In the current legal landscape, the use of arbitration as an alternative means of resolving disputes has gained considerable popularity in El Salvador. However, establishing an arbitration agreement or arbitration clause entails a series of effects that require careful consideration by the parties involved.
First, it is essential to understand what exactly an arbitration agreement or arbitration clause entails. These legal instruments represent an unequivocal commitment between the parties to submit any controversy arising from their legal relationships to an impartial third party, either a sole arbitrator or an arbitral tribunal. This commitment not only encompasses the final decision on the conflict but also the obligation to comply with that decision.
One of the most significant effects of establishing an arbitration agreement or arbitration clause is the implicit waiver of the right to resort to ordinary judicial courts to resolve the dispute in question. Instead, the arbitrator or arbitral tribunal is granted exclusive authority to intervene and make binding decisions on the conflict in dispute. As a result, judicial courts are deemed incompetent to hear cases submitted to arbitration, reinforcing the importance and autonomy of the arbitration process.
Moreover, before initiating the arbitration process, it is crucial to consider three key elements: the arbitrability of the matter in dispute, the scope of the agreement in terms of the parties involved and the issues covered, and the jurisdictional attribution of the arbitral tribunal. These elements ensure that the arbitration process proceeds appropriately and that the parties are fully informed about the terms and conditions governing their dispute resolution.
An illustrative example of the importance of these elements can be found in a ruling issued by the First Civil Chamber of the First Section of the Center of San Salvador. This ruling highlights aspects such as the arbitrability of the matter in dispute, the scope of the arbitration agreement in terms of venue, language, and applicable law, as well as the authority of the arbitral tribunal to administer justice and officially resolve the controversies.
In summary, the establishment of an arbitration agreement or arbitration clause in El Salvador has significant effects on the dispute resolution process. These legal instruments offer the parties an efficient and specialized alternative for resolving their differences while ensuring the application and enforcement of the decisions made. It is essential that the parties fully understand the effects and implications of these agreements before committing to them to ensure a fair and effective resolution of their disputes.
Litigation Director
El Salvador
TAGS: ARBITRATION A