Litigation & Arbitration in Romania

Romania's commercial dispute resolution landscape combines EU-harmonised civil procedure with a domestic arbitration tradition that has grown significantly over the past decade. Businesses operating in Romania - whether through local subsidiaries, joint ventures or cross-border contracts - face a dual system: state courts governed by the Civil Procedure Code (Codul de procedură civilă, Law No. 134/2010) and institutional or ad hoc arbitration governed by Book IV of the same code. Choosing the wrong forum at the outset can add years and substantial cost to a dispute. This article maps the full landscape - from pre-trial steps and court structure to arbitration rules, enforcement and practical pitfalls - so that international executives can make informed decisions before a dispute escalates.

Romania abolished its separate commercial courts in 2011. Commercial disputes are now handled by civil divisions of ordinary courts, organised in a four-tier hierarchy: judecătorie (first-instance court), tribunal (county-level court), curte de apel (court of appeal) and Înalta Curte de Casație și Justiție (High Court of Cassation and Justice, ICCJ). The allocation of first-instance jurisdiction depends on the value and nature of the claim.

Claims below a threshold set by the Civil Procedure Code are filed at the judecătorie. Claims above that threshold, or those involving companies, insolvency-adjacent matters and certain IP disputes, go directly to the tribunal. This distinction matters because the appeal route differs: a judecătorie judgment is appealed to the tribunal, while a tribunal judgment is appealed to the curte de apel. A second appeal on points of law (recurs) lies to the curte de apel or, in specific categories, to the ICCJ.

Specialised panels exist within tribunals for insolvency (judecătorul-sindic, the syndic judge) and within the ICCJ for unifying divergent lower-court interpretations through binding decisions (decizii de unificare a practicii judiciare). International businesses should note that Romanian courts apply EU Regulation 1215/2012 (Brussels I Recast) for jurisdiction and recognition of judgments within the EU, which affects both where to sue and how to enforce a Romanian judgment abroad.

A common mistake made by foreign clients is filing at the wrong level of court, which triggers a jurisdictional objection (excepție de necompetență) and delays the case by several months while the file is transferred. Verifying the correct forum before filing is a non-negotiable first step.

Romanian civil procedure does not impose a universal mandatory mediation requirement for commercial disputes following a 2014 Constitutional Court decision that struck down compulsory mediation. However, the Civil Procedure Code still requires the claimant to attempt conciliation (conciliere prealabilă) in commercial matters before filing. This involves sending a written notice to the defendant specifying the claim and giving a reasonable period - typically 15 to 30 days - to respond. Failure to document this step can result in the claim being declared inadmissible.

For disputes involving consumer contracts or certain regulated sectors, additional pre-litigation steps apply under sector-specific legislation. In banking and financial services, for example, the Autoritatea Națională pentru Protecția Consumatorilor (National Authority for Consumer Protection, ANPC) and the Autoritatea de Supraveghere Financiară (Financial Supervisory Authority, ASF) have their own complaint procedures that must be exhausted before court.

The statute of limitations (prescripție extinctivă) under the Civil Code (Codul civil, Law No. 287/2009) is generally three years for contractual claims, running from the date the creditor knew or should have known of the debtor's default. Certain claims - such as those arising from transport contracts or insurance - carry shorter limitation periods. A non-obvious risk is that Romanian courts raise prescription as an objection of their own motion in some procedural contexts, meaning a claimant who delays filing may lose the claim entirely without the defendant even raising the point.

Interim relief is available before or during proceedings. The most commonly used tools are the ordonanță președințială (interim injunction under Article 997 of the Civil Procedure Code), which can be obtained within days in urgent cases, and the sechestru asigurător (precautionary attachment of assets under Article 952), which freezes the debtor's assets pending judgment. Both require the applicant to demonstrate urgency, a prima facie case and, for attachment, a risk that the debtor will dissipate assets. Courts generally require a security deposit (cauțiune) from the applicant.

To receive a checklist of pre-trial steps for commercial litigation in Romania, send a request to info@vlolawfirm.com.

Once a claim is filed, the court schedules a preliminary hearing (cercetarea judecătorească) at which procedural objections are resolved and the scope of evidence is fixed. Romanian procedure is predominantly written: parties exchange written submissions, and oral hearings are relatively brief. The evidentiary phase involves documentary evidence, expert reports (expertiză judiciară) and, less frequently, witness testimony.

First-instance proceedings at the tribunal level for a mid-complexity commercial dispute typically take between 12 and 24 months, though complex cases with multiple expert reports or cross-border elements can extend to 36 months or more. Appeals add another 12 to 18 months at the curte de apel. A recurs to the ICCJ, where available, adds a further 12 to 24 months. Total duration from filing to final judgment in a contested case can therefore reach four to six years, which is a material factor in the business economics of litigation.

Court fees (taxe judiciare de timbru) are calculated as a percentage of the claim value under Government Emergency Ordinance No. 80/2013. They apply to both the first instance and the appeal, with reduced rates at the recurs stage. Lawyers' fees for commercial litigation in Romania typically start from the low thousands of EUR for straightforward debt recovery and scale significantly for complex multi-party disputes or those involving expert evidence. Contingency fee arrangements (onorariu de succes) are permitted but must be combined with a base retainer under Bar Association rules.

The losing party bears the winner's costs (cheltuieli de judecată) including court fees and reasonable lawyers' fees, subject to the court's discretion to reduce disproportionate fee claims. In practice, courts often award costs below the actual fees incurred, so full cost recovery is not guaranteed.

A practical consideration for international clients is the language of proceedings. All submissions must be in Romanian. Foreign-language documents require certified translation, which adds both cost and time. Electronic filing (e-dosar) is available through the portal managed by the Ministerul Justiției (Ministry of Justice), and many tribunals now accept submissions via the national e-justice platform, reducing the need for physical attendance.

Arbitration in Romania is governed by Book IV of the Civil Procedure Code (Articles 541-621). The parties' agreement to arbitrate (convenție arbitrală) must be in writing and can take the form of an arbitration clause in a contract or a separate submission agreement after a dispute arises. Romanian law recognises both institutional and ad hoc arbitration.

The principal domestic institution is the Curtea de Arbitraj Comercial Internațional de pe lângă Camera de Comerț și Industrie a României (Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania, CCIR Court of Arbitration). It administers disputes under its own Rules of Arbitration, which were updated to align with international best practice. The CCIR Court of Arbitration handles both domestic and international commercial disputes and has a panel of arbitrators covering most commercial sectors.

For purely domestic disputes, parties sometimes opt for ad hoc arbitration under the Civil Procedure Code rules, appointing arbitrators directly. This can be faster and cheaper for straightforward cases but requires the parties to manage procedural logistics themselves, which creates friction when cooperation breaks down.

International businesses with Romanian counterparties frequently include clauses referring disputes to international institutions such as the ICC International Court of Arbitration or the Vienna International Arbitral Centre (VIAC), which has particular relevance for Central and Eastern European transactions. Romanian courts have consistently upheld such clauses and enforced resulting awards under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), to which Romania is a party.

A typical arbitration timeline at the CCIR Court of Arbitration for a commercial dispute of moderate complexity runs between 12 and 18 months from the filing of the request to the award. This compares favourably with state court litigation, particularly when the parties value confidentiality - arbitration proceedings are not public, unlike court hearings.

The cost structure of arbitration includes registration fees, administrative fees and arbitrators' fees, all calculated on a sliding scale based on the amount in dispute. For claims in the range of several hundred thousand EUR, total arbitration costs (excluding lawyers' fees) are typically in the low to mid tens of thousands of EUR. Lawyers' fees for arbitration follow a similar structure to litigation fees, starting from the low thousands of EUR and scaling with complexity.

To receive a checklist of arbitration clause drafting requirements for contracts governed by Romanian law, send a request to info@vlolawfirm.com.

Obtaining a judgment or award is only half the task. Enforcement (executarea silită) in Romania is conducted by executori judecătorești (bailiffs, regulated under Law No. 188/2000), who are private practitioners with public authority. The creditor must obtain an enforceable title (titlu executoriu) - which a final court judgment or an arbitral award confirmed by a court constitutes - and then engage a bailiff in the district where the debtor's assets are located.

Enforcement tools available to bailiffs include bank account garnishment (poprire), seizure and sale of movable assets, forced sale of immovable property and attachment of receivables owed to the debtor by third parties. Bank garnishment is the fastest tool: once the bailiff serves the order on the bank, the bank must freeze and transfer funds within a short statutory period. Forced sale of real property is slower, typically taking 6 to 18 months depending on the complexity of the asset and any challenges raised by the debtor.

Debtors can challenge enforcement through a contestație la executare (enforcement objection) filed with the court. This is a common delaying tactic. Courts are required to resolve such objections within tight deadlines, but in practice the process can add several months to enforcement. Creditors should anticipate this and ensure that precautionary attachments obtained before judgment are converted into enforcement attachments promptly after the judgment becomes final.

For foreign judgments from EU member states, enforcement in Romania proceeds under Brussels I Recast without a separate exequatur procedure - the judgment is directly enforceable once the creditor presents the required certificate. For judgments from non-EU states, recognition and enforcement requires a separate court proceeding under Articles 1095-1109 of the Civil Procedure Code, which examines whether the foreign judgment meets Romanian public policy requirements and whether the foreign court had proper jurisdiction.

Foreign arbitral awards are enforced under the New York Convention. The Romanian court competent to grant enforcement is the tribunal in whose district the debtor is domiciled or has assets. The court's review is limited to the grounds set out in the Convention - it does not re-examine the merits of the award. In practice, Romanian courts grant enforcement of foreign awards relatively efficiently, with proceedings typically concluding within three to six months absent a well-founded objection.

The choice between litigation and arbitration in Romania is not purely procedural - it is a business decision that depends on the nature of the relationship, the value at stake, the need for confidentiality and the likely enforcement geography.

State court litigation is the appropriate choice when the claim involves a matter that cannot be arbitrated under Romanian law - such as insolvency proceedings, certain IP registration disputes or matters touching on public order. It is also preferable when the debtor has identifiable assets in Romania and speed of interim relief is critical, since Romanian courts can grant precautionary attachments ex parte within 24 to 48 hours in urgent cases. Litigation is generally less expensive for straightforward debt recovery claims where the facts are undisputed and the debtor simply needs to be compelled to pay.

Arbitration becomes the better choice when confidentiality is commercially important - for example, in disputes involving trade secrets, pricing information or sensitive contractual terms. It is also preferable when the counterparty is a foreign entity and enforcement may need to occur in multiple jurisdictions, since an arbitral award under the New York Convention travels more easily than a Romanian court judgment in non-EU countries. Arbitration also allows the parties to select arbitrators with specific technical expertise, which is valuable in construction, energy or technology disputes where the factual matrix is highly specialised.

Mediation (mediere) under Law No. 192/2006 is available at any stage of proceedings and can be court-referred or voluntary. Mediators are accredited by the Consiliul de Mediere (Mediation Council). Mediation is underused in Romanian commercial practice relative to Western European jurisdictions, but it offers a genuine cost and time advantage when both parties have an ongoing commercial relationship they wish to preserve. A mediated settlement agreement can be authenticated by a notary or confirmed by a court, giving it the force of an enforceable title.

A non-obvious risk in choosing arbitration is the drafting of the arbitration clause itself. Pathological clauses - those that are ambiguous about the institution, seat or applicable rules - generate preliminary jurisdictional disputes that can consume more time and cost than the underlying dispute. Romanian courts have had to interpret poorly drafted clauses on multiple occasions, and the outcomes have not always been predictable. Investing in precise clause drafting at the contract stage is far cheaper than litigating jurisdiction later.

The business economics of the decision deserve explicit attention. For a claim of EUR 50,000 to EUR 200,000, state court litigation at the tribunal level is likely to be more cost-effective than institutional arbitration, given the fixed court fee structure and the relatively straightforward enforcement path within Romania. For claims above EUR 500,000 with cross-border enforcement needs, arbitration - particularly under a recognised international institution - typically offers better value despite higher upfront costs, because the award is more portable and the process is more predictable.

To receive a checklist of strategic considerations for choosing between litigation and arbitration in Romania, send a request to info@vlolawfirm.com.

What is the main practical risk of litigating in Romanian state courts for a foreign company?

The primary risk is duration. A contested commercial case can take three to five years to reach a final, unappealable judgment when all levels of review are used. During this period, the debtor may restructure, transfer assets or become insolvent, reducing the practical value of the judgment. Foreign companies should therefore combine litigation with precautionary attachment of assets at the outset and monitor the debtor's financial position throughout proceedings. Engaging local counsel who can act quickly on interim relief applications is essential to managing this risk.

How long does enforcement of a Romanian arbitral award typically take, and what does it cost?

Enforcement of a domestic arbitral award confirmed by a Romanian court typically takes between three and nine months from the moment the bailiff is engaged, assuming the debtor has identifiable assets and does not raise a well-founded enforcement objection. Bailiff fees are regulated and calculated as a percentage of the recovered amount, generally in the low single-digit percentage range. If the debtor challenges enforcement, add three to six months for the court to resolve the objection. Total enforcement costs, including bailiff fees and lawyers' fees for the enforcement phase, typically start from the low thousands of EUR for straightforward cases.

When should a business replace arbitration with litigation, or vice versa, mid-dispute?

Switching forums mid-dispute is generally not possible once proceedings have commenced under a valid arbitration agreement or court jurisdiction has been established. The strategic choice must be made before the dispute arises - ideally at the contract drafting stage. However, if a dispute arises and no arbitration clause exists, the parties can agree in writing to submit to arbitration even after the dispute has crystallised, under a submission agreement (compromis). Conversely, if an arbitration clause exists but both parties prefer court proceedings, they can waive arbitration by mutual written agreement. The decision to switch should be driven by enforcement geography, confidentiality needs and the technical complexity of the factual issues.

Romania's dispute resolution system offers genuine options for international businesses: state court litigation with EU-standard enforcement tools, domestic and international arbitration with New York Convention portability, and mediation for relationship-preserving settlements. The key to effective dispute management is early strategic choice - selecting the right forum, securing assets before the debtor can dissipate them and ensuring that contracts contain precise, enforceable dispute resolution clauses. Delay and procedural missteps are the two most common and most costly errors in Romanian commercial disputes.

Our law firm VLO Law Firm has experience supporting clients in Romania on commercial litigation, arbitration and enforcement matters. We can assist with pre-trial strategy, arbitration clause drafting, interim relief applications, court and arbitration proceedings, and enforcement of judgments and awards in Romania and across jurisdictions. To receive a consultation, contact: info@vlolawfirm.com.