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law no 1770 law of march 10, 1997
GONZALO SÁNCHEZ DE LOZADA CONSTITUTIONAL PRESIDENT OF THE REPUBLIC
For the Honorable National Congress, it has sanctioned the following Law: THE HONORABLE CONGRESS NATIONAL, DECREES:
ARBITRATION AND RECONCILIATION ACT PRELIMINARY TITLE SINGLE CHAPTER
GENERAL PROVISIONS ARTICLE lo.-(Regulatory Scope)
This Act establishes the legal regulations of the arbitration and conciliation as alternative means of settlement of disputes, which The legal subjects may be adopted by legal subjects before they submit their disputes to the ordinary courts and even during their judicial proceedings. ARTICLE 2o.-(Principles)
The following principles will govern arbitration and reconciliation as alternative means of dispute resolution: 1. PRINCIPLE OF FREEDOM, which consists in the recognition of powers of powers to the parties to
to adopt alternative means to the judicial process for the resolution of disputes. 2. PRINCIPLE OF FLEXIBILITY, which consists of establishing simple, adaptable and
simple actions. 3. PRIVACY PRINCIPLE, which consists of mandatory maintenance of the required reservation and
confidentiality. 4. PRINCIPLE OF SUITABILITY, which consists of the ability to perform as an arbitrator or a conciliator. 5. PRINCIPLE OF CELERITY, which consists of the continuity of the procedures for the solution of the
controversies. 6. PRINCIPLE OF EQUALITY, which consists in giving each side the same opportunities to assert their
rights. 7. PRINCIPLE OF HEARING, which consists of the orality of the alternative procedures. 8. PRINCIPLE OF CONTRADICTION, which consists of the opportunity for confrontation between the parties.
TITLE I OF ARBITRATION
CHAPTER I GENERAL PROVISIONS
ARTICLE 3o.-(Rights subject to arbitration) You may submit to arbitration any disputes arising or that may arise from contractual legal relations or
non-contractual parties, by exercising your free arbitration on available rights and not affecting the public order, before, in the course or after an attempted judicial process, any is the state of the latter, extinguishing it or avoiding the one that could be promoted. ARTICLE 4.-(State capacity) I. May be subject to arbitration, disputes in which the State and legal persons governed by Public Law are
interested parties, provided they are about available rights and derive of a property legal relationship of private law or of a contractual nature.
II. According to the provisions of the previous paragraph, the State and legal persons governed by public law have full capacity to submit their disputes to national or international arbitration, within or outside the national territory, without prior authorization.
ARTICLE 5o.-(Testamentary Arbitration).
1. Interpretation of the testador's last will. 2. Partition of inheritance assets. 3. Institution of successors and conditions of participation. 4. Distribution and administration of the estate.
II. Where the testamentary provision does not cover the designation of the arbitral tribunal or the institution in charge of the arbitration, the designation of the tribunal shall be made Arbitration with jurisdictional relief in accordance with the provisions of this law.
III. In the absence of any express provisions in the will, the provisions contained in this law shall apply to this form of arbitration.
ARTICLE 6o.-(Materies excluded from arbitration) I. They may not be object of arbitration: 1. The issues on which there has been a firm and definitive judicial resolution, except for aspects arising from its
execution. 2. The issues that deal with the civil status and capacity of people. 3. Questions relating to goods or rights of incapable, without prior judicial authorization. 4. Issues concerning the functions of the State as a person governed by public law.
II. Labour matters are expressly excluded from the scope of this law, because they are subject to the provisions of this law. legal ones.
ARTICLE 7o.-(Rules of interpretation) I. When a provision of this law gives the parties the power to decide freely on a question
it shall involve the authorisation of a third person, natural or legal, to take such a decision.
II When a provision of this law relates to an agreement of parties concluded or to be concluded, all the provisions of the arbitration regulation that the parties have decided to adopt shall be understood to be understood in that agreement.
III. The rules concerning the formation of the arbitral tribunal and the arbitral proceedings are of an extra nature in relation to the will of the parties. They may, by mutual agreement, propose to the Court the partial amendment or the supplementing of the rules of procedure provided for in this law, provided that they do not alter the principles of arbitration and the matters excluded from it.
ARTICLE 8o.-(Notifications and written communications) I. For purposes prior to the commencement of the arbitral proceedings, any notification and
any other written communication that is personally delivered to the addressee, or at his/her special address, shall be deemed validly received. constituted, or in the establishment where it exercises its principal activity or in its habitual residence.
II. Where it is not possible to determine any of the places referred to in the preceding paragraph, any written notification or communication which has been sent by registered letter or any other means of record shall be deemed to have been received. made, to the last known address or habitual residence.
III. In previous cases, notification or communication will be considered to be received on the date the delivery was made.
IV. The notifications, will be valid when they are made by mail, telex, facsimile or other means of communication
ARTICLE 9o.
(Competition and judicial assistance) I. In disputes that are resolved subject to this law, only the corresponding arbitralhave jurisdiction. No other court or body may intervene, unless it is to carry out judicial assistance.
II. The judicial authority competent to provide assistance, in the cases established, shall be qualified by law to know the cause or controversy in civil or commercial matters, in the absence of arbitration. In the absence thereof, the place where the arbitration is to be held shall be the place where the applicant is to be held, in the absence of it and at the discretion of the claimant, or the place of the defendant's domicile, or that of any of them, if they are several.
CHAPTER II ARBITRATION AGREEMENT
ARTICLE l0o.-(Formalization) I. The arbitration agreement is implemented in writing, either as a clause of a principal contract or by separate agreement of the
itself. Their existence derives from the subscription of a principal contract or a specific arbitration agreement or from the exchange of letters, telex, facsimile or any other means of communication, which leaves a documentary evidence of the will of both parties to submit to the arbitration.
II. The reference made in a contract other than a document containing the arbitration agreement is a record of the agreement, provided that such contract is written and that the reference implies that the arbitration agreement is part of the contract.
ARTICLE 11o.-(Autonomy of the Convention ) Any arbitration agreement that forms part of a principal contract is considered to be an independent agreement of the
other stipulations of the same. ARTICLE 12o.-(Arbitration Exception)
I. The arbitration agreement matters the waiver of the parties to initiate judicial proceedings on matters or disputes submitted to arbitration.
II. The judicial authority which takes cognizance of a dispute subject to an arbitration agreement must be held to be aware of the case at the request of the judicially demanded party. In this case, that party may object to arbitration in a documented manner and before the defence. The exception will be resolved without further processing, by express resolution.
III. Constatated the existence of the arbitration agreement and without any recourse to any recourse, the competent judicial authority shall declare the exception of arbitration proved or, (a) by pronouncing only on the nullity or impossible execution of the arbitration agreement the exception of arbitration shall be dismissed.
IV. However, the arbitral proceedings may be initiated or continued, and to make an award while the exception is pending before the judge.
ARTICLE 13o.- (Renunciation to arbitration) I. The waiver of the arbitration shall be valid only when the will of the parties concurs. It shall be express or tacit. II. The parties may expressly waive arbitration by written notice to the Arbitration Court in
joint, separate or successive form, in which case they may use the court or other means alternative dispute resolution that you consider convenient.
III. It is considered that there is tacit renunciation when one of the parties is sued by the other and does not object to an arbitration exception, in accordance with the provisions of this law.
IV. arbitration, the fact that any of the parties, before or during the arbitral proceedings, requests from a competent judicial authority the adoption of precautionary measures or that the judicial authority may grant compliance with them.
CHAPTER III ARBITRAL TRIBUNAL
SECTION I GENERAL RULES
ARTICLE 14o.-(Requirements and incompatibility) I. The appointment of an arbitrator may be placed on any natural person who at the time of his/her acceptance complies with the following
requirements: 1. act in accordance with civil law.
2. Reune the requirements agreed by the parties or required by the arbitration institution. II. Judicial officials, members of the legislative branch, public servants, public ministry officials
and stock market operators are prevented from acting as arbitrators, under the penalty of nullity of the award. prejudice to the responsibility that may correspond to them for accepting an arbitration designation.
ARTICLE l5o.-(Impartiality and Responsibilities) I. Arbitrators do not represent the interests of any of the parties and shall exercise their functions with absolute impartiality
and independence. II. Persons who accept the position of arbitrator shall be required to fulfil their role as agreed by the
parties, as set out in the institutional regulation adopted or prescribed by this law. The arbitrators shall be liable in civil and criminal matters for the unfair or fraudulent exercise of their function, for the damages caused and for the crimes committed in the arbitration.
III. The arbitrator who refuses to sign the award will be sanctioned with the loss of their fees. The same penalty will apply to the dissident arbitrator who does not write down the reasons for his or her particular discrepancy or vote.
IV. The acceptance of arbitration by a specialized institution requires it to administer the the procedure, subject to the agreement of the parties, as laid down in its institutional regulation or as prescribed by this law. In the event of non-compliance the injured party will take action against the institution to the extent that it is imputable, without prejudice to those in turn against the arbitrators.
ARTICLE 16o.-(Anticipation of expenses and fees) Unless otherwise agreed, the acceptance of the charge will confer on the arbitrators and the institution in charge of administering
the arbitration, the right to ask the parties for an advance of the funds they deem necessary to satisfy the fees of the arbitrators and the costs and expenses of the administration of the arbitration. SECTION II
ARBITRATION TRIBUNAL CONFORMATION ARTICLE 17o.-(Number of arbitrators) I. The parties may freely determine the number of arbitrators that will necessarily be odd. In the absence of agreement,
the referees will be three. II. In arbitration with a sole arbitrator, when the parties fail to agree on the appointment of the arbitrator, this
shall be appointed by the judicial authority at the request of either party. III. In the absence of agreement in the arbitration with three arbitrators, each party shall appoint one and the two arbitrators so designated
shall appoint the third party. The competent judicial authority shall appoint the arbitrators in the following cases: 1. Where one of the parties does not appoint its arbitrator within eight (8) days of the written request of the other party
to do so. 2. When the two arbitrators appointed by the parties fail to agree on the third arbitrator, within
the eight (8) days following the date of their appointment. IV. The arbitrators who make up the arbitral tribunal may appoint a Registrar of the Tribunal in accordance with the
parties. E1 Secretary will have the file under his or her responsibility and will assist the Tribunal in the proceedings of the proceedings.
ARTICLE 18o.-(Election of President) In arbitration with three arbitrators, the members of the Arbitration Court appoint a majority to one of them as President. If no agreement is reached by the oldest arbitrator, he shall perform the duties of President. ARTICLE 19o.-(Designation by third party) I. The parties may empower a third party to appoint one or all of the members of the Arbitration Court. II. The parties may also entrust the administration of arbitration and the designation of arbitrators to entities or
specialized associations through arbitration centers, in accordance with the regulations of such institutions. ARTICLE 20o.-(Missing or Unable to Exercise)
I. In case of lack of exercise, death, definitive incapacity, temporary incapacity greater than twenty (20) days, renunciation, legal incompatibility or concurrency of recusal causal that make the exercise of the function impossible arbitration, a replacement shall be appointed, as provided for in the following article.
II. If there is disagreement with regard to a cause for the separation of the arbitrator, either party may request it from the judicial authority. competent.
III. The resignation of an arbitrator or the acceptance of the interruption of his or her mandate by both parties shall not imply the presumption of evidence of the grounds or causes that may result in such resignation or separation.
ARTICLE 21o.-(Appointment of substitute arbitrator) When an arbitrator has ceased to be given one of the cases provided for in Article 20
paragraph I, a substitute arbitrator shall be appointed by observing the same procedure for which he/she is designated to whom it is to be replaced. If the replacement is completed, the arbitral tribunal may order the reproduction of the oral test already performed, unless the substitute arbitrator considers sufficient reading of the performances. ARTICLE 22o.-(Jurisdiction of the judicial authority) I. Any of the parties may request the competent judicial authority to form the arbitral tribunal in the
following cases: 1. Where one of the parties does not act in accordance with the agreed procedure for the appointment of arbiters;
2. When the parties or an even number of arbitrators cannot reach an agreement; 3. When a third party, including the arbitration institution, does not fulfill the function entrusted to it with
procedure adopted. II. It shall be the competent judicial authority that the parties decide to submit to, or the place where the
award is to be made or, at the choice of the plaintiff, that of the domicile, principal establishment or habitual residence of any of the parties in demand, in that order of precedence.
III. The interested party shall submit his written application to the competent judicial authority, accompanying the evidence of the arbitration agreement and shall state the reasons to justify the judicial aid in order to form the Arbitration Court.
V. The judicial authority shall accept or reject the application and, where appropriate, summon the parties to a hearing, to be held within the following five (5) days. If the requesting party does not appear, the judicial authority shall terminate the proceedings, with file of workers and the imposition of costs on the requesting party. The court ruling ending the procedure does not affect the arbitration clause.
The absence of the party or its representative, against which the application is filed, will not affect the hearing's celebration.
The The applicant may withdraw from the judicial proceedings initiated for the formation of the Arbitration Tribunal, and proceed to the judicial sphere, for the consideration of the substantive controversy.
ARTICLE 23o.-(Judicial hearing) I. In the hearing, the competent judicial authority will urge the comparitent to arrive at a agreement on the
integration of the arbitral tribunal. If the parties do not agree and no other means exist to provide the appointment, the judicial authority shall make the appointment.
The judicial authority shall take the most appropriate measures for the appointment of arbitrators. In the appointment, the judicial authority shall consider the conditions required by the arbitration agreement for the arbitration function and shall take the necessary measures to ensure the appointment of independent and impartial arbitrators.
III. The decision taken by the competent judicial authority with reference to the formation of the arbitral tribunal shall not admit any recourse.
ARTICLE 24o.-(Notification and acceptance of the charge) I. The designation of the members of the Arbitral tribunal made by the parties, a third party, a specialised institution or
a competent judicial authority shall be notified to each of the appointed arbitrators.
II. If within eight (8) days of the date of your notification the person appointed as arbitrator shall not accept in writing the designation, it shall be understood that he shall waive his appointment and shall appoint a new one.
SECTION III REFEREES
ARTICLE 25o.-. (Reporting Obligations) I. The person who is consulted to be a designated arbitrator, will have the obligation to inform the parties in writing or to
the institution of the arbitration, on possible grounds for recusal or other circumstances that may compromise his impartiality.
II. The arbitrator shall also, from the time of his appointment and during the arbitral proceedings, be required to disclose without delay about such causals, except that have informed the parties about the particular prior to their appointment.
III. The parties may expressly or tacitly dispense the grounds of recusal that are of their knowledge. In this case, the award may not be contested on the grounds of that claim. It will be considered, that there is tacit dispensation of a recusal causal, when it is omitted to raise it within the term fixed to the effect.
ARTICLE 26o.-(Causals of recusal) I. An arbitrator may be challenged only in the Following cases:
1. For any of the causals set in the Civil Procedure Code. 2. For non-existence of the personal and professional requirements agreed by the parties or established by the
institution in charge of administering the arbitration. II. A party may only challenge the arbitrator appointed by it or in whose appointment it has participated, by causals
known after the appointment has been made. ARTICLE 27o.-(recusal procedure) I. The parties may freely agree on the procedure for recusal of the arbitrators or refer to the regulation of the
institution that administers the arbitration. II. In the absence of agreement or determination of the regulation, the recusal party may refer to the competent judicial authority
in the manner set out in Article 29. III. Dealing with a single arbitrator, the arbitral procedure will be brought to a standstill while the recusal is substantiated or if the
itself will reach the majority of the members of the Tribunal. ARTICLE 28o.-(Processing before the arbitral tribunal) I. The recusal party that chooses to raise the challenge before the Arbitration Court, will present the relevant memorial with
exposure of the causation grounds, within the ten (10) days after taking cognizance of the formation of the Arbitration Tribunal or any of the grounds referred to in Article 26.
II. The Arbitration Court without the participation of the challenged arbitrator shall decide by absolute majority on the origin of the recusal, unless it has been previously produced waiver or compliance with the recusal. In the event of a tie, the President of the Court shall decide and, in the absence of such a tie, the oldest arbitrator.
III. Against the decision taken, no recourse shall be made and the recusal party shall not be able to enforce the rejected as a causal claim when applying for the annulment of the award. ARTICLE 29o.-(Judicial aid in recusal)
I. In the absence of an agreement of parties or of regulation in the regulations of the institution that administers the arbitration, the recusal party may request the judicial assistance, in which case it shall formalise the challenge to the competent judicial authority within 10 (10) days after it becomes aware of the formation of the arbitral tribunal or of any of the circumstances referred to in Article 26.
II. Presented the recusal and upon notification of parties, the authority The competent judicial authority shall process and resolve the incident in accordance with the provisions of the Code of Civil Procedure.
SECTION IV COMPETENCE AND ARBITRATION POWERS
ARTICLE 30o.-(Resolutions) I. The decisions, agreements, and awards of the Arbitration Court when more than one arbitrator is held, will be resolved by a majority
of votes of all its members. II. Except as otherwise provided by the Arbitration Tribunal, the proceedings of a mere procedure shall be dictated by its President. III. The receipt of the evidence may only be performed with the presence of all arbitrators. ARTICLE 31o.-(Faculties).
They are the powers of the referees: 1. To promote the procedure, by making available the necessary measures for this purpose. 2. Dispose in any state of the procedure the necessary steps to clarify the truth of the facts
controversial, being able to request clarifications, additional information and the explanations that they estimate necessary, respecting the right of defense of the parties.
3. Attempt at all times a reconciliation between the parties with reference to the refereed matter, applying the procedure set out in Title III if the parties did not agree to another.
4. To resolve any ancillary issues arising in the course of the proceedings. ARTICLE 32o.-(Competition in Special Cases) I. The Arbitration Court shall have the power to decide on its own jurisdiction and the exceptions relating to the
existence, validity and effectiveness of the arbitration agreement. II. The arbitral decision declaring the nullity of a contract shall not determine in a manner necessary the nullity of the agreement
arbitration. ARTICLE 33o.-(Exceptions) I. The court's exception of incompetence may be based on the non-existence of arbitrable matter or the non-existence,
nullity or expiration of the arbitration agreement. It may be the opposite until the time of filing the defence of the claim, even if the exceptionist has designated or participated in its designation.
II. The exception referred to a possible excess of the mandate of the arbitral tribunal must be opposed within five days following the knowledge of the act and during the arbitral proceedings, concreting the matter which allegedly exceeds that
III. In any of the cases referred to in previous paragraphs, the Arbitration Court may consider an exception submitted later, when it considers the delay or omission to be justified.
ARTICLE 34o.- (Processing and judicial remedy) I. The arbitral tribunal may decide on the plea of lack of competence, as a matter prior to or in time for the award. II. When the arbitral tribunal declares as a prior matter that it lacks jurisdiction, the
arbitration proceedings shall be terminated and the documentation shall be returned to the parties who submitted it. III. If the arbitral tribunal declares itself competent, any party within the following thirty days of notification
the decision, may request the competent judicial authority to resolve the matter, and its resolution be unappealable; while the application is pending, the Arbitration Court may continue its proceedings and make an award.
ARTICLE 35o.-(Disposition of precautionary measures) I. Unless otherwise agreed by parties and on request of one of them, the Arbitration Court will be able to order the measures
considers necessary, in respect of the subject matter of the dispute. II. The Arbitration Court may require the party to apply for the precautionary measure to an appropriate counterclaim, in order to
ensure compensation for damages in favour of the opposing party for the case that the claim is declare unfounded.
ARTICLE 36o.-(Judicial aid for the execution of measures) I. For the execution of precautionary measures, production of tests or compliance with common measures, the Tribunal
Arbitral or any of the Parties may provide or request the assistance of the competent judicial authority of the where the measure is to be executed or a diligence provided by the arbitral tribunal is to be carried out.
II. For the preceding effect, the arbitral tribunal shall officiate the competent judicial authority and shall accompany an authentic copy of the agreement arbitration and the resolution that provides the precautionary measure or the measure.
ARTICLE 37o.-(Judicial Relief Station) I. Within the scope of its jurisdiction and in accordance with the relevant legal provisions, the judicial authority whose
assistance will be requested, will leave the application without substantiation within a maximum of five (5) days of receipt. II. Unless the measure requested is contrary to public order, the competent judicial authority shall limit itself to comply with the
application without judgment on its provenance or provenance or to admit opposition or resources. CHAPTER IV
SECTION I ARBITRATION PROCEDURE
GENERAL RULES ARTICLE 38o.-(Representation and Sponsorship)
The parties shall act directly or through their representatives. They will also be able to obtain the assistance and sponsorship of lawyers or to exercise the defense of their interests themselves. ARTICLE 39o.-(Determination of the procedure) I. The parties shall have the power to agree to the procedure to which the Arbitration Tribunal shall be submitted or to adopt
arbitration rules established by the institution administrator of the same. II. In the absence of agreement and subject to the general principles of arbitration, the Tribunal may develop the procedure
as it considers more appropriate. This power conferred on the arbitral tribunal shall include the ability to determine the admissibility, relevance and value of the evidence.
ARTICLE 40o.-(Address of domicile) I. The parties to their first memorial shall indicate domicile special to receive notifications and communications
written, within the urban radius or locality where the Arbitration Court works, that will be rejected for all legal effects until another is constituted.
II. When the parties have not indicated a special address in the form provided by the The following paragraph shall be required to be made on Tuesday and Friday of each week in order to be notified with the appropriate action. If they do not do so, they shall be notified to them, except in the case of notifications with the arbitral award and those corresponding to cases governed by the Code of Civil Procedure.
ARTICLE 41o.-(Extension of Strokes) deadlines provided for in this law may be extended as long as there is agreement of parties.
SECTION II ARBITRATION PROCEEDINGS
ARTICLE 42o.-(Place of Arbitration) I. The parties may freely determine the place of arbitration. In the absence of an agreement or express provision of the
applicable arbitration rules, the Arbitration Court shall determine, in accordance with the circumstances of the case, including the convenience of the parties.
II In the preceding paragraph, the arbitral tribunal may meet, with notice of parties, any place it deems appropriate to hold its deliberations, to hear the parties and their witnesses or experts, to examine goods or to carry out any another performance.
ARTICLE 43o.-(Initiation of the arbitration procedure) different parties, the arbitral proceedings shall be initiated when all the arbitrators have notified to
the parties in writing their acceptance of the designation. ARTICLE 44o.-(Demand and Response) I. The demand is formalized, the defendant shall have a period of ten days to reply to it. II. The claim and the response will concretize the facts on which the object is based on punctuality and precision, the object
of the designated claim with accuracy, eventual impaired subjective rights and the legitimate interest that They intend to preserve the parties, petitioned in clear and concrete terms. The parties may amend or extend the application or the defence until one day before the first performance of the evidence referred to in Article 49.
III. In time to present the claim, counterclaim and defence of both parties, the parties must provide all documentary evidence they consider relevant or refer to those they will present later.
ARTICLE 45o.-(Rebellion) I. The arbitral tribunal shall continue the proceedings even if the defendant does not submit its reply as
article and does not invoke justified cause. II. addition, the Arbitration Court will continue the proceedings and will dictate the award on the basis of the evidence it holds, even
one of the parties does not appear to be in a hearing or not present evidence. ARTICLE 46o.-(Evidence, hearings and performances) I. The Arbitration Court shall decide on its own motion or upon request to hold hearings for the submission of evidence,
oral arguments or other effects or if actions shall be conducted on the basis of documents and other evidence. II. Tests must occur within the maximum period of thirty (30) days computed from the date of
notification with the defence of the claim or counterclaim. ARTICLE 47o.-(Offering and receiving of evidence) I. The offering and receipt of any evidence must be notified to the parties or their representatives, for purposes of validity.
In particular, they must be made available to both parties. parts of the evidence or evidence in which the arbitral tribunal may found its judgment.
II. The arbitral tribunal may, of its own motion, require the evidence it deems relevant. ARTICLE 48o.-(Nomination of experts) I. The Arbitration Court may appoint one or more experts to report on matters requiring expertise
. At the same time, it shall provide the parties with access to the information, documentation and goods required for the performance of the expert function.
II. Presentate the expert reports, the Arbitration Court, Or at the request of parties, you may have hearings, so that the experts explain or supplement specific and controversial points in these reports.
ARTICLE 49o.-(Notification and Transfer) I. holding hearings and meetings of the Arbitration Court to examine documents, goods or other goods, will be
notified with a period of not less than three (3) days to the date of its realization. If necessary and in accordance with special circumstances, this period may be extended or reduced by the provision of the Arbitration Tribunal.
II. The Arbitration Court shall be transferred and shall make available to the parties the entire test, documentation, statements, information and expertise presented to you.
SECTION III EXTRAORDINARY CONCLUSION AND SUSPENSION OF PROCEDURE
ARTICLE 50o.-(Conclusion of the performances) The actions Arbitration shall be concluded with the judgment and notification of the final award. Previously, in extraordinary form at the disposal of the Arbitration Court, in the following cases: 1. Withdrawal of the claim before its defence, teniendosela for not filed. 2. Disappearance of the claim, except opposition from the defendant if the arbitral tribunal recognizes a legitimate interest of
its party to obtain a definitive settlement of the dispute. 3. Dismissed by common agreement of the arbitration procedure. 4. Impossibility or lack of need to continue the proceedings, verified by the arbitral tribunal. 5. Abandonment of the arbitration procedure by both parties for more than sixty days, computable since the last performance. ARTICLE 51o.-(Reconciliation and Transaction) I. If during the arbitral proceedings the parties agree to a settlement or transaction that resolves the dispute, the
Arbitration Court will terminate the proceedings and will record the settlement or transaction in the form of an arbitration award and in the terms agreed by the parties.
II. In the foregoing case, the arbitral tribunal shall make the award subject to the provisions of this law. This award will have the same nature and effects as any other dictation on the merits of the controversy.
III. When the reconciliation or transaction is partial, the arbitration procedure shall continue with respect to the other unresolved issues of dispute.
ARTICLE 52o.-(Suspension) The parties by common agreement and by written notice to the arbitrators, may suspend the procedure
arbitration before the award, for a maximum period of 40 days from the last notification. CHAPTER V
ARBITRATION AWARD ARTICLE 53o.-(Rules applicable to form) I. The arbitral award shall be written. When more than one arbitrator is held, the award will be valid only when it is
signed by the majority of the members of the Arbitration Court. The award shall state the reasons for the failure to sign who did not.
II. The arbitral award shall be reasoned, unless the parties have agreed otherwise, or that the award is issued on the terms agreed by the parties. parties in accordance with Article 51 of this Law.
III. The dissident arbitrator shall record in writing the reasons for his particular disagreement or vote. ARTICLE 54o.-(Rules applicable to the fund) I. The Arbitration Court shall decide at the bottom of the dispute in accordance with the provisions of the main contract.
Dealing with a matter of a commercial nature, it shall also have in
II.
II. Unless otherwise agreed, the Arbitration Court shall decide according to the fairness and in accordance with its knowledge and fair knowledge and understanding.
ARTICLE 55o.-(Deadline and notification) I. The Arbitration Court will dictate its award within a period of not more than one hundred and eighty (180) days From the date of
acceptance of the arbitrators or from the day of the last substitution. For the duration of the originally agreed period, such time limit may be extended for a maximum of sixty (60) days.
II. The award shall be notified to the parties by a duly signed copy by the arbitrators. ARTICLE 56o.-(Content of the award)
For legal validity, the arbitral award shall contain:
Names, nationality, domicile and general of law of the parties and of the arbitrators.
Date and place in which the award is made.
Controversy submitted to arbitration.
Rationale and approach to the arbitration decision
The signatures of all members of the Arbitration Court, or of a majority of them. ARTICLE 57o.-(Convictions and pecuniary penalties) I. In case the award provides for compliance with a pecuniary obligation, its resolutive party will specify the
corresponding liquid and determined sum and the time limit for its compliance. In the case of obligations to do or not to do so, the award will set a reasonable time limit for compliance with them.
II. Without prejudice to the foregoing, any of the nature of the obligation that the award has to comply with, the The arbitral tribunal may establish pecuniary penalties for the benefit of the creditor, for any delay in the performance of such an obligation. Pecuniary sanctions shall be progressive and shall be graduated in accordance with the economic and personal conditions of the person responsible, provided that the parties have so agreed.
ARTICLE 58o.-(Costs and expenses)
I. The costs and expenses of the arbitration shall be regulated by the institution that administers an arbitration. Common costs and expenses shall include but not limited to:
1. Fees of arbitrators and representatives of the parties. 2. Documented and justified expenses of the arbitrators. 3. Remuneration of the Registrar of the Arbitration Court. 4. Administrative expenses and remuneration of the service provided by the institution in charge of the arbitration.
II. Unless otherwise agreed, the parties shall pay their own costs and expenses to bear and the common costs by equal parties.
III. In the ad hoc arbitration, the Arbitration Court shall set its fees and those of the secretary at its first meeting. Notified parties with the fees, they may accept or reject them within a maximum period of three (3) days.
In the event of rejection by either party, the Arbitration Court will convene a hearing within 48 hours.
ARTICLE 59o.
(Amendment, Complementation and Clarification)I. Within three (3) days of notification of the award, the parties may request that the Arbitral Tribunal
amend any miscalculation, copying, typography or similar errors nature, provided that the substance of the decision is not altered. The mere material error may be corrected ex officio, still in execution of the award.
II. In the same form and in a similar period, the parties may request that the Arbitration Court rule on some point omitted or from intelligence and Dubious interpretation, to supplement or clarify the award. The requested amendment, complementation or clarification will be issued by the Arbitration Court within ten (10) days of the application. If necessary, this period may be extended for a maximum of ten (10) days, with acceptance by the parties.
III. The amendments, complementarities and clarifications of the award shall be subject to the rules laid down in the Articles 53 and 56 of this Act.
ARTICLE 6Oo.-(Executing and Effects) I. The arbitral award shall be enforceable when the parties have not filed the action for annulment in the
business, or where the person who brought the case has been declared inadmissible. II. The executed award will have a judgment value passed in the res judicata authority and will be mandatory and
inexcusable compliance from the notification to the parties with the resolution that declares it. ARTICLE 61o.-(Cesation of duties)
The arbitral tribunal shall cease in its duties at the end of the arbitral proceedings which include the acts relating to the amendment, complementation, clarification and declaration of enforceability of the award, without prejudice to the provisions of Article 65. CHAPTER VI
ANNULMENT OF THE AWARD ARTICLE 62o.-(Action for annulment)
Against the award given by the Court of Arbitration only action for annulment may be brought. This appeal is the only way of challenging the award, it must be based and based exclusively on the grounds mentioned in the following article. ARTICLE 63o.-(Causals of Annulment) I. The competent judicial authority shall annul the arbitral award, for the following grounds: 1. Non-arbitrable matter.
2. Arbitration contrary to public order. II. The competent judicial authority may also cancel the award when the recurring party proves any of the following
causal:
Existence of the cases of nullity or nulliability of the arbitration agreement, according to rules of the Civil Code. Failure to notify with the appointment of an arbitrator or with the arbitral proceedings.
Impossibility of exercising the right of defense. Reference of the award to a dispute not provided for in the arbitration agreement or inclusion in the same of decisions and matters that exceed the said arbitration agreement, prior to the separation of the matters submitted to arbitration and not sanctioned with cancellation. Irregular composition of the arbitral tribunal. Vitiated development of the procedure, which infringes the agreement, as established in the regulation adopted or prescribed in this law. Award of the award outside the time limit provided for in Article 55 paragraph I of this Law.
III. The appellant who, during the arbitral proceedings, will omit to lodge a protest in respect of the causative grounds, shall not be able to invoke the same causal in the action for annulment.
ARTICLE 64o.-(Interposition, substantiation and deadline) I. The action for annulment shall be brought before the Court of Arbitration which gave the award on the basis of the tort suffered,
within ten (10) days of computing from the date of notification with the award or, where appropriate, from the date of notification with the amendment, complementation or clarification.
II. This resource shall be moved to the opposite party, which shall respond within the same period. The Tribunal Arbitral, with or without response to the transfer, shall grant the appeal, with the right to send the file to the judge of the party of duty in the civil of the relevant Judicial District. The referral of the file shall be made within twenty-four hours of the grant of the appeal.
III. The Arbitration Court shall reject without further processing any action for annulment which is submitted outside the time limit. established by this Article, or which is not founded on the grounds mentioned in Article 63 of this Law.
ARTICLE 65o.-(Compels) If the resource is rejected outside the provisions of the previous article, the interested party will be able
to interject to the judge of the party of turn in the The Civil Procedure Code shall be based on the provisions of the Code of Civil Procedure. ARTICLE 66o.-(Process of the appeal) I. Received the file by the judge of the party of the turn in civil matter, will decree its radicatory, action from the
which will be held by legal address of the parties the secretariat of the judged. II. The Judge, upon request for the annulment of an award, may suspend proceedings for annulment, where appropriate,
and so request one of the parties, for the period it deems appropriate in order to give the Court of Arbitration the the opportunity to resume the arbitral proceedings or to take any other measure that in his judgment eliminates the causes of the action for annulment.
III. The judge will give a decision of view without further processing, within thirty years. (30) days, computable from the date of entry of the case to dispatch.
IV. The judge according to its prudent criteria, it may open an eight (8) day probative term, observing the rule of Article 232 of the Code of Civil Procedure.
ARTICLE 67o.-(Inadmissibility of resources) The resolution of view that resolves the override facility does not support any resource.
CHAPTER VII RECOGNITION AND EXECUTION OF AWARDS
ARTICLE 68o.-(Judicial help for execution)
Meaning or enforceability of the award and the time limit set for its compliance, the interested party may request its enforcement by the competent judicial authority of the place where the award has been made. ARTICLE 69o.-(Request for Recognition and Execution) I. The party requesting the recognition or execution of an award, shall accompany to its claim authentic copies of the
following documents: 1. Arbitration Convention held between the parties.
2. Laudo arbitration and amendments, complementarities and clarifications. 3. Checks or written constances of notification to the parties with the award.
ARTICLE 70o.-(Forcible Execution Procedure) I. The application is being refiled by the competent judicial authority to be transferred to the another part, so that you respond
within four (4) days of your notification. II. The judicial authority shall accept oppositions to the enforced execution of the award, which are documented in
the compliance of the award itself or the existence of a pending action for annulment. In the latter case, the judicial authority shall suspend the enforcement of the award, until the appeal is resolved.
III. The judicial authority shall dismiss the oppositions based on different arguments without any procedure. indicated in the preceding paragraph, or any incident which seeks to hinder the execution requested. The resolutions which are given in this matter will not admit any challenge or appeal. It is prohibited to the executing judge to admit resources that hinder the execution of the award being null the respective resolution.
IV. The judicial authority will automatically reject the enforced execution, when the award is in some of the causals provided for in article 63 paragraph I of this law.
INTERNATIONAL TRADE ARBITRATION Title II
CHAPTER I SPECIAL PROVISIONS
ARTICLE 71 or.-(Characterization) I. A the effects of this law, an arbitration shall be of an international character, in cases following: 1. When at the time of the conclusion of the arbitration agreement, the parties have their establishments in different States.
2. When the place of compliance of a substantial part of the obligations or the place with which the object of the dispute has a closer relationship is outside the State in which the parties have their establishments.
3. When the parties have expressly agreed that the arbitrable matter is related with more than one State.
II. For the purposes of determining the international character of an arbitration, where one of the parties has more than one establishment for the exercise of its principal activities, shall be deemed to be in relation to the arbitration agreement. When a party has no establishment, its habitual residence will be taken into account.
ARTICLE 72o.-(Regulatory Complementation) I. The provisions of this Title shall apply to International Arbitration, without prejudice to the following
instruments: 1. Inter-American Convention on "International Commercial Arbitration", approved in Panama on January 30,
1975. 2. Convention on "Recognition and Enforcement of Foreign Arbitral Statements" approved in New York on
10, 1958. 3. Inter-American Convention on "Extraterritorial Effectiveness of Foreign Sentences and Lauds", upon ratification,
approved in Montevideo on May 8, 1979. 4. Convention on "Settlement of Differences Relating to Investments between States and Nationals of Other States",
approved in Washington on March 18, 1965.
II. Where applicable, the provisions of Title I of this Law relating to arbitration in general shall be applied as a supplement to the special provisions of this Title II as well as the provisions contained therein. instruments referred to in the preceding paragraph.
ARTICLE 73o.-(Rules applicable to the fund) I. The Arbitration Court shall decide the dispute subject to the legal rules chosen by the parties as applicable to the
the bottom of the controversy. Unless otherwise stated, any indication or reference to the legal order of a State shall be understood to refer to the substantive law of that State and not to its rules of conflict of laws.
II. When the parties do not In the applicable law, the Arbitration Court shall apply the rules of law that it deems appropriate.
III. The Arbitration Court shall decide as a friendly component only if the parties have expressly authorized it. IV. In all cases, the Arbitration Court shall decide in accordance with the terms of the contract and take into account the
commercial uses applicable to the case. ARTICLE 74o.-(Contractual capacity)
The ability of the parties to grant the arbitration agreement by themselves or on behalf of another person shall be the law of the place of their domicile, principal establishment or habitual residence, unless the Bolivian law is more favourable to the validity of the arbitration agreement. ARTICLE 75o.-(Rules applicable to form) I. The substantial or formal validity of an international arbitration agreement, which may take a written form, is governed by the
law chosen by the parties. II. In the absence of agreement of parties, the substantive or formal validity of such an agreement is governed by the law of the place of its
celebration. ARTICLE 76o.-(Validity of the arbitration agreement)
When the Bolivian State or any other national legal person under public law has concluded a valid and legally valid arbitration agreement, the arbitrability of the dispute shall not be questioned in any case, under the domestic legal order or the lack of capacity to be a party to the arbitration agreement. ARTICLE 77o.-(Language) I. The parties may freely agree on the language (s) to be used in the arbitral proceedings. In the absence of
agreement, the Arbitration Court will determine the language or languages to be used. II. The agreement on the language is presumed to comprise all of the parties ' writings, hearings, notifications,
written actions, communications, awards and other arbitral acts. III. The arbitral tribunal may order that any documentary evidence be accompanied by a translation into the language or
languages agreed by the parties or determined by the arbitral tribunal, subscribed by authorized expert. ARTICLE 78o.-(Umpires) I. The nationality of a person shall not constitute an impediment to the arbitral function. II. Where a single arbitrator or a third arbitrator is to be designated, the competent judicial authority shall take into account
the desirability of appointing an arbitrator of nationality other than that of the parties. CHAPTER II
TREATMENT OF FOREIGN AWARDS ARTICLE 79o.-(Foreign Laudo) Foreign awards shall be deemed to be any substantive arbitration resolution that has been issued outside of Bolivia. ARTICLE 80o.-(Applicable Rules) I. The foreign arbitral awards shall be recognized and executed in Bolivia, in accordance with the instruments cited
by Article 72 paragraph I of this Law. II. Unless otherwise agreed and in the event of more than one applicable international instrument, the
most favourable treaty or convention shall be optioned to the party requesting the recognition and enforcement of the arbitral award.
ARTICLE 81o.-(Causales I. The recognition and enforcement of a foreign arbitral award shall be denied and declared inadmissible, by the following
causal: 1. Existence of any of the grounds for annulment established in the Article 63 of this law, tested by
the party against which the recognition and enforcement of the award, in the cases of paragraph II. 2. Absence of enforcement for lack of enforceability, annulment or suspension of the award by judicial authority
competent in the State where it was issued, proven by the party against which the recognition and execution of the award is invoked.
3. Existence of causes of cancellation or improvenance established by existing international agreements or conventions.
ARTICLE 82o.-(Competition and Request) I. The application for recognition and enforcement of a Foreign award in Bolivia will be filed before the Supreme Court of
Justice of the Nation. II. The party seeking the recognition and enforcement of a foreign award shall submit copies of the agreement and
corresponding arbitration award, duly legalized. III. Where the agreement and the arbitral award are not in Spanish, the applicant shall submit a translation of
such documents, signed by authorized expert. ARTICLE 83o.-(Processing) I. Filed the application, the Supreme Court of Justice of the Nation will transfer to the other party the application and
documentation submitted, so that it responds within ten (10) days of its
II.
II. The evidence must be produced within eight (8) days of the last notification to the parties with the decree opening the term of the relevant test. Within five (5) days of the expiration of the test term, the Supreme Court of Justice of the Nation will dictate resolution.
III. Declared the origin of the application, the execution of the award shall be carried out by the authority the competent judicial authority designated by the Supreme Court of Justice of the Nation, which shall be that of the domicile of the party against whom the recognition of the award has been invoked or requested, or, failing that, by that party which has jurisdiction in the place where the goods to be executed are found.
ARTICLE 84o.-(Opposition to execution) I. The Supreme Court of Justice of the Nation will only accept the oppositions to the enforced execution of the award, which are
based in the respect of the award itself or in the existence of a pending action of annulment.
II. In the previous case, credited with the existence of an action for annulment pending resolution, the Supreme Court of Justice of the Nation will suspend the enforced execution of the award until such appeal is resolved.
III. The Court The Supreme Court of Justice of the Nation will dismiss any opposition, which is based on arguments different from those mentioned in the first paragraph of this article, or any incident that seeks to hinder the execution requested.
RECONCILIATION TITLE III
CHAPTER I GENERAL PROVISIONS
ARTICLE 85o.-(Character and function) I. The reconciliation may be adopted by natural or legal persons, for the solution of mutual agreement of any
liable transaction dispute, before or during the processing of a judicial process.
II. The conciliation procedure will be based on the designation of an impartial and independent third party, which will have the function of facilitating communication and relationship between the parties. The conciliator may, at any stage, rule on the merits of the dispute.
III. The conciliation in the judicial field shall be governed by the rules that are relevant to them. ARTICLE 86o.-(Institutional Exercise)
The reconciliation may be developed and applied by institutions specializing in alternative dispute resolution media, as well as natural persons who comply with the requirements laid down in Chapter II of this Title. ARTICLE 87o.-(Applicable Principles) I. The acts, procedures, statements and information that have place in the conciliation shall be of a nature
reserved and confidential, subject to the rules of professional secrecy and they will have no trial value in any judicial process.
II. The parties may participate in the conciliation, directly or through duly accredited representatives through special power granted to the effect. May or may not, with the sponsorship of lawyers.
III. The proceedings and hearings of the conciliation shall be performed orally and without any written record consented to or signed by the parties or registered by mechanical means, electronic, magnetic and similar. This prohibition does not involve the conciliator's annotations which will be destroyed in time to subscribe to the final act. It is saved otherwise by the regulations of the specialized institutions.
CHAPTER II INSTITUTIONAL RECONCILIATION CENTERS AND RECONCILIATORS
ARTICLE 88o.-(authorized institutions) I. legal persons may constitute, develop and administer Institutional Conciliation Centers, establishing in
their instruments of incorporation: 1. The non-profit nature of the institution responsible for the Conciliation Center.
2. The constitutive purpose specialized in conciliation or union representation. II. The Conciliation Centers established by the Chambers of Commerce prior to this law shall continue
their reconciliation programs and activities subject to the provisions of this Title. ARTICLE 89o.-(Fees)
The Conciliation Centers will establish a Conciliator Fees and Administrative Expenses Arancel.
ARTICLE 90o.-(Conciliators) I. You may be conciliatory all natural person who has the capacity to act and has not been judicially convicted by
the commission of public or private crimes. II. The acceptance by the parties of a given conciliator is voluntary, which is why no conciliator can
be imposed on them. CHAPTER III
CONCILIATION PROCEDURE ARTICLE 91o.-(procedural rules) I. The parties may request the reconciliation jointly or separately with the conciliator or Conciliation Center
Institutional of your choice. The appointed conciliator will quote the parties immediately for the first reconciliation hearing.
II. At the hearing the conciliator, upon recapitulation of the facts and the fixing of the points of the dispute, will develop a methodology of approach of the parties, for the adoption by them of a mutually satisfactory solution.
III. The conciliator shall conduct as many hearings as are necessary to facilitate the communication of the parties. If necessary and under absolute respect of its duty of impartiality and confidentiality, it may conduct private and separate interviews with each of the parties, prior to knowledge of the other.
ARTICLE 92o.-(Conclusion and effects)
II. The Conciliation Act shall take into account the legal effects of the transaction and shall have between the parties and their successors a universal title judged, for purposes of enforcement.
TITLE IV FINAL PROVISIONS ARTICLE 93o.-(Faculties of the Ministry of Justice) I. The Ministry of Justice will exercise its own in the institutionalization, development and implementation of conciliation as
alternative means
resolving disputes. II. Create the Registry of Councils under the Ministry of Justice, which will regulate the requirements ofregistration and operating conditions. III. The Ministry of Justice may suspend or cancel the operation of the Institutional Conciliation Centers or
of any natural persons who perform as reconciliators, when they incur an offence against ethics of the reconciliation, reservation and confidentiality of your procedure, or when they do not meet the requirements of this Law.
ARTICLE 94o.-(Mediation) Mediation as an alternative means for the solution of common agreement of any controversial
transaction, can be taken by people natural or legal, as an independent or integrated procedure for a conciliation initiative. ARTICLE 95o.-(Conciliation by the Judicial Bodies)
Without prejudice to the functioning of the Institutional Conciliation Centers and natural persons who develop the conciliation, the Supreme Court of Justice should be empowered to act. The creation of Conciliation Centers in the Judicial Districts of the Republic. The conciliation procedure shall be subject to the principles and rules laid down in Title III of this Law. ARTICLE 96o.-(Dissemination of the Law)
The Institutional Conciliation Centers under the supervision of the Ministry of Justice will finance the operation of pilot centers in their respective districts, for training and training of conciliators, as well as for the dissemination and dissemination of this law by the necessary means of communication. ARTICLE 97o.-(Application of the Civil Code and Civil Procedure) I. The Arbitration Court may apply the rules of the Civil Code and the Code of Civil Procedure in an additional manner,
when the parties, the regulations The institution adopted or the court itself has not provided for a specific treatment of this matter.
ARTICLE 98o.-(Repeal of legal norms) The following legal provisions are repealed:
1. Article 556 of Chapter IV, Title II of the Third Book and Articles 712 to 746 of Chapters I and II of Title V of the Fourth Book of the Code of Civil Procedure approved and promulgated by Decree Law No. 12760 dated August 6, 1975.
2. Articles 1478 to 1486 of Chapter II, Title I of the Fourth Book of the Code of Commerce approved and promulgated by Decree Law No. 14379 dated February 25, 1977.
3. Items 190o. and 191o. Decree Law No. 15516 dated June 2, 1978 on "Law on Assurance Entities" and article l0o. of Law No. 1182 dated September 17, 1990 on "Investments."
4. Any other legal provision prior to and contrary to this law, relating to arbitration. Pass to the Executive Branch for constitutional purposes. It is given in the Session Room of the Honorable National Congress, four days of the month of March of a thousand nine hundred and ninety-seven years.
Fdo. Raul Lema Patino, Georg Prestel Kern, Walter Zuleta Roncal, Guido Capra Jemio, Hugo Baptista Orgaz, Ismael Moron Sanchez. Therefore, it is enacted so that it has and will comply with the law of the Republic. Palace of Government of the city of La Paz, ten days of the month of March of a thousand nine hundred and ninety-seven years. FDO. GONZALO SANCHEZ DE LOZADA, Jose Guillermo Justiniano Sandoval, Rene Oswaldo Blattmann Bauer, Fernando Candia Castillo, Jaime Villalobos Sanjines.
