The arbitration It has become one of the most widely used legal mechanisms for conflict resolution. in the face of the delay and mistrust transmitted by the Judiciary. Luis Bustamante Belaunde, president of the Higher Arbitration Council of the National and International Arbitration Center of the Lima Chamber of Commerce, explains the main benefits of this system.
“Arbitration is a method to resolve disputes without resorting to the courts of the Judicial Power. Today, Peru is a leader in the use of this mechanism, especially because it is used to resolve disputes in public procurement. Due to mistrust and little agility in the processes carried out by the Power of attorneyInvestors also opt for arbitration, since it provides them with greater legal certainty in the case of private disputes”, says Bustamante Belaunde.
In line with this, the president of the Higher Arbitration Council of the Arbitration Center of the CCL details five advantages that characterize this mechanism compared to the judicial process:
1.- Election of arbitrators:
In a judicial process, none of the parties can decide who will take charge of this, since the law determines that it is the figure of the judge who assumes it. In arbitration, it is the parties themselves who can decide who will resolve the dispute or establish the procedure for their appointment.
2.- Speed in the processes:
Arbitration resolves the dispute in a period of approximately 12 to 18 months. In addition, in cases administered by the Center, the parties together with the arbitral tribunal establish a schedule of actions that determines the duration of the process. In the Power of attorneythe deadlines are long, since they depend on the subject of the conflict and the burden of the court in which the claim has fallen.
In arbitration, the confidentiality of the process prevails. In the Power of attorneythe action of the jurisdictional bodies is and must be, by essence, public.
4.- Cost of the process:
The arbitration It has a cost that varies according to the economic amount of the dispute and the complexity of the case. In addition, in arbitration, time is limited, so the less time, the less investment in resolving the conflict. In the Judiciary, although the cost is assumed directly by the State, there are expenses for specialists (lawyers) who handle the case. Time is also another cost to the parties.
5.- Solution without appeals:
The arbitration award is final and unappealable. The resolution of the controversy occurs in a single instance. The judicial system contemplates the double instance, with which, every sentence can be appealed and a second judicial court re-evaluates the evidence and the allegations.