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18 Oct 2024

Georgian Association of Arbitrators Urges Changes be Made to Consumer Arbitration Regulatory Framework

On October 17, 2024, the Georgian Association of Arbitrators (GAA), supported by the USAID Rule of Law Program (“the Program”), hosted a meeting where 30 experts and key stakeholders discussed the need to improve the regulatory framework governing consumer arbitration. Those attending included representatives from banks, insurance companies, and microfinance organizations.

GAA Chair Rusudan Chkuaseli and Program ADR Advisor Irakli Gelovani, made opening comments. Jaba Gvelebiani, the Head of GAA’s Consumer Arbitration Working Group, presented key aspects of consumer arbitration regulation, addressing areas such as arbitration agreements, procedural standards, arbitrator qualifications, conflict of interest management, and notice and enforcement procedures.

The discussions that followed identified such problems as the Court of Appeals slowing the arbitration process down by requesting detailed documentation of arbitration agreements. Participants expressed their concern that if this approach continues, arbitration agreements will lose their effectiveness, making direct court appeals preferable.

Participants also debated the scope of judicial review over arbitral awards, questioning whether this role should rest with the courts or with an alternative oversight body, and whether the law should specify the extent of judicial involvement. They discussed the problems with remote contract signing and the Court of Appeals reluctance to recognize such agreements, as well as the need for standardized notice delivery and document handling.  

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