Municipality, State (Foreign State), and State Agency (Foreign State Agency) as a Party to Arbitration in Bulgaria (Supreme Cassation Court; 28 October 2008)

Judgment of the Supreme Cassation Court No. 706, Civilian Ref. No. 361/2008, of 21 October 2008 (Municipality T. vs. M.C.T.):

Rationes Decidendi:

In arbitral proceedings conducted in accordance with ICAA [BUL], the status of the parties to an arbitration agreement (parties to a dispute) is not of a decisive nature. Decisive is exclusively the acceptability of an arbitration agreement with regard to a specific dispute (objective capacity to arbitrate).
A party to arbitral proceedings may be both natural person and a legal entity regardless of whether such a party conducts business or not. A party to arbitral proceedings may be a state or a state agency; this also applies to a foreign state or a foreign state agency.
A municipality may be a party to an arbitration agreement (a party to arbitral proceedings).

keywords
capacity to arbitrate
foreign state agency
natural person
municipality
objective capacity to arbitrate
legal entity
acceptability of arbitration agreement
subjective extent
state agency
party to arbitration agreement
party to arbitral proceedings
annulment of arbitral award
about the authors

Univ. Professor, Dr.iur., Mgr., Dipl. Ing. oec/MB, Dr.h.c. Lawyer admitted and practising in Prague/CZE (Branch N.J./US), Senior Partner of the Law Offices Bělohlávek, Dept. of Law, Faculty of Economics, Ostrava, CZE, Dept. of Int. and European Law, Faculty of Law, Masaryk University, Brno, CZE (visiting), Chairman of the Commission on Arbitration ICC National Committee CZE, Arbitrator in Prague, Vienna, Kiev etc. Member of ASA, DIS, Austrian Arb. Association. The President of the WJA – the World Jurist Association, Washington D.C./USA.

e-mail: office@ablegal.cz