Lex Mundi Global Arbitration Institutions Guide |
|
Guatemala |
|
|
(Latin America/Caribbean)
Firm
Mayora & Mayora, S.C.
Contributors
Juan Carlos Casellas |
|
| Name of Arbitral Institution; with abbreviation, if any. | There are two main private arbitral institutions in Guatemala: Comisión de Resolución de Conflictos de la Cámara de Industria de Guatemala ("CRECIG") and Centro de Arbitraje y Conciliación de la Cámara de Comercio de Guatemala ("CENAC"). |
| Where is the seat of the Arbitral Institution? | Both institutions are located in Guatemala City. |
| Is there an umbrella organization for the Arbitral Institution? | Yes. CRECIG is a Conflict Resolution Commission of the Chamber of Industry; CENAC is the Center for Arbitration and Conciliation of the Chamber of Commerce. |
| How is the Arbitral Institution structured? | Both CRECIG and CENAC have a Board of Directors and a General Director. |
| Is there a compulsory list of arbitrators that parties are required to choose from? | Both institutions have lists of arbitrators, and neither of them are strictly compulsory for the parties. However, CRECIG regulations are more open to parties naming their own arbitrators, while CENAC lists are compulsory unless the parties have (i) reserved for themselves the right to designate and (ii) expressly stated that they will designate from outside the institution's list. |
| Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | By law, the parties can freely choose the place of arbitration. If there is no agreement, it may be set by the arbitrating tribunal or the institution. There is no default in either the law or the institutional regulations. |
| What is the amount of the registration fee? | Neither institution has a registration fee. They both have administration fees and fees for the arbitrators, as well as expenses to be covered, and an advance on such payments is required upon presenting the request for arbitration. However, such payments are advances on the other fees, not registration fees in themselves. |
| What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | The following costs are based on fee tables (duties) published by CRECIG and CENAC, which include fees for administration, arbitrator and secretary. This case would cost USD 18,975.00 + VAT in CRECIG and USD 24,250.00 in CENAC (including VAT). |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | The following costs are based on fee tables (duties) published by CRECIG and CENAC, which include fees for administration, arbitrators and secretary. This case would cost USD 270,000.00 + VAT in CRECIG and USD 118,000.00 in CENAC (including VAT). |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | The following costs are based on fee tables (duties) published by CRECIG and CENAC, which include fees for administration, arbitrators and secretary. This case would cost US$.2,700,000.00 + VAT in CRECIG and US$.240,000.00 in CENAC (including VAT). |
| Who pays advances on costs? What happens in the event of default? | Both parties are required to pay advances on costs. If the initial advance is not paid, neither institution will consider the request for arbitration. |
| Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | Both CRECIG and CENAC have internal regulations governing the procedures for arbitration. However, both also allow the parties to agree on certain modifications to these rules. |
| Which languages can be used for communication with the Arbitral Institution? | Both institutions carry out their work in Spanish. However, the procedure itself may be carried out in a different language in the case of international arbitration. Such language may be selected by the parties or, in absence of agreement, by the arbitral tribunal. |
| Who is the main point of contact for the parties within the Arbitral Institution? | In both institutions, the main point of contact for the parties is the General Director. |
| Are there restrictions on the language that the arbitration may be conducted in? | There are no such restrictions in international arbitrations. |
| Who appoints substitute arbitrators? | In CRECIG, substitute arbitrators are appointed by the parties or by the institution in the same manner as the original arbitrators, according to the parties' agreement and the institutional regulation. However, none of the parties may appoint a substitute arbitrator on more than two occasions; in such case, further substitutions would have to be appointed exclusively by CRECIG. In CENAC, substitute arbitrators are appointed in the same manner used to appoint the original, if the substitution occurs due to recusation or excuse, death, absence or other impediments. The institution may also directly substitute arbitrators when they have caused more than one hearing or procedure to be suspended or not carried out. |
| Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | CENAC's regulation contains a provision for appointing arbitrators when there are multiple plaintiffs or defendants. Aside from that, there is no other specific regulation for multi-party arbitrations or joinders to the proceedings. |
| Are oral hearings compulsory? | The general Arbitration Act allows parties or arbitrators to determine whether or not oral hearings are to be held. CENAC's regulation does establish, as a general rule, that hearings must be oral. CRECIG's regulation also sets the general rule that arbitration proceedings shall be predominantly oral, though it allows the arbitral tribunal to modify this with the parties' consent. |
| What are common evidence-taking practices? | Common means of evidence presented at arbitration proceedings are documents, witnesses and experts. Each institution's regulation determines how each piece of evidence is to be presented before the tribunal. Expert and witness testimony is usually heard at oral hearings. |
| What is the average duration of arbitration proceedings? | In practice, arbitration proceedings have an average duration between one year to a year and a half. |
| What is the timeframe for rendering the award? | Both CENAC's and CRECIG's procedures establish that the award must be rendered within a maximum of six months after installing the tribunal. |
| Are extensions to time limits permissible? | Yes. CENAC allows the tribunal to extend the limit "for a reasonable term" according to each case's circumstances. CRECIG also allows the tribunal to set an extension, but expressly limits it to no more than three months. A second extension is allowed if needed, which also must be no longer than three months. In no case does CRECIG allow more than two extensions, i.e., more than a maximum of six additional months. |
| Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | Yes, the arbitral tribunal can impose interim measures. In general, parties can request such measures either from the tribunal or from an ordinary court. However, the involvement of the ordinary courts is only strictly necessary for measures which involve third parties or to enforce compliance from the parties themselves. |
| Do the institutional rules provide for an emergency arbitrator? | No, neither of the institutions provide for emergency arbitrators in their rules. |
| Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | No, neither of the institutions have any specific regulations for expedited proceedings in their rules. |
| Are arbitral awards submitted for scrutiny? If so, to whom? | No, arbitral awards are not submitted for scrutiny. |
| Do costs necessarily follow the event? | Costs are usually decided in the award itself (or in any other decision which puts an end to the arbitration proceeding). CRECIG's rules allow, as an exception, for costs to be liquidated in a separate decision following the award. CENAC's rules establish that costs will be paid by the losing party, unless otherwise agreed by the parties or when the tribunal decides to distribute the costs between them. CRECIG's rules do not expressly contain a "loser pays" general rule, only establishing that the tribunal will decide which of the parties must cover the costs or the proportion in which each party must pay. |
| Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes, an arbitral award can be annulled in Guatemala, and the reasons for annulment do correspond in principle to the reasons for denial of enforcement set in the New York Convention. |
| Link to institutional rules |
CRECIG: |
| Link to model clause |
Lex Mundi Global Arbitration Institutions Guide
Guatemala
(Latin America/Caribbean) Firm Mayora & Mayora, S.C.Contributors Juan Carlos Casellas
Updated 26 Oct 2018There are two main private arbitral institutions in Guatemala: Comisión de Resolución de Conflictos de la Cámara de Industria de Guatemala ("CRECIG") and Centro de Arbitraje y Conciliación de la Cámara de Comercio de Guatemala ("CENAC").
Both institutions are located in Guatemala City.
Yes. CRECIG is a Conflict Resolution Commission of the Chamber of Industry; CENAC is the Center for Arbitration and Conciliation of the Chamber of Commerce.
Both CRECIG and CENAC have a Board of Directors and a General Director.
Both institutions have lists of arbitrators, and neither of them are strictly compulsory for the parties. However, CRECIG regulations are more open to parties naming their own arbitrators, while CENAC lists are compulsory unless the parties have (i) reserved for themselves the right to designate and (ii) expressly stated that they will designate from outside the institution's list.
By law, the parties can freely choose the place of arbitration. If there is no agreement, it may be set by the arbitrating tribunal or the institution. There is no default in either the law or the institutional regulations.
Neither institution has a registration fee. They both have administration fees and fees for the arbitrators, as well as expenses to be covered, and an advance on such payments is required upon presenting the request for arbitration. However, such payments are advances on the other fees, not registration fees in themselves.
The following costs are based on fee tables (duties) published by CRECIG and CENAC, which include fees for administration, arbitrator and secretary. This case would cost USD 18,975.00 + VAT in CRECIG and USD 24,250.00 in CENAC (including VAT).
The following costs are based on fee tables (duties) published by CRECIG and CENAC, which include fees for administration, arbitrators and secretary. This case would cost USD 270,000.00 + VAT in CRECIG and USD 118,000.00 in CENAC (including VAT).
The following costs are based on fee tables (duties) published by CRECIG and CENAC, which include fees for administration, arbitrators and secretary. This case would cost US$.2,700,000.00 + VAT in CRECIG and US$.240,000.00 in CENAC (including VAT).
Both parties are required to pay advances on costs. If the initial advance is not paid, neither institution will consider the request for arbitration.
Both CRECIG and CENAC have internal regulations governing the procedures for arbitration. However, both also allow the parties to agree on certain modifications to these rules.
Both institutions carry out their work in Spanish. However, the procedure itself may be carried out in a different language in the case of international arbitration. Such language may be selected by the parties or, in absence of agreement, by the arbitral tribunal.
In both institutions, the main point of contact for the parties is the General Director.
There are no such restrictions in international arbitrations.
In CRECIG, substitute arbitrators are appointed by the parties or by the institution in the same manner as the original arbitrators, according to the parties' agreement and the institutional regulation. However, none of the parties may appoint a substitute arbitrator on more than two occasions; in such case, further substitutions would have to be appointed exclusively by CRECIG.
In CENAC, substitute arbitrators are appointed in the same manner used to appoint the original, if the substitution occurs due to recusation or excuse, death, absence or other impediments. The institution may also directly substitute arbitrators when they have caused more than one hearing or procedure to be suspended or not carried out.
CENAC's regulation contains a provision for appointing arbitrators when there are multiple plaintiffs or defendants. Aside from that, there is no other specific regulation for multi-party arbitrations or joinders to the proceedings.
The general Arbitration Act allows parties or arbitrators to determine whether or not oral hearings are to be held. CENAC's regulation does establish, as a general rule, that hearings must be oral. CRECIG's regulation also sets the general rule that arbitration proceedings shall be predominantly oral, though it allows the arbitral tribunal to modify this with the parties' consent.
Common means of evidence presented at arbitration proceedings are documents, witnesses and experts. Each institution's regulation determines how each piece of evidence is to be presented before the tribunal. Expert and witness testimony is usually heard at oral hearings.
In practice, arbitration proceedings have an average duration between one year to a year and a half.
Both CENAC's and CRECIG's procedures establish that the award must be rendered within a maximum of six months after installing the tribunal.
Yes. CENAC allows the tribunal to extend the limit "for a reasonable term" according to each case's circumstances. CRECIG also allows the tribunal to set an extension, but expressly limits it to no more than three months. A second extension is allowed if needed, which also must be no longer than three months. In no case does CRECIG allow more than two extensions, i.e., more than a maximum of six additional months.
Yes, the arbitral tribunal can impose interim measures. In general, parties can request such measures either from the tribunal or from an ordinary court. However, the involvement of the ordinary courts is only strictly necessary for measures which involve third parties or to enforce compliance from the parties themselves.
No, neither of the institutions provide for emergency arbitrators in their rules.
No, neither of the institutions have any specific regulations for expedited proceedings in their rules.
No, arbitral awards are not submitted for scrutiny.
Costs are usually decided in the award itself (or in any other decision which puts an end to the arbitration proceeding). CRECIG's rules allow, as an exception, for costs to be liquidated in a separate decision following the award.
CENAC's rules establish that costs will be paid by the losing party, unless otherwise agreed by the parties or when the tribunal decides to distribute the costs between them.
CRECIG's rules do not expressly contain a "loser pays" general rule, only establishing that the tribunal will decide which of the parties must cover the costs or the proportion in which each party must pay.
Yes, an arbitral award can be annulled in Guatemala, and the reasons for annulment do correspond in principle to the reasons for denial of enforcement set in the New York Convention.