Vienna International Arbitral Centre ("VIAC")

A concise overview of the key procedural features, advantages, disadvantages, and practical considerations involved in arbitrations administered by Vienna International Arbitral Centre ("VIAC").

Overview

Overview: advantages and disadvantages

ADVANTAGES DISADVANTAGES 
Cost-Effective. Compared to other major arbitral institutions (like ICC or LCIA), VIAC is generally more affordable in terms of administrative fees and arbitrator costs. Limited Global Recognition Compared to ICC. While VIAC is well-regarded in Europe, it may not carry the same global prestige or recognition as institutions like the ICC or SIAC.
Multilingual Capability. Proceedings can be conducted in multiple languages, including German and English, which is helpful for international parties. Less Familiar to Some Parties. Parties from outside Europe may be less familiar with VIAC’s rules and procedures, which could lead to hesitation or misunderstandings.
Privacy and confidentiality. VIAC arbitration is private and confidential, which is often a key concern for commercial entities. Limited Case Law/Public Awards. VIAC does not publish many awards, which can make it harder to predict outcomes or understand precedent.
Cost transparency. Achieved through a costs calculator available on the VIAC website (in German and English). Scrutiny. The VIAC has a limited role in scrutinising awards.
Enforcement. Arbitration awards issued under VIAC rules are recognised and enforceable internationally under the New York Convention.  
Ability to choose the arbitrator(s): The parties may choose arbitrators who have expertise in the subject matter of the relevant dispute and/or who are from neutral jurisdictions.  

Overview: Process

Procedural element Details
Rules
Commencing Proceedings
  • A statement of claim is submitted by the Secretariat of the VIAC or by an Austrian Regional Economic Chamber. 
Answer to the Request
  • To be submitted within 30 days of receipt of the statement of claim.
  • Must contain the information specified in Article 8.
Terms of Reference
  • The Tribunal shall, after consulting with the parties, draw up a procedural timetable, wherever deemed necessary.
  • The Tribunal may hold a preliminary conference for the purposes of preparing the procedural timetable. 
Constitution of the Tribunal 
  • The parties may agree whether the arbitral proceedings will be conducted by a sole arbitrator or a panel of three. 
  • The parties may also agree on the manner of appointment of the arbitrators.
Procedural measures
  • The Tribunal has a wide discretion in relation to procedure. 
  • The Tribunal shall conduct the arbitration in accordance with the Rules and the agreement of the parties in an efficient and cost-effective manner, but otherwise at its own discretion. 
Witness evidence 
  • The handling of witness evidence for a given arbitral proceeding is largely at the discretion of the Tribunal. 
  • The Tribunal may decide to admit witness statements in written form, and/or conduct oral hearings for examination.
Fees & costs
  • The statement of claim will only be served to the responding party after full payment of the registration fee. If the payment is not made within the period set by the Secretary General of the VIAC, the Secretary General may declare the proceedings terminated. 
  • A decision on costs is made by the Tribunal upon termination of the arbitral proceedings.

Expedited arbitrations

The expedited procedure can be adopted upon application to VIAC prior to constitution of the Tribunal, if:

(a) the parties have expressly included the expedited procedure in their arbitration agreement; or

(b) the parties subsequently agree on the application of the expedited procedure.

 

Constitution of the tribunal

If the dispute is to be resolved by a sole arbitrator, the parties shall jointly nominate a sole arbitrator.

If the dispute is to be resolved by a panel of arbitrators, each party shall nominate an arbitrator. The co-arbitrators shall jointly nominate the presiding arbitrator.

Note: Emergency Arbitrators

The Rules do not provide for the appointment of an emergency arbitrator. 

Arbitrator conflicts / disclosure of interest

Before appointment or confirmation, a prospective arbitrator must sign a statement of availability, impartiality and independence. 

After an arbitrator has been nominated, the Secretary General shall obtain the arbitrator’s declarations. The Secretary General shall confirm the nominated arbitrator if no doubts exist as to the impartiality and independence of the arbitrator and their ability to carry out the mandate. 

If the Secretary General or the Board refuses to confirm a nominated arbitrator, the Secretary General shall request the party/parties entitled to nominate the arbitrator, or the co-arbitrators, to nominate a different arbitrator or chairperson within 30 days. 

Note:

The 2024 IBA Guidelines on Conflicts of Interest in International Arbitration are also applied in practice. A link to those IBA Guidelines can be accessed here.

Consolidation

Upon request, Article 15 enables VIAC to consolidate proceedings if:

The parties have agreed to consolidation or the same arbitrators were nominated/appointed; and

The place of arbitration is the same in both arbitrations.

 

Pleadings or memorial approach?

The parties may choose between a pleadings or memorial approach. The procedural timeline drawn up by the Tribunal may govern the approach available to the parties. The memorial approach is more common in practice.

Summary judgment

The Rules do not contain any provisions allowing for summary judgment. 

Security for costs

The Tribunal may, at the request of a party, order any party to provide security for costs, if the requesting party shows cause that the recoverability of its costs is in doubt. 

Hearings

The Tribunal may decide to admit witness statements in written form, or conduct oral hearings.

The possibility of virtual hearings is at the discretion of the Tribunal, which shall conduct the proceedings in an efficient and cost-effective manner.

VIAC's role in scrutiny of arbitral awards

VIAC has no specified role in the scrutiny of awards. 

Appeals

The Rules do not provide for the possibility of an appeal against a Final Award on questions of law.

Further information

    Model clause
    All disputes or claims arising out of or in connection with this contract, including disputes relating to its validity, breach, termination or nullity, shall be finally settled under the Rules of Arbitration (Vienna Rules) of the Vienna International Arbitral Centre (VIAC) of the Austrian Federal Economic Chamber by one or three arbitrators appointed in accordance with the said Rules.
    (1) the number of arbitrators (one or three) (Article 17 Vienna Rules);
    (2) the language(s) to be used in the arbitral proceedings (Article 26 Vienna Rules);
    (3) the substantive law applicable to the contractual relationship, the substantive law applicable to the arbitration agreement (Article 27 Vienna Rules), and the rules applicable to the proceedings (Article 28 Vienna Rules);
    (4) the applicability of the provisions on expedited proceedings (Article 45 Vienna Rules);
    (5) the scope of the arbitrators’ confidentiality (Article 16 paragraph 2 Vienna Rules) and its extension regarding parties, representatives and experts.

If you would like any further information about VIAC arbitrations, please contact Max Walde-Sinigoj (max.walde@bls4law.com) and Philipp Scheuba (philipp.scheuba@bls4law.com).  

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