Arbitration, an alternative dispute resolution method, plays an important role in resolving commercial disputes in Romania. In this article, we look at the advantages and disadvantages of using arbitration in commercial disputes in Romania. As distinguished legal professionals of the Romanian law firm Pavel, Margarit & Asociații, we offer a valuable insight into the advantages and challenges of this dispute resolution mechanism. Understanding these factors can help businesses make informed decisions when faced with disputes.

Advantages of arbitration in commercial disputes in Romania

Arbitration process and flexibility:

Arbitration provides a streamlined and efficient process for resolving commercial disputes in Romania. Parties have the flexibility to choose their arbitrators, who are often experienced professionals in the field. This allows for a specialised decision-making process and expertise tailored to the specific sector or legal issues at stake.

Confidentiality and privacy:

One of the main advantages of arbitration is its confidentiality. Unlike court proceedings, arbitration provides a private forum where commercially sensitive information can be protected. This confidentiality encourages open discussion and preservation of business relationships, avoiding potential reputational damage.

Enforcement of awards :

Arbitral awards rendered in Romania are generally enforceable both domestically and internationally under the New York Convention. This provides the parties with a guarantee that the outcome of the dispute will be recognised and enforced, reinforcing the finality and certainty of the process.

The challenges of arbitration in commercial disputes in Romania

Limited appeal options:

Unlike court proceedings, arbitral awards are generally final and binding. The limited use of appeals can be seen as a disadvantage, as the parties must accept the arbitrator’s decision even if they disagree with the outcome.

Costs and expenses:

Arbitration can be more expensive than traditional litigation, especially if complex disputes require multiple hearings and expert witnesses. Parties involved in arbitration must bear the costs of arbitrators’ fees, administrative expenses and legal representation. However, the potential savings in terms of time and efficiency may outweigh these costs.

Limited discovery procedures:

Compared to court proceedings, arbitration in Romania offers more limited discovery procedures. While this may contribute to the efficiency of the process, it may also limit the parties’ ability to gather evidence and fully present their case.


Arbitration in Romanian commercial disputes presents both advantages and challenges. The flexibility, confidentiality and enforceability of awards make it an attractive option for many companies. However, parties must also consider the limited appeal options, costs and restricted discovery procedures associated with arbitration. As legal professionals at Pavel, Margarit & Associates, we provide comprehensive advice to companies navigating the complexities of dispute resolution and help them make informed decisions tailored to their specific needs.