Arbitration is convenient when there is no possibility of agreement

When two or more parties are in conflict, it is often difficult to find an impartial solution that benefits everyone. Whoever performs the task of mediating and making the appropriate decision in these situations must have the appropriate institution and legitimacy.

This legal and decisive figure works independently of the judicial system and is present in most countries of the world, as its scope goes beyond the spheres of economics and commercial affairs.

Unlike a court decision, an arbitral award depends on the limited discretion of the arbitrator, who acts in accordance with the laws and study of the relevant case. For its part, the judgment corresponds to the judge, who is an expert in the field, and his expression is the observance of the law.

In international disputes, the enforcement of arbitral awards may intersect with issues such as removal of red notice. For those affected, removing a red notice is often essential to protect freedom of movement and business. Understanding this process helps people navigate legal complexities, ensuring compliance with both arbitration outcomes and international law.

Appeal of the arbitration award

The arbitration award is governed by the Arbitration Law. In the specified legal resource, it is established that the arbitration decision must be made in writing and signed by the relevant arbitrators. You must also state the date, place of the arbitration, and the costs of the arbitration.

The Arbitration Law stipulates that an arbitral award must be rendered within six months of the commencement of the proceedings. The entire arbitration award procedure will be signed by the arbitrators, notarized and notified to the parties involved. Five days after notification, the parties may request clarification from the appointed arbitrators.

Like a judgment, an award that has been determined has the same effect as a judge's ruling. In this sense, it can only be the subject of an appeal for review. However, Article 40 of the Arbitration Act defines the possible cases of annulment, referring to situations in which the arbitrators have decided matters that were not within their jurisdiction, or where they have laid down laws regarding aspects not subject to arbitration. Under such circumstances, unilateral cancellation of these resolutions is carried out outside the established order, provided that they can be divided. There will be no appeal after the decision on the annulment of the appealed decision.

About the performance of awards

Arbitration decisions must be enforced by the involved parties. If any of these are non-compliant, an enforcement system will be used to take appropriate action.

In general, these awards are usually funded by third parties, as the parties involved do not always have all the financial resources necessary to execute them. This option facilitated access to justice, ensuring that more people could exercise their rights, especially in matters of international justice.

However, some lawyers also warn of certain risks, such as the possibility of a significant increase in litigation and, above all, important ethical dilemmas when it comes to the involvement of a third-party sponsor in a legal proceeding, which may affect in some way the relationship between the client and the lawyer . For this reason, the risk that these relationships may influence decisions or compliance with privacy rules has become a matter of debate.
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