International arbitration procedure (Arbitration)
The arbitration procedure (the arbitration) is an out-of-court way to settle disputes among parties by independent and impartial arbitrators, which is used as a substitution of a civil trial for property and commercial disputes. An arbitration procedure is non-public, fast and cost effective, which are its biggest advantages.
From legal viewpoint there are two basic types of arbitration procedures (arbitrations), i.e.:
a) inland and international
b) arbitration at a permanent court and the so called Ad Hoc arbitration procedures
An inland arbitration procedure (arbitration) is a legal proceeding, in which both parties to the dispute come from the same jurisdiction. An international arbitration procedure (arbitration) is a legal proceeding, in which at least one of the parties is a foreign entity.
The so called arbitration clause must be included in the contract or the court of arbitration must be accepted as the place for a dispute resolution, so that the subjects of the law could turn to an arbitration court (arbitration). Already during a commercial contract conclusion the contracting parties may agree that any potential disputes arising between them shall be exempted from the authority of general courts and resolved either in an arbitration procedure at a permanent arbitration court or by an Ad Hoc arbitration procedure. If such a provision forms a part of a contract, it is called the so called arbitration clause. The parties may also decide on submission of a dispute into an arbitration procedure only after the dispute occurrence, whereat the parties shall enter into a separate contract on an arbitrator. In both cases the arbitration contract shall be valid only if entered into in writing and approved by all parties to the contract or the dispute.
The Act no. 489-09 on Commercial Arbitrations of 19 December 2008 governs and rules the activities in arbitration procedures (arbitrations) in the Dominican Republic. The Ad Hoc arbitration procedure is as follows:
1
First step
suit registration at the court of arbitration
2
Second step
review of documentation by the court of arbitration to verify the courts jurisdiction
3
Third step
requesting documents, documentation and evidence from the disputing parties
4
Fourth step
judgment (arbitral award) or the arbitration procedure termination
5
Fifth step
judgment (arbitral award) serving to the parties to the dispute
6
Sixth step
judgment verification by the court in Santo Domingo (only the procedural state of affairs is reviewed, not the judgment itself, i.e. whether the rights of the parties to the procedure and the Arbitration Law have been complied with)
7
Last step
attaching apostille to the judgment