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17 September 2020 / news

New draft bill to reform the Luxembourg arbitration law

On 15 September 2020 the Minister of Justice has submitted a long-awaited draft bill reforming the arbitration provisions in the Luxembourg Code of Civil Procedure.

business people in building - New draft bill to reform the Luxembourg arbitration law

The objective of the draft bill is to modernise the Luxembourg arbitration rules in line with the business needs of today’s commercial actors, so that the parties may rely on the flexibility, expediency and confidentiality which typically characterises this form of alternative dispute resolution mechanism.

With a practical orientation, the draft bill is particularly inspired by the successful UNCITRAL Arbitration Rules as well as the French Code of Civil Procedure. Contrary to the provisions applicable in France, the draft bill does not envisage a distinction between national and international arbitration procedures.

This proposed reform represents a coherent and practical set of rules which provide a complete framework for the various stages of the arbitral procedures. For example, the draft bill clarifies the mission of the supporting judge (“juge d’appui”) as well as the duty of arbitrators to disclose any circumstance which may affect their independence or impartiality.

Given that the underlying document behind the draft bill has been prepared by a group of legal practitioners, composed of judges, lawyers and university professors, it remains to be seen to what extent the draft bill will form a part of the new legislation. The overall goal remains to further facilitate and develop the arbitration practice in Luxembourg.

We will keep you informed of further developments and would be happy to provide you with a more thorough analysis of the reform of the Luxembourg arbitration rules.

A copy of the draft bill may be found here.

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