Italian reform on arbitration: new rules on provisional measures and expedited enforcement of foreign awards

Italy

By Legislative Decree No. 149 of 10 October 2022 (the "Decree 149/2022"), the Italian Government has introduced significant amendments to the Italian rules governing the arbitration proceedings. The amendments concern various aspects of the proceedings, such as the independence and challenge of arbitrators, the power to grant provisional measures, and the recognition of foreign awards. Some of the amendments introduced by Decree 149/2022 substantially supplement the rules of the Code of Civil Procedure with the provisions of the regulations of the most important arbitration institutions - e.g. on the independence of arbitrators - and will apply to so-called 'ad hoc' arbitrations.

The most significant innovations include, in particular, the following:

  1. the arbitrators shall issue, at the same time as accepting their appointment, a declaration of independence indicating any circumstances relevant to the possible challenge, or the non-existence thereof;
  2. contrary to the rules previously in force, the parties can now confer on the arbitrators the power to grant provisional measures. This possibility must be exercised by the parties in the arbitration agreement or by a written deed prior to the commencement of the arbitration proceedings;
  3. the parties have the possibility to indicate, in the arbitration agreement or by written deed prior to the commencement of the arbitration proceedings, the foreign rules or law as the law applicable to the merits of the dispute;
  4. the decree which recognizes the foreign award shall declare its effects 'immediately enforceable'. This effect may be suspended pending the opposition to recognition if serious grounds exist. This represent a significant innovation compared to the previous rules. With the application of the new provisions, in fact, the party applying for recognition shall no longer wait for the enforceability of the award to be decided in the course of the further opposition proceedings;
  5. the time limit for challenging the award pursuant to Article 828 of the CCP is shortened from one year to six months.

Decree 149/2022 will take effect as of 30 June 2023 and will apply to proceedings commenced after this date. The provisions previously in force shall apply to proceedings pending on 30 June 2023.