Generalities of the New Conciliation and Arbitration Regulation of the Chamber of Commerce and Industry of Cortés
Summary
This new regulation was approved by the Board of Directors of the Chamber of Commerce and Industry of Cortés on January 26, 2024, and the new regulation for the Conciliation and Arbitration Center (CCA) of the CCIC will come into force on May 2, 2024. The regulation introduces significant and necessary reforms as the main Alternative Dispute Resolution Center in the northern region of Honduras. This article exclusively covers the key changes in the new regulation.
Regarding Conciliation
One of the most notable reforms in the conciliation process is related to the submission of the conciliation request. The new regulation allows this to be done either in person or via electronic means determined by the Center. Additionally, Article 34 of the new regulation allows for either in-person or virtual appearances, whereas the previous regulation, in Article 17, limited appearances to in-person only. This is a positive aspect, as it provides the possibility for conciliation processes to be conducted using electronic means, which other conciliation centers have successfully utilized.
Regarding Arbitration
Similar to conciliation, the new regulation allows parties involved in an arbitration process at the CCA of the CCIC to submit documents either in person or electronically, as stipulated in Article 48 of the new regulation. This measure has a positive environmental impact as it reduces paper waste and accelerates the submission of necessary documents.
Commencement of the Arbitration Process
This is where the most significant reforms are seen in the development of the arbitration process. In the previous regulation, the process began with the submission of the arbitration claim. After the claim was accepted, the defendant would be notified for their response, and once the response was admitted, it was forwarded to the claimant. After all written submissions were admitted, the Director of the Center would summon the parties for a conciliation hearing. If a full agreement was reached, the arbitration process would be concluded. If only a partial agreement was reached, the process would continue for the unresolved claims. If no conciliation was reached, the Director would proceed to form the tribunal.
In the new regulation of the CCA of the CCIC, the arbitration process begins not with the filing of the claim, but with the request for the integration of the arbitration tribunal, as defined in Article 57. This means that the action is considered initiated when the request for the tribunal’s integration is submitted, which can be done electronically. Once the request is accepted, the Center will notify the other party and invite them to a conciliation hearing. If conciliation fails, the tribunal will be integrated.
Once the tribunal members have been accepted, the party that requested the tribunal’s integration is given 15 business days to submit the claim along with the necessary attachments. If the claimant does not submit the claim within the allotted time, the tribunal will conclude its functions and return the matter to the parties. The claimant is given five (5) business days from the notification to correct any issues.
For the response to the claim, the new regulation extends the deadline from 10 to 15 business days. The response must meet the same requirements as the claim. Additionally, the term “Preliminary Hearing” has been replaced with “First Procedural Hearing,” which must resolve the issues outlined in Article 69. This hearing can be held either in person or virtually.
Incorporation of Secretaries
The new regulation also introduces the role of Arbitration Tribunal Secretaries, as outlined in Articles 17 and 18. The requirements to be appointed as a secretary are: a) Understanding the ethical principles governing the Center, having attitudes that facilitate their practice, and adhering to the regulations; b) Being a licensed attorney, registered with the Honduran Bar Association, and knowledgeable in arbitration process management; c) Having attended and passed the relevant training course required by the CCA of the CCIC.
Conclusion
These reforms implemented in the new regulation of the CCA of the CCIC will streamline the processes handled by the Center, making it an attractive option for businesspeople and investors in general. Furthermore, it will help reduce the burden currently faced by the judiciary, especially in San Pedro Sula and its surrounding areas. If you are interested in learning more about the arbitration process at the CCA of the CCIC or wish to activate an arbitration clause to present a claim through this center, do not hesitate to contact us at infohn@lexincorp.com or saguilar@lexincorp.com. Our specialized team has over 20 years of experience in domestic and international arbitration, achieving favorable results throughout Central America.
Written by: Saúl Aguilar
