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Spain: arbitration round-up 2011
Practical Law UK Articles 9-517-6848 (Approx. 3 pages)
Spain: arbitration round-up 2011
by Alejandro López Ortiz (Counsel), Ana Morales (Associate) and Silvia Martínez (Associate), Hogan Lovells International LLP
| Published on 02 Feb 2012 • Spain |
An article highlighting the key arbitration-related developments in Spain in 2011.
Top developments of 2011
Amendments to Spanish Arbitration Act 60/2003
In June 2011, following lively discussions on the draft Bill to amend the Spanish Arbitration Act 60/2003 (SAA) during 2010, the amended SAA entered into force (see Legal update, Amendments to Spanish Arbitration Act now passed).
The main amendments to the SAA are:
- A general fine-tuning, which includes some departures from the UNCITRAL Model Law, for example:
- arbitral institutions are now obliged to monitor the capacity of arbitrators, the transparency in their designation and their independence throughout arbitral proceedings;
- parties may request the arbitral tribunal to correct an arbitral award on the basis of an excess of jurisdiction, in addition to supplementing omitted petitions.
- A change in the relationship between arbitration and insolvency by providing for the effectiveness of an arbitration agreement notwithstanding the declaration of insolvency of one of the parties, in line with other neighbouring jurisdictions.
- The concentration of most judicial powers relating to arbitration within the Superior Courts of Justice of the different Spanish Autonomous Regions (Comunidad Autónoma).
The concentration of judicial powers related to arbitration
2011 started with the creation of a new court specialising in arbitration-related matters in Madrid (First Instance Court no. 101) (see Legal update, Madrid opens specialist arbitration court). This initiative was well received in the arbitral community as a step towards achieving the goal of establishing courts with a greater knowledge of the specific features associated with the complex practice of arbitration.
The amendments to the SAA took a further step towards this goal by re-allocating and concentrating most judicial competences related to arbitration before the Superior Courts of Justice of the different Spanish Autonomous Regions. These include the powers to set aside an award, the appointment of arbitrators and the recognition of foreign awards. The fact that there are only 17 Superior Courts of Justice, which enjoy limited workload in civil and commercial matters, should allow them to deal with these matters in a more time effective manner.
In fact, the first judgments have already been rendered (see Legal update, First decisions of the Superior Courts of Justice after amendment of Spanish Arbitration Act), evidence that the aims behind this re-allocation of competences are so far being met.