Abstract

Based on Article 64 par. 1 of the Arbitration Act, the domestic arbitration award can legally affect only the parties and their legal successors (singular and universal). In relation to third parties, the award can affect them only if the nature of the subject matter of the dispute requires it (effect erga omnes) or if it is expressly prescribed by law. However, in circumstances where there is a close material-legal relationship between the parties in the proceedings and third parties, who did not participate in the arbitration, and they can be bound by an arbitration agreement, it is recommended to recognize the intervention effect of the award. The intervention effect of the award should be recognized on the condition that the third parties were previously invited to participate in the arbitration proceedings, or if this was not the case, that they are, in the proceedings they initiate independently, granted the right to raise the objection of the negligent conducting of the previous arbitration proceedings.

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