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Madrid opens specialist arbitration court
Practical Law Legal Update 7-504-6966 (Approx. 3 pages)
Madrid opens specialist arbitration court
| Published on 02 Feb 2011 • Spain |
Alejandro López Ortiz (Senior Associate) and Ana Morales (Associate), Hogan Lovells International, LLP
On 30 December 2010, a new court specialising in arbitration (First Instance Court no. 101) opened in Madrid. This newly created court will be the competent court for all new arbitration-related matters which were previously under the general competence of the First Instance Courts of Madrid.
The creation of this specialised court constitutes a significant step which, together with other initiatives and reforms adopted during the last few years, confirms Spain as one of the most arbitration-friendly jurisdictions and further turns Madrid into a privileged seat for international arbitration.
This new court will be exclusively competent in Madrid for the following matters:
- Judicial requests for the appointment of arbitrators.
- Judicial assistance for the taking of evidence in support of arbitration proceedings.
- Adoption of interim measures in support of arbitration (already started or to be commenced).
- Enforcement of Spanish awards.
- Recognition and enforcement of foreign awards.
This concentration of competence before a single specialist court will allow a greater knowledge of the singularities related to the complex practice of arbitration. For example, the existence of a single court in charge of appointing arbitrators will guarantee a unified criterion in the nomination proceedings and, with time, a greater knowledge of the professionals that may be appointed as arbitrators. It will also help to maintain a harmonised application of the New York Convention, which has suffered with some inconsistent decisions after the entering into force of the current Spanish Arbitration Act 2003 (which transferred this competence from the Supreme Court to the First Instance Courts). Finally, complex issues such as the adoption of interim measures in support of foreign arbitration will also benefit from consistent treatment, providing international arbitration with a greater degree of certainty.
Notwithstanding the fact that this is a positive measure, some remarks should be made:
- First, it should be noted that the competent courts to hear actions to set aside awards are the Courts of Appeal (Audiencias Provinciales) and not the First Instance Courts. It would be welcomed if a similar approach were taken in respect of the competence regarding actions to set aside awards - so that all of them are concentrated in the same section of the Court of Appeal of Madrid.
- Second, it should also be taken into account that when an arbitration relates to matters which are under the subject-matter jurisdiction of the Commercial Courts (for example, intellectual property, some corporate disputes, transport or unfair competition), arbitration-related actions are also within the jurisdiction of the Commercial Courts. Consequently, these actions will not be allocated to the new First Instance Court no. 101.
- Finally, it is worth pointing out that the creation of this specialist court has been decided just when the Spanish Parliament is debating the amendments to the Spanish Arbitration Act, which, among other changes, aim to modify the allocation of some arbitration-related competences (see Legal updates, Future amendments to the Spanish Arbitration Act and Spain unveils draft Bill requiring higher threshold for awards to be found contrary to public policy).
Even though it will be necessary to wait until the amendments to the Spanish Arbitration Act are enacted to see the final structure of judicial competences for arbitration in Spain, the creation of this specialist court shows Spain's clear resolution to bet hard on arbitration and to turn Madrid into a leading seat for international arbitration.