Rules for resolving disputes through arbitration in Spain

Automatic summary, not yet reviewed

1. The law applies to arbitrations whose place is in Spain, whether domestic or international, and excludes labor arbitrations. It also applies as a supplement to arbitrations governed by other laws.
2. Only matters the parties may freely decide under the law can go to arbitration. In an international arbitration, a State party cannot invoke the prerogatives of its own law to escape the arbitration agreement.
3. The arbitration agreement must be in writing, but any electronic or optical medium that allows later review of its content is valid. A clause incorporated by reference in another document also counts.
4. Arbitrators may rule on their own jurisdiction and, unless the parties agree otherwise, order interim measures. Enforcing them requires going to a court.
5. Arbitrators must issue the award within six months from the filing of the answer, extendable by them for up to two more months. Notarization of the award is no longer required.
6. An award can only be annulled on limited grounds, such as a missing arbitration agreement or a violation of public policy, within two months of notification. The award is enforceable even if challenged, but the losing party can suspend enforcement by posting a bond.

Who it affects

• Individuals and companies signing arbitration agreements: They must know that a written agreement, even in electronic form, binds them and keeps the dispute out of the courts.
• Arbitrators and arbitration institutions: They face specific deadlines and duties: impartiality, issuing the award within six months, and liability for damages caused in bad faith or recklessly.
• States and state-owned companies in international arbitrations: They cannot invoke the prerogatives of their own law to avoid the arbitration agreement.
• Anyone wanting to challenge an award: They have two months from notification and may only raise the limited grounds for annulment.

Words worth knowing

Arbitraje (arbitration)

A way to resolve a dispute outside the courts: one or more people (the arbitrators) decide, and their decision, the award, binds the parties.

Convenio arbitral (arbitration agreement)

An agreement by which the parties decide to submit their disputes to arbitration instead of going to trial.

Laudo (award)

The final decision issued by the arbitrators, with effects similar to a court judgment.

Medidas cautelares (interim measures)

Urgent orders that prevent harm while the dispute is being resolved, such as freezing an asset.

Caución (bond)

A guarantee, usually money, given to cover losses if the final decision goes against the person who provided it.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries