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20 minAdrián

Arbitration

Arbitration Act 60/2003, arbitration agreement, types (at law, in equity), institutional vs ad hoc, award and annulment action.

Legal Framework: Arbitration Act 60/2003

Law 60/2003 regulates domestic and international arbitration in Spain. Inspired by the UNCITRAL Model Law, it was amended by Law 11/2011.

Basic principles

Autonomy of will (broad freedom to configure the procedure), equality, hearing and contradiction, and minimal judicial intervention.

The Arbitration Agreement

An agreement to submit disputes to arbitration. Requirements: written form (document, emails or other means leaving a record), determinable subject matter, and negative effect (prevents courts from deciding the merits; the other party may raise a jurisdictional objection).

Types of Arbitration

At law (de derecho)

Arbitrators apply legal rules. Default type under the Act. Arbitrators must be practicing lawyers.

In equity (de equidad)

Arbitrators decide according to their "fair understanding," not strictly bound by legal rules. Only if expressly agreed. Arbitrators need not be lawyers.

Institutional vs ad hoc

Institutional arbitration is administered by an institution (Madrid Court of Arbitration, ICC, CIAM) with set rules and fee schedules. Ad hoc arbitration is managed by the parties themselves with agreed procedures and costs.

The Arbitral Award

Binding and enforceable like a final judgment (Art. 517.2.2 LEC). Must be reasoned. Default deadline: 6 months from the answer to the arbitration claim. It has res judicata effect: no appeal or cassation.

Annulment Action

The only challenge is the annulment action before the competent High Court of Justice, on limited grounds (Art. 41): invalid agreement, lack of notification, award beyond scope, procedural irregularity, or public policy violation. Deadline: 2 months from notification. The court does not review the merits.

International Arbitration

An arbitration is international when parties are domiciled in different States, the seat is outside the parties' State, or the legal relationship connects to more than one State. Foreign award recognition is governed by the 1958 New York Convention (ratified by Spain in 1977), facilitating enforcement in over 170 States.

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Module quiz

1

What effect does a final arbitral award have?

2

What type of arbitration is the default under Law 60/2003?

3

Before which court is the annulment action filed?

4

Which international convention facilitates the recognition of foreign awards in over 170 countries?

5

What is the default deadline for issuing the award if the parties have not set another?

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Arbitration | Lexiel Academy