The Arbitration Center of the Luxembourg Chamber of Commerce, also known as the Luxembourg Arbitration Center (the LAC) was created in 1987 to provide an alternative to the judicial settlement of disputes which often prove to be too long, expensive and unsuited to the technical and complex issues of the world of business. The LAC has its own Arbitration Rules, which were updated on 1 January 2020.
In addition to providing arbitration services, the Center is proactive in promoting arbitration in Luxembourg by contributing to the development of arbitration law, to the training of quality arbitrators and by providing support to local arbitration associations such as the Think Tank for Arbitration, and the Luxembourg Arbitration Association.
The Arbitration Center operates under the authority of an Arbitration Council (the Council) consisiting of at least five members, namely:
- the President of the National Luxembourg Committee of the International Chamber of Commerce (ICC), who acts as president of the Council,
- the Luxembourg member of the Arbitration Court of the CCI,
- the President of the Luxembourg Bar,
- the Director general of the Chamber of Commerce,
- and the President of the Institute of Auditors (l'Institut des Réviseurs d'Entreprises - IRE).
The role of the Council is to organise and monitor the management of arbitration proceedings, according to the provisions laid down in the Arbitration Rules of the Center (the LAC Rules or LAC Arbitration Rules).
The Council meets on a case-by-case basis to discuss and take the appropriate decisions inter alia in relation to prima facie jurisdiction, arbitrator appointments or challenges, and arbitration costs.
The Secretariat is in charge of the day-to-day management of the cases, as well as organising events in relation to the promotion of arbitration at the LAC and in Luxembourg in general.
LUXEMBOURG ARBITRATION CENTER
LUXEMBOURG CHAMBER OF COMMERCE
LUXEMBOURG ARBITRATION CENTER
LUXEMBOURG CHAMBER OF COMMERCE
7, rue Alcide de Gasperi
Mon-Fri: 09:00 - 12:30, 14:00 - 17:00
Telephone: (352) 42 39 39-373
Fax: (352) 42 39 39-800
Arbitration is a procedure in which a dispute is submitted, by agreement between the parties, to one or more arbitrators who deliver a binding and final decision. Arbitration can only take place if all parties have agreed to resort to this method of dispute resolution.
In the case of potential disputes arising from a contract, the parties can choose in advance to submit a dispute to arbitration, under the LAC Arbitration Rules by inserting an arbitration clause to this effect in the contract. Even in the absence of such a clause, the parties are at liberty to have recourse to the Arbitration Center once a dispute arises by signing an arbitration agreement.
Most commercial disputes can potentially be submitted to arbitration. In practice, arbitration is more particularly justified by one or more of the following reasons:
- the dispute has an international dimension;
- the amounts involved are of a certain size;
- the dispute has a certain technical complexity;
- the parties want a certain amount of confidentiality.
In order to inform and guide individuals and companies interested in this method of dispute resolution, the Chamber of Commerce has decided to devote one edition of its Practical Guides to arbitration in general and to the LAC and the services it offers in particular. You will find explanations, advice, useful contacts, and testimonials. The guide is bilingual French/English and is available here.
Advantages of Arbitration
- Confidentiality and Discretion: unlike traditional judicial proceedings which are public in principle, arbitration is confidential. The existence of the arbitration process, as well as sensitive information and trade secrets involved, are not disclosed to the public;
- Expediency: the maximum time limit within which the arbitrators must deliver their ruling is six months;
- Legal Certainty: the award can be rapidly recognised and enforced in all 172 countries that have ratified the New York Convention of 10 June 1958 on the Recognition and Enforcement of Foreign Arbitral Awards ;
- Professionalism of Arbitrators: given the increasing complexity of disputes, local judges may not necessarily possess the required specialised skills. In arbitration proceedings, the parties have the option to either choose their arbitrators or to entrust the Arbitration Center with the selection of highly qualified professionals that are specialised in the specific field related to the dispute ;
- Single Proceeding: in disputes with international dimensions, there is a risk of multiple, lengthy and costly legal proceedings. Arbitration offers a simpler and more efficient alternative as it involves a single proceeding governed by the LAC Arbitration Rules and by the legislation determined by the parties.
Luxembourg as Place of Arbitration
The choice of Luxembourg as a place of arbitration is justified by the numerous advantages of the country.
The main advantages are Luxembourg's neutrality, political and social stability, strategic location in Europe (halfway between the London-Milan axis and the Paris-Frankfurt axis) and the quality of transportation infrastructure, logistics, and telecommunications (less than a two-hour flight from the main European capitals).
In addition, the multilingualism of its citizens (English, French, German, Luxembourgish) as well as the multi-cultural environment favours an open and international attitude and a recognised aptitude for managing conflicts and reconciling opposing positions in a spirit of compromise and neutrality, thereby favouring the maintenance of commercial relations between the parties.
Luxembourg arbitration law and case law has traditionally been favorable to arbitration. A reform of the arbitration law, which has been largely drafted by the Luxembourg Think Tank for Arbitration, was introduced by the law of 19 April 2023 amending Part II, Book III, Title I of the New Code of Civil Procedure, with a view to reforming arbitration, and entered into force on 25 April 2023. The law is inspired by the French arbitration law reform of 2011 and has features of the Belgian arbitration law, which is a UNCITRAL Model Law legislation.
Luxembourg boasts a multinational and multilingual pool of arbitrators who have received training in various jurisdictions such as France, Belgium, Germany, and Luxembourg. Given the country's geo-political significance, legal professionals are well-equipped to handle intricate transnational legal transactions and disputes.
Furthermore, Luxembourg's diversified economy, along with its specialisation in high technology sectors, ensures the availability of technical experts across various fields. The existence of an internationally recognised financial centre further guarantees both confidentiality and financial expertise.
LAC Arbitration Rules
A comprehensive revision of the Center's arbitration rules was implemented on 1 January 2020. The updated LAC Arbitration Rules apply to all proceedings brought to the LAC from that date onwards, unless otherwise agreed by the parties.
All changes are aimed at increasing the efficiency of the arbitration process and meeting the new expectations of parties with respect to arbitration.
In particular, an emergency procedure has been introduced allowing parties to request urgent provisional or protective measures that cannot wait for the constitution of an arbitration tribunal (Annex III of the LAC Rules), as well as a simplified procedure allowing parties to settle disputes that do not exceed € 1.000.000, or disputes for which parties have agreed to use this simplified procedure, more quickly and less expensively (Annex II of the LAC Rules)
With this new tool, the Arbitration Center thus provides businesses with a modern and efficient tool for settling disputes.
Model Arbitration Clause and Agreement
In the case of potential disputes arising from a contract, the parties can choose in advance to submit a dispute to arbitration, under the LAC Arbitration Rules by inserting an arbitration clause to this effect in the contract.
Even in the absence of such a clause, the parties are at liberty to have recourse to the services of the Arbitration Center arbitration once a dispute arises by signing an arbitration agreement.
A) Model Clause
"All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the Luxembourg Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules."
This clause may be supplemented by one or several of the following provisions:
“The arbitral tribunal shall consist in one / three arbitrator(s).”
“The law applicable to this contract is (...).”
“The arbitration shall be conducted in (...) [language].”
“The place of the arbitration shall be (...) [city, country].”
B) Model Clause Options
- Exclusion of the Emergency Measures provisions
If the parties wish to exclude any recourse to the Emergency Measures proceedings, they must expressly opt out by adding the following wording to the arbitration clause under A):
“The provisions regarding the emergency measures shall not apply.”
- Simplified Proceedings provisions
The Rules provide for use of Simplified Proceedings for lower-value cases (amount of the claims less than or equal to €1.000.000).
- If the parties wish to exclude the Simplified Proceedings provisions, they must expressly opt out by adding the following wording to the arbitration clause under A):
“The simplified proceedings provisions shall not apply.”
- If the parties wish to avail themselves of the Simplified Proceedings provisions, irrespective of the amount in dispute or beyond the limit set forth by the Rules, they must expressly opt in for the application of these by adding the following wording to the arbitration clause under A):
“The parties agree, pursuant to Article 22 paragraph 2 of the Rules, that the simplified proceedings provisions shall apply, (irrespective of the amount in dispute / provided that the amount in dispute does not exceed (...).”
Even in the absence of such a clause, the parties are at liberty to have recourse to the services of the Arbitration Center once a dispute arises by signing an arbitration agreement.
To commence arbitration proceedings at the Center, the claimants must file a request for arbitration (Request) with the Secretariat.
Pursuant to Article 3 (1)(a) of the LAC Rules, the claimants shall ensure that the Request shall contain the following information:
- names in full, description, address, telephone number, e-mail address of each of the parties and their representatives in the arbitration proceedings;
- a description of the nature and circumstances of the dispute giving rise to the claims and of the basis upon which the claims are made;
- a statement of the relief sought, together with the amounts of any quantified claims and, to the extent possible, an estimate of the monetary value of any other claims;
- any agreement entered into between the parties, and in particular the arbitration agreement, and such documentation or information as will serve clearly to establish the circumstances of the case;
- all relevant particulars concerning the number of arbitrators and their choice in accordance with the provisions of article 10 of the Rules, and;
- all relevant particulars and any observations or proposals as to the place of the arbitration, the applicable rules of law and the language of the arbitration.
The claimant may submit such other documents or information with the Request as it considers appropriate or as may contribute to the efficient resolution of the dispute.
The Request shall be supplied in a number of copies sufficient to provide one copy for each party, plus one for each arbitrator, and one for the Secretariat (Article 3(2) para 1 of the LAC Rules). For example, 6 copies must be provided for an arbitral proceeding with one claimant and one respondent, and an arbitral tribunal composed of 3 arbitrators.
In order to comply with its legal obligations, the LAC is required to carry out a certain number of checks and therefore reserves the right to request additional documents or information concerning in particular (i) the identity of the parties, (ii) the identity of the entities linked to the dispute or (iii) the identity of the beneficial owners of the parties and of the linked entities.
Such payment is non-refundable in all cases and shall be credited later on to the claimant’s portion of the advance on costs to cover the fees and expenses of the arbitrator and the administrative costs of the Center (para 8 of Appendix I of the LAC Rules).
To ensure swift treatment of the file we advise claimants to make the payment at time of filing of the Request.
Contact us in advance at firstname.lastname@example.org to receive details on payment conditions
What happens after?
The LAC sends claimants a confirmation of receipt of the file and forwards the Request and any appendices to the respondents.
Where the case may be, and before sending the file to the respondents the Secretariat may provide the claimants with additional time to either provide additional copies of the Request or pay the filing fee.
Note that the date of commencement of the arbitral proceedings is the date when the Request is received by the Secretariat (Article 3(3) of the LAC Rules). However, the Secretariat shall notify the file to the respondents only when sufficient copies have been provided and when the filing fee is paid (Article 3(4) of the LAC Rules). In the event that the claimants fail to comply with either of the above two requirements at the time of filing or within the time allocated by the Secretariat, the file shall be closed without prejudice to the claimants' right to submit the same claims at a later date in another Request (Article 3(2) of the LAC Rules).
The costs of arbitration include the fees and expenses of the arbitrator, as well as the Center’s administrative costs. These are fixed by the Council in accordance with the provisions of Appendix I of the LAC Rules in force at the time of the commencement of the arbitration.
For your convenience, the LAC has set up a cost calculator as laid out in Appendix I of our Arbitration Rules, as applicable since 1 January 2020
Each Request must be accompanied by the payment of a fee of €1.000. Such payment is non-refundable in all cases and shall be credited later to the claimant’s portion of the advance on costs to cover the costs of arbitration.
Emergency Proceedings Fees
Kindly note that Emergency Proceedings have been excluded from the Cost Calculator given that such proceedings are subjected to a flat fee of €18.000 paid by the claimant, consisting of €15.000 for the emergency arbitrator’s fees and expenses and €3.000 for the administrative costs of the Center (para 16 of Appendix III of the LAC Rules). In the event that the Emergency Measures proceedings do not take place or are otherwise terminated prior to the making of a decision, the President of the Council or any other member of the Council appointed for this purpose by the President, shall determine the amount to be reimbursed to the claimant if any. An amount of €1.000 for the administrative costs of the Center is non-refundable in all cases (para 20 of Appendix III of the LAC Rules).
Fee per arbitrator
- Average fee
- Average fee multiplied by number of arbitrators
- Arbitration Center costs
- Estimated total cost (based on average arbitrators' fees)
The Calculator provides for an estimate of said costs, based on the average arbitrator’s fees. It does not constitute a binding and firm estimate of the costs that the Council will fix. Depending on the file, the Council may fix the costs at an amount higher or lower than the average. Moreover, costs may be subject to readjustment at any time during the proceedings, in particular to take into account fluctuations in the amount in dispute, changes in the amount of the estimated expenses of the arbitrator, or the evolving difficulty or complexity of the arbitration proceedings.
Should the amount in dispute exceed €50.000.001, the Council determines the cost on a case-by-case basis.
All amounts are indicated without VAT. Amounts to be paid to the arbitrator do not include any value added tax (VAT), or any other taxes or charges and imposts applicable to the arbitrator’s fees. Parties have a duty to pay any such taxes or charges. The recovery of any such taxes or charges is a matter to be treated solely between the arbitrator and the parties.
The Center does not have a publicly accessible list of arbitrators.
Parties seeking to appoint arbitrators may refer to:
- The Luxembourg Bar Association’s search engine allows you to search for lawyers according to their specialisation.
- The Luxembourg Arbitration Association’s search engine allows one to sort the member list of the association according to different criteria (language, subject, experience, nationality, etc.).
We invite all candidates interested in being considered for future arbitration appointments to contact us with a detailed CV at email@example.com.
Candidates should note that sending us their CV does not secure an appointment in future proceedings.
Situated in Kirchberg, Luxembourg's main business district, our Conference Center is a state-of-the-art framework suited for conducting arbitration proceedings. The Arbitration Center and the Conference Center are located close to the city centre, airport, hotels, and major motorway axes. It is easily accessible by car (with access to underground parking) and public transport (tram and bus stops are 200m away).
Hearing rooms are equipped with video-conferencing capabilities, translation booths, projectors, and screens. They can accommodate groups of all sizes.
The organisers have the choice to serve lunch, buffet, and cocktails.
- Practical Guide to Arbitration (EN and FR)
- LAC Model Clauses (FR, EN and DE)
- The Law of 19 April 2023 amending Part II, Book III, Title I of the New Code of Civil Procedure, with a View to Reforming Arbitration (FR)
- LAC Rules of Arbitration 2020 (FR, EN and DE)
- LAC Rules of Arbitration 2014 (FR, EN and DE)
- Hearing and Conference Center Facilities (EN and FR)