International Commercial Arbitration at Puerto Rico (US)
Sure! Here’s a concise overview of International Commercial Arbitration in Puerto Rico (US):
International Commercial Arbitration in Puerto Rico (US)
Legal Framework
Puerto Rico is a US territory, so arbitration is primarily governed by US federal arbitration law, mainly the Federal Arbitration Act (FAA).
The FAA applies to both domestic and international arbitration agreements and awards.
Puerto Rico also has its own arbitration statute, but the FAA generally takes precedence for international and interstate arbitration.
The New York Convention (1958) is incorporated into US federal law via the Convention on the Recognition and Enforcement of Foreign Arbitral Awards Act, which applies in Puerto Rico as well, ensuring enforcement of foreign arbitral awards.
Arbitration Institutions
There is no major Puerto Rico-specific international arbitration institution.
Parties often use international or US-based institutions such as:
American Arbitration Association (AAA) / International Centre for Dispute Resolution (ICDR)
International Chamber of Commerce (ICC)
JAMS
Key Features
Federal Arbitration Act (FAA): Strongly favors arbitration, providing limited grounds for courts to refuse arbitration or vacate awards.
Party Autonomy: Parties can freely agree on arbitration procedures, seat, language, and governing law.
Competence-Competence: Arbitrators have the authority to decide on their own jurisdiction.
Interim Measures: Arbitrators can issue interim or provisional measures.
Confidentiality: Arbitration proceedings are generally private, unlike public court litigation.
Arbitration Process in Puerto Rico
Arbitration Agreement: Must be in writing; incorporated within contracts.
Appointment of Arbitrators: Parties appoint or use institutional rules for arbitrator selection.
Proceedings: Governed by parties’ agreement and applicable rules (e.g., AAA or ICC rules).
Award: Binding and enforceable; courts provide limited review.
Enforcement: The FAA and the New York Convention facilitate recognition and enforcement of awards in Puerto Rico.
Advantages of Arbitration in Puerto Rico
Access to the US legal system and federal arbitration law.
Enforcement of arbitral awards backed by strong US and international legal frameworks.
Bilingual environment (Spanish and English), facilitating Latin American and US business.
Strategic location linking US and Latin America, attractive for international commerce.
Flexibility and neutrality in dispute resolution.
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