The Monteblanco Law Group practices International Arbitration and Mediation in Lima, New York, Madrid, and London. In all the jurisdictions where we practice, arbitration represents an alternative to dispute resolution; an encouraged mechanism increasingly used by companies, due in great part to the quality of arbitral awards and a legal system that guarantees enforcement of arbitral decisions.

In the case of Peru, the Arbitration Act regulating arbitration is applicable to arbitration proceedings carried out within the territory of Peru, regardless of whether it is domestic or international arbitration. However, the Arbitration Act shall be applied on a supplementary basis in the presence of international treaties to which Peru is a party to. Currently, Peru is a party to (i) the Convention on the recognition and enforcement of foreign arbitral awards (the New York Convention) since 24 May 1988 pursuant to Resolution No. 24810, (ii) the Inter-American Convention on International Commercial Arbitration (the Panama Convention) since 7 November 1988 pursuant to Resolution No. 24924 and (iii) the Inter-American Convention on Extraterritorial Validity of Foreign Judgments and Arbitral Awards (the Montevideo Convention) since 26 March 1980 pursuant to Legislative Decree No. 22953. Should any of these conventions apply to a particular case, then the provisions of the Peruvian Arbitration Act shall apply in default.

Arbitration may be used in the following circumstances:

• When the parties’ domiciles, are in different states at the time the arbitration agreement is concluded.
• When the place of arbitration, as determined by the agreement, is outside the state in which the parties’ domiciles are located.
• In the case of parties domiciled in Peru, when the place of performance of a substantial part of the obligations arising from the legal relationship, or when the place with which the subject-matter of the dispute has a closer relationship is outside Peruvian territory.

Principles of Arbitration

Under Peruvian Law, the Arbitration Act adheres to the principle of non-intervention. This principle restricts the intervention of a Court of law in arbitration disputes subject to the rules established by the Arbitration Act and establishes the assistance and collaboration of the Court in the cases expressly contemplated by the Arbitration Act.

There is also the principle of independence. Because of this principle, the arbitral tribunal has full independence whereby its actions are not subject to the approval of any external authority or provision.

The Arbitration Act also boasts the principles of autonomy, separability and kompetenz-kompetenz, under which the arbitral tribunal has full powers to initiate and continue arbitral proceedings within the process, to rule on the validity of an arbitration agreement, to decide on its competence, and to arrive at an arbitral award.

Arbitral awards procured outside Peruvian jurisdiction shall be recognized and enforced in Peru in accordance with the above-mentioned treaties. Recognition will require a judicial proceeding called exequatur. Unless the parties agree otherwise, the Convention most favorable to the party seeking the recognition and enforcement of a foreign award shall apply.

Ad Hoc v. Institutional Arbitration

Arbitration may be ad hoc or institutional, depending on whether it is provided by an arbitral tribunal directly appointed by the parties or performed by an arbitral institution.

In the absence of specific determination, the arbitration will be deemed to be ad hoc. Where an institutional arbitration is involved, the arbitration rules of the institution administering the arbitration will most likely apply.

Arbitration with the Peruvian State

In the event of disputes against the Peruvian State, parties shall follow proper procedure in compliance the State Procurement Act, and its Regulations. In these cases, the Arbitration Act shall apply on a supplementary basis.