Arbitration and mediation

Domestic arbitration in civil and commercial matters is governed by Book III of the Code of Civil Procedure. The arbitrators decide according to the rules of law, or if the agreement gives them this power, decide as amiables compositeurs (rule in equity). The arbitration judgment, which may be appealed, is made enforceable by an order of the President of the Court of First Instance.

The Superior Court of Arbitration is a special jurisdiction instituted by Law No. 473 of 4 March 1948 for the settlement of collective labour disputes which cannot be resolved directly, either amicably or by applying the provisions of collective agreements. It rules on collective labour disputes of a legal nature (disputes relating to the execution of collective agreements, laws, ordinances and decrees on labour) according to the rules of law. It rules in equity on all other collective labour disputes, especially those of an economic nature.

Similarly, the Commercial Rent Arbitration Commission, created by Law No. 490 of 24 November 1948, has, as its name indicates, the specific task of settling disputes between landlords and tenants on the conditions for the renewal and revision of commercial leases.

At international level, Monaco is a party to the Geneva Protocol on Arbitration Clauses of 24 September 1923 (Sovereign Order n° 287 of 17 December 1924), and to the New York Convention on the Recognition and Enforcement of Arbitral Awards of 10 June 1958 (Sovereign Order no. 7.485 of 14 September 1982).

On the basis of the New York Convention, foreign arbitral awards are recognised or enforced on the territory of the Principality of Monaco by an order of the President of the Court of First Instance, a speedy and inexpensive procedure applicable to domestic arbitral awards (in accordance with the Convention's prohibition against subjecting the enforcement of arbitral awards to substantially more stringent conditions and substantially higher legal costs than those imposed for the recognition or enforcement of domestic awards) (CA, 31 January 2019).

The Monegasque judge ensures that any reservations made are respected, that the dispute is arbitrable and that it is not contrary to public policy. Monaco has made a reservation on the basis of reciprocity and a reservation on the basis of the commerciality of disputes. Thus, the New York Convention applies only to the recognition and enforcement of awards made in another Contracting State of the Convention and when the legal relations in question are considered to be of a commercial nature by Monegasque law (CA, 11 March 2021).

Furthermore, the arbitration of the Court of Arbitration for Sport (CAS) is recognised under Monegasque law.

Monegasque legislation does not contain a general provision on judicial or contractual mediation.

In the last decade, several developments have taken place in this field.

Since the Law 1.401 of 5 December 2013, the Civil Code provides that mediation constitutes a cause of suspension of prescription whether or not it has been agreed to by written agreement.

Family mediation was introduced into the Civil Code by Law 1.336 of 12 July 2007 and amended by Law 1.450 of 4 July 2017.

Criminal mediation between the perpetrator and the victim (except in cases of domestic violence) is provided for in the Code of Criminal Procedure since Law 1.533 of 9 December 2021.

Institutional mediation is a mission of the High Commissioner for the Protection of Rights and Mediation, a public and independent body. Sovereign Order no. 10.845 of 1st October 2024 established a new legal framework in line with international standards, giving it a new mission to protect the rights of the child enshrined in national legislation or an international commitment made by Monaco, and a broader mission to protect rights and freedoms with the power to refer cases to itself.

Arbitration and mediation, which are increasingly sought after by the Principality's economic players, are destined to develop.