Arbitration cases


The arbitration procedure represents an option available by the Bulgarian Process Law, for alternative dispute resolution, which option the parties have agreed with a contract, called “arbitration contract”. But usually the parties establish the arbitration procedure with implemented “arbitration clause” within the contracts concluded between them). The arbitration namely is a settlement of disputes between the parties, lodged and heard in private courts that are alternative to the standard court procedures in the State courts. The most important specific of the arbitration procedure is that it is one-instance process which avoids court settlement – i.e. the lawsuit is heard once only at the chosen by the parties private Arbitration court or arbitrator. So once there is a decision issued by the Arbitration court, it cannot be appealed, neither re-heard at the State civil court, which means that a writ of execution against the debtor (i.e. the defendant who loses the case) can be obtained by the claimant who won the case, directly and without further delays. In lawsuits against foreigners, this enables later an European payment order can be obtained as well. Another circumstance to speed-up the arbitration procedure is the 30-days deadline, given to the defendant, once served with the claim and its particulars, to respond to the claim. This is why in Bulgaria the arbitration procedure, if agreed between the parties with “arbitration clause” implemented in their contracts, is often preferable by local banks, crediting or leasing companies, etc. – who use the arbitration clause in their credit or mortgage loan contracts (usually for property purchases or car lease) in order to be able to seek quicker settlement of eventual disputes that may rise due to non-paid loans, and respectively for obtaining execution list against the debtor.

We are capable to provide legal representation in Bulgarian arbitration lawsuits, incl. to assist foreign defendants who reside abroad in situations where they have been served with arbitration court papers and need to respond in the 30-days deadline. We can prepare and lodge on behalf of parties a respond to claim and participate in arbitration lawsuits where to protect your investment against the claims and pretentions of plaintiffs.

It is very important to pay great attention and to organize your legal defense if you live abroad and have been served with arbitration court papers, bearing the possibility for the claimant if they win the arbitration case, to obtain later a European payment order against you and to chase you in your country of residence.

Contact us for more information and guidance.