Arbitration Services

Arbitration

Arbitration is a mechanism for the resolution of disagreements, conflicts or controversies as an alternative to the Courts and Tribunals. It is of a private and informal nature and through it the parties agree to resolve their dispute before one or more impartial persons called Arbitrators, who are authorized to resolve the matter by means of a decision known as an Award, which is final and binding for the parties. The Award has the same effectiveness and legal weight as a judgment and, therefore, can also be enforced in case of voluntary non-compliance.

In addition, it is important to note that the Award cannot be appealed, unlike a court judgment, as there is no second instance of arbitration as a general rule. Hence, the time periods to obtain a final decision on the merits are considerably shortened. It is true that there is the possibility of requesting the annulment of an Award, although only on strictly limited grounds and that, in general, does not allow for a review of the merits of the decision adopted by the Arbitrators.

For all of the above reasons and in view of the generalized saturation of the Courts and the time it entails, Arbitration is called to be an ADR (Alternative Dispute Resolution), more common in our current and future society. Both are defined below: Ad Hoc Arbitration and Institutional Arbitration.

Ad Hoc Arbitration

Ad Hoc Arbitration is characterized by the autonomy of the parties to define all the rules of the arbitration process. The parties do not submit to an Arbitral Institution, but they themselves agree on the procedures and appoint the Arbitrators, who must be experts in the subject matter of the disagreement, conflict or dispute. This type of Arbitration is considered more flexible and can be more economical, since there are no administrative costs associated with an Arbitral Institution. In addition, it offers greater confidentiality and speed if the parties and the Arbitrators act in good faith and cooperation.

Advantages of Ad Hoc Arbitration

Freedom to set rules: Parties can design a fair procedure tailored to their needs, without strict deadlines or preclusive stages.

Lower costs: Since there are no high administrative costs, this type of arbitration can be more economically accessible.

Confidentiality and Expedition: If the parties and the Arbitrators cooperate, the process can be faster and more confidential.

Institutional Arbitration

Institutional Arbitration is carried out under the organization of an Arbitral Institution that has its own rules and regulations. These Institutions provide a structure and a list of Arbitrators previously selected and approved according to criteria of specialty and experience.

Advantages of Institutional Arbitration

Pre-established rules: The parties know the rules of the arbitration process in advance, which provides legal certainty and predictability.

Adequate infrastructure and logistics: Arbitration institutions have the necessary infrastructure and human resources to manage the process efficiently.

Transparency and Ethics: Institutions typically have codes of ethics and procedures to ensure transparency and proper conduct of referees.

Ad Hoc Arbitration vs. Institutional Arbitration

Flexibility vs. Structure

Ad Hoc Arbitration allows greater flexibility in defining the rules of the process, while Institutional Arbitration offers a predetermined structure that may be easier to follow.

Costs by Type

Ad Hoc Arbitration may be the most economical type due to the absence of administrative costs, but this depends on the complexity of the case and the Arbitrators’ fees. Institutional Arbitration, although it may have higher administrative costs as a type, offers additional services and resources.

Control of the Parties

In Ad Hoc Arbitration, the parties have full control over the process, including the selection of Arbitrators and the rules to be followed. In Institutional Arbitration, the parties must follow the Institution’s Rules, which may limit their control, but also provides greater legal certainty and predictability.

Administrative Support

Arbitral Institutions provide administrative support, which can be beneficial for parties who prefer not to manage the logistical and administrative aspects of the arbitration process.

Right Choice

Ad Hoc Arbitration and Institutional Arbitration offer different advantages and disadvantages, depending on the needs and preferences of the parties involved. The right choice between the two will depend on factors such as the complexity of the case, the desire for flexibility, costs and the need for administrative support. Understanding these differences allows parties to make informed decisions about which form of Arbitration is most appropriate to resolve their disagreement, dispute or controversy efficiently and fairly.

Ad Hoc Arbitration "with or without" Prior Arbitration Clause

Our firm “only” performs Ad Hoc Arbitrations “with or without” Prior Arbitration Clause. In this service, expert personnel in the rules of the process will contact the parties, or their respective lawyers, summoning them to a voluntary and non-binding meeting in which the advantages and possibilities of resolving their disagreement, conflict or controversy through arbitration will be made clear, and an initial estimate of the time and cost of the same will be made. An Arbitration Award within their Reach.