How does it work?
Scope
The conflicts of an economic or commercial type usually give rise to long and very costly judicial procedures. However, any controversy can be solved through an arbitration and this is a faster and inexpensive process which will also allow to approach all the differences in a single procedure. It is also important to emphasize the existence of Arbitration Clauses in Contracts to anticipate and avoid possible conflicts.
The controversies that can be submitted to the arbitration procedure are under the civil area (civil societies, associations and joint ownerships, condominium property, professional service contracts…), the commercial area (leasing, renting, factoring, foreign trade, commercial sale and purchase…) and in the administrative area (appraised values, indemnifications, construction of contract clauses…).
Steps
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Request the proper arbitration procedure form from the Clerk’s Office. Download
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File the form (according to the model) before the Clerk’s Office duly filled in and with the supporting receipt of 150 € paid for the rights to be admitted to the procedure.
The arbitration complaint must contain, among other things: the parties’ data as well as those of the representative or legal counselling, if appropriate.
The parties will freely establish the number of arbitrators (an odd number). If after a period of 20 days as from the notice of the plaintiff to the defendant no agreement is reached, the Arbitration Court will appoint a single arbitrator except when a higher number is required by the nature of the controversy.
The Arbitration Court shall be in charge of notifying the arbitrator about the appointment. As from that moment, he/she shall have 15 to accept such an appointment and notify about it to the Clerk’s Office.
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Once the arbitration is accepted, the Court Standing Committee can call the parties to appear in order to deal with all the necessary issues of the arbitration procedure.
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The arbitration procedure is deemed to have been started as from the date when the defendant receives the request to submit the controversy to arbitration.
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The defendant can answer the complaint and plead what it deems appropriate for the best defense of its interests within a period of 15 days.
With the answer to the complaint both parties shall contribute the amount established by the Court as an initial monetary provision to cover the administrative expenses and the arbitrators’ fees derived from the arbitration procedure.
The lack of answer to a complaint does not imply the suspension of the arbitration procedure.
If within the period established any of the parties has not contributed the corresponding amount, the Clerk’s Office shall notify the arbitrators about this and they shall agree the suspension or the end of the proceedings with a previous notice to the interested party.
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The parties may appear by themselves or through their duly authorized representatives or counsellors and assisted by lawyers if so require it.
The costs derived from the provision of evidence shall be at the expense of each of the parties.
In the case of witnesses’ evidences, each party shall notify the other party and the arbitrators about their names and addresses.
Once the provision of evidence has finished, the arbitrators shall establish a period of time for the parties to examine, value and submit their conclusions in writing.
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Once the conclusions have been reached, the arbitrators shall close the procedure.
The controversy is decided in a single arbitration award or as many partial arbitration awards as the arbitrators deem necessary.
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The arbitrators shall issue the arbitration award within six months after the date of the answer to the complaint filed by the defendant.
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The arbitration award must be in writing and signed by the arbitrator(s).
It will contain the date of the arbitration award as well as the place where the procedure has been carried out.
The arbitrators must establish the costs of the arbitration procedure, the expenses and their fees.
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After he arbitration award has been made, the Court will make the financial settlement and shall refund the remaining amount, if appropriate.
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The parties shall be notified by the Clerk’s Office about the arbitration award in the manner and period of time agreed upon.
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Effectiveness of the arbitration award: it is final for the parties and can only be annulled in the cases provided by Law.