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What
is an arbitration process? It is an Alternative Dispute Resolution Method under which parties in conflict may, by mutual consent, submit existing or future controversies to a third party. It is a procedure under which the parties subject their controversy to an arbitrator or Arbitration Court who issues a decision that is binding to both parties. The parties must decide if the issue will be solved by one or several arbitrators. The Arbitration and Mediation Law and AMC’s rules and regulations define the arbitration procedure, the authority granted to the Arbitration Court, the rights and obligations of the parties in contention and the role that the Mediation and Arbitration Center will play. What types of conflicts may be solved through arbitration? Any controversy subject to compromise. See Article 1 of the Arbitration and Mediation Law Basically all conflicts are subject to arbitration. Its application has been successful in various fields, ranging from commercial or business issues to family, institutional or community matters, as arbitration generates interaction between the parties which leads to seeking mutually acceptable solutions. What are the benefits of arbitration? · Impartial: due to the ethical and professional standing of the arbitrators. · Arbitrators are experts in various fields. · Bilingual: arbitrators are fully fluent in English, which renders handling national and international processes easier. · Promptness: the process is efficient and agile. · Advance notice of the costs and fees of the Arbitration process · Prevents litigation and is legally enforceable: An arbitration award has the legal effect of a unappealable judgment and res judicata. Awards are enforced in the same way as final judgments. · Confidentiality: arbitration takes place in a reserved and private environment. · The support of the Ecuadorian-American Chamber of Commerce ensures reliability and stability to foreign contractors. · Economical: Arbitration prevents legal processes which are more expensive due to relevant legal fees and other expenses and because of the time legal processes take. How do you include arbitration in a contract? See Article 5 of the Arbitration and Mediation Law [Ley de Arbitraje y Mediación]. To resort to this procedure, the contract made
between the parties must include an arbitration clause stating the
parties’ willingness to subject potential differences to the
decision issued by a AMC Arbitration Court Why should a mixed mediation and
arbitration clause be included in any contract?
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