Commercial arbitration is one of the most popular dispute settlement methods thanks to its flexibility in procedures and confidentiality in the dispute settlement process. If a party submits a dispute to Commercial Arbitration, the litigating party will have to comply with the provisions of the Law on Commercial Arbitration. Therefore, to clearly understand as well as to help parties who intend to take action at the Commercial Arbitration Center carry out the work in accordance with regulations, in this article, TNTP will clarify when choosing Commercial Arbitration, what the parties need to do.
1. What is commercial arbitration? Scope of settlement of Commercial Arbitration
• Commercial arbitration is a method of dispute settlement agreed upon by the parties and conducted under the provisions of the Law on Commercial Arbitration 2010 (“Law on CA”).
• Scope of settlement of Commercial Arbitration (Article 2 of the Law on CA):
(i) Disputes among parties that arise from commercial activities.
(ii) Disputes among parties at least one of whom conducts commercial activities.
(iii) Other disputes among parties which are stipulated by law to be settled by arbitration.
2. What do enterprises need to prepare when filing a lawsuit to Commercial Arbitration?
Before filing a lawsuit at the Commercial Arbitration Center, the Plaintiff needs to check the legal regulations on the following issues:
• Agreement to settle disputes by commercial arbitration:
To settle a dispute by Commercial Arbitration, the parties must have a written agreement or have a clause in the Contract or documents incarnate that the parties agree to choose to settle the dispute by Commercial Arbitration. A flexible point of Commercial Arbitration is that the Arbitration Agreement can be made before or after a dispute arises (Clause 1, Article 5 of the Law on CA).
Therefore, in cases where there is no arbitration agreement in the contract between the parties, but the parties wish to settle the dispute at commercial arbitration, or the arbitration agreement in the contract is unclear, the parties can negotiate to supplement or adjust the terms of the commercial arbitration agreement in the contract or establish a written arbitration agreement before or after a dispute arises.
• Statute of limitations for initiating a lawsuit:
According to Article 33 of the Law on CA, unless otherwise provided by discrete laws, the statute of limitations with arbitral procedures is 2 years from the time the claimant acknowledges the infringement of their lawful rights and interests.
• Prepare the Petition and enclosed documents:
According to the provisions of the Law on CA, when a dispute is settled at an arbitration center, the plaintiff shall file a petition with the arbitration center. When a dispute is settled by ad hoc arbitration, the plaintiff shall make a petition and send it to the defendant.
The petition must fully contain the following contents:
Date of its making;
Names and addresses of the parties; names and addresses of witnesses, if any;
Summary of the circumstances of the dispute;
Grounds and evidence for initiating the lawsuit, if any;
Specific requirements of the plaintiff and the value of the dispute;
Name and address of the person whom the plaintiff selects as arbitrator or requests to be designated as arbitrator.
Enclosed with the petition shall be the arbitration agreement and the originals or copies of relevant documents.
Practice shows that commercial arbitration will help legal entities save time and costs, simplify procedures, ensure business secrets, etc. However, up to now, many legal entities, due to inadequate preparation before filing a lawsuit, face many obstacles when settling at the Commercial Arbitration Center such as supplementing documents and evidence and adjusting procedural documents many times, causing a waste of time and money. Therefore, we hope that through this article, we can give readers a comprehensive perspective to consider the factors that help prepare for lawsuits at the Commercial Arbitration Center fully to ensure the benefits of enterprises.
Above is an article by TNTP lawyer on the topic: “What need to do when choosing to suit by Commercial Arbitration“. Hopefully this article brings value to readers.
Sincerely,
