On 23 March 2023, the Luxembourg parliament adopted a new arbitration regime, ushering in a new era of arbitration.
The new law amends a large part of the code of civil procedure and implements a modern and efficient approach of arbitration in line with recent transformations adopted in neighbouring countries. Superseding a 40-year-old regime, the new law sets a balanced code for arbitration proceedings in Luxembourg and the recognition and enforcement of arbitral awards. Luxembourg now has the law required to be fully recognised as an arbitration hub that meets the expectations of local and international players.
The three key takeaways are:
Extended powers granted to arbitral tribunals
The new law is inspired by French law applicable to international arbitration and adopts a clear pro-arbitration approach, with priority given to the arbitral tribunals to decide on their jurisdiction. The confidentiality of the arbitral process is re-affirmed and provisory and conservatory measures are made available to the arbitral tribunals, along with possibilities to conduct an investigation in close cooperation with state courts.
Commitment to ensure due process and efficiency
Several safeguards are implemented to ensure due process throughout the arbitral procedure (in par-ticular regarding arbitrators' independence and impartiality). State court support is re-affirmed (juge d’appui with extensive jurisdiction) as a back-up solution to smoothen the arbitral process at all stages of the proceedings.
Post-award provisions afforded to Luxembourg as enforcement jurisdiction
At last, Luxembourg’s fast ex parte recognition regime is confirmed, in line with internal conventions applicable (inter alia the New York Convention of 1958). A list of limited grounds for refusal of an exequatur is provided, and a specific recours en revision is provided for under strict conditions.
Our Litigation & Arbitration Partner Antoine Laniez was part of the six member redacting committee which drafted this new arbitration act, in close cooperation with the Ministry of Justice of Luxembourg. Antoine will be happy to answer any questions you may have about the new law.
Written by Antoine Laniez, Partner and Florence Remouchamps, Senior Associate