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Arbitration in Colombia
It is a mechanism whereby the parties involved in a conflict delegate this solution in
an odd number of lawyers called arbitrators, who have the power to administer
justice and give a sentence called arbitral award. (The arbitral award has the same
effects of a Colombian judge sentence)
Arbitrators are people invested temporarily and for specific cases, the function of
administering justice (Article 116 Colombian Constitution), they may be selected by
the parties by mutual agreement.
Arbitration agreement:
It is a legal business whereby parties manifested their will that the arbitrators would
define their eventual disputes.
- Types of arbitration agreement:
A) The arbitration clause: is the manifestation of will that is included in a
contract or document where it is established that the conflicts arising in the
execution of a contract shall be resolved by arbitration. This clause is set
before of the conflict emerged. (Like our operating agreement)
B) Commitment: Its a contract or separate document in which parties decide
to resolve the differences facing them through an arbitration proceeding.
This is agree after that conflict, arises which allows to arbitration disputes
that are airing before the judges.
Benefits
A) Valid: The decision of the arbitrators is called arbitration award, and has the
same effects as a sentence in a court.
B) Speed: In the arbitration the parties have the possibility, by mutual
agreement to settle the time of duration of the process. Otherwise, the
period would be six (6) months, renewable up to six (6) months maximum.
C) Confidentiality: In the arbitration are present Parties, their lawyers, the
Court and staff of the Arbitration Centre, which are obliged to maintain strict
confidentiality what happens in the process.
D) Economy: The arbitration process is cheaper than an ordinary process in a
Colombian court