The Supreme Court of Justice is the highest court of the judicial system. It hears cassation appeals from the courts of appeal and has privileged jurisdiction over criminal cases against the President and Vice President, members of Congress, judges, prosecutors general, diplomats and similar officials.

Ordinary courts, at first instance and on appeal, sit in civil-and-commercial and criminal chambers. Specialized courts have jurisdiction over labor, real estate (see Real Estate Property, section II), juvenile, traffic and municipal matters, corporate restructuring and liquidation (see Bankruptcy & Restructuring), and tax and administrative matters (Superior Administrative Court).

In addition, the Constitutional Court, established by the January 26, 2010 Constitution and organized by Law 137-11, rules on: (i) direct actions of unconstitutionality against laws, decrees, regulations and similar acts; (ii) jurisdictional conflicts among public authorities; (iii) constitutional review of final judgments; and (iv) preventive control of international treaties prior to congressional ratification. Its decisions are final and binding on all public authorities.

Commercial litigation through the ordinary courts routinely takes years through appeal and cassation; contract drafters who want speed and confidentiality should provide for arbitration at the outset, since consent cannot be forced later.

II. Commercial Arbitration

Arbitration in the Dominican Republic is governed by the Commercial Arbitration Law 489-08 of December 19, 2008, adopted in the wake of DR-CAFTA to give the growth in commercial relationships a modern arbitration framework aligned with the UNCITRAL Model Law.

Law 489-08 applies to any arbitration seated in the DR, without prejudice to international treaties ratified by the DR or special legislation providing otherwise.

By procedure, arbitration may be: (1) ad hoc, where the parties agree the procedural rules themselves; or (2) institutional, where the dispute follows the rules of an arbitration center. By nature, arbitration may be at law, where arbitrators decide under the applicable legislation, or in equity (ex aequo et bono), where they decide on fairness and common sense.

An arbitration is international where: the parties had their establishments in different states when the arbitration agreement was concluded; the parties are domiciled outside the DR; or the place of performance of a substantial part of the commercial obligation differs from the parties’ domicile.

Arbitrable matters include disputes over rights the parties may freely dispose of under civil and commercial law, including disputes to which the government is a party. Where the arbitration is international and one party is the Dominican State, a foreign state, or a state-controlled entity, that party may not invoke sovereignty or its own law to evade obligations arising from an arbitration agreement.

III. Excluded Matters under Arbitration Law 489-08

The following do not qualify for arbitration under Law 489-08: (i) matters of civil status, support obligations, divorce, parental authority, minors and persons under legal incapacity or absence; (ii) public-order issues; and (iii) any other matter not susceptible of settlement (transacción).

On matters not excluded, the ordinary courts must respect the parties’ arbitration agreements, procedures and awards, recognizing the arbitrators’ competence and the principles of speed and efficiency of the arbitral process.

IV. Arbitration Agreement

An arbitration agreement is the parties’ agreement to submit to arbitration some or all disputes that have arisen or may arise between them in respect of a legal relationship, contractual or not. It may take the form of an arbitration clause within a contract or of a separate agreement.

The arbitration agreement must be in writing and signed by the parties. The writing requirement is also satisfied by an exchange of letters, faxes, telegrams, emails or other means of telecommunication that provide a record of the agreement, in accordance with the Electronic Commerce, Documents and Digital Signatures Law 126-02 (see Information Technology).

V. Composition of the Arbitral Tribunal

The parties may freely determine the number of arbitrators, provided the tribunal consists of an odd number; absent agreement, a sole arbitrator is appointed.

The parties may appoint the arbitrators directly by mutual agreement or delegate the appointment, in whole or in part, to a third party. In ad hoc arbitrations with three or more arbitrators, each party nominates its proportional share of arbitrators, and those arbitrators appoint the remaining one, who presides. In institutional arbitration, appointments follow the rules of the chosen arbitration center.

The main institutional forum in the country is the Alternative Dispute Resolution Center (CRC) of the Santo Domingo Chamber of Commerce; naming the institution and seat expressly in the clause avoids costly threshold disputes.

VI. Arbitration Award

The award is the tribunal’s decision, rendered at law or in equity where the parties have so authorized; absent indication, the tribunal decides at law. In all cases, the tribunal decides in accordance with the stipulations of the contracts executed by the parties.

VII. Recognition and Enforcement of Foreign Arbitral Awards

Foreign arbitral awards are recognized and enforced in the DR as provided by Law 489-08 and the international treaties, agreements and conventions on the matter.

To enforce a foreign award, the interested party files a request for recognition (exequatur) before the competent court, attaching a copy of the award and of the arbitration agreement or the contract containing the arbitration clause, among other documents.

The court decides whether to recognize the award within the terms established by the applicable international conventions — in particular the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, to which the Dominican Republic acceded in 2002.

Grounds for refusing recognition track the New York Convention’s narrow list; Dominican courts have generally taken an arbitration-friendly approach, which is a key reason sophisticated cross-border contracts with Dominican counterparties default to arbitration.

This publication is provided for informational purposes only and not as legal advice. Any transaction related to any of the described aspects shall require advice and be specifically consulted with the Firm in advance. © Arthur & Castillo. All Rights Reserved. Next