• Estudio Alvarez Calderón

EMERGENCY DECREE 020- AMENDS PERUVIAN ARBITRATION LAW LEGISLATIVE DECREE 1071

The purpose of this amendment is to promote national and sectorial public policies aimed at defining and optimizing the government participation in arbitration proceedings.

When the Peruvian state intervenes as a party in an arbitration process, the arbitration will be institutional and may be ad hoc when the amount in dispute does not exceed US$13,030.00 or 10 tax units (UIT). In both cases, the arbitration is at law with the exception of projects developed through public-private partnership, where the controversy is of as technical nature that can be addressed by conscience arbitrations. In cases where the government intervening in arbitration is affected by a precautionary measure, the presentation of a joint and unconditional bank guarantee and/or patrimonial bond is required as a counter guarantee, the amount to be established by judicial or arbitration court. It is incompatible to act as arbitrator in an arbitration proceeding where the state is  party, the lawyer for any of the parties or the expert that could have a conflict of interest. In a dispute against an arbitrator where the state is a party, if the arbitrator denies the reason, the chamber of commerce will resolve the dispute. The members of the arbitration tribunal cannot resolve the dispute. In arbitration where the state is a party, if the process does not move for 4 months, the process is considered abandoned. In case of an institutional process the general secretariat of the arbitration center will declare the abandonment of the process. In case of an ad hoc process the arbitrator or the arbitration tribunal will solve the issue. The abandonment avoids a similar case for 6 months. If the process is abandoned for a second time among same parties, the right to claim expires.  In an arbitration where the state intervenes the proceeding and the award are public once completed. In an arbitration where the state intervenes, administrative or similar fines cannot be imposed. When an award is annulled in a process where state intervenes, it is possible to request replacement of arbitrator or arbitrational tribunal or request the disqualification of arbitrator. Finally the Ministry of Justice will create a National Registry of Arbitrators and Arbitration Centers.

(Source Official Gazette EL PERUANO)

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© 2019 Estudio Alvarez  Calderón