ELKB Enforceability of Arbitration Clauses – Romania

In Romania, courts of law and arbitral tribunals recognize as a rule the legally binding effects of arbitration clauses and the entailing jurisdiction bestowed upon the arbitral tribunal.

This is mainly the result of an arbitration-friendly national legal framework (namely, Sections IV and VII sub-section IV of the Civil Procedure Code in force as of February 15, 2013) and arbitration-friendly court practice. Parties may choose arbitration as dispute settlement method both before and after the occurrence of the dispute.

Likewise, the opportunity to partake in arbitration proceedings is recognized to a wide range of persons, such as individuals, private legal entities and, under certain conditions (such as international arbitration or, in case of domestic arbitration, statutory authorization to refer to arbitration a specific dispute), the state and its instrumentalities. Furthermore, the arbitrable disputes encompass both pecuniary and / or non-pecuniary matters.

However, despite the good intention, the Romanian arbitration framework has also certain gaps, discrepancies and controversial solutions that may ultimately impede on the efficacy of arbitration clauses.