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Thomson Reuters Practical Law | Arbitration procedures and practice in Luxembourg: overview

A Q&A guide to arbitration law and practice in the Luxembourg.
The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim.

Use of arbitration and recent trends

1. How is commercial arbitration used and what are the recent trends?

Use of commercial arbitration and recent trends
In recent years, Luxembourg has become one of the major arbitration centres. Arbitration involves a private judge chosen by both parties and allows for a procedure that is often faster and more discreet than traditional judicial procedure.
Luxembourg has many advantages promoting the use of arbitration, such as multilingualism, political stability, localisation (as Luxembourg is in the centre of Europe) and the fact that there are lawyers from varied backgrounds, with knowledge of different legal systems.
Luxembourg deals primarily with requests for the enforcement of foreign arbitral awards. Luxembourg favours enforcing a foreign arbitral award if it is enforceable in the country of origin.
Most disputes are decided by state courts, but arbitration has become a popular method of dispute resolution, especially in international relationships.
The main advantages of using arbitration are confidentiality and discretion, speed, legal certainty, flexibility of the proceedings and arbitrator specialisation. In a dispute of an international nature, there is a risk of a multiplication of long and costly legal proceedings. As arbitration is a single procedure, it tends to be less expensive than traditional judicial procedure.

Legislative framework

2. What legislation applies to arbitration? To what extent has your jurisdiction adopted the UNCITRAL Model Law on International Commercial Arbitration 1985 (UNCITRAL Model Law)?

The Luxembourgish new Code of Civil Procedure (NCPC) contains the Luxembourgish arbitration law, in a specific section dedicated to arbitration (Title I, Book III, Part II, Articles 1224 to 1251).
Luxembourg has not adopted the UNCITRAL Model Law, although the arbitration provisions in the NCPC are similar to the provisions of the UNCITRAL Model Law.


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