On July 26th, 2018, it was published in the Official Gazette the new International Commercial Arbitration Law No. 27,449 (Ley de Arbitraje Comercial Internacional, or LACI by its Spanish acronym)1. The LACI follows the United Nations Commission on International Trade Law (UNCITRAL) Model Law as amended in 2006, and is a breakthrough concerning arbitration in Argentina2, positioning the country as an appealing venue of choice for out-of-court business dispute settlements in Latin America.
Additionally to thoroughly regulating the arbitration agreement and procedure, the LACI also governs the recognition and enforcement of any arbitral award in Argentina, irrespective of the seat where it has been issued. As for this issue, the Title IX, Chapter 2, Article No. 104, of the LACI established that the recognition and enforcement of an arbitral award in Argentina may only be denied if:
- The party against whom the arbitral
award is invoked proves before the competent court:
- That one of the parties to the arbitration agreement was affected by some disability or capacity restriction, or that said agreement is not valid under the law to which the parties have submitted it, or if nothing has been indicated in this regard, under the law of the country in which the award was issued; or
- That the party against whom the award is invoked has not been duly notified of the appointment of an arbitrator, of the arbitral proceedings, or that it has not been able, for any other reason, to assert his rights; or
- That the award refers to a controversy not foreseen in the agreement of arbitration or contains decisions that exceed the terms of the arbitration agreement. However, if the provisions of the award that refer to the issues submitted to arbitration can be separated from those that are not, the recognition and execution may be given to the former; or
- That the constitution of the arbitral tribunal or the arbitration procedure have not followed the agreement between the parties or, in the absence of such agreement, have not complied with the law of the country where the arbitration has been held; or
- That the award is not yet binding on the parties or has been annulled or suspended by a court of the country in which, or under whose right, the award has been issued; or
- The court verifies:
- That, according to Argentine law, the subject of the dispute is not susceptible of arbitration; or
- That the recognition or enforcement of the award would be contrary to Argentine international public order.
1. To read the law you may visit http://servicios.infoleg.gob.ar/infolegInternet/anexos/310000-314999/312719/norma.htm (text only available in Spanish).
2. Arbitration has been recently allowed as an alternative dispute resolution method for Public-Private Partnership Contracts (see our article on http://cspabogados.com.ar/en/ppp-contracts-in-argentina/), and the Renewable Energies Regime (review the following post on our Legal Blog: http://cspabogados.com.ar/en/investment-incentives-in-renewable-energy-in-argentina/).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.