Court proceedings in the country and the region often last for years, and the issue of effective domestic protection mechanisms is increasingly being cited as one of the key requirements of investors coming to Montenegro. This is not only a need of the business community but also a matter that directly affects the process of European Union accession, as highlighted by the obligations to improve the overall efficiency of the judiciary. Mechanisms for alternative dispute resolution are increasingly emerging as a solution, allowing cases that would take years in court to be resolved within just a few months.
“This topic is not only a legal one, but also a developmental one. The quality and speed of dispute resolution directly affect the creation of a favourable business environment, the inflow of foreign investments and the strengthening of trust in the legal system. Resolving commercial disputes is not an ‘alternative’, but a necessity of a modern legal system,” explained Maja Golović Vojinović, Director of the Centre for Alternative Dispute Resolution (CARS).
For that reason, today CARS, in cooperation with the AIRE Centre and GIZ, brought together leading legal experts, representatives of institutions and the business community at the conference “The Advantages of Resolving Commercial Disputes through Alternative Methods” in Podgorica. Various aspects of the perspectives and practices of alternative dispute resolution were discussed by Minister Bojan Božović, Maja Golović Vojinović, Biljana Braithwaite, Fahira Brodlija, Vanja Radević, Catriona Paterson, Tamaš Kamaraši, Mladen Grdinić, Dijana Raičković, Marija Šobat, Maja Stanivuković, Aleksandar Ćorsović, Renata Milutinović, Jadranka Osrečak and Aneta Spaić.
“By strengthening the institutions and institutional capacities for arbitration and mediation, Montenegro confirms its commitment to creating a predictable, stable and reliable business environment that ensures fair and efficient resolution of commercial disputes, contributes to attracting foreign investment and encourages further economic development of our country,” stated Minister of Justice Bojan Božović.
The costs of court proceedings are significantly higher than those of mediation or arbitration. Disputes resolved through mediation are handled discreetly, which is important for preserving business reputation. However, this change in paradigm may mean much more for Montenegro.
“Montenegro is entering the final phase of reforms that require a realistic assessment of progress and additional steps forward, particularly in the area of legal certainty for the business community. It is important to note that alternative dispute resolution is not only a legal procedure but also a way of thinking. Only in this way can we open the door to new investments and opportunities for this country,” said Biljana Braithwaite, Director of the AIRE Centre.
“International transactions and projects that are important for the sustainable development and European path of Montenegro are becoming increasingly complex, bringing new opportunities but also risks of disputes. Therefore, it is crucial to strengthen legal certainty and the capacities for efficient dispute resolution through mediation and arbitration. Through the RegioTrade project, we are contributing to these reforms in the region, in cooperation with the AIRE Centre in Montenegro,” noted Fahira Brodlija from GIZ.
The event was supported by the Government of the United Kingdom and the British Embassy in Podgorica through the project to improve the arbitration framework implemented by the AIRE Centre, as well as by the Government of Germany and GIZ through the RegioTrade project.
The Ambassador of the Federal Republic of Germany, Peter Felten, assessed that particularly large projects involving public institutions and state-owned enterprises can bring significant opportunities for development—but at the same time, they carry potential risks of complex disputes and challenges. As he stated, to overcome these, it is essential to have a strong and reliable framework for dispute resolution—one that guarantees legal certainty, strengthens investor confidence and, at the same time, protects the economic interests of Montenegro.
“Prevention and alternative mechanisms for dispute resolution play an important role in achieving these goals. They have the potential to reduce the burden on the judiciary, lower costs and shorten timeframes, while offering solutions that enable the maintenance of constructive relationships between public authorities and investors. And, of course, these approaches are designed to be fully aligned with European and international best practices,” Felten emphasised.
Chargé d’Affaires at the British Embassy, Sarah Pilbeam, stressed that through this initiative Montenegro is not only strengthening its rule of law institutions but also positioning itself as a reliable and attractive destination for investment within the broader European and transatlantic legal community. “Alternative dispute resolution, whether through mediation or arbitration, is not just a question of efficiency. It is about building trust: trust between citizens and the judiciary, trust between investors and public institutions, and trust between partners who share the same democratic and legal values. The United Kingdom remains a consistent partner to Montenegro on its path towards the modernisation of the judiciary and the European integration process. Through our programmes, we have worked to strengthen the rule of law, enhance judicial independence and promote transparent governance,” added Pilbeam.
The event was also addressed by Maxi Scherer, President of the London Court of International Arbitration (LCIA), who provided an important overview of contemporary practices in the field of arbitration. In addition to the positive signals from the state, an important message was also sent today by representatives of the private sector.
“When investors know that disputes can be resolved quickly, impartially and professionally, Montenegro becomes not only an attractive place to invest but also a reliable partner. It is important that in discussions on these topics, business representatives are always at the table, as they bring an important perspective to the conversation,” said Tamaš Kamaraši, President of the Foreign Investors Council in Montenegro and one of the speakers at the conference.
The conference concluded with the presentation of activities aimed at further strengthening institutional mechanisms and the legislative framework that will empower mediation and arbitration as tools of protection within Montenegro’s legal system.
