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  FTAA - NEGOTIATING GROUP ON DISPUTE SETTLEMENT

QUESTIONNAIRE

CHILE

1. International Agreements

a. Is the jurisdiction a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York on 10 June 1958 (New York Convention). If so, are there any reservations? Name the domestic law that implements these commitments.

Chile is party to the New York Convention, which was incorporated into domestic law through Decree 664 of the Ministry of Foreign Relations, and published in the Official Gazette on October 30, 1975. Chile made no reservations.

b. Is the jurisdiction a party to the Convention on the Settlement of Investment Disputes between States and Nationals of other States, done at Washington on 18 March 1965 (ICSID Convention)? Is there an implementing law? Is the jurisdiction a party to any bilateral investment treaties providing for settlement of investment disputes between a state and a national of another state?

Chile is party to the International Convention on the Settlement of Investment Disputes between States and Nationals of other States, which was incorporated into domestic law through decree 1304 of the Ministry of Foreign Relations, and published in the Official Gazette on January 9, 1992. Chile is party to the following bilateral investment treaties:
 

Argentina In force since 27.02.95
Australia In force since 18.11.99
Austria In force since 17.11.00
Belgium In force since 05.08.99
Bolivia In force since 21.07.99
Brazil Signed on 22.03.94
Colombia Signed on 22.01.00
Costa Rica In force since 08.07.00
Croatia In force since 31.07.96
China In force since 14.10.95
Cuba In force since 30.09.00
Czech Republic In force since 02.12.96
Denmark In force since 30.11.95
Dominican Republic Signed on 28.11.00
Ecuador In force since 21.02.96
Egypt Signed on 05.08.99
El Salvador In force since 18.11.99
Finland In force since 14.06.96
France In force since 05.12.94
Germany In force since 18.06.99
Greece Signed on 10.07.96
Guatemala Signed on 08.11.96
Holland Signed on 30.11.98
Honduras Signed on 11.11.96
Hungary Signed on 10.03.97
Indonesia Signed on 07.04.99
  
Italy In force since 23.06.95
Korea In force since 18.11.99
Lebanon Signed on 13.10.99
Malaysia In force since 04.08.95
New Zealand Signed on 22.07.99
Nicaragua Signed on 8.11.96
Norway In force since 04.11.94
Panama In force since 21.12.99
Paraguay In force since 16.09.97
Peru Signed on 02.02.00
Philippines In force since 06.11.97
Poland In force since 22.09.00
Portugal In force since 24.02.98
Rumania In force since 27.08.97
South Africa Signed on 12.11.98
Spain In force since 27.04.94
Sweden In force since 13.02.96
Switzerland Signed on 24.09.99
Tunisia Signed on 23.10.98
Turkey Signed on 21.08.98
Ukraine In force since 29.08.97
United Kingdom In force since 23.06.97
Uruguay In force since 22.04.99
Venezuela In force since 17.05.94
Vietnam Signed on 16.09.99

c. Is the jurisdiction a party to the Inter-American Convention on International Commercial Arbitration, signed in Panama on 30 January 1975 (Panama Convention)? Is there a domestic implementing law?

Chile is party to the Inter-American Convention on International Commercial Arbitration of 1975, which was incorporated into domestic law through Decree Law 1376 and published in the Official Gazette on July 12, 1976. Chile made no reservations.

d. Is the jurisdiction a party to any other international agreement related to international commercial arbitration?

Chile is not party to any other international agreement relating to international commercial arbitration.

2. Arbitration

a. What is the source of law for international commercial arbitration within your jurisdiction? Please cite.

There is no special law that regulates arbitration internally. The Code of Civil Procedure and the Judiciary Code contain provisions applicable to arbitration, provided the parties have not agreed otherwise.

b. Does the law contain different rules for domestic and international arbitration?

There are no significant differences in the rules between domestic and international arbitration.

c. Are there limitations on the types of disputes that may be arbitrated?

Issues that may not be arbitrated are the exception, and relate primarily to criminal and family issues.

d. Does the law specify rules for arbitration or do the parties have autonomy to set their rules?

The Code of Civil Procedure and the Judiciary Code contain specific provisions applicable to arbitration, but this does not prevent the parties from establishing their own rules.

e. What is the role of the courts during an arbitration? May the courts intervene prior to or during the arbitration process?

The arbitrators have the power to issue an award settling the dispute, but do not have the power to adopt compulsory measures during the proceedings. Consequently, it corresponds to the regular courts of law to adopt measures to enforce compliance with the award or the appearance of witnesses.

f. Can the courts grant interim relief pending the outcome of an arbitration?

Arbitrators may grant interim relief before issuing an arbitral award, but since they do not have the power to adopt compulsory measures, recourse must be had to regular courts to implement such measures.

g. Does the law require citizenship or a particular bar membership for participation in an arbitral proceeding, as arbiter or representative of a party?

The parties may appoint an arbitrator with different capacities:

- De jure arbitrator: issues awards in accordance with the law and is subject, both in procedures and in the issuing of the final award, to the rules established for regular judges, according to the nature of the suit filed

- Ex aequo et bono arbitrator: issues awards in accordance with equity and is not required to adhere, in procedures or the award, to rules other than those the parties have expressed their agreement to submit to arbitration.

Any person may be appointed as an arbitrator, who is of legal age, has assets that are unencumbered, and knows how to read and write, regardless of nationality. Nonetheless, de jure arbitrators must be lawyers, a profession that can only be exercised by Chilean nationals, notwithstanding existing international treaties.

To represent a party before a regular, arbitral or special court, one must be a lawyer qualified to exercise the profession. However, in certain matters such as those heard by ex aequo et bono arbitrators, the representative does not have to be a lawyer.

h. Does the law require that the proceedings be conducted in a particular language?

The parties are free to choose the language in which the arbitration proceedings shall be conducted. Nonetheless, if the award has to be enforced in Chile, it must be translated into Spanish.

i. Does the law have mandatory choice of law provisions?

No, the arbitration rules set out in the Code of Civil Procedure and Judiciary Code are suppletory to the will of the parties.

j. Does the arbitration law prescribe rules for decision-making by the arbiters and the form of an award?

The arbitration must be subject to the stipulations of the contract, and the parties may even agree that a foreign law be the applicable law for settling the dispute. The award must contain certain minimum basic elements.

k. Is the confidentiality of arbitral proceedings and awards protected by law?

The arbitral ruling is notified exclusively to the parties to the dispute. Nonetheless, once notified, the record of arbitral proceedings must be filed with the official who would be responsible for its custody if the case had been heard by the regular courts.

l. On what grounds will the courts set aside or decline to enforce an award?

Recognition and enforcement of an arbitral award may only be set aside in those cases envisaged by the New York Convention or the Panama Convention.

m. What is the procedure for the enforcement of an award?

Recognition of foreign arbitral awards requires first completing the exequatur procedure before the Supreme Court.

Domestic commercial arbitration and international commercial arbitration, having already complied with exequatur formalities, are subject to the same award enforcement procedures: enforcement of the final award may be requested from the arbitrator that issued it, provided the period for which the arbitrator was appointed has not expired, or to the corresponding regular court, at the choice of the party seeking enforcement. However, when the enforcement of the arbitral ruling requires urgent proceedings or the use of other compulsory measures, or, when it is necessary to involve third parties who are not parties to the agreement to submit to arbitration, it is necessary to have recourse to regular courts for enforcement of the ruling.

n. Please list any institutions available within your jurisdiction that provide international commercial arbitration services. Provide internet address where available.

The institutions that provide international commercial arbitration in Chile are the following:1

- Mediation and Arbitration Center of the Santiago Chamber of Commerce, Calle Monjitas 392, piso 3, Santiago, Tel: (562) 3607015, fax: (562) 6333395, e-mail: camsantiago@ccs.cl, web site: www.camsantiago.com

- Mediation and Arbitration Center of the Chilean-American Chamber of Commerce (AmCham), av. Kennedy 5735 piso 2, Torre Poniente, Las Condes, Santiago, Tel: (562) 2909768/67, fax: (562) 212 0515, e-mail: arbitraje@amchamchile.cl, web site: www.amcham.chile.cl

- Region V Arbitration and Mediation Center of the Regional Chamber of Commerce and Production Valparaíso A.G., Pasaje Ross #149, office no. 205-206, piso 2, Valparaíso, Tel: (56-32) 239767, fax: (56-32) 212770, web site: www.camvalpo.cl

3. Alternative forms of Dispute Resolution (ADR)

a. Are other forms of alternative dispute resolution (mediation, conciliation) available for the resolution of commercial disputes within your jurisdiction?

Apart from arbitration, there is mediation and conciliation. These mechanisms normally require the consent of the parties prior to being initiated, and when the parties settle by these means the result is executed in a settlement agreement.

b. Does the law or do the courts mandate or encourage the use of ADR in commercial disputes? Are there any legal impediments to using ADR for the resolution of commercial disputes?

Conciliation is a mandatory prior stage in many civil proceedings. The new consumer protection law also establishes this mechanism as compulsory. There is a legislative bill currently going through parliament that imposes forced mediation for other issues.
There are no legal restrictions on the use of mediation for solving commercial disputes between private parties, but there are some limitations when the state is involved in the dispute.

c. Can courts enforce agreements to mediate or use other forms of non-binding dispute resolution in commercial disputes?

Where an ADR has been agreed to, an individual may have recourse to local courts to enforce that agreement.

d. Are there any organizations that specialize in ADR for commercial disputes not already mentioned?

Number 2, letter n).

e. What rules govern confidentiality and admissibility of evidence in other proceedings

In commercial matters between private parties, proceedings before regular courts are public.
In the case of ADR proceedings, there are no specific provisions in this regard. Nonetheless, the parties may impose contractually a confidentiality commitment on the mediator.

4. Legal Sources and References

In addition to the references above is there an authoritative Internet site containing up-to-date information on dispute resolution facilities available in this jurisdiction?

There is no official or authorized Internet site containing up-to-date information on institutions or organizations for the resolution of international commercial disputes.

5. Bibliography

Please list respected reference works relating to arbitration and ADR in your jurisdiction.

- Eyzaguirre Echeverria, Rafael, “El Arbitraje Comercial en la Legislación Chilena y su Regulación Internacional,” EDITORIAL JURÍDICA DE CHILE.

- Aylwin Azocar, Patricio, “El Juicio Arbitral,” EDITORIAL JURÍDICA DE CHILE.

- Casarino Viterbo, Mario, “Manual de Derecho Procesal (Tomo II),” EDITORIAL JURÍDICA DE CHILE.



Note:

1. The names and addresses of institutions providing arbitration services and alternative mechanisms for the solution of private commercial disputes are provided for information purposes only, without any type of guarantee, either express or implicit. The dissemination of information on these institutions does not constitute any guarantee or recognition as to the quality or reliability of the services provided by these institutions.

 
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