The article “Subjective Scope of Domestic Arbitral Award” by our Partner and Head of Dispute Resolution, Jovana Veličković, was published in the latest edition of the eminent publication Law and Economy of the Business Lawyers Association of Serbia. We bring here a summary of the article:
Based on Article 64 par 1 of the Arbitration Act, the domestic arbitration award can legally affect only the parties and their legal successors (singular and universal). In relation to third parties, the award can affect only if the nature of the subject matter of the dispute requires it (effect erga omnes) or if it would be expressly prescribed by law. However, in case of a close material-legal relationship between the parties and third parties, who did not participate in the arbitration and can be bound by an arbitration agreement, it is recommended to recognize the intervention effect of the award. The intervention effect of the award should be recognized on the condition that the third parties were invited to participate in the arbitration, or if they are not, in the proceedings initiated separately, they are allowed to raise the objection of the negligent conducting of the previous arbitration proceedings.
To read the full article, please click the link here (in Serbian)
