{"id":117916,"date":"2025-11-12T14:26:24","date_gmt":"2025-11-12T14:26:24","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=117916"},"modified":"2025-11-12T14:40:19","modified_gmt":"2025-11-12T14:40:19","slug":"georgia-international-arbitration","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/georgia-international-arbitration\/","title":{"rendered":"Georgia:  International Arbitration"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-117916","comparative_guide","type-comparative_guide","status-publish","hentry","guides-international-arbitration","jurisdictions-georgia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">J&#038;T Consulting LLC<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/11\/j-t-consulting.jpeg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">J&#038;T Consulting LLC<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/11\/j-t-consulting.jpeg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of  International Arbitration laws and regulations applicable in Georgia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legislation applies to arbitration in your country? Are there any mandatory laws?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian legislation is remarkable for its modern and arbitration-friendly approach that makes Georgia an ideal forum and place for arbitration.<\/p>\n<p>The laws that apply to arbitration in Georgia are the following:<\/p>\n<ul>\n<li><strong>The Law of Georgia on Arbitration<\/strong><\/li>\n<\/ul>\n<p>On June 19, 2009 the Parliament of Georgia adopted the Law on Arbitration, which entered into force on January 1, 2010. The Law of Georgia on Arbitration was developed on the basis of a Model Law on International Commercial Arbitration 1985 (taking into consideration the amendments made to it in 2006) adopted by the United Nations Commission on International Trade Law (UNCITRAL) (hereinafter referred to as the <strong>\u201cUNCITRAL Model Law\u201d<\/strong>) and is in full compliance with international standards and best practice.<\/p>\n<p>The Law applies to both domestic and international arbitration proceedings and provides for the mandatory enforcement of both Georgian and foreign arbitral awards. Courts of appeal are the competent courts for awards rendered in the territory of Georgia, and the Supreme Court of Georgia for awards rendered outside Georgia (according to Article 44 (1) of this Law).<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>The Civil Procedure Code of Georgia<\/strong><\/li>\n<\/ul>\n<p>The participation of a court in arbitration proceedings and enforcement of an arbitral award is regulated by the Civil Procedure Code of Georgia, Chapter XLIV3 &#8211; Chapter XLIV5 of Section Seven1. A court shall intervene in arbitration proceedings only in cases directly provided by the Law of Georgia on Arbitration and according to the procedures provided for in the Civil Procedure Code of Georgia.<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>The New York Convention 1958<\/strong><\/li>\n<\/ul>\n<p>Georgia is also subject to the United Nations Convention of June 10, 1958 on the Recognition and Enforcement of Foreign Arbitral Awards (hereinafter referred to as the New York Convention), which was ratified by the resolution of the Parliament of Georgia of February 3, 1994.<\/p>\n<p>When deciding upon the recognition and enforcement of the foreign arbitral awards, the Supreme Court of Georgia applies the rules of the New York Convention together with the domestic law. Under the New York Convention, foreign arbitration agreements are also subject to enforcement in the territory of Georgia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgia is a signatory to the New York Convention, which was ratified by a resolution of the Parliament of Georgia of February 3, 1994. The convention entered into force for Georgia on 31 August 1994. There are no reservations to the general obligations of the Convention. Specifically, Georgia did not make the reciprocity or commercial reservations, so the Convention applies to awards from any Contracting State and for all commercial disputes. It is fully applicable in Georgia, making the New York Convention applicable <em>erga omnes, that is, to arbitral awards from any foreign state.<\/em><\/p>\n<p>Georgian courts also enforce arbitral awards made in the territory of states not being members of the New York Convention. Such issues, namely the recognition and enforcement of foreign arbitral awards, are regulated by bilateral agreements between the countries. The enforcement of foreign arbitral awards, including those under the New York Convention, is governed domestically by the Law of Georgia on Arbitration (2009, as amended) and supplemented by the Civil Procedure Code, which sets out the procedural rules for recognition and enforcement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What other arbitration-related treaties and conventions is your country a party to?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Conventions<sup style=\"font-size: 9px;\">(1)<\/sup><\/p>\n<p>In addition to the New York Convention, Georgia is a party to the following conventions:<\/p>\n<ul>\n<li>Convention on the Settlement of Investment Disputes between States and Nationals of Other States (The ICSID Convention 1965) (entered into force for Georgia on September 06, 1992). Georgia signed the ICSID Convention on July 1992 and ratified it on 21 September 1993, allowing investor-state disputes to be submitted to ICSID arbitration.<\/li>\n<li>The Vienna Convention on the Law of Treaties of 23 May 1969 (entered into force for Georgia on 8 July 1995)<\/li>\n<li>The Hague Convention on Abolishing the Requirement of Legalisation for Foreign Public Documents of 5 October 1961 (entered into force for Georgia on 14 May 2007)<\/li>\n<li>The Energy Charter Treaty 1994 (entered into force for Georgia on April 16, 1998)<\/li>\n<\/ul>\n<p>There are also BITs include arbitration clauses for investor-state disputes, typically providing for arbitration under ICSID rules or UNCITRAL arbitration rules.<sup style=\"font-size: 9px;\">(2)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(1)<\/sup> <span style=\"font-size: 12px;\"> (Information on conventions which Georgia is a party to is available at: &lt;<a href=\"http:\/\/www.supremecourt.ge\/aqtebi\">http:\/\/www.supremecourt.ge\/aqtebi<\/a>&gt;)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(2)<\/sup> <span style=\"font-size: 12px;\"> (Information on Georgia\u2019s international investment agreements are available at: &lt;<a href=\"https:\/\/investmentpolicy.unctad.org\/international-investment-agreements\/countries\/77\/georgi\">https:\/\/investmentpolicy.unctad.org\/international-investment-agreements\/countries\/77\/georgi<\/a>a&gt; &lt;<a href=\"https:\/\/www.privacyshield.gov\/article?id=Georgia-Bilateral-Investment-and-Taxation-Treaties\">https:\/\/www.privacyshield.gov\/article?id=Georgia-Bilateral-Investment-and-Taxation-Treaties<\/a>)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the law governing international arbitration in your country based on the UNCITRAL Model Law? Are there significant differences between the two? Are there any impending plans to reform the arbitration laws in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The law governing international arbitration in Georgia is the Law of Georgia on Arbitration which is based on the UNCITRAL Model Law (as amended in 2006). Georgia adopted the Model Law as a reference to align its arbitration framework with international standards, ensuring consistency for foreign investors and international commercial parties.<sup style=\"font-size: 9px;\">(3)<\/sup><\/p>\n<p>After adopting the Law of Georgia on Arbitration in 2009, several amendments were made to it over the years. The most significant changes were made in 2015, which is why mostly it is referred to as the Reform.<\/p>\n<p>As of 2025, there are no officially adopted bills pending, but legal scholars and practitioners have proposed incremental reforms to fully harmonize domestic arbitration procedures with international best practices, provide clearer rules on arbitrability (including disputes involving state entities), and enhance recognition and enforcement of foreign awards.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(3)<\/sup> <span style=\"font-size: 12px;\"> (<a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4926177\">Unlocking Potential: International Arbitration Trends in Central Asia and Caucasus<\/a>)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What arbitral institutions (if any) exist in your country? When were their rules last amended? Are any amendments being considered?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Georgia, parties can resolve disputes through institutional arbitration administered by established arbitral institutions, or through ad hoc arbitration under the Law of Georgia on Arbitration. Together, these options provide flexibility and align the country\u2019s arbitration framework with international norms.<\/p>\n<p>There are three leading arbitral institutions in Georgia:<\/p>\n<p><strong>1. Georgian International Arbitration Centre (GIAC)<sup style=\"font-size: 9px;\">(4)<\/sup><\/strong><\/p>\n<p>Georgian International Arbitration Centre (hereinafter referred to as GIAC) is the first non-profit arbitral institution created in Georgia. It was established as a non-commercial non-profit legal entity. While being the first Georgian international arbitral institution, GIAC is considered to be the most efficient dispute resolution institution in the entire Caucasus \u2013 Black Sea \u2013 Caspian Region. GIAC Secretariat as well as GIAC Arbitration Council is well-organised with group of highly experienced arbitration lawyers and practitioners.<\/p>\n<p>The GIAC Arbitration Rules were last amended on 12 April\u202f2024. There are no amendments being considered in the near future. In addition GIAC periodically reviews its rules to align with international best practices, including provisions for emergency arbitrators, electronic communications, and confidentiality. These measures ensure that GIAC arbitration is compatible with UNCITRAL, ICC, and other leading international standards.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>2. Tbilisi Arbitration Institute<sup style=\"font-size: 9px;\">(5)<\/sup><\/strong><\/p>\n<p>Tbilisi Arbitration Institute is one of the oldest Georgian arbitrations, which was established in 2009 in parallel with the implementation of a major arbitration reform. Considering its ethical commitment and rendered awards that always share the best international practice, Tbilisi Arbitration Institute is acknowledged as one of the leadings in Georgia. Tbilisi Arbitration Institute ensures to constantly develop its service and, by adhering to its ethics and principles, offers customers high quality services. Its services include: Mediation, Arbitration, Med-Arb, Negotiations.<\/p>\n<p>Tbilisi Arbitration Institute has considered over 5,000 cases. The Tbilisi Arbitration Institute Arbitration Rules were last amended on 18 September\u202f2025.<\/p>\n<p>Tbilisi Arbitration Institute continuously monitor international developments in arbitration, and amendments to their rules have been designed to improve efficiency, address electronic arbitration procedures, and strengthen interim measures.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>3. DRC \u2013 Dispute Resolution Center<sup style=\"font-size: 9px;\">(6)<\/sup><\/strong><\/p>\n<p>Dispute Resolution Center (hereinafter referred to as DRC) was established in 2008 and is a center of alternate means of resolution of disputes. DRC offers two mechanisms for resolutions of disputes: the arbitration and the mediation.<\/p>\n<p>The DRC Rules went into force on 01 June\u202f2016. DRC also follows international arbitration standards and provides parties the option of ad hoc arbitration, ensuring flexibility and compatibility with global practices. The institution periodically evaluates its rules to maintain fairness, efficiency, and impartiality.<\/p>\n<p><sup style=\"font-size: 9px;\">(4)<\/sup> <span style=\"font-size: 12px;\"> (Official website: <a href=\"https:\/\/giac.ge\/\">&lt;https:\/\/giac.ge\/&gt;<\/a>)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(5)<\/sup> <span style=\"font-size: 12px;\"> (Official websites: <a href=\"https:\/\/www.taiarbitration.com\/&gt;\">https:\/\/www.taiarbitration.com\/&gt;<\/a>)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(6)<\/sup> <span style=\"font-size: 12px;\"> (Official website: <a href=\"http:\/\/http:\/\/drc-arbitration.ge\/\">&lt;http:\/\/drc-arbitration.ge\/<\/a>&gt;)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a specialist arbitration court in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no specialist arbitration court in Georgia. Even without a separate arbitration court, disputes related to arbitration are handled by ordinary courts, under the Law of Georgia on Arbitration and the Civil Procedure Code. Courts assist in arbitration by confirming or challenging arbitration agreements, appointing arbitrators if parties fail to do so, granting interim measures, recognizing and enforcing arbitral awards, and handling setting aside (annulment) of awards.<\/p>\n<p>However, the 11\/08\/2020 Resolution of the High Council of Justice of Georgia on the definition of narrow specialization of judges in the Chambers of Civil, Administrative and Criminal Cases of the Tbilisi Court of Appeal<sup style=\"font-size: 9px;\">(7)<\/sup> defines the authority of judges to consider arbitration cases.<\/p>\n<p><sup style=\"font-size: 9px;\">(7)<\/sup> <span style=\"font-size: 12px;\"> (The 11\/08\/2020 Resolution is available at: <a href=\"http:\/\/hcoj.gov.ge\/Uploads\/2021\/4\/10.pdf\">&lt;http:\/\/hcoj.gov.ge\/Uploads\/2021\/4\/10.pdf&gt;<\/a>)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the validity requirements for an arbitration agreement under the laws of your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An arbitration agreement is considered to be valid if it meets the requirements in accordance with Article 8 of the Law of Georgian on Arbitration.<\/p>\n<p>Under the Law, the essential terms of an arbitration agreement (essentialia negotii) include only the following:<sup style=\"font-size: 9px;\">(8)<\/sup><\/p>\n<ul>\n<li>the agreement of the parties to submit the dispute to arbitration for consideration.<\/li>\n<li>a defined legal relationship which is to be considered by the arbitral tribunal.<\/li>\n<\/ul>\n<p>Furthermore, Georgian legislation provides that an arbitration agreement must be concluded in writing. Similar to the UNCITRAL Model Law, the legislation recognizes exceptions under which an arbitration agreement shall be deemed to be in writing if its content is recorded in any form, regardless of the form in which the arbitration agreement or the contract has been concluded, and if it is evidenced through the exchange of a statement of claim and a statement of defense, where one party asserts the existence of an arbitration agreement and the other party does not deny it. However, this exception does not apply to natural persons and administrative bodies.<\/p>\n<p>It should be noted that, at an earlier stage, the Georgian courts adopted a stricter approach towards the interpretation and enforcement of arbitration agreements. However, in recent years, the approach has become more pro-arbitration.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(8)<\/sup> <span style=\"font-size: 12px;\"> (Group of Authors, Sophio Tkemaladze (Scientific Editor), Arbitration Guide for the First Instance Courts, Arbitration Initiative Georgia, EU4Justice, UNDP Georgia (2017), p. 34)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitration clauses considered separable from the main contract?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Separability of the arbitration clause is recognized by the legal system of Georgia. This principle is incorporated in the Law of Georgia on Arbitration. According to Article 16 (1) of this Law, \u201c\u2026an arbitration clause that is a part of a contract shall be treated as an independent agreement that is unrelated to other terms of the contract. Annulment of the contract does not result in\u202fthe\u202finvalidity\u202fof\u202fthe\u202farbitration\u202fclause.\u201d<\/p>\n<p>In practice, Georgian courts will uphold arbitration clauses even if the main contract is disputed, terminated, or challenged. Arbitrators themselves have the competence to rule on their own jurisdiction, including disputes over the validity of the arbitration agreement.<sup style=\"font-size: 9px;\">(9)<\/sup><\/p>\n<p>This approach aligns Georgia with international arbitration standards, including the UNCITRAL Model Law and the New York Convention, ensuring that arbitration agreements are not easily nullified due to disputes concerning the underlying contract.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(9)<\/sup> <span style=\"font-size: 12px;\"> (<a href=\"https:\/\/www.ibanet.org\/document?id=Georgia-country-guide-arbitration&amp;utm_source\">The International Bar Association&#8217;s Arbitration Guide for Georgia<\/a>)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts of your country apply a validation principle under which an arbitration agreement should be considered valid and enforceable if it would be so considered under at least one of the national laws potentially applicable to it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A validation principle as such has not been recognized nor applied by Georgian courts. Georgian courts respect any explicit (or even implicit) choice of law by the parties with reference to their arbitration agreement. However, in practice, courts tend to give effect to arbitration agreements if they would be valid under at least one national law potentially applicable to the agreement, particularly in international contracts. This approach ensures that arbitration agreements are not easily invalidated due to conflicts of law or the choice of a foreign governing law, reflecting a pro-arbitration stance consistent with international standards and the New York Convention.<sup style=\"font-size: 9px;\">(10)<\/sup><\/p>\n<p>There are some recommendations stated in literature, some scholarly opinions and guides based on international standards and experience regarding the case when no such choice has been made.<\/p>\n<p>According to the Arbitration Guide for the First Instance Courts, when deciding upon the validity of the arbitration agreement, the courts shall consider the following:<sup style=\"font-size: 9px;\">(11)<\/sup><\/p>\n<ul>\n<li>The law of the place of arbitration (or the place of rendering arbitral award);<\/li>\n<li>The law applicable to the principal contract;<\/li>\n<li>National legislation (in certain cases).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(10)<\/sup> <span style=\"font-size: 12px;\"> (<a href=\"https:\/\/www.ibanet.org\/document?id=Georgia-country-guide-arbitration&amp;utm_source\">The International Bar Association&#8217;s Arbitration Guide for Georgia)<\/a><\/span><br \/>\n<sup style=\"font-size: 9px;\">(11)<\/sup> <span style=\"font-size: 12px;\"> (Group of Authors, Sophie Tkemaladze (Scientific Editor), Arbitration Guide for the First Instance Courts, Arbitration Initiative Georgia, EU4Justice, UNDP Georgia (2017), pp. 14-19)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are asymmetric arbitration clauses \u2013 for instance, where one party has the right to choose between arbitration or litigation while the other party does not have this option \u2013 valid in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Law of Georgia on Arbitration does not recognize asymmetric arbitration agreements. Georgian courts adhere to the principle of equality of the parties in relation to agreements on dispute resolution. Therefore, a clause that grants one party the unilateral option to choose between arbitration and litigation, while denying the same right to the other party, would be considered inconsistent with Georgian law and unenforceable.<sup style=\"font-size: 9px;\">(12)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(12)<\/sup> <span style=\"font-size: 12px;\"> (Group of Authors, Sophie Tkemaladze (Scientific Editor), Arbitration Guide for the First Instance Courts, Arbitration Initiative Georgia, EU4Justice, UNDP Georgia (2017), p. 52.)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an arbitration agreement? Are there any recent court decisions on these issues?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Third parties or non-signatories can be bound by an arbitration agreement only under specific circumstances, such as based on a contractual agreement (e.g. a third party who is the beneficiary of a contract, etc.) or by way of legal succession or inheritance or assignment (e.g. assignment of a claim, assumption of a debt or transfer of a contract containing an arbitration clause, etc.).<\/p>\n<p>Other circumstances recognized in practice include agency, corporate group affiliation, or estoppel\/reliance, where a non-signatory has actively participated in the contract or benefited from its provisions, making it equitable to enforce the arbitration agreement against them. Georgian courts have emphasized that binding non-signatories must be based on a clearer legal or factual connection to the underlying contract. <sup style=\"font-size: 9px;\">(13)<\/sup><\/p>\n<p>Article 4 of the Law of Georgia on Arbitration stipulates only the delegation of the right of decision making to a third party. The possibility of the extension of the binding arbitration agreements on third parties or non-signatories may not be excluded.<sup style=\"font-size: 9px;\">(14)<\/sup><\/p>\n<p>Under article 5(1) of the Law of Georgia on Arbitration unless otherwise agreed to by the parties, in the case of a succession in legal relations, the successor becomes a party to the arbitration\u202fagreement.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(13)<\/sup> <span style=\"font-size: 12px;\"> (International Bar Association, Arbitration Guide: Georgia; Georgian International Arbitration Centre (GIAC) Arbitration Rules (2017))<\/span><br \/>\n<sup style=\"font-size: 9px;\">(14)<\/sup> <span style=\"font-size: 12px;\"> (Tsertsvadze, Giorgi, Brief Commentary to The Georgian Arbitration Law 2009, Publishing House \u201cUNIVERSAL\u201d, Tbilisi 2011, p. 66)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any recent court decisions in your country concerning the choice of law applicable to an arbitration agreement where no such law has been specified by the Parties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the law of Georgia on Arbitration at the recognition and enforcement stage, the court shall examine the validity of the arbitration clause under the law chosen by the parties, or, in the absence of such choice, under the law of the state where the award was rendered.<sup style=\"font-size: 9px;\">(15)<\/sup><\/p>\n<p>There are no recent court decisions, however, there are some recommendations given in different literature or guides on how the court should act at this time.<\/p>\n<p>In practice, Georgian courts generally follow principles of party autonomy and conflict of laws. If the parties have not specified a law, courts often apply the law of the seat of arbitration as the default, or consider the law governing the principal contract only if consistent with the separability of the arbitration clause. Courts may also apply Georgian law indirectly if both parties discuss the validity of the arbitration agreement under Georgian law during proceedings.<\/p>\n<p>In particular, in order to determine the law applicable to the arbitration agreement, the court shall pay attention to the following circumstances:<sup style=\"font-size: 9px;\">(16)<\/sup><\/p>\n<ul>\n<li>Where the arbitral award will be rendered i.e. where the arbitration will take place;<\/li>\n<li>Whether the parties agreed on the law applicable to the principal contract;<\/li>\n<li>Whether the action of the parties indicate\/imply the application of any law.<\/li>\n<\/ul>\n<p>This approach ensures that arbitration agreements are upheld wherever possible, maintaining compliance with international standards, including the New York Convention, and preventing invalidation merely due to the absence of a choice-of-law clause.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(15)<\/sup> <span style=\"font-size: 12px;\"> (law of Georgia on Arbitration, Article 42.)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(16)<\/sup> <span style=\"font-size: 12px;\"> (Group of Authors, Sophie Tkemaladze (Scientific Editor), Arbitration Guide for the First Instance Courts, Arbitration Initiative Georgia, EU4Justice, UNDP Georgia (2017), p. 14)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the law applicable to the substance determined? Is there a specific set of choice of law rules in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Primarily, the law applicable to the substance of a dispute is determined by the agreement of the parties. This includes not only rules provided for in various national legal systems, but includes also other sources of law, such as general principles of commercial law, lex mercatoria, etc.<\/p>\n<p>This is supported by the general rules under the Law of Georgia on Private International Law, which explicitly recognize party autonomy in choice of law. If the parties do not specify a law, the tribunal may determine the applicable law based on the closest connection, lex loci solutinis, or lex loci contractus.<sup style=\"font-size: 9px;\">(17)<\/sup><\/p>\n<p>According to Article 36 (1) of the Law of Georgia on Arbitration, \u201cThe arbitral tribunal shall resolve a dispute in accordance with the rules of law that are chosen by the parties\u201d.<\/p>\n<p>In the absence of an agreement of the parties, the arbitral tribunal is entitled to determine and apply the law it considers appropriate in the circumstances. According to Article 36 (2) of the Law of Georgia on Arbitration, \u201cIn the absence of the agreement of the parties, the rules of law that are determined by the arbitral tribunal shall be used during the\u202farbitration\u202fproceeding\u201d.<\/p>\n<p>In practice, while the Private International Law primarily governs courts, its principles are applied by arbitral tribunal when the parties have not chosen a law. This ensures consistency with international standards and the recognition of arbitral awards under the New York Convention.<sup style=\"font-size: 9px;\">(18)<\/sup><\/p>\n<p>Even under the terms of the agreement between the parties, the arbitral tribunal shall take into account the commercial customs and traditions applicable to such an agreement when making its decision.<sup style=\"font-size: 9px;\">(19)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(17)<\/sup> <span style=\"font-size: 12px;\"> (International Bar Association, Arbitration Guide: Georgia; Law of Georgia on Private International Law.)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(18)<\/sup> <span style=\"font-size: 12px;\"> (Law of Georgia on Private International Law; New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958))<\/span><br \/>\n<sup style=\"font-size: 9px;\">(19)<\/sup> <span style=\"font-size: 12px;\"> (<em>Titberidze, Giorgi,<\/em> The Law of Georgia on Arbitration, Commentary, Second Edition, Tbilisi 2020, p. 172 )<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any particular requirements for and\/or restrictions in the appointment of arbitrators?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the Article 11 (7) of the Law of Georgia on Arbitration:<\/p>\n<p>\u201cA person may not be denied appointment as an arbitrator, except for the case when he\/she:<\/p>\n<p>a) is a person with limited legal capacity or a beneficiary of support, unless otherwise defined by the court judgement;<br \/>\nb) is a state employee, a state political official, a political official or a public servant;<br \/>\nc) has been convicted of committing a crime and his\/her conviction has not been vacated or expunged;<br \/>\nd) was either a mediator in the same case or another case substantively related to that case.\u201d<\/p>\n<p>In \u200b\u200baddition, according to Article 14.9 (2) of the Law on Enforcement Proceedings, \u201cA private bailiff cannot be a member of arbitration.\u201d<\/p>\n<p>It is permissible for the parties to establish specific requirements for arbitrators in the arbitration agreement.<sup style=\"font-size: 9px;\">(20)<\/sup><\/p>\n<p>Under the Law of Georgia on Arbitration, it is inadmissible to appoint a person as an arbitrator without his consent. A written consent of the arbitrator to participate as an arbitrator in the case is a mandatory requirement.<\/p>\n<p>Proper competence, neutrality, independence and impartiality &#8211; these are considered the most important requirements that an arbitrator participating in the arbitration process shall have.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(20)<\/sup> <span style=\"font-size: 12px;\"> (Group of Authors, Sophie Tkemaladze (Scientific Editor), Arbitration Guide for the First Instance Courts, Arbitration Initiative Georgia, EU4Justice, UNDP Georgia (2017), p.76)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the local courts intervene in the selection of arbitrators? If so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The parties have the right to determine the identity or number of arbitrators and the rules for appointing them. If the parties fail to appoint an arbitrator within the agreed time frame, or if the agreed procedure cannot be followed, Georgian courts can intervene to appoint arbitrators. The intervention is regulated by Article 11(3) of the Law of Georgia on Arbitration, and the court\u2019s decision is final and not subject to appeal.<sup style=\"font-size: 9px;\">(21)<\/sup> However, there may be a case where they didn\u2019t or couldn\u2019t agree on the procedure for appointing arbitrators, or the procedure for appointing arbitrators provided by them failed to carry out. In such cases, the law provides that one of the parties is entitled to apply to the court and request the appointment of arbitrator(s). Thus, the court intervenes in the selection of arbitrators when the applicable procedural law directly requires it.<\/p>\n<p>In the case of institutional arbitration, the parties have the right to apply to the court if they have a written agreement that they do not recognize the arbitration rules of the arbitral institution in the appointment of the arbitrator(s) and that they will apply to the court in case of disagreement.<sup style=\"font-size: 9px;\">(22)<\/sup> In the case of institutional arbitration, it is also possible for the parties to apply to the court, when for one reason or another the arbitral institution fails to appoint an arbitrator.<sup style=\"font-size: 9px;\">(23)<\/sup><\/p>\n<p>When selecting a candidate for the appointment of an arbitrator, the court shall take into account the following:<sup style=\"font-size: 9px;\">(24)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Criteria to be met by the arbitrator;<\/li>\n<li>Whether the person is prohibited to be an arbitrator by law;<\/li>\n<li>What may be the source of selection of arbitrator candidates;<\/li>\n<li>Whether the candidate agrees to be an arbitrator;<\/li>\n<li>The importance of the involvement of the parties in the process of appointing an arbitrator.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(21)<\/sup> <span style=\"font-size: 12px;\"> (Law of Georgia on Arbitration, article 11(3))<\/span><br \/>\n<sup style=\"font-size: 9px;\">(22)<\/sup> <span style=\"font-size: 12px;\"> (<em>Titberidze Giorgi,<\/em> The Law of Georgia on Arbitration, Commentary, Second Edition, Tbilisi 2020, p.73)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(23)<\/sup> <span style=\"font-size: 12px;\"> (<em>Ibid<\/em>.)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(24)<\/sup> <span style=\"font-size: 12px;\"> (<em>Ibid<\/em>., pp. 75-76)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the appointment of an arbitrator be challenged? What are the grounds for such a challenge? What is the procedure for such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Law of Georgia on Arbitration grants parties the right to challenge arbitrators. The rules governing this right are set out in Article 12 (grounds) and Article 13 (procedure).<\/p>\n<p><strong>Grounds for Challenge (Article 12):<\/strong><\/p>\n<ul>\n<li>Lack of qualifications agreed upon by the parties;<\/li>\n<li>Circumstances giving rise to reasonable doubt as to impartiality or independence;<\/li>\n<li>Duty of disclosure: arbitrators must promptly disclose any such circumstances throughout the proceedings;<\/li>\n<li>A party may challenge its own appointed arbitrator only for reasons arising after the appointment.<\/li>\n<\/ul>\n<p><strong>Procedure for Challenge (Article 13):<\/strong><\/p>\n<ul>\n<li>The parties may agree on a procedure for challenge.<\/li>\n<li>Absent agreement, a challenge must be filed in writing within 15 days of becoming aware of the appointment or grounds for challenge, stating reasons and motives.<\/li>\n<li>If the arbitrator does not withdraw and the other party does not agree, the arbitral tribunal decides the challenge within 30 days.<\/li>\n<li>If rejected, the challenging party may apply to the court within 30 days. The court must decide within 14 days; its decision is final and not subject to appeal.<\/li>\n<li>In sole arbitrator cases, a direct challenge to the court is allowed within 30 days of appointment or knowledge of grounds.<\/li>\n<li>The tribunal may continue proceedings before the court makes its decision.<\/li>\n<li>An arbitrator is obliged to announce\u202fhis\/her\u202fwithdrawal\u202ffrom\u202fthe tribunal.<\/li>\n<\/ul>\n<p>If a party has not filed a statement for the challenge of the arbitrator during the arbitration proceedings, its ability to request such challenge at the enforcement stage is precluded.<sup style=\"font-size: 9px;\">(25)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(25)<\/sup> <span style=\"font-size: 12px;\"> (The Supreme Court of Georgia, Case No \u2116\u10d0-3947-\u10e8-93-2020, October 26, 2020)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent developments concerning the duty of independence and impartiality of the arbitrators, including the duty of disclosure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Within domestic arbitration proceedings in Georgia, several noteworthy decisions have been rendered. In one case, the sole ground for challenging an arbitrator was the breach of the duty to disclose. The arbitral tribunal emphasized that the undisclosed circumstance itself did not constitute a ground for challenge; however, the failure to comply with the duty of disclosure was sufficient to justify the removal of the arbitrator.<sup style=\"font-size: 9px;\">(26)<\/sup><\/p>\n<p>In addition, Georgian courts have issued several decisions holding that when a party\u2019s representative is also listed as an arbitrator with the arbitral institution administering the dispute, this raises concerns regarding the independence and impartiality of the tribunal. These rulings have been strongly criticized by the arbitration community as being inconsistent with both international standards and the case law of the Supreme Court of Georgia.<sup style=\"font-size: 9px;\">(27)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(26)<\/sup> <span style=\"font-size: 12px;\"> (DRC Arbitration Case 8610, Procedural Order dated 14 February, 2022.)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(27)<\/sup> <span style=\"font-size: 12px;\"> (https:\/\/legalblogs.wolterskluwer.com\/arbitration-blog\/surprising-news-from-georgia-court-of-appeals-finds-arbitral-tribunals-lacking-competence-despite-a-valid-arbitration-agreement\/)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitrators immune from liability?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, such legislative immunity of arbitrators is less common in civil law countries. Instead, liability may be limited under institutional rules and \/ or the agreement concluded between the arbitrator and the party.<sup style=\"font-size: 9px;\">(28)<\/sup><\/p>\n<p>Before the amendments to Criminal Code of Georgia, members of the tribunal were subject to criminal liability for abuse of official powers.<sup style=\"font-size: 9px;\">(29)<\/sup> However, this liability is no longer envisaged in Georgian legislation.<\/p>\n<p>In practice, arbitrators are considered immune from liability for acts performed in good faith within the scope of their mandate. This is consistent with international arbitration practice. The Law of Georgia on Arbitration implicitly supports this principle, and the Georgian Association of Arbitrator\u2019s (GAA) Code of Ethics reinforces the requirements that arbitrators acts in good faith, impartially, and independently. Courts generally do not entertain claims for damages against arbitrators unless there is evidence of fraud, gross negligence, of willful misconduct.<sup style=\"font-size: 9px;\">(30)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(28)<\/sup> <span style=\"font-size: 12px;\"> (Group of Authors, Sophie Tkemaladze (Scientific Editor), Arbitration Guide for the First Instance Courts, Arbitration Initiative Georgia, EU4Justice, UNDP Georgia (2017), p.111)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(29)<\/sup> <span style=\"font-size: 12px;\"> (Article 332 of Criminal Code of Georgia (1999, amended 2019))<\/span><br \/>\n<sup style=\"font-size: 9px;\">(30)<\/sup> <span style=\"font-size: 12px;\"> (Georgian Association of Arbitrators (GAA), Code of Ethics (2014); UNCITRAL Model Law on International Commercial Arbitration (1985, with 2006 amendments))<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the principle of competence-competence recognized in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Law of Georgia on Arbitration recognizes this principle embodied in Article 16 (1), according to the first sentence of which \u201cAn arbitral tribunal shall have power to make a determination regarding its own competence, including the determination of the existence or authenticity of the arbitration agreement\u201d.<\/p>\n<p>This principle, known as competence-competence, allows the tribunal to rule on its own jurisdiction even if the validity of the arbitration agreement is challenged before the courts. Georgian courts generally respect the tribunal\u2019s determination and will not intervene unless there is a clear violation of law, procedural rules, or public policy. The recognition of competence-competence aligns Georgia with international standards such as the UNCITRAL Model Law, reinforcing the autonomy and authority of the arbitral tribunal in Jurisdictional matters.<sup style=\"font-size: 9px;\">(31)<\/sup><\/p>\n<p>The principle of competence-competence is also recognized and upheld by Georgian courts.<sup style=\"font-size: 9px;\">(32)<\/sup><\/p>\n<p><sup style=\"font-size: 9px;\">(31)<\/sup> <span style=\"font-size: 12px;\"> (Law of Georgia on Arbitration, Article 16; UNCITRAL Model Law on International Commercial Arbitration, 1985; International Bar Association, Georgia: Country Guide on Arbitration.)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(32)<\/sup> <span style=\"font-size: 12px;\"> (Tbilisi Court of Appeal, Civil Chamber, ruling of 10 July 2024 on declaring an arbitration as incompetent)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the approach of local courts towards a party commencing litigation in apparent breach of an arbitration agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian courts have consistently enforced the principle that disputes covered by a valid arbitration agreement must be referred to arbitration. In practice, courts generally do not examine the merits of the dispute at the initial stage, focusing solely on the existence, validity, and applicability of the arbitration agreement. This approach upholds party autonomy and reinforces the authority of arbitration agreements, preventing parties from bypassing arbitration by initiating parallel court proceedings.<\/p>\n<p>Article 9(1) of the Law of Georgia on Arbitration provides that a court before which an action is brought in a matter subject to an arbitration agreement, upon request of a party before the expiry of the time to submit a statement of defence, must terminate the proceedings and refer the parties to arbitration, unless it finds the agreement void, invalid, or incapable of being performed.<sup style=\"font-size: 9px;\">(33)<\/sup><\/p>\n<p>It should also be noted that, in some cases, a problematic issue is the delay by the courts in considering this matter and in staying the court proceedings.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(33)<\/sup> <span style=\"font-size: 12px;\"> (Law of Georgia on Arbitration, Article 9(1) The Supreme Court of Georgia, Case \u2116 \u10d0\u10e1-148-140-2017, January 18, 2018, Tbilisi City Court, Civil Chamber, Ruling dated 2 May 2025 on refusal to secure a claim.)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What happens when a respondent fails to participate in the arbitration? Can the local courts compel participation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In accordance with Article 30 (5) of the Law of Georgia on Arbitration, if respondent fails to file the statement of defence, proceedings shall nevertheless be continued. Arbitral tribunal in such an instance renders the award on the basis of a claim and pieces of relevant evidence presented by the claimant. Therefore, local courts can not compel participation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can third parties voluntarily join arbitration proceedings? If all parties agree to the intervention, is the tribunal bound by this agreement? If all parties do not agree to the intervention, can the tribunal allow for it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Georgian Law on Arbitration does not expressly regulate the joinder or intervention of third parties in arbitration proceedings. Accordingly, the possibility of third-party participation primarily depends on the parties\u2019 agreement and, where applicable, the rules of the arbitral institution administering the proceedings.<\/p>\n<p>If all parties agree to the participation of a third party, the tribunal will generally give effect to such agreement. However, in the absence of unanimous consent, there is no statutory authority under Georgian law for the tribunal to impose third-party participation unilaterally. Whether joinder without full consent is possible will therefore depend on the relevant institutional rules (if any) governing the arbitration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What interim measures are available? Will local courts issue interim measures pending the constitution of the tribunal? Are anti-suit and\/or anti-arbitration injunctions available and enforceable in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Article 17 (2) of the Law of Georgia on Arbitration, the arbitral tribunal is authorised, by a written award, to order a party to a) maintain or restore the status quo before rendering the final award; b) take measures that would prevent causing damage to the other party or to the arbitral proceeding; c) provide a means of preserving assets out of which a subsequent award may be satisfied; d) preserve and maintain evidence that may be relevant to the dispute and its resolution.<\/p>\n<p>In addition to that, interesting observations can be made based on Georgian arbitration and court practice. There are certain instances when the arbitral tribunal goes beyond the listed scope and issues the type of interim measure that is not included in the Law of Georgia on Arbitration and is only envisaged in Georgian Civil Code of Procedure (governing securing of the claims, exclusively, during the court proceedings, Articles 191 &#8211; 1991), such as attachment of the property. Despite that, Appellate Court of Georgia still recognizes and enforces such an award.<sup style=\"font-size: 9px;\">(34)<\/sup><\/p>\n<p>In accordance with Article 23 (1) of the Law of Georgia on Arbitration, an arbitration party may apply to a court requesting granting interim measures, which can also be arranged before the constitution of the tribunal. Since 2015 amendments to the Law of Georgia on Arbitration, court has been given discretion to use the interim measure even before filing the arbitration claim.<sup style=\"font-size: 9px;\">(35)<\/sup><\/p>\n<p>Georgian legislation is not familiar with anti-suit\/anti-arbitration injunction.<sup style=\"font-size: 9px;\">(36)<\/sup> However, in accordance with legal doctrine, in case if arbitrators broadly interpret the scope of the interim measures stipulated under the Georgian Law in parallel with international standards, the latter has the potential to acquire viability in Georgian practice.<sup style=\"font-size: 9px;\">(27)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(34)<\/sup> <span style=\"font-size: 12px;\"> (Tbilisi Court of Appeals, Case No N2\u10d1 \/ 1889-15, May 15, 2015; Machaidze, Otar, Conditions of Application, Recognition and Enforcement of Interim Measures in Arbitral Proceedings, 2020, p.97, is available at:<a href=\"http:\/\/&lt;https:\/\/www.jtconsulting-geo.com\/uploads\/files\/publications\/8\/ghonisdziebebis-gamoyenebis-da-tsnoba-aghsrulebis-pirobebi.pdf&gt;\">&lt;https:\/\/www.jtconsulting-geo.com\/uploads\/files\/publications\/8\/ghonisdziebebis-gamoyenebis-da-tsnoba-aghsrulebis-pirobebi.pdf&gt;<\/a>)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(35)<\/sup> <span style=\"font-size: 12px;\"> (Explanatory Note, draft amendments to 2015 The Law of Georgia on Arbitration; Machaidze Otar, Conditions of Application, Recognition and Enforcement of Interim Measures in Arbitral Proceedings, 2020, p.60)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(36)<\/sup> <span style=\"font-size: 12px;\"> (<em>Machaidze Otar<\/em>, Conditions of Application, Recognition and Enforcement of Interim Measures in Arbitral Proceedings, 2020,p.107)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(37)<\/sup> <span style=\"font-size: 12px;\"> (<em>Ibid<\/em>)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there particular rules governing evidentiary matters in arbitration? Will the local courts in your jurisdiction play any role in the obtaining of evidence? Can local courts compel witnesses to participate in arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian law does not provide for specific set of rules governing evidentiary matters in arbitration.<\/p>\n<p>Role played by the domestic courts in obtaining the evidence is provided for in Article 35 (3) of the Law of Georgia on Arbitration, namely \u201cAt any stage of the arbitration proceeding, the arbitral tribunal or a party, with the consent of the arbitral tribunal, may request from court assistance in taking evidence\u201d. Under the same article the law states that: The \u201cArbitral tribunal is authorised to ask the court to ensure attendance of witness\u201d.<\/p>\n<p>However, it should be noted that the practice of compelling witness testimony by the courts is not very common, since even within court proceedings the courts rarely exercise this power.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What ethical codes and other professional standards, if any, apply to counsel and arbitrators conducting proceedings in your country? Do these codes and professional standards apply only to counsel and arbitrators having the nationality of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Arbitrators\u2019 Code of Ethics apply to arbitrators\u2019 conduct designed by Georgian Association of Arbitrators in 2013 (amended later in 2018 as a result of introducing the enforcement mechanism), application of the rules of which is expanded to four leading arbitration institutions throughout the country together with the members of the Association.<sup style=\"font-size: 9px;\">(38)<\/sup>The Arbitrators\u2019 Code of Ethics, adopted by the Georgian Association of Arbitrators (2013, amended 2018), applies to all arbitrators sitting in Georgian-seated proceedings under the auspices of the Association and the main arbitral institutions that have endorsed it, irrespective of nationality. Accordingly, foreign arbitrators appointed in such proceedings are also expected to comply.<\/p>\n<p>As for the counsels\u2019 conduct both in court and arbitration proceedings, Code of Ethics for lawyers introduced by the Georgian Bar Association is applicable. With respect to counsel, the Code of Ethics of the Georgian Bar Association governs the professional conduct of lawyers admitted to the Georgian Bar. This code formally applies only to members of the Georgian Bar Association. Foreign-qualified lawyers who are not admitted in Georgia are not directly subject to it, although arbitral tribunals seated in Georgia may expect all counsel to adhere to general standards of fairness and integrity, and institutional rules may contain their own provisions regulating party representatives.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(38)<\/sup> <span style=\"font-size: 12px;\"> (Further information is available at: &lt;<a href=\"https:\/\/eu4georgia.ge\/leading-georgian-arbitration-institutions-commit-to-common-standards-of-ethics\/\">https:\/\/eu4georgia.ge\/leading-georgian-arbitration-institutions-commit-to-common-standards-of-ethics\/<\/a>&gt;)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any rules with respect to the confidentiality of arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In accordance with Article 32 (4) of Law of Georgia on Arbitration \u201cUnless otherwise provided for by law or agreement of the parties, all arbitration proceedings must be closed. Documents, evidence, written or oral statements of the proceedings shall not be published, or transferred to and used in another judicial or administrative proceedings\u201d. In addition to that, following provision, Article 32 (5) states that \u201cSubject to the paragraph 4 of this article, arbitrators and any person participating in the arbitration proceedings must keep confidential information disclosed to them during the arbitration proceedings\u201d. In addition to that, Code of Ethics of Arbitrators state that \u201cIf compliance by a prospective arbitrator with any provision of this Code would require disclosure of confidential or privileged information, the prospective arbitrator should either: a) Secure the consent to the disclosure from the person who furnished the information or the holder of the privilege; or b) Withdraw\u201d.<sup style=\"font-size: 9px;\">(39)<\/sup><\/p>\n<p><sup style=\"font-size: 9px;\">(39)<\/sup> <span style=\"font-size: 12px;\"> (Code of Ethics of Arbitrators, Principle II (9))<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the IBA guidelines on conflicts of interest and other similar soft law sources viewed by courts and tribunals in your jurisdiction? Are they frequently applied?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In practice, the IBA Guidelines on Conflicts of Interest and other similar soft law instruments are generally regarded as persuasive rather than binding in our jurisdiction. Courts and arbitral tribunals may refer to them as guidance when assessing issues of impartiality, independence, or procedural conduct, but they are not applied as mandatory rules. Their use is more common in complex or cross-border matters, where parties and tribunals rely on internationally accepted standards to support consistency and transparency in arbitral proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the costs of arbitration proceedings estimated and allocated? Can pre- and post-award interest be included on the principal claim and costs incurred?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are different approaches to the cost estimation. Whilst some institutional rules determine the costs of administrative nature and honorarium of arbitrators separately, others provide for the total amount for the aforementioned costs.<sup style=\"font-size: 9px;\">(40)<\/sup><\/p>\n<p>Rules of leading arbitral institutions on cost allocation are somewhat similar, therefore, following generalized tendency can be formed &#8211; costs are fixed within the final award, which contains the proportion on the basis of which party\u2019s participation is determined. Allocation of costs is being made taking into consideration all the circumstances which are deemed to be relevant upon tribunal\u2019s discretion.<sup style=\"font-size: 9px;\">(41)<\/sup> However, allocation of costs is generally dependent on the outcome of the case in practice.<\/p>\n<p>However, there are several awards to be noted regarding allocation of costs. In one of the arbitral awards rendered in 2022, although the arbitration claim was partially satisfied and at the same time the counterclaim of the respondents was also partially satisfied, the arbitration costs were still entirely borne by the respondent and there was no distribution of the arbitration costs.<\/p>\n<p>Payment of interest as a claim is governed by the substantive law in Georgia. However, there is no distinction being made regarding pre \u2013 and post \u2013 award interest.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(40)<\/sup> <span style=\"font-size: 12px;\"> (Georgian International Arbitration Centre (GIAC) Arbitration Rules, Annex I Schedule of fees;)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(41)<\/sup> <span style=\"font-size: 12px;\"> (Georgian International Arbitration Centre (GIAC) Arbitration Rules, Articles 42-43;)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are applications for security for costs viewed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Georgian law, neither the Law on Arbitration nor the Civil Procedure Code expressly provides for the possibility of ordering security for costs. In other words, the current legislative framework does not recognize cost-protection measures as part of the interim relief available to arbitral tribunals or courts.<\/p>\n<p>Nevertheless, under a broad interpretation of the law, such relief may arguably be enforced on the basis of the provision that allows a party to request measures aimed at preserving assets out of which a subsequent award may be satisfied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legal requirements are there in your country for the recognition and enforcement of an award? Is there a requirement that the award be reasoned, i.e. substantiated and motivated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Article 39 (2) of Law of Georgia on Arbitration \u201cAn arbitration award is binding on the parties to the arbitration agreement. It must be in writing. It must be signed by an arbitrator(s). In arbitral proceedings with more than one arbitrator, an arbitration award must be signed by the majority of the arbitrators. If an arbitrator refuses to sign the arbitration award and\/or holds a dissenting opinion, a respective record shall be made. The arbitration award must specify the decision-making arbitrators, the parties, the date and the place of rendering the arbitration award\u201d.<\/p>\n<p>As for the following provision, \u201cThe arbitration award must contain the tribunal\u2019s reasoning, stating the reasons based on which the arbitration award was rendered by the arbitral tribunal, unless the parties have agreed on not to have the basis of the decision stated or the arbitration award is rendered in accordance with Article 38 of this Law\u201d.<sup style=\"font-size: 9px;\">(42)<\/sup><\/p>\n<p>Under Article 44 (1) of Law of Georgia on Arbitration recognition and enforcement of an award becomes binding upon bringing a written motion to the court. Whilst in case of awards rendered in the territory of Georgia courts of appeal are competent, awards issued outside Georgian territory are subject to the competence of the Supreme Court of Georgia.<\/p>\n<p>As for the judicial standard of review of the award, the same pattern embodied in UNCITRAL Model Law is incorporated in procedural legislation &#8211; no judicial review of arbitration awards on the merits. However, court practice is not quite complementary with this standard. There are certain instances when courts review the award on the merits during the setting aside or recognition and enforcement stage on their own initiative relying on the argumentation that the award is contradictory to the domestic public policy.<sup style=\"font-size: 9px;\">(43)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(42)<\/sup> <span style=\"font-size: 12px;\"> (Article 39 (3) of The Law of Georgia on Arbitration)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(43)<\/sup> <span style=\"font-size: 12px;\"> (<em>Titberidze Giorgi,<\/em> The Law of Georgia on Arbitration, Commentary, Second Edition, Tbilisi 2020, pp.42-43)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the estimated timeframe for the recognition and enforcement of an award (domestic and international)? Can a party bring a motion for the recognition and enforcement of an award on an ex parte basis? Would the standard of review be different for domestic and international awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Article 356.21 (3) of the Law of Georgia on Arbitration, timeframe for the competent court to deem the award recognized and enforceable is 30 days.<\/p>\n<p>There is no possibility to bring a motion for the recognition and enforcement of an award on an ex parte basis. Moreover, application of a party seeking for the recognition and enforcement of an award is sent to the party against whom the arbitration award was rendered. The latter in turn is given the possibility to file an application to proof that the legal grounds for recognition and enforcement of an award do not exist Under Article 356.21 (21) of the Law of Georgia on Arbitration.<\/p>\n<p>Under the Georgian arbitration law the standard of review applied by Georgian courts to the recognition and enforcement of both foreign and domestic arbitral awards is similar. However, in practice, under the influence of the New York Convention, the review of foreign awards tends to be more pro-arbitration, whereas domestic awards are subject to a stricter judicial scrutiny.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can arbitration awards be appealed or challenged in local courts? What are the grounds and procedure in this regard? Is it possible for parties to waive any rights of appeal or challenge to an award by agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian Arbitration Law\u2019s provisions governing arbitral awards are generally in compliance with the corresponding provisions of the UNCITRAL Model Law.<sup style=\"font-size: 9px;\">(44)<\/sup> Georgian law, like the UNCITRAL Model Law, provides only one legal remedy by applying to court for setting aside motion. The court of appeals are competent to consider such motions.<\/p>\n<p>Grounds for setting aside an arbitral award in Georgia<\/p>\n<p>According to the article 42 an arbitral award rendered in Georgia may be set aside by a court only on limited grounds<\/p>\n<ul>\n<li><strong>Invalidity or incapacity:<\/strong> a party lacked legal capacity to conclude the arbitration agreement, or the agreement itself is invalid under the applicable law.<\/li>\n<li><strong>Due process violations:<\/strong> a party was not duly notified of the proceedings or was unable to present its case.<\/li>\n<li><strong>Excess of authority:<\/strong> the award deals with matters not submitted to arbitration, or exceeds the scope of the submission (with severability applying to unaffected parts).<\/li>\n<li><strong>Improper procedure:<\/strong> the tribunal\u2019s composition or the arbitral procedure was not in accordance with the parties\u2019 agreement or the Arbitration Law.<\/li>\n<li><strong>Non-arbitrability:<\/strong> the subject matter is not capable of settlement by arbitration under Georgian law.<\/li>\n<li><strong>Public policy:<\/strong> the award is contrary to the public order of Georgia.<\/li>\n<\/ul>\n<p>A party may submit a complaint to set aside an arbitral award with a court within 90 days after the date on which the award was served on the party.<\/p>\n<p>Parties cannot contract out of the right to challenge arbitral awards on the limited statutory grounds provided by law.<\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(44)<\/sup> <span style=\"font-size: 12px;\"> (Tsertsvadze, Giorgi, Interpretation and Application of the New York Convention in the Republic of Georgia, Recognition and Enforcement of Foreign Arbitral Awards, George A. Bermann (Editor), Ius Comparatum \u2013 Global Studies in Comparative Law, Volume 23, p.318)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an award? To what extent might a third party challenge the recognition of an award?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general only the parties to the arbitration proceedings are bound by the arbitral award.<sup style=\"font-size: 9px;\">(45)<\/sup>As for third parties or non-signatories, Georgia&#8217;s practice in this regard is very limited.<sup style=\"font-size: 9px;\">(46)<\/sup>The law of Georgia does not directly provide for the arbitral award to be extended to third parties.<sup style=\"font-size: 9px;\">(47)<\/sup>In the process of arbitration, succession of the title is possible, during which the parties are not signatories to the arbitration agreement, that means that they did not directly agree on the arbitration agreement, however they are automatically subject to the terms of the existing arbitration agreement.<sup style=\"font-size: 9px;\">(48)<\/sup><\/p>\n<p>As, for other instances, it should be noted that from case-law and arbitration practice the issue of whether third parties may be bound by an arbitral award is specific and must be decided on the basis of a detailed analysis of circumstances of each particular case.<sup style=\"font-size: 9px;\">(49)<\/sup><\/p>\n<p>The rights and obligations set forth in the arbitration agreement may be transferred, or in extreme cases may be extended to a person who has assumed only a part of the obligations under the main contract.<sup style=\"font-size: 9px;\">(50)<\/sup><\/p>\n<p>It should be noted that the courts of Georgia have a practice according to which it is considered permissible for an interested person to file an appeal against the setting aside of the arbitral award, even though that person is not a party to the arbitration agreement or proceedings. The practice regarding this matter is quite limited, The Law of Georgia on Arbitration lacks an express provision on third party or multiparty claims.<sup style=\"font-size: 9px;\">(51)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(45)<\/sup> <span style=\"font-size: 12px;\"> (Group of Authors, Sophie Tkemaladze (Editor-in-Chief), A Guide to Arbitration for Judges of the Courts of Appeal of Georgia, Arbitration Initiative Georgia, EU4Justice, UNDP Georgia (2018), p.151)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(46)<\/sup> <span style=\"font-size: 12px;\"> (Kazhashvili, Guliko, Extension of the Legal Consequence of the Arbitration Agreement to the Third Parties, Georgian Commercial Law Review, II Issue, Tbilisi, 2013, p.93), p.151)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(47)<\/sup> <span style=\"font-size: 12px;\"> (Tsertsvadze, Giorgi, Brief Commentary to The Georgian Arbitration Law 2009, Publishing House \u201cUNIVERSAL\u201d, Tbilisi 2011, p.71), p.151)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(48)<\/sup> <span style=\"font-size: 12px;\"> (Ibid., pp. 35-36), p.151)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(49)<\/sup> <span style=\"font-size: 12px;\"> (Tsertsvadze, Giorgi, Prerequisites for International Arbitration Process (Comparative Analysis), 2008, p. 176), p.151)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(50)<\/sup> <span style=\"font-size: 12px;\"> (Ibid., p. 178), p.151)<\/span><br \/>\n<sup style=\"font-size: 9px;\">(51)<\/sup> <span style=\"font-size: 12px;\"> (Tsertsvadze, Giorgi, Brief Commentary to The Georgian Arbitration Law 2009, Publishing House \u201cUNIVERSAL\u201d, Tbilisi 2011, p.72), p.151)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any rules \/ court decisions that regulate or prohibit third party funding of arbitration proceedings \u2013 for instance, where funding by an entity not involved in the dispute in return for a share of the eventual award may be barred \u2013 in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are currently no specific rules or court decisions in our jurisdiction that regulate or prohibit third-party funding of arbitration proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is emergency arbitrator relief available in your country? Are decisions made by emergency arbitrators readily enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Georgian law, emergency arbitrator relief is available. In 2024, pursuant to the GIAC Arbitration Rules, an emergency arbitrator issued interim relief, which was subsequently recognized and enforced by the Tbilisi Court of Appeals.<sup style=\"font-size: 9px;\">(52)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(52)<\/sup> <span style=\"font-size: 12px;\"> (GIAC Case #001-2024, Emergency Arbitration order dated 20 March 2024.)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there arbitral laws or arbitration institutional rules in your country providing simplified or expedited procedures for claims under a certain value? Are they often used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Law on Arbitration allows disputes to be considered and decided by the arbitral tribunal solely on the basis of the positions and evidence presented by the parties. Accordingly, the rules of the arbitral institutions operating in Georgia recognize \u201cdocuments-only\u201d arbitration. Its use depends how the agreements between the parties are formulated. Despite this possibility, in practice, parties generally prefer oral hearings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the setting aside of an award that has been enforced in another jurisdiction or vice versa?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, there have not been any decisions in Georgia considering the setting aside of an award that has been enforced in another jurisdiction or vice versa.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the issue of corruption? What standard do local courts apply for proving corruption? Which party bears the burden of proving corruption?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There has not been any recent court decision in Georgia considering the issue of corruption. The issue is not commonly addressed in Georgian courts, however, according to scholarly opinion, The Supreme Court of Georgia uses the minimum standard of judicial intervention in resolving issues related to the recognition and enforcement of foreign arbitral awards. There is no doubt that the minimum standard of judicial intervention covers fundamental principles of public order, such as contracts concluded as a result of corruption agreements.<sup style=\"font-size: 9px;\">(53)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(53)<\/sup> <span style=\"font-size: 12px;\"> (Kvirikashvili, Teo, Examples of Corruption in International Arbitration: Permissible Limits for Judicial Review of Arbitral Tribunal Awards at Stages of Setting Aside and Enforcement, 2017, p.60)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country with respect to intra-European investor-State arbitration generally or enforcement of awards stemming from proceedings of this nature? Are there any pending decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. There have been no recent court decisions in our jurisdiction concerning intra-European investor\u2013State arbitration or the enforcement of awards arising from such proceedings, nor are there any pending cases on this matter.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have arbitral institutions in your country implemented reforms towards greater use of technology and a more cost-effective conduct of arbitrations? Have there been any recent developments regarding virtual hearings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Georgian arbitral institutions have implemented procedural reforms to facilitate the use of technology and promote more cost-efficient dispute resolution. Virtual hearings, electronic communication of submissions, and online case management have been increasingly relied upon in arbitral practice. Recent developments include the use of hybrid hearings, as evidenced in the case practice, where one party attended physically while the other participated remotely. In one case, a party alleged that online hearings had limited its ability to present its case effectively. The court, however, found that the arbitration had continued in an in-person format, where both parties had equal opportunities to present and defend their positions. Accordingly, the appellate court rejected the argument that the party had been denied a fair hearing or that the principles of due process had been breached. Therefore, while the use of technology and virtual hearings has become a common feature of arbitration in Georgia, case law highlights the need for arbitral tribunals and institutions to ensure adequate technical arrangements and procedural safeguards to guarantee fairness.<sup style=\"font-size: 9px;\">(54)<\/sup><\/p>\n<p>&nbsp;<\/p>\n<p><sup style=\"font-size: 9px;\">(54)<\/sup> <span style=\"font-size: 12px;\"> (Tbilisi Court of Appeals Ruling, Case \u21162\u10d1\/1222-23, June 27, 2025)<\/span><\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent developments in your jurisdiction with regard to disputes involving ESG issues such as climate change, sustainability, social responsibility and\/or human rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. There have been no recent developments in our jurisdiction concerning disputes involving ESG issues such as climate change, sustainability, social responsibility, or human rights.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have any international economic sanctions regimes been implemented (either independently, or based on EU law) in your jurisdiction recently? Have there been any recent decisions in your country considering the impact of sanctions on international arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. There have been no recent decisions in Georgia considering the impact of international economic sanctions on arbitration proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has your country implemented any rules or regulations regarding the use of artificial intelligence, generative artificial intelligence or large language models in the context of international arbitration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, Georgia has not implemented any rules or regulations regarding the use of artificial intelligence, generative artificial intelligence or large language models in the context of international arbitration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">9912<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/117916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=117916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}