International Commercial Arbitration at Peru
Sure! Here's a detailed overview of International Commercial Arbitration in Peru:
International Commercial Arbitration in Peru
1. Legal Framework:
Arbitration Law:
Peru regulates arbitration primarily under Legislative Decree No. 1071 (the Arbitration Law), enacted in 2008. This law aligns closely with the UNCITRAL Model Law on International Commercial Arbitration (1985), which Peru adopted with some modifications to fit its domestic context.
International Treaties:
Peru is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which facilitates enforcement of arbitration awards internationally.
Other relevant laws:
The Peruvian Civil Code and Code of Civil Procedure include provisions that may apply subsidiarily to arbitration.
2. Scope and Applicability:
The Arbitration Law applies to both domestic and international commercial arbitration.
An arbitration is considered international if:
The parties have their places of business in different countries, or
The place of arbitration is outside the parties' place of business, or
The subject matter relates to international trade or commerce.
3. Arbitration Agreement:
Arbitration agreements must be in writing (including electronic communications).
The agreement can be an independent clause within a contract or a separate agreement.
It should clearly specify arbitration as the dispute resolution mechanism.
4. Arbitral Tribunal:
Parties are free to choose the number of arbitrators (usually one or three).
Arbitrators must be impartial and independent.
If parties cannot agree on arbitrators, appointment may be made by the Supreme Court of Justice of Peru or an arbitration institution.
5. Arbitration Procedure:
The Arbitration Law promotes party autonomy in deciding procedures.
Unless otherwise agreed, the law provides default procedural rules, including:
Equal treatment of parties,
Fair and impartial hearing,
Freedom to choose language,
Confidentiality of proceedings,
Rules on evidence and hearings.
6. Arbitration Institutions in Peru:
Centro de Arbitraje de la Cámara de Comercio de Lima (Lima Chamber of Commerce Arbitration Center): The main institution providing arbitration services.
Other institutions and international arbitration bodies (like ICC or SIAC) may also be chosen.
7. Arbitration Awards:
Awards must be in writing and signed by the arbitrators.
They are final and binding.
Grounds for annulment by the Peruvian courts are limited, e.g., lack of jurisdiction, due process violations, or award contradicting Peruvian public order.
Awards can be enforced domestically through the courts.
8. Enforcement of Foreign Arbitral Awards:
Peru recognizes and enforces foreign arbitration awards under the New York Convention, subject to limited defenses (e.g., invalid arbitration agreement, due process issues, or public policy grounds).
Practical Insights:
Peru is considered arbitration-friendly, with a modern legal framework aligned with international standards.
The judiciary generally respects arbitration agreements and awards.
Peru is an emerging venue for arbitration in Latin America, often used in disputes involving mining, energy, infrastructure, and trade sectors.
The arbitration process can be conducted in Spanish or another language agreed upon by the parties.
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