site.btaMPs Remove Consumer Dispute from Arbitration Courts' Jurisdiction

MPs Remove Consumer Dispute from Arbitration Courts' Jurisdiction

Sofia, January 12 (BTA) - Arbitration courts will no longer settle consumer disputes, Bulgaria's Parliament resolved on Thursday, amending conclusively the Code of Civil Procedure.

Pre-existing arbitration clauses in consumers' contracts with service providers will thus be considered null and void.

The parties to a property dispute may agree that such dispute be settled by an arbitration court, unless the dispute has as its subject matter any rights in rem or possession of a corporeal immovable, maintenance obligations or rights under an employment relationship. A dispute with any other subject matter may be referred for settlement to an arbitration court where one of the parties is a consumer and the disputants have agreed on this after the dispute has arisen.

All arbitration proceedings that have commenced prior to the adoption of the amendments will continue according to the previous procedure except in the cases where such disputes have been declared non-arbitrable.

The arbitration may have a seat abroad if one of the parties has his, her or its habitual residence abroad.

Legal persons or sole traders which or who have been defended by a jurisconsult will be awarded a compensation by the court in an amount which may not exceed the maximum amount for the respective type of case determined according to the procedure of the Legal Aid Act.

Parliament gave the court an option to refuse to issue a writ of execution based on awards which are null and void within the meaning given by the International Commercial Arbitration Act.

Each arbitration court will keep the disposed of cases in the course of ten years from the completion of the proceedings. After that deadline, only the awards and the reasons to them and the settlements reached will be archived.

The Minister of Justice will exercise control over the observance of the law by arbitration courts and arbitrators through the Inspectorate with the Minister of Justice under the Judicial System Act.