Originally from Iura Novit Curia in International Arbitration

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I. INTRODUCTION

Austria is frequently chosen as a seat in international arbitration proceedings. During recent years, Austria has sought to further develop its reputation as arbitration-friendly jurisdiction and, thus, as an attractive place when choosing the seat for international arbitration proceedings.  In 2006, the Austrian Arbitration Act became subject to a major reform,  by which the UNCITRAL Model Law was implemented into the Austrian Code of Civil Procedure. A few years later,  the Austrian legislator decided to reduce the instances for challenging an award before Austrian state courts; since 1 January 2014, the Austrian Supreme Court (“OGH”) acts as the first and sole instance for setting aside arbitral awards and all other matters relating to arbitration.  

The question whether jura novit arbiter applies in (international) arbitration proceedings seated in Austria has not been discussed extensively until recently.  Only in the very recent past, the Austrian Supreme Court has dealt with matters relating to this principle in greater detail. 

II. PROCEDURAL BACKGROUND IN AUSTRIA

Being part of the civilian tradition in general, Austria follows a civil law approach here. Thus, in state court proceedings, determining the relevant questions of law and applying them accordingly is considered to be the task of the judge.