party holds that the arbitration
clause is null and void. Otherwise, if the defendant does not raise the
relevant objection in time, then it is regarded as having waived its
right to arbitration and having consented to be subject to ordinary
court proceedings.
20 Jurisdiction of arbitral tribunal
What is the procedure for disputes over jurisdiction of the arbitral
tribunal once arbitral proceedings have been initiated and what time
limits exist for jurisdictional objections?
The arbitral tribunal is solely competent to rule on its own jurisdiction
and on the validity of the arbitration agreement ex officio or
after an objection by a party, which must be raised when the first
defence document in the arbitration proceedings is submitted, immediately
after the arbitral tribunal is constituted as such.
If the arbitration proceedings have already been initiated, the
ordinary court must refrain from ruling on the arbitrators’ jurisdiction
until an arbitral award has been made.
Parties cannot be precluded from raising jurisdictional objection
at their discretion.
Arbitral proceedings
21 Place and language of arbitration
Failing prior agreement of the parties, what is the default mechanism
for the place of arbitration and the language of the arbitral
proceedings?
If parties have failed to determine the place of arbitration, then this
is designated by the arbitrators, taking into account the particular
circumstances of the case, including the convenience of the parties
(article 20.1 Law No. 2735/99). However, arbitrators have the discretion
to determine the place of arbitration according to the needs
of the evidence process, like the place of deposition of the witnesses
(article 20.2 Law No. 2735/99).
As far as the language of the arbitration is concerned (ie, the
written material, the oral procedure and the arbitral award), if the
parties have failed to agree on the language it is up to the arbitral
tribunal to determine it, taking into account the translation costs for
the trial and the existing documents exchanged between the parties
(article 22 Law No. 2735/99).
22 Commencement of arbitration
How are arbitral proceedings initiated?
The arbitral proceedings are initiated by the lawful service of the
original arbitration document to the other party, mentioning the
name, legal seat or address of the parties, duly signed by the legal
representative or the authorised lawyer of the initiating party.
The arbitration document must have as its content the declaration
of the initiating party to resolve the described dispute by
arbitration, the appointment of the arbitrator of the initiating party
with an invitation to the other party to appoint its own arbitrator
or the request submitted to any competent third party to proceed to
the appointment of the arbitral tribunal as a whole or only of the
umpire. It must also include a brief historical background, the legal
grounds of the case and the requested claim (article 21, 23 Law No.
2735/99).
23 Hearing
Is a hearing required and what rules apply?
If there is no explicit agreement it is the arbitral tribunal that decides,
according to the selected procedural rules, whether the procedure
should be only in writing or include an oral part regarding deposition
of witnesses, presentation of the legal positions by counsel, crossexamination
of the litigant parties, etc. However, if a party requests
an oral hearing, the arbitral court must hold hearings.
Any kind of written documents deposited by the parties with
the court must be exchanged between them (article 24 Law No.
2735/99).
As a general rule, the principle of due process and equal treatment
of the litigant parties must govern the hearing process (article
18 Law No. 2735/99).
24 Evidence
By what rules is the arbitral tribunal bound in establishing the facts of
the case? What types of evidence are admitted and how is the taking
of evidence conducted?
The evidential documents and witnesses’ testimonies are freely evaluated
by the arbitral tribunal, according to the selected procedural rules.
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The arbitral tribunal has the right at its discretion to appoint an
expert on a litigious issue if the parties have not agreed to appoint
an expert jointly or that each party will appoint its own technical
consultant (article 26, Law No. 2735/99).
Witnesses are examined in front of the tribunal by the parties
and their counsel.
There is no tendency to seek guidance from the IBA Rules, but
parties can agree on recourse to them, provided that they are compatible
with the selected procedural rules.
25 Court involvement
In what instances can the arbitral tribunal request assistance from a
court and in what instances may courts intervene?
The arbitral tribunal or one of the litigant parties has the right to
request the assistance of the ordinary courts if it needs assistance
with the production of documents, the deposition under oath of a
witness or the mandatory appearance of a witness, etc (article 27
Law No. 2735/99).
26 Confidentiality
Is confidentiality ensured?
There is no specific provision that the proceedings must be kept confidential.
However, as a matter of principle, confidentiality is the rule,
and the proceedings are conducted in private at the discretion of the
parties. The arbitrators’ collective decisions during the proceedings
and deliberations for the issuance of the arbitral award are required
to be confidential.
The confidentiality is lifted once the arbitral award is deposited
with the Secretariat of the first instance court of the place of arbitration,
if so requested by one of the parties (article 32.5 Law No.
2735/99).
Interim measures
27 Interim measures by the courts
What interim measures may be ordered by courts before and after
arbitration proceedings have been initiated?
Interim measures on the specific subject matter of the arbitration may
be ordered by the ordinary courts before the arbitration proceedings
have been initiated if there is an imminent risk of irreparable prejudice
or damage of a litigious right (article 9 Law No. 2735/99).
Once the arbitral tribunal is constituted, then interim measures
can be ordered concurrently either by ordinary courts or the arbitral
tribunal, on a first petition basis, unless the arbitration agreement
specifically precludes the ordinary courts from ordering interim
measures (article 17.1 Law No. 2735/99).
28 Interim measures by the arbitral tribunal
What interim measures may the arbitral tribunal order after it is
constituted? In which instances can security for costs be ordered by
an arbitral tribunal?
The arbitral tribunal may order the interim measures that it deems
appropriate and necessary, pursuant to the lex fori of the tribunal,
unless the arbitration agreement explicitly prohibits them.
Interim measures can be, inter alia:
• injunctive relief;
• security for costs;
• provisional attachment of moveables or immoveables;
• preservation of evidences; or
• disclosure or display of documents.
The one-member court of first instance is the competent court to
implement and enforce the interim measures ordered by the arbitral
tribunal, which is not equipped with the relevant power by the law
(article 17.2 Law No. 2735/99).
The ordered interim measure may be repealed or modified upon
the request of either party (article 17.3 Law No. 2735/99).
Awards
29 Decisions by the arbitral tribunal
Failing party agreement, is it sufficient if decisions by the arbitral
tribunal are made by a majority of all its members or is a unanimous
vote required? What are the consequences for the award if an
arbitrator dissents?
The arbitral award can be made by a majority of all its members and
there is no need for a unanimous vote. If there is no majority the vote
of the president of the tribunal overrules the vote of the other member
or members of it (article 29 Law No. 2735/99).
30 Dissenting opinions
How does your domestic arbitration law deal with dissenting opinions?
The dissenting opinion must always be issued after the arbitral award
is rendered, as a part of it.
31 Form and content requirements
What form and content requirements exist for an award? Does the
award have to be rendered within a certain time limit?
The award must be issued in writing and must comprise: (articles
31.2 to 31.4, Law No. 2735/99):
• the names of the arbitrators;
• the place and date of the arbitration;
• the names of the litigant parties;
• the arbitration agreement and the specific subject matter of the
arbitration;
• the statement of the facts;
• the decision with its reasoning, unless a private agreement or
settlement is the final subject of the award;
• the signatures of all the arbitrators or at least the majority of
them (article 31.1 Law No. 2735/99); and
• date of the issuance of the award.
The award must be rendered within a reasonable period.
32 Date of award
For what time limits is the date of the award decisive and for what time
limits is the date of delivery of the award decisive?
The date of the award is decisive as it is counted as the start date with
regard to the statute of limitations.
The date of delivery is decisive: for 30 days after such date either
party has the right to request the interpretation and correction of the
award. Additionally, for three months after such date the parties may
challenge and set aside the award.
33 Types of awards
What types of awards are possible and what types of relief may the
arbitral tribunal grant?
The arbitral tribunal may render alternately:
• a partial award (ie, one that resolves one or some of issues
referred to arbitration);
• a final award (ie, one that resolves all the issues referred to
arbitration);
• a consent award if the parties reach a settlement; or
• interim measures (see question 27).
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156 Getting the Deal Through – Arbitration 2010
34 Termination of proceedings
By what other means than an award can proceedings be terminated?
The arbitration is terminated with the issuance of the arbitral award
by the tribunal.
However, proceedings can be terminated when a settlement has
been reached between the litigant parties, the parties mutually agree to
complete the proceedings, if the applicant party withdraws its application
for an award or if the continuance of the proceedings is impossible
or redundant (articles 32.1 and 32.2, Law No. 2735/99).
35 Cost allocation and recovery
How are the costs of the arbitral proceedings allocated in awards?
What costs are recoverable?
If the parties have not agreed beforehand on the allocation of the
arbitration costs, the arbitrators have the discretionary power to allocate
the costs between the parties, according to the final outcome of
the case and the circumstances, usually at the expense of the defeated
party (article 32.4 Law No. 2735/99).
The recovery of the costs includes the administrative cost of the
arbitration proceedings, experts’ fees and attorneys’ fees, but the costs
awarded are usually much lower than the actual costs and expenses
paid by the party.
If the recoverable costs are not designated in the arbitral award
the allocation can be done in a separate arbitral award (article 32.4
Law No. 2735/99).
36 Interest
May interest be awarded for principal claims and for costs and at what
rate?
Interest can be awarded for the adjudicated claim according to a
statutory designation of its rate from time to time. Such interests
starts to be calculated from the date of the service of the arbitration
document to the adversary party.
Proceedings subsequent to issuance of award
37 Interpretation and correction of awards
Does the arbitral tribunal have the power to correct or interpret an
award on its own or at the parties’ initiative? What time limits apply?
Each party has the right, within 30 days of the service of the award,
to request from the same arbitral tribunal the correction of an award
concerning miscalculations, typing or editing errors or to request the
interpretation of a specific part of the award, without altering its
final orders. The tribunal has the right to proceed accordingly either
ipso jure after the issuance of the award or after a request within 30
days from the service of the award to either party (article 33 Law
No. 2735/99).
38 Challenge of awards
How and on what grounds can awards be challenged and set aside?
The arbitral award may be set aside by filing an annulment petition
before the court of appeal of the area where the award was issued
(article 34, Law No. 2735/99). Such a petition must be filed within
three months after the service of the award to the party filing the
claim.
The arbitral award can be set aside if the claimant party proves
any of the following:
• one of the parties to the arbitration agreement referred to in article
7 of Law No. 2735/99 did not have the capacity to sign such
an agreement according to the law applicable to them;
• the arbitration agreement is not valid according to the provisions
of the governing law of it or, failing any indication of the governing
law, under Greek law;
• the claimant party was not properly notified of the arbitrator’s
appointment or of the arbitration proceedings, or for any
other reason that was not its fault it failed to put forward its
arguments;
• the arbitrators’ decision refers to a dispute not included in the
arbitration agreement, or contains provisions that go beyond the
terms of the agreement. However, if the provisions that are covered
by the agreement can be separated from those that are not
covered, the arbitral award may be revoked only as to the latter
provisions; or
• the tribunal’s composition or the arbitral procedure was not consistent
with the provisions of the parties’ agreement or, if there is
no such agreement, compatible with the Law No. 2735/99.
In addition, the arbitrators’ decision may be set aside if the tribunal,
following the filing of a respective claim, rules ipso jure whether the
subject matter of the dispute is not subject to arbitration under Greek
law or the award is in conflict with international public policy, as
defined in article 33 of the Greek Civil Code.
The right to challenge an arbitral award cannot be exercised in
a way that manifestly exceeds the limits imposed by good faith, the
ethics of transactions or the social or economic purpose of such right
(GCC, article 281).
39 Levels of appeal
How many levels of appeal are there? How long does it generally take
until a challenge is decided at each level? Approximately what costs
are incurred at each level? How are costs apportioned among the
parties?
The arbitral award can be set aside for the above-mentioned reasons
with the court of appeal of the area where the award was issued
within one year after the filing. The court of appeal decision can be
appealed with the Supreme Court of Greece solely on the grounds
of legal questions within one year after the issuance of the appeal
decision.
In total, the completion of all available appeal procedures can
take two to three years.
Costs are allocated by the civil courts at their discretion, usually
at the expense of the defeated party, but they are generally much
lower than the actual costs and expenses of the party.
40 Recognition and enforcement
What requirements exist for recognition and enforcement of domestic
and foreign awards, what grounds exist for refusing recognition and
enforcement, and what is the procedure?
Domestic arbitral awards, once all appeal remedies have been
exhausted or are no longer available, constitute res judicata and are
directly enforceable from the date they are issued, according to article
35 of Law No. 2735/99.
A foreign arbitral award, irrespective of the country in which it
was issued, shall be recognised if all the following requirements, in
accordance with article 903 of the GCCP, are met:
• the arbitration agreement is valid according to the provisions of
the applicable law;
• the subject of the arbitral award is subject to arbitration;
• the award is not subject to any kind of appeal or revocation;
• the defeated party had the opportunity to defend itself by a counsel
during the arbitration proceedings;
• the award is not contrary to a decision issued by a Greek court
judging the same dispute and constituting res judicata for the
parties to the foreign arbitral award; and
• the award is not contrary to the prevailing rules of Greek public
policy or morals.
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What are the mandatory domestic arbitration law provisions on
procedure from which parties may not deviate?
The parties to arbitral proceedings have the discretion to agree freely
to the rules of procedure that will govern the proceedings, provided
they are in compliance with the public policy of Greece and with the
rules of due process. If the parties do not select any rules before the
beginning of the proceedings, then the arbitrators can choose the
rules of procedure they deem most appropriate to the case (article
19 No. 2735/1995).
The following can be considered mandatory provisions:
• the scope of the arbitration extends only to cases of a commercial
and economic nature and not to civil law cases;
• there must be a written compromissory clause inserted in the
context of a contract providing for the obligation of the parties
to recourse to an arbitral tribunal if there is a dispute between
them;
• if there is an arbitration clause in the contract the ordinary courts
have no competence to adjudicate the case;
• the arbitrators must be independent and impartial third persons
and their award must be issued in writing, sufficiently reasoned
and signed by at least the majority of arbitrators; and
• the arbitral award is mandatory and binding for the litigant parties,
it is definite in the sense there is no remedy against it, and
can be directly enforced against the adversary party.
6 Substantive law
Is there any rule in your domestic arbitration law that provides the
arbitral tribunal with guidance as to which substantive law to apply to
the merits of the dispute?
The parties have the discretion to choose the substantive law of the
case to be applied by the arbitral tribunal. In domestic arbitration
Greek law applies, unless the parties agree to apply a different set of
substantive rules.
7 Arbitral institutions
What are the most prominent arbitral institutions in your country?
The most prominent arbitral institutions include:
• the Athens Chamber of Commerce and Industry (www.acci.
gr), governed by Presidential Decree 31/1979, which sets out
its rules, tasked with resolving commercial disputes between its
members;
• the Greek Centre of Mediation and Arbitration (www.sae-epe.
gr), established by the Association of Societes Anonymes and
Limited Liability Companies;
• The Hellenic Chamber of Shipping (www.nee.gr); it is governed
by Royal Decree 447/1969 and tasked with resolving maritime
disputes between its members;
• the Piraeus Association for Maritime Arbitration (PAMA) (www.
pama.gr), is a private non-profit association founded in 2005 to
promote the resolution of maritime disputes by arbitration in
Piraeus in view of its growing recognition as a major shipping
centre;
• the Organisation of Mediation and Arbitration was established
by the Law for Free Collective Bargaining (1876/1990) and its
main purpose is to support collective bargaining by providing
independent mediation and arbitration services to social
partners;
• the Athens Bar has the competence to resolve disputes between
its members lawyers and their clients.
• the Technical Chamber of Greece has the competence to resolve
disputes between its members (engineers) and their clients (Presidential
Decree 723/1979); and
• the Stock Exchange of Athens has the competence to resolve
disputes between stock exchange brokers and their clients (Presidential
Decree 637/1977).
Arbitration agreement
8 Arbitrability
Are there any types of disputes that are not arbitrable?
The Greek legal system tends to favour the arbitrability of cases. All
private disputes are arbitrable, except for those where the subject
matter concerns private legal rights that cannot be freely disposed of
by the parties (GCCP, article 867, section 1).
However, Greek legislation explicitly prohibits the resolution by
arbitration of public interest matters, which are not disposable, such
as insolvency, family law disputes (divorce, relations between parents
and their children and adoption), labour law disputes (apart from
collective bargaining), the civil status and legal capacity of individuals,
etc.
It is important to note that issues of competition law are not
arbitrable (unlike unfair competition), since they are connected with
the operation of the free market, which is of public interest.
9 Requirements
What formal and other requirements exist for an arbitration
agreement?
The arbitration agreement must be always in writing and can be
inserted in the terms and conditions of a contract as a separate and
severable clause determining explicitly the matters to be resolved by
arbitration. The requirement that an agreement should be in written
form is satisfied by an exchange via telegrams, teletypes, faxes
or electronic means, provided that the digital signature is lawfully
accepted.
Therefore, an oral agreement for arbitration is considered null
and void as well as an agreement without the proper and original
signature of the parties. All changes to the arbitration agreement
must also be in writing.
The issue of a bill of lading in which there is an express reference
to an arbitration clause contained in a carriage of goods contract,
constitutes an arbitration agreement (article 7, paragraph 6, Law
No. 2735/99).
The nullity of an arbitration agreement clause not meeting the
requirements for its form (usually the writing requirement), can be
resolved if the parties unreservedly participate in arbitral proceedings
(article 7, paragraph 7, Law No. 2735/99).
An arbitration agreement stipulated without a formal requirement
may exist, but will not always have the desired effect. The power
of attorney of the representatives of the signatory parties for the arbitration
agreement must also be in writing; however, the absence of a
written power of attorney can be resolved if the party to the arbitration
agreement participates in the arbitration proceedings.
10 Enforceability
In what circumstances is an arbitration agreement no longer
enforceable?
Greek law ensures the strict enforcement of arbitration agreements,
before and after the arbitral proceedings begin.
An arbitration agreement is no longer enforceable if the parties
agree to terminate it, if both parties file with the ordinary judge or if
the defendant does not challenge in due time the lack of competence
of the ordinary judge by invoking the arbitration clause.
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The termination of the underlying contract does not necessarily
affect the arbitration clause, unless parties agree that it will.
Corporate insolvency, death or the legal incapacity of one party do
not directly affect the enforceability of a pre-existing arbitration
clause.
11 Third parties
In which instances can third parties or non-signatories be bound by an
arbitration agreement?
An arbitration agreement is only ever binding between the signatory
parties. In some exceptional cases third parties can be bound by an
arbitration agreement, for example:
• voluntary assignment of the underlying contract or claim, provided
that the arbitration clause is expressly included in such
assignment; or
• succession due to death or to insolvency, after which the arbitration
proceedings are continued by the heirs of the deceased party
or the receiver of the bankrupted property respectively.
12 Third parties – participation
Does your domestic arbitration law make any provisions with respect
to third-party participation in arbitration such as joinder or third-party
notice?
Third parties are allowed to participate in the arbitration proceedings.
Although there is not an explicit statutory provision, once there
is a valid arbitration clause signed by the litigant parties and the third
party, or a third party has a direct legal interest (ie, if the arbitral
award might jeopardise its legal position), it may participate in the
arbitration proceedings.
The participation of the third party is ensured by submitting
the relevant joinder or third-party notice to join the proceedings to
the arbitrators with the consent of either the litigant parties or the
arbitrators.
A third party may also be brought mandatorily before the arbitration
tribunal if one of the litigant parties has a legal case against
the third party should the arbitral tribunal rule against it. An example
would be the contractual relationship between a manufacturer, seller
and end-user, where the seller might want to bring the manufacturer
into a pending arbitration between the seller and end-user to pay
damages to the end-user instead of the seller should the seller lose
the case.
13 Groups of companies
Do courts and arbitral tribunals in your jurisdiction extend an
arbitration agreement to non-signatory parent or subsidiary companies
of a signatory company, provided that the non-signatory was somehow
involved in the conclusion, performance or termination of the contract
in dispute, under the ‘group of companies’ doctrine?
The ‘group of companies’ doctrine is not known in Greek legislation
as such, in the sense that an arbitration agreement cannot be
extended to either a non-signatory parent or a subsidiary of a signatory
company (except in the case of some tax disputes).
Therefore, the arbitral award is binding only between signatory
parties and non-signatory parent or subsidiary companies of the signatory
parties are exempt from its legal effects.
14 Multiparty arbitration agreements
What are the requirements for a valid multiparty arbitration
agreement?
Once there is more than one petitioner or respondent in an arbitration
agreement, each party has the right to appoint its own arbitrator,
unless parties with common interests agree jointly on the appointment
of one arbitrator for their parties.
Constitution of arbitral tribunal
15 Appointment of arbitrators – restrictions
Are there any restrictions as to who may act as an arbitrator?
The arbitrators can be freely selected by the parties at their discretion
and not from a list, since international commercial arbitration
in Greece does not require such a list. There are also no restrictions
on the persons that are entitled to act as arbitrators. However, an
arbitrator must be independent and impartial towards the litigant
parties, as well as civil and politically capable.
If the parties choose to follow the procedures set by established
arbitral institutions (see question 7) then the selection can be made
from a list of proposed arbitrators.
Most often, university professors or honorary judges are selected
as arbitrators. Judges who have the status of civil servants may be
appointed as chairmen of an arbitral tribunal or as sole arbitrators,
provided that they are selected from a list pre-designated either by
the president or by the three-member council of the tribunal where
they serve.
16 Appointment of arbitrators – default mechanism
Failing prior agreement of the parties, what is the default mechanism
for the appointment of arbitrators?
The parties are free to choose the number of arbitrators hearing their
case, as well as the procedure by which they will be appointed.
If the parties have not agreed on the number of arbitrators, then
they must be three, pursuant to article 10 of Law No. 2735/99. If
the parties have not agreed on the procedure for appointment of
arbitrators, they will be appointed in accordance with article 11 of
Law No. 2735/99.
When there are three arbitrators, each party appoints one and
these two arbitrators have the discretion to appoint the third (the
umpire). If one party fails to appoint an arbitrator within 30 days
after the request of the other party, or if the two arbitrators cannot
reach an agreement as to the third arbitrator within 30 days of
their appointment, the one-member court of first instance of the area
where the arbitration takes place will be responsible for the appointment
of the arbitrators, upon a request being filed by either party.
Similarly, when there is a sole arbitrator and the parties cannot
reach an agreement as to his or her appointment, the arbitrator will
be appointed by the court of first instance of the area where the
arbitration takes place.
In appointing arbitrators, the court of first instance considers
the qualities that the parties are looking for according to their agreement,
while taking care to ensure the appointment of independent
and impartial arbitrators.
If such an appointment is made by the court of first instance, its
judgment is not subject to appeal by the parties.
17 Challenge and replacement of arbitrators
On what grounds and how can an arbitrator be challenged and
replaced?
The appointment of an arbitrator may be challenged only if there
are facts or information raising justified doubts as to the arbitrator’s
impartiality, independence or possession of the qualities that the parties
have agreed (article 12, Law No. 2735/99).
A party may ask for the exclusion of the arbitrator that it had
appointed, or in whose appointment it participated, only for reasons
that come to light after the appointment.
The arbitrator is obliged to declare any details that might raise
reasonable doubts about his or her impartiality or independence,
even during the arbitral proceedings.
The parties may remove an arbitrator by agreement, but if the
arbitrator refuses to resign then it is up to the court of first instance
to decide on the matter.
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154 Getting the Deal Through – Arbitration 2010
One party may challenge the appointment of an arbitrator for
reasons that have arisen after the appointment and during the arbitral
proceedings. In the case of disagreement between the parties regarding
removal of the arbitrator, it is up to the court of first instance to
decide on the matter.
18 Relationship between parties and arbitrators
What is the relationship between parties and arbitrators?
The power of the arbitrators derives from the arbitral agreement,
therefore it is of a contractual nature. However, once the arbitrators
are appointed, then their role is reduced to a statutory role and they
must act entirely impartially and independently towards all parties,
including the party that appointed them.
Arbitrators must perform their duties in good faith, indicate due
diligence and render the award in compliance with the formal requirements
provided by the law and the purpose of receptum arbitri.
The arbitrator is liable if he or she violates the contractual obligations
deriving from the appointment, for example: the arbitrator
violates the confidentiality of the proceedings; refuses to render an
award or prevents the award from being rendered within the time
agreed; does not act duly or causes delays; resigns without any reasonable
cause; or fails to disclose information that would have led
to his or her dismissal.
The arbitrators are also liable for wilful misconduct, gross negligence
or bribery during the conduct of their duties.
If the arbitrators commit a violation of their contractual obligations
or commit a tort, the arbitrators are liable for damages towards
the litigant parties, if there is no other remedy.
The question of costs is dealt with in article 32 of Law No.
2735/99 in a very flexible and general manner. The arbitral tribunal
apportions the costs of the arbitration on a case-by-case basis, taking
into account the issues raised and the final outcome of the case.
The arbitrators’ fees and expenses can be agreed with the parties
at the inception of the proceedings. They can also be designated and
allocated between the parties by the arbitral tribunal itself when it
renders its arbitral award, but in that case the allocation is subject to
being challenged in the relevant court of first instance.
Jurisdiction
19 Court proceedings contrary to arbitration agreements
What is the procedure for disputes over jurisdiction if court
proceedings are initiated despite an existing arbitration agreement,
and what time limits exist for jurisdictional objections?
If ordinary court proceedings are initiated despite an existing arbitration
agreement, the defendant has the right to raise the objection
of lack of jurisdiction due to the arbitration agreement in its first
defence document, requesting that the court should stay the proceedings
and refer the case to the designated arbitration, unless the court
ex officio or after an objection by a party holds that the arbitration
clause is null and void. Otherwise, if the defendant does not raise the
relevant objection in time, then it is regarded as having waived its
right to arbitration and having consented to be subject to ordinary
court proceedings.
20 Jurisdiction of arbitral tribunal
What is the procedure for disputes over jurisdiction of the arbitral
tribunal once arbitral proceedings have been initiated and what time
limits exist for jurisdictional objections?
The arbitral tribunal is solely competent to rule on its own jurisdiction
and on the validity of the arbitration agreement ex officio or
after an objection by a party, which must be raised when the first
defence document in the arbitration proceedings is submitted, immediately
after the arbitral tribunal is constituted as such.
If the arbitration proceedings have already been initiated, the
ordinary court must refrain from ruling on the arbitrators’ jurisdiction
until an arbitral award has been made.
Parties cannot be precluded from raising jurisdictional objection
at their discretion.
Arbitral proceedings
21 Place and language of arbitration
Failing prior agreement of the parties, what is the default mechanism
for the place of arbitration and the language of the arbitral
proceedings?
If parties have failed to determine the place of arbitration, then this
is designated by the arbitrators, taking into account the particular
circumstances of the case, including the convenience of the parties
(article 20.1 Law No. 2735/99). However, arbitrators have the discretion
to determine the place of arbitration according to the needs
of the evidence process, like the place of deposition of the witnesses
(article 20.2 Law No. 2735/99).
As far as the language of the arbitration is concerned (ie, the
written material, the oral procedure and the arbitral award), if the
parties have failed to agree on the language it is up to the arbitral
tribunal to determine it, taking into account the translation costs for
the trial and the existing documents exchanged between the parties
(article 22 Law No. 2735/99).
22 Commencement of arbitration
How are arbitral proceedings initiated?
The arbitral proceedings are initiated by the lawful service of the
original arbitration document to the other party, mentioning the
name, legal seat or address of the parties, duly signed by the legal
representative or the authorised lawyer of the initiating party.
The arbitration document must have as its content the declaration
of the initiating party to resolve the described dispute by
arbitration, the appointment of the arbitrator of the initiating party
with an invitation to the other party to appoint its own arbitrator
or the request submitted to any competent third party to proceed to
the appointment of the arbitral tribunal as a whole or only of the
umpire. It must also include a brief historical background, the legal
grounds of the case and the requested claim (article 21, 23 Law No.
2735/99).
23 Hearing
Is a hearing required and what rules apply?
If there is no explicit agreement it is the arbitral tribunal that decides,
according to the selected procedural rules, whether the procedure
should be only in writing or include an oral part regarding deposition
of witnesses, presentation of the legal positions by counsel, crossexamination
of the litigant parties, etc. However, if a party requests
an oral hearing, the arbitral court must hold hearings.
Any kind of written documents deposited by the parties with
the court must be exchanged between them (article 24 Law No.
2735/99).
As a general rule, the principle of due process and equal treatment
of the litigant parties must govern the hearing process (article
18 Law No. 2735/99).
24 Evidence
By what rules is the arbitral tribunal bound in establishing the facts of
the case? What types of evidence are admitted and how is the taking
of evidence conducted?
The evidential documents and witnesses’ testimonies are freely evaluated
by the arbitral tribunal, according to the selected procedural rules.
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The arbitral tribunal has the right at its discretion to appoint an
expert on a litigious issue if the parties have not agreed to appoint
an expert jointly or that each party will appoint its own technical
consultant (article 26, Law No. 2735/99).
Witnesses are examined in front of the tribunal by the parties
and their counsel.
There is no tendency to seek guidance from the IBA Rules, but
parties can agree on recourse to them, provided that they are compatible
with the selected procedural rules.
25 Court involvement
In what instances can the arbitral tribunal request assistance from a
court and in what instances may courts intervene?
The arbitral tribunal or one of the litigant parties has the right to
request the assistance of the ordinary courts if it needs assistance
with the production of documents, the deposition under oath of a
witness or the mandatory appearance of a witness, etc (article 27
Law No. 2735/99).
26 Confidentiality
Is confidentiality ensured?
There is no specific provision that the proceedings must be kept confidential.
However, as a matter of principle, confidentiality is the rule,
and the proceedings are conducted in private at the discretion of the
parties. The arbitrators’ collective decisions during the proceedings
and deliberations for the issuance of the arbitral award are required
to be confidential.
The confidentiality is lifted once the arbitral award is deposited
with the Secretariat of the first instance court of the place of arbitration,
if so requested by one of the parties (article 32.5 Law No.
2735/99).
Interim measures
27 Interim measures by the courts
What interim measures may be ordered by courts before and after
arbitration proceedings have been initiated?
Interim measures on the specific subject matter of the arbitration may
be ordered by the ordinary courts before the arbitration proceedings
have been initiated if there is an imminent risk of irreparable prejudice
or damage of a litigious right (article 9 Law No. 2735/99).
Once the arbitral tribunal is constituted, then interim measures
can be ordered concurrently either by ordinary courts or the arbitral
tribunal, on a first petition basis, unless the arbitration agreement
specifically precludes the ordinary courts from ordering interim
measures (article 17.1 Law No. 2735/99).
28 Interim measures by the arbitral tribunal
What interim measures may the arbitral tribunal order after it is
constituted? In which instances can security for costs be ordered by
an arbitral tribunal?
The arbitral tribunal may order the interim measures that it deems
appropriate and necessary, pursuant to the lex fori of the tribunal,
unless the arbitration agreement explicitly prohibits them.
Interim measures can be, inter alia:
• injunctive relief;
• security for costs;
• provisional attachment of moveables or immoveables;
• preservation of evidences; or
• disclosure or display of documents.
The one-member court of first instance is the competent court to
implement and enforce the interim measures ordered by the arbitral
tribunal, which is not equipped with the relevant power by the law
(article 17.2 Law No. 2735/99).
The ordered interim measure may be repealed or modified upon
the request of either party (article 17.3 Law No. 2735/99).
Awards
29 Decisions by the arbitral tribunal
Failing party agreement, is it sufficient if decisions by the arbitral
tribunal are made by a majority of all its members or is a unanimous
vote required? What are the consequences for the award if an
arbitrator dissents?
The arbitral award can be made by a majority of all its members and
there is no need for a unanimous vote. If there is no majority the vote
of the president of the tribunal overrules the vote of the other member
or members of it (article 29 Law No. 2735/99).
30 Dissenting opinions
How does your domestic arbitration law deal with dissenting opinions?
The dissenting opinion must always be issued after the arbitral award
is rendered, as a part of it.
31 Form and content requirements
What form and content requirements exist for an award? Does the
award have to be rendered within a certain time limit?
The award must be issued in writing and must comprise: (articles
31.2 to 31.4, Law No. 2735/99):
• the names of the arbitrators;
• the place and date of the arbitration;
• the names of the litigant parties;
• the arbitration agreement and the specific subject matter of the
arbitration;
• the statement of the facts;
• the decision with its reasoning, unless a private agreement or
settlement is the final subject of the award;
• the signatures of all the arbitrators or at least the majority of
them (article 31.1 Law No. 2735/99); and
• date of the issuance of the award.
The award must be rendered within a reasonable period.
32 Date of award
For what time limits is the date of the award decisive and for what time
limits is the date of delivery of the award decisive?
The date of the award is decisive as it is counted as the start date with
regard to the statute of limitations.
The date of delivery is decisive: for 30 days after such date either
party has the right to request the interpretation and correction of the
award. Additionally, for three months after such date the parties may
challenge and set aside the award.
33 Types of awards
What types of awards are possible and what types of relief may the
arbitral tribunal grant?
The arbitral tribunal may render alternately:
• a partial award (ie, one that resolves one or some of issues
referred to arbitration);
• a final award (ie, one that resolves all the issues referred to
arbitration);
• a consent award if the parties reach a settlement; or
• interim measures (see question 27).
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156 Getting the Deal Through – Arbitration 2010
34 Termination of proceedings
By what other means than an award can proceedings be terminated?
The arbitration is terminated with the issuance of the arbitral award
by the tribunal.
However, proceedings can be terminated when a settlement has
been reached between the litigant parties, the parties mutually agree to
complete the proceedings, if the applicant party withdraws its application
for an award or if the continuance of the proceedings is impossible
or redundant (articles 32.1 and 32.2, Law No. 2735/99).
35 Cost allocation and recovery
How are the costs of the arbitral proceedings allocated in awards?
What costs are recoverable?
If the parties have not agreed beforehand on the allocation of the
arbitration costs, the arbitrators have the discretionary power to allocate
the costs between the parties, according to the final outcome of
the case and the circumstances, usually at the expense of the defeated
party (article 32.4 Law No. 2735/99).
The recovery of the costs includes the administrative cost of the
arbitration proceedings, experts’ fees and attorneys’ fees, but the costs
awarded are usually much lower than the actual costs and expenses
paid by the party.
If the recoverable costs are not designated in the arbitral award
the allocation can be done in a separate arbitral award (article 32.4
Law No. 2735/99).
36 Interest
May interest be awarded for principal claims and for costs and at what
rate?
Interest can be awarded for the adjudicated claim according to a
statutory designation of its rate from time to time. Such interests
starts to be calculated from the date of the service of the arbitration
document to the adversary party.
Proceedings subsequent to issuance of award
37 Interpretation and correction of awards
Does the arbitral tribunal have the power to correct or interpret an
award on its own or at the parties’ initiative? What time limits apply?
Each party has the right, within 30 days of the service of the award,
to request from the same arbitral tribunal the correction of an award
concerning miscalculations, typing or editing errors or to request the
interpretation of a specific part of the award, without altering its
final orders. The tribunal has the right to proceed accordingly either
ipso jure after the issuance of the award or after a request within 30
days from the service of the award to either party (article 33 Law
No. 2735/99).
38 Challenge of awards
How and on what grounds can awards be challenged and set aside?
The arbitral award may be set aside by filing an annulment petition
before the court of appeal of the area where the award was issued
(article 34, Law No. 2735/99). Such a petition must be filed within
three months after the service of the award to the party filing the
claim.
The arbitral award can be set aside if the claimant party proves
any of the following:
• one of the parties to the arbitration agreement referred to in article
7 of Law No. 2735/99 did not have the capacity to sign such
an agreement according to the law applicable to them;
• the arbitration agreement is not valid according to the provisions
of the governing law of it or, failing any indication of the governing
law, under Greek law;
• the claimant party was not properly notified of the arbitrator’s
appointment or of the arbitration proceedings, or for any
other reason that was not its fault it failed to put forward its
arguments;
• the arbitrators’ decision refers to a dispute not included in the
arbitration agreement, or contains provisions that go beyond the
terms of the agreement. However, if the provisions that are covered
by the agreement can be separated from those that are not
covered, the arbitral award may be revoked only as to the latter
provisions; or
• the tribunal’s composition or the arbitral procedure was not consistent
with the provisions of the parties’ agreement or, if there is
no such agreement, compatible with the Law No. 2735/99.
In addition, the arbitrators’ decision may be set aside if the tribunal,
following the filing of a respective claim, rules ipso jure whether the
subject matter of the dispute is not subject to arbitration under Greek
law or the award is in conflict with international public policy, as
defined in article 33 of the Greek Civil Code.
The right to challenge an arbitral award cannot be exercised in
a way that manifestly exceeds the limits imposed by good faith, the
ethics of transactions or the social or economic purpose of such right
(GCC, article 281).
39 Levels of appeal
How many levels of appeal are there? How long does it generally take
until a challenge is decided at each level? Approximately what costs
are incurred at each level? How are costs apportioned among the
parties?
The arbitral award can be set aside for the above-mentioned reasons
with the court of appeal of the area where the award was issued
within one year after the filing. The court of appeal decision can be
appealed with the Supreme Court of Greece solely on the grounds
of legal questions within one year after the issuance of the appeal
decision.
In total, the completion of all available appeal procedures can
take two to three years.
Costs are allocated by the civil courts at their discretion, usually
at the expense of the defeated party, but they are generally much
lower than the actual costs and expenses of the party.
40 Recognition and enforcement
What requirements exist for recognition and enforcement of domestic
and foreign awards, what grounds exist for refusing recognition and
enforcement, and what is the procedure?
Domestic arbitral awards, once all appeal remedies have been
exhausted or are no longer available, constitute res judicata and are
directly enforceable from the date they are issued, according to article
35 of Law No. 2735/99.
A foreign arbitral award, irrespective of the country in which it
was issued, shall be recognised if all the following requirements, in
accordance with article 903 of the GCCP, are met:
• the arbitration agreement is valid according to the provisions of
the applicable law;
• the subject of the arbitral award is subject to arbitration;
• the award is not subject to any kind of appeal or revocation;
• the defeated party had the opportunity to defend itself by a counsel
during the arbitration proceedings;
• the award is not contrary to a decision issued by a Greek court
judging the same dispute and constituting res judicata for the
parties to the foreign arbitral award; and
• the award is not contrary to the prevailing rules of Greek public
policy or morals.
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