Source: https://iclg.com/practice-areas/international-arbitration-/international-arbitration-2016/dominican-republic
Timestamp: 2017-04-27 22:40:30
Document Index: 741119373

Matched Legal Cases: ['Art. 10', 'Art.1', 'Art.1', 'Art.2', 'Art. 5', 'Art. 10', 'Art. 14', 'Art. 10', 'Art. 33', 'Art. 28', 'Art. 34', 'Art. 29', 'Art. 40', 'Art. 40', 'Art. 1', 'Art. 20', 'Art. 33', 'Art. 10', 'Art. 14', 'Art. 15', 'Art. 16', 'Art. 15', 'Art. 23', 'Art. 22', 'Art. 21', 'Art. 13', 'Art. 30', 'Art. 39', 'Art. 39', 'Art.9', 'Art.43', 'Art. 36', 'Art. 24', 'Art. 220', 'Art. 2']

International Arbitration 2016 | Laws and Regulations | Dominican Republic | ICLG
Home Practice area International Arbitration International Arbitration 2016 Dominican Republic Dominican Republic International Arbitration 2016 Order the Book
The Arbitration Agreement may take the form of an arbitration clause in a contract, or in the form of a separate agreement, and must be in writing.
Law 489-08 of Commercial Arbitration of the Dominican Republic enacted on December 30, 2008 (hereinafter Law 489-08) is very flexible in its definition of agreement, allowing the validity of an arbitration agreement whenever the contract is contained in a written document or in an exchange of letters, faxes, telegrams, e-mails or other means that can provide evidence of the understanding and are accessible for subsequent reference in an electronic, optical or other format. The agreement shall be regarded as in writing if it is contained in an exchange of statements of claim and defense in the arbitration proceedings in which the existence of the agreement is alleged by one party and not denied by the other party.
The agreement on an international arbitration will be valid if it meets the requirements of the law chosen by the parties, the legal standards applicable to the merits of the dispute, as well as the Dominican law. (Source: Law 489-08, Art. 10.)
The Dominican Law on Commercial Arbitration is flexible in curing formal requirements that may be considered to have been waived by the parties, except in matters related to public policy or formalities that are of the essence of the procedure. Besides a clear expression of the intention of the parties, and a precise election of forum (if the process is in an institution), other elements that may be incorporated in an arbitration agreement are: language; site of arbitration; applicable law; number of arbitrators; selection of the arbitral tribunal; rules of procedure; and the possibility for the parties to waive the action for annulment of the award. For institutional arbitration, it is understood that the arbitration clause includes the provisions of the regulations of the institution that the parties have chosen.
Any arbitration agreement that is part of a contract shall be considered as an independent agreement. Consequently, the inexistence, partial or total annulment of the contract or legal act does not imply the absence, ineffectiveness or invalidity of this arbitration agreement. The arbitrators may rule on the dispute submitted to its decision, which may be related to faults affecting the contract or legal act containing the arbitration agreement
Recently, there has been a great effort of national courts and ordinary jurisdiction to learn about the subject of a case; an example of this is the realisation of several specialised training sessions for judges of the national courts on arbitration.
Law 489-08 of Commercial Arbitration of the Dominican Republic regarding ad hoc procedures and Law 50-87 of the Chambers of Commerce, which creates an institutional procedure for the Dispute Resolution Centre of the Chamber of Commerce and Production of Santo Domingo (hereinafter CRC) are the legislation that currently govern the enforcement of arbitration. Law No. 479-08 is our primary source of law, it also became the first legislation to govern international commercial arbitration in the country (Monistic Regime).
Law 489-08 governs both domestic and international proceedings.
Yes, it is based on the UNCITRAL Model Law with some changes. The Law contains, unequivocally, the possibility that the State may submit to arbitration, both domestically and internationally.
In a comparative way, the differences between the Dominican Law and the Model Law are the following:
Law No.489-08 of the Dominican Republic The Model Law of Arbitration - CNUDMI
Art.1: Application Scope
“1. the present law will apply to arbitrations made in the territory of the Dominican Republic, without prejudice of what is established in the international treaties to which the Dominican State is a party or in laws that contain special arbitration dispositions. […] ” Art.1: Application Scope
“1. the present Law will be applied to international commercial arbitration, without prejudice of any current multilateral or bilateral treaty in these States […] ”
Art.2: Matters Subject to Arbitration
“1. Controversies on matters of free disposition and transaction can be put under arbitration, according to the applicable civil and commercial dispositions, including those to which the State is a party.
2. When the arbitration is international and one of the parties is the Dominican State or a foreigner, […], that party will not be able to invoke the prerogatives of their own law or principles of sovereignty, to evade the emanated obligations of the arbitration agreement.”
It deals solely with the commercial arbitration.
A liberal interpretation of the “commercial” expression would include questions that consider all the relations of a commercial nature, contractual or not. Commercial relations include the following operations, but are not limited to: any commercial operation of provision or interchange of goods or services; […];and transportation of merchandise or passengers, by air, marine, train or by highway.
Art. 5: Representation of the State
“1. Concerning an arbitration in which the Dominican State is a party, the notification of the by arbitration demand will have to be made to the General Office of the General Attorney of the Republic and the General Controller of the Republic, which must immediately inform the Legal Consultancy of the Executive Power of this notification. If the plaintiff is a decentralised or independent institution of the State, the plaintiff will send an arbitration demand to the corresponding institution as well as to the General Office of the General Attorney of the Republic and to the General Controller of the Republic.”
Art. 10.5: Definition and Forms of Arbitration Agreement
“5. When the arbitration is international, the arbitration agreement will be valid and the controversy will be susceptible to arbitration if it complies with the requirements established by the legal norms chosen by the parties to govern the arbitration agreement, or by the legal norms applicable to the matter of controversy, or by the Dominican law.”
Art. 14: Number of Arbitrators
“1. the parties will be able to freely determine the number of arbitrators, whenever it is uneven.
2. In the case of a disagreement, a single arbitrator will be appointed.”
Art. 10: Number of Arbitrators
“1. The parties will be able to freely determine the number of arbitrators.
2. In the case of a disagreement, there will be three arbitrators.”
Art. 33.3: Norms Applicable to the Matter of the Dispute “3. if the parties don’t indicate the applicable legal norms, the Arbitration Court will apply the ones that they deem most appropriate.”
Art. 28.2: Norms Applicable to the Matter of the Dispute “2. if the parties don’t indicate the applicable law, the Arbitration Law, the Arbitration Court will apply the Law determined by the norms of the conflict that they deem applicable.”
Art. 34.1: Adoption of Associated Decisions “1. in an arbitration in which there is more than one referee, all decisions of the Arbitration Court will be by majority, unless there is an agreement to the contrary by the parties. If there is no majority, the decision will be that with which the president concurs.”
Art. 29: Adoption of decisions when there is more than one referee. “in an arbitration in which there is more than one referee, all decisions of the Arbitration Court will be adopted, unless there is an agreement to the contrary by the parties, by the majority of votes of the members. None the less, the president referee will be able to decide issues of procedure, if authorised by the parties or all the members of the court.”
Art. 40.1 and Art. 40.4: Procedure
“1. if the parties have not previously waived their right to appeal against a judgment, the competent court to rule on the nullity of an arbitration judgment issued in the Dominican Republic is the Appeal Court of the Department corresponding to the place where it was dictated.
4. rulings on the nullity of a judgment can be overturned in appeal, however, rulings dictated by the President of the Court about suspensions cannot be subject to said appeal.” ----
When the arbitration is international, the arbitration agreement shall be valid and the dispute shall be arbitrable if they meet the requirements of legal rules chosen by the parties to govern the arbitration agreement, or legal standards applicable to the merits of the dispute, or by Dominican law. (Source: Law 489-08, Art. 1.1 and 10.5.)
There are only a few subject matters that are not considered arbitrable: i) conflicts related to the civil status of persons, gifts and bequests for food, shelter and clothing, separation between husband and wife, guardianship, minors and interdicted persons or absent persons; and ii) causes of concern to public order; and iii) generally, all disputes that are not subject to compromise. 3.2 Is an arbitrator permitted to rule on the question of his or her own jurisdiction?
The Law recognises the jurisdiction of an arbitral tribunal to rule on its own jurisdiction (kompetenz-kompetenz principle), Art. 20 of Law 489-08.
The court must examine its own jurisdiction only when required by a party. If none of the parties argue lack of jurisdiction, the national courts will judge the matter and decide the controversy, considering that a prorogation of jurisdiction has taken place.
Dominican Law limits the intervention of the national courts in the arbitral process to assistance and supervision functions. The mere confirmation of the existence of an arbitration clause should be sufficient for the judicial courts to send the dispute to the domain of the arbitrators.
In general terms, an arbitral tribunal will always recognise its own jurisdiction when faced with an arbitration agreement, except when the agreement suffers from a severe pathology
Law 489-08 does not contain a special provision regarding the extension of the arbitration agreement to non-signatories and/or third party intervention. The rules of the CRC establish specific provisions that reflect the CCI practice on the subject (under Regulation 1998) on the subject.
According to the Regulation, as stipulated in Article 9.1: "The Arbitral Tribunal may, at the request of a party, accept intervention in the arbitration of one or more third parties as parties, provided that the third party is part of the arbitration agreement and specific demands made against this party and there is a direct and legitimate interests in the outcome of the arbitration. The Arbitral Tribunal may issue a single award or several, with respect to all parties involved in the procedure."
There is no statute or provision setting a time limit applicable for the commencement of arbitrations, unless any period is specified by the parties in the arbitration clause for such purpose. 3.7 What is the effect in your jurisdiction of pending insolvency proceedings affecting one or more of the parties to ongoing arbitration proceedings?
There is no express statute or provision about this subject matter.
It is important to point out that the recently enacted law on Restructuring and Liquidation of Companies and Business Persons (“Law No. 141-15”) that will enter into effect on February 7, 2017. Article 24 of such law indicates the possibility to submit to arbitration some controversies during the insolvency proceedings.
When the arbitration is international, the arbitrators shall decide the dispute in accordance with the rules of law chosen by the parties as applicable to the substance of the dispute. If the parties do not indicate the applicable legal rules, the Arbitral Tribunal shall apply the rules they deem appropriate. In all cases, the Arbitral Tribunal shall decide in accordance with the terms of the contract and shall take into account applicable uses.
(Source: Law 489-08, Art. 33.)
Applicable law will always be the law chosen by the parties. Law 489-08 does not foresee any exception to this rule and only allows the tribunal to apply “suitable legal rules” in the absence of an explicit election made by the parties.
The Law recognises a number of essential elements, including the autonomy of the arbitration agreement governed by the parties’ autonomy, and, expressly, if the arbitration is international, the arbitration agreement shall be valid and the dispute is arbitrable if they meet the requirements of legal rules chosen by the parties to govern the arbitration agreement, or legal standards applicable to the merits of the dispute, or by Dominican law.
(Source: Law 489-08 of Commercial Arbitration of the Dominican Republic, Art. 10.5.)
The parties are free to determine the number of arbitrators.
(Source: Law 489-08 of Commercial Arbitration of the Dominican Republic, Art. 14.)
If there is no agreement between the parties or the arbitrators, the following rules apply:
The arbitrators shall be appointed according to the rules of the arbitral institution, in the case of institutional arbitration.
For ad hoc arbitration with one or more arbitrators, arbitrators shall be appointed by the competent court under Article 9.1 of the Law, at the request of one party.
(Source: Law 489-08, Art. 15.3.)
Yes, for ad-hoc arbitration. If there is no agreement between the parties for the selection of one or more arbitrators, the arbitrators shall be appointed by the First Instance Court of the arbitration place. If there is no place of arbitration determined yet, the domicile of one of the defendants will be the place of arbitration; if the defendant(s) don’t have a domicile within the Dominican Republic, the applicable place of arbitration will be the plaintiff’s domicile.
(Source: Law 489-08 of Commercial Arbitration of the Dominican Republic, Arts. 9.1 and 15.3.b.)
Any person appointed as an arbitrator shall disclose in writing any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. (Art. 16.1 Law 489-08.)
In the case of institutional arbitration, for the specific case of CRC, at the time of acceptance, the arbitrator must sign a statement of independence, impartiality and confidentiality. (Art. 15.3 of the CRC’s Rules.)
The CRC has also enacted complementary regulation for the arbitration procedures that somehow resemble some of the IBA standards of conduct such as IBA Guidelines on Conflict of Interest in International Arbitration. Moreover, parties may choose subsidiaries sources of procedural law (as the IBA’s).
6.1 Are there laws or rules governing the procedure of arbitration in your jurisdiction? If so, do those laws or rules apply to all arbitral proceedings sited in your jurisdiction? Parties have the freedom to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings. In case of institutional arbitration and if the rules provide a procedure, this procedure will be applied. Failing agreement, the Arbitral Tribunal may, subject to the provisions of the Law, conduct the arbitration in such manner as it considers appropriate. (Source: Law 489-08, Art. 23.2.)
The provisions of Law 489-08 represent the general legal framework to be applied to all arbitrations conducted within the territory of the Dominican Republic. A general principle is that parties should be treated equally and be given the full opportunity to assert their rights.
Counsel from the Dominican Republic is subject to the Code of Ethics of the Bar Association of Dominican Republic in arbitral proceedings sited in Dominican Republic. If arbitral proceedings are being held in the CRC, the Code of Ethics for Arbitrators, Mediators and Conciliators also governs the conduct of counsels.
On the other hand, in case arbitral proceedings are sited elsewhere, counsel from the Dominican Republic would be subject to the Code of Ethics of the Bar Association of Dominican Republic and any other applicable rules that govern the conduct of counsel in that jurisdiction/forum.
Lastly, taking into consideration the public policy nature of the rules that govern the conduct of counsel in the Dominican Republic, the above-mentioned rules would also apply to counsel from countries other than the Dominican Republic in arbitral proceedings sited in the Dominican Republic.
The parties should be treated equally and be given full opportunity to assert their rights, and arbitrators are required to keep confidential any information acquired through the arbitration proceedings.
(Source: Law 489-08, Art. 22.)
A foreign lawyer can provide legal services different from those related to the judicial exercise or appearance in court, as long as they are members of the Bar Association of the Dominican Republic, according to Law 91-83 dated 3 February 1983, which institutes the Bar Association of the Dominican Republic. Pursuant to the United States-Dominican Republic Central American Free Trade Agreement (DR-CAFTA), a foreign lawyer who is not a member of the Dominican Bar Association can provide consulting services regarding foreign law. Notwithstanding, in principle, we understand that there is no specific rule that forbids a foreign lawyer from assisting a client as a consultant in an international arbitration taking place in the Dominican Republic. Also, nothing prevents a foreign arbitrator from integrating an Arbitral Tribunal in the Dominican Republic.
There is no explicit statute or provision about this subject matter in Law 489-08.
The intervention of judicial courts is limited to: assistance in obtaining evidence; the appointment of arbitrators; the adoption of interim measures; action for annulment of awards; and the recognition and enforcement of awards.
According to articles 9 and 32 of Law 489-08 an arbitral tribunal or any of the parties as authorised by the arbitral tribunal may request the local court to assist to obtain evidence. The competent court shall be the Civil and Commercial Chamber of the First Instance Court of the place of arbitration, or of the place where the taking of evidence has to be practiced. This assistance may consist of the presentation of evidence before the competent court or the adoption by it of the necessary measures so that the test can be practiced before the arbitrators.
Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order the adoption of any interim measures it deems necessary, with respect to the subject of litigation. The arbitral tribunal may require the applicant to provide appropriate collateral. A decision on interim measures, whatever form they take, is subject to the rules of annulment and enforcement of awards, and for the application of those rules, the intervention of the courts is necessary.
(Source: Law 489-08, Art. 21.)
The Law permits the parties to request a court to order an interim measure before or during the arbitral proceedings. If the court orders such relief, it shall request the petitioner to submit its statement of claim for arbitration within 60 days as of the date the order is issued. The court may also require the party requesting an interim measure to provide appropriate security, if necessary. Once the arbitral tribunal is constituted, if it orders the suspension or termination of the interim measures adopted by the court, the decision of the arbitrators prevails.
(Source: Law 489-08, Art. 13.)
There should be coexistence between the practice and the Law. Courts must decide the requests for relief under the provisions of the law for each particular situation.
There is no provision in the Law that allows a national court to issue this kind of injunction, but we have known of certain courts that have issued such decisions. The matter has not yet been decided by the Supreme Court.
The arbitral tribunal and/or national court may require the applicant to provide appropriate security.
By virtue of article 13 of Law No. 489-08, national courts grant interim measures to the parties. The court may, in some cases, require the party requesting an interim measure to provide the appropriate bail, if necessary.
In the absence of an agreement between the parties, the arbitrators may rule on the admissibility, relevance, value and utility of evidence, always in compliance with the law. At any stage of the process, arbitrators may request from the parties clarification or information, or the conduct or statement of the evidence they deem necessary. The presentation of the evidence, except in the case of documentary evidence, will be held in hearings. (Art. 30 Dominican Arbitration Law.)
Mention should be made of the Rules of the International Bar Association (IBA) on the taking of evidence in international arbitration proceedings. These rules are designed to complement the legal and institutional rules, ad-hoc or other rules that apply to the conduct of the arbitration, and may be used in whole or in part or used as guides in the arbitration proceedings. These rules were adopted by the CRC into its complementary rules on January 1, 2012.
If the national courts’ intervention is necessary for the aforementioned matter, that kind of request, in principle, is possible. Currently, US-style discovery is not a tendency, rather the great majority of the tribunals are inclined for the production of document, according to the principle actori incumbit probatio. 8.3 Under what circumstances, if any, is a court able to intervene in matters of disclosure/discovery?
As established by the Law, only if it is necessary may the courts assist in obtaining evidence.
For the subject matter, it is necessary to consider the rules in the Civil Procedure Code of the Dominican Republic, which is supplementary to the matter.
For the judicial courts, the people that will be heard as witnesses will be sworn to tell the truth; those that are heard unsworn (such as in arbitration) shall be informed of their obligation to tell the truth. The statements shall be recorded in minutes which shall be signed by the witness.
All communications with lawyers are protected under the “Professional Secrecy” rule, contained in several legal instruments, such as the Bar Association (Ley del Colegio de Abogados) and the Ethics Code. The privilege may be considered waived when the information has been made public by other means.
Article 22.2 of Law No. 489-08 states that the arbitrators, parties and arbitration institutions, are required to maintain the confidentiality of any information acquired through the arbitration proceedings. The parties can, of course, agree otherwise. With the consent of the parties, the information already disclosed can be referred to in subsequent proceedings. 9
There are some requirements that the award must fulfil. In this sense, an award must be in writing and signed by the arbitrator, who can express his opinion dissenting. When it involves more than one arbitrator, the signatures of the majority of the members of the Arbitral Tribunal will be sufficient, provided that it expresses the reasons for the lack of one or more signatures. The award of the Arbitral Tribunal shall be motivated, unless the parties have agreed otherwise. The award shall state the date on which it was rendered and the place of arbitration.
Unless the parties have agreed otherwise and if its requested within the 10 days of the notice of the award, arbitrators can correct the award, regarding a miscalculation, a typographic error or any error of that kind, or the clarification of a part of the award, or the issuance of an additional award as to claims made and unresolved in it.
Also, within the 10 days following the date of the award, arbitrators may ex officio correct errors of the nature previously mentioned.
Awards can be challenged on the following bases, in accordance to Article 39 of Law No. 489-08:
A party to the arbitration agreement was under some incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the laws of the Dominican Republic.
There has been a disregard of the rules of due process that results in a violation of the rights of a party to present its case.
The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the award that contains decisions on matters not submitted to arbitration may be set aside.
The composition of the Arbitral Tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of Law 489-08 from which the parties cannot derogate, or, failing such agreement, was not in accordance with said law.
The subject-matter of the dispute is not arbitrable under the laws of the Dominican Republic.
The award is in conflict with the public policy of the Dominican Republic.
According to Article 40.1 of Dominican Arbitration Law, the parties are entitled to decline to exercise any action against awards.
No, but the parties may waive the right to initiate an action for annulment.
Arbitral awards are not subject to appeal in the Dominican Republic (Art. 39.1 Dominican Arbitration Law.)
Awards are, nevertheless, subject to an action for annulment, which has a different nature from an appeal in Dominican law, since it is a new instance proceeding and is limited to very specific cases, for almost exactly the same criteria applicable to the refusal to acknowledge a foreign award.
The action to challenge awards should be fulfilled within the month of its notification. (Art. 39.5 of Law No. 489-08). For specific cases such as decisions granting the exequatur for an international award, they can be challenged pursuant to dispositions of Law 489-09 before the competent Court of Appeal. 11
The country is a contracting state to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It was ratified without declarations or notification and entered into force in 2001 by Congress Resolution 178-01. The requirements of the domestic law are the same as the New York Convention.
The Dominican Republic signed the Inter American Convention on International Commercial Arbitration (“The Panama Convention”), on 30 January 1975, between the State Members of the Organization of American States. This Convention entered into force in the Dominican Republic after approval by Congress by means of Resolution 432-07 in 2007.
According to Law 489-08 (Art.9.6), foreign awards may become enforceable through an authorisation or exequatur rendered by the Civil and Commercial Chamber of the First Instance Court of the National District. The requirements of Law 489-08 (Art.43) are the same as the NY Convention.
An arbitration award has the effect of res judicata in the Dominican Republic. This closes the possibility for a national court to decide upon the same issues, except in the case of annulment. Regarding its enforcement, homologation is necessary in the case of domestic awards. 11.5 What is the standard for refusing enforcement of an arbitral award on the grounds of public policy?
Courts are often inclined to consider violation of domestic public policy as a violation of citizens’ safety, morality, tranquility, and order strictu sensu.
Law 489-08 expressly states that the arbitrators, parties and arbitration centres, if any, are required to maintain the confidentiality of any information acquired through the arbitration proceedings. The parties can, of course, decide otherwise.
Information disclosed can be referred to in subsequent proceedings only with the consent of the parties.
The arbitral tribunal is not empowered to award punitive or exemplary damages, but moral damages are allowed.
Law 489-08 does not contain any provisions on this matter. In accordance with Article 1153 of the Civil Code of the Dominican Republic, the obligations that are limited to the payment of a certain amount, and the damages resulting from delay in performance, may include condemnation of interests. The standard of the courts is the market interest.
The arbitrators are empowered to decide on costs and fees. The general practice is to condemn the party that succumbs in its claims, but arbitrators can allocate fees and costs between parties according to the results of the award and even take into consideration its conduct during the proceedings. (Art. 36.6 Law 489-08.)
Awards are not subject to any taxes, except those related to the registry of the decision.
The lawyer-client relationship should always be personal, so the lawyer shall not accept business through agents, except in the case of altruistic institutions that provide free legal assistance (Art. 24 Code of Ethics of Lawyers of the Dominican Republic). Contingency fees are legal in the Dominican Republic, up to 30% of the amount involved. There are not, to our knowledge, any professional funders active in the Dominican market.
The ICSID Convention was signed by the Dominican Republic on March 20, 2000, but has yet to be ratified by the National Congress. 14.2 How many Bilateral Investment Treaties (BITs) or other multi-party investment treaties (such as the Energy Charter Treaty) is your jurisdiction party to?
Bilateral Investment Treaties (BITs) to which the Dominican Republic is a party include:
Entry into Force Spain
March16, 1995
Confederation of Switzerland
The Dominican Republic has been a part of one of the most talked about international treaties in Latin America in recent years. The multi-lateral investment treaty between the governments of the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the United States ("DR-CAFTA"), was signed on August 5, 2004. The treaty took effect in the Dominican Republic on March 1, 2007. The most recent multi-lateral treaty that the Dominican Republic is a part of is the Economic Partnership Agreement (“EPA”). In the EPA, the Dominican Republic, along with other Caribbean countries that belong to the Caribbean Community (“CARICOM”), signed a treaty with the European Union (“EU”) on December 18, 2007, to substitute the regime of unilateral preferences supplied by the EU to this region as part of a block of countries of African, Caribbean and Pacific Group of states (ACP), by a reciprocal commercial regime, compatible with the norms of the World Trade Organization.
The Dominican Republic's BITs, in general, contain the classic provisions of this type of treaty, such as the most favoured nation, national treatment, expropriation, free transfer of capital, fair and equitable treatment and full protection and security.
National courts must respect the dispositions of applicable rules and international treaties for arbitration in the Dominican Republic. Specifically, when one of the parties to an arbitration is the Dominican State, or a company, organisation or business property of or controlled by the State, this party cannot invoke the prerogatives of its own law or principles of sovereignty to avoid the obligations stemming from the arbitral agreement (Art. 220 Dominican Constitution and Art. 2.2 Dominican Arbitration Law.) The Constitution recognises the civil responsibility of public organs and its civil servants for damages that result from unlawful administrative actions or omissions.
Recently, the Private International Law Act of the Republic, Law 544-14 was enacted. This new regulation fulfilled many gaps in arbitration practice, such as a criteria for international public policy, conflicts of law at enforcement of awards and so on.
The new enacted laws and regulation on the matter and the development of arbitration institutions such as the CRC reflects how Dominican Republic is walking towards a better and more frequent use of arbitration as an alternative method of dispute resolution.
On January 1, 2012, the Centre of Alternative of Dispute Resolution of the Chamber of Commerce and Production of Santo Domingo adopted certain complementary rules, within which are the regulation of arbitration fees and administrative expenses.
Last year, the CRC subscribed an important agreement with Major League Baseball (MLB) for the development of arbitration in sports matters; this certainly signifies a step forward to the use of alternative resolution methods for the resolution of conflicts among the many Dominican baseball players that are part of this league. Contributing firm
Medina Garrigó Abogados