The Legal system of Azerbaijan is based on civil law.

Courts – The court system is three-tiered, consisting of the first instance courts (District (city) courts, administrative-economical courts, military courts, courts on grave crimes), the courts of appeal and the Supreme Court, which all hear the cases within their competence respectively. Pursuant to the amendments made to the Civil Procedure Code (effective as of January 1, 2017), any statements of claim and complaints as well as any other documents in economic disputes may be submitted to the courts either in written form or via an electronic cabinet established within the Electronic Court system.  Additionally, any court notices to the parties using electronic cabinet can be served by means of placing the notices into the electronic cabinets.

International arbitration. Pursuant to the Civil Procedure Code and the Law on Protection of Foreign Investments, investment disputes may be resolved with the dispute resolution procedures agreed by the parties. International arbitration in Azerbaijan is regulated in accordance with the Law on International Arbitration. Azerbaijan has ratified the New York Convention on Enforcement of Arbitral Awards as well as the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States, which provides for arbitration at the International Centre for Settlement of Investment Disputes (ICSID).

Mediation. On April 3, 2019, by the adoption of the new Law “On Mediation”, mediation will be used as the main alternative dispute resolution method of social relations. The mentioned Law mainly determines the principles, goals, implementation rules of mediation and the status of mediators in Azerbaijan.

According to the provisions of the new law, mediation applies to: (1) civil cases and (2) economic and commercial disputes; (3) dispute arising from family relations; (4) labor disputes; (5) disputes on administrative law relations. The mediation shall also apply to the economic disputes with a foreign element. The Law mainly, invites the parties of following disputes to attend an initial pre-court mediation session before going to the court. The provisions concerning the pre-court mediation session shall enter into force from July 1, 2020.