Region
Latin America & Caribbean
Income group
Lower middle income
Most populous city
Guatemala City

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Arbitrating Commercial Disputes Details
This index compares the strength of countries’ arbitration regimes by examining the laws and regulations governing domestic and international arbitrations, as well as the countries’ adherence to specific international conventions.
QuestionAnswer
* Does your national law recognize arbitration as a means of dispute resolution between private parties in commercial transactions? Yes
* Has your country enacted a specific statute on commercial arbitration? Yes
Please list the relevant laws and the years of their adoption Arbitration Law, Decree 67-95 ("Ley de Arbitraje"), adopted in 1995.
* Please indicate the Web site(s) where the statute(s) can be consulted www.congreso.gob.gt
Is the statute based on UNCITRAL? Yes
Comment Guatemalan law on arbitration allows for a motion to review the award, which is to be admitted only if the conditions contained in the law have occurred.
In Guatemala, arbitration can be used ...moreonly in cases that are not subject to a specific procedure established by law.
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Are there other codes, statutes or legislative provisions governing commercial arbitration in your country? No
Please list the relevant laws and the years of their adoption N/A
List web sites N/A
Definition of domestic arbitration Guatemalan law does not provide a definition of domestic arbitration, but it does establish a definition for international arbitration. All arbitration which is not international, is, therefore, do ...moremestic. ...less
Definition of international arbitration Arbitration is considered internationa if one of the following conditions is present:
a) the parties have different domiciles at the moment of execution of the arbitration agreement;
b) o ...morene of the following places is located outside the State where the parties have their domicile:
(i) the place of arbitration if it has been determined in the arbitration agreement or in accordance with the arbitration agreement; or
(ii) the place of performance of a substantial part of the obligations arising from the commercial relationship or the place with which the subject of the controversy has a closer relationship; or
c) the parties have expressly agreed that the subject matter of the arbitration agreement is related to more than one State. ...less
* Are the following types of disputes arbitrable under your country’s national law: (a) Disputes involving rights over immoveable property located within your country: Yes
* (b) Any intra-company disputes( e.g., disputes over decisions made by the executive bodies of a corporation): Yes
* (c) Disputes involving shareholder arrangements: Yes
* (d) Disputes involving patents/trade marks (excluding administrative actions): Yes
(e) Securities transactions: Yes
List any additional commercial matters not listed above which are not arbitrable under your national law: The way the Arbitration Law is written prevents many matters from being arbitrated, i.e. if the law contains a specific procedure with regard to a subject matter, that matter cannot be subject to ar ...morebitration, even if the parties agreed to arbitrate it. These are:
Matters, with regard to which a judicial verdict has been issued (except matters related to its enforcement);
Matters with regard to which the parties are not free to choose jurisdiction/arbitration;
Matters expressly prohibited by law from being arbitrated or with regard to which the law already establishes a specific judicial procedure;
Family and labor law matters.
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* Under your national law, is an arbitration agreement severable from the main contract? Yes
* Can an arbitration agreement be incorporated by reference? Yes
* Can the following method of concluding an agreement constitute a binding arbitration agreement: (a) by electronic communication, including email Yes
* Can the following method of concluding an agreement constitute a binding arbitration agreement: (b) by fax Yes
* Can the following method of concluding an agreement constitute a binding arbitration agreement: by oral agreement No
* Can the following method of concluding an agreement constitute a binding arbitration agreement: by conduct e.g., performance on the part of one party No
* Has your country ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards? Yes
* Under national law, are the state and state entities allowed to enter into arbitration with foreign owned companies in connection with the following: (a) Concession agreements Yes
* Under national law, are the state and state entities allowed to enter into arbitration with foreign owned companies in connection with the following: (b) Infrastructure contracts (e.g, construction contracts) Yes
* Under national law, are the state and state entities allowed to enter into arbitration with foreign owned companies in connection with the following: (c) Contracts dealing with natural resources (e.g., contracts dealing with water rights, mining, oil and gas, etc.) No
* Under national law, are the state and state entities allowed to enter into arbitration with foreign owned companies in connection with the following: (d) Other types of contracts/transactions (please list all that apply in the “Comments” column) Yes
Comment
* Has your country ratified the ICSID Convention? Yes
** Has your country adopted a specific statute on commercial mediation or conciliation of commercial disputes? No
Comment N/A
Additional comment Nowadays, arbitration is a highly sought after method of dispute resolution, because it solves the issues of time and confidentiality associated with judiciary proceedings. However, it would be bene ...moreficial not to limit the matters that can be resolved through arbitration just because the law provides for a specific procedure. ...less
* Scored ** Bonus Question
This index compares rules for the arbitration process determining how easy it is for parties to design arbitration proceedings in their chosen manner and conduct fair and predictable arbitrations.
QuestionAnswer
* In a domestic arbitration taking place in your country, may the parties freely choose arbitrators to resolve their dispute without regard to: (a) the arbitrator(s)’ nationality: Yes
* In a domestic arbitration taking place in your country, may the parties freely choose arbitrators to resolve their dispute without regard to: (b) the arbitrator(s)’ gender: Yes
* In a domestic arbitration taking place in your country, may the parties freely choose arbitrators to resolve their dispute without regard to: (c) the arbitrator(s)’ professional qualifications: Yes
* May parties choose to conduct the arbitration proceedings in a foreign language in domestic arbitration? Yes
Comment N/A
* In an international arbitration taking place in your country, may the parties freely choose arbitrators to resolve their dispute without regard to: (a) the arbitrator(s)’ nationality: Yes
* In an international arbitration taking place in your country, may the parties freely choose arbitrators to resolve their dispute without regard to: (b) the arbitrator(s)’ gender: Yes
* In an international arbitration taking place in your country, may the parties freely choose arbitrators to resolve their dispute without regard to: (c) the arbitrator(s)’ professional qualifications: Yes
* May parties choose to conduct the arbitration proceedings in a foreign language in an international arbitration? Yes
Comment N/A
* May the parties freely choose the method of appointing arbitrators to resolve their dispute e.g., by subscribing to arbitration institutional rules in a domestic arbitration? Yes
Comment N/A
* May the parties freely choose the method of appointing arbitrators to resolve their dispute e.g., by subscribing to arbitration institutional rules in an international arbitration? Yes
Comment N/A
* May the parties freely choose the number of arbitrators to resolve their dispute in a domestic arbitration? Yes
Comment N/A
* May the parties freely choose the number of arbitrators to resolve their dispute in an international arbitration? Yes
Comment N/A
* Does your national law expressly provide that all arbitrators in arbitrations must be independent and impartial in a domestic arbitration? Yes
Does your national law expressly provide that all arbitrators in arbitrations must be independent and impartial in an international arbitration? Article 15(5) of the Arbitration Law.
* Does your national law expressly provide that all arbitrators in arbitrations must be independent and impartial in an international arbitration? Yes
Comment Article 15(5) of the Arbitration Law.
* May each party, if it chooses to do so, retain a foreign lawyer, not licensed to practice in your country, to represent it in an arbitration proceeding in a domestic arbitration No
Comment A lawyer needs to be licensed in Guatemala in order to represent a party in any legal controversy held in Guatemala.
* May each party, if it chooses to do so, retain a foreign lawyer, not licensed to practice in your country, to represent it in an arbitration proceeding in an international arbitration No
Comment A lawyer needs to be licensed in Guatemala in order to represent a party in any legal controversy held in Guatemala.
* Under your national law, are arbitrators expressly bound to preserve confidentiality of arbitration proceedings in a domestic arbitration? No
* Under your national law, are arbitrators expressly bound to preserve confidentiality of arbitration proceedings in an international arbitration? No
* Is online arbitration (or what is sometimes known as electronic Alternative Dispute Resolution) an available method of dispute resolution in your country for domestic arbitrations? No
* Is online arbitration (or what is sometimes known as electronic Alternative Dispute Resolution) an available method of dispute resolution in your country for international arbitrations? No
Comment N/A
* Are parties to an arbitration free to choose any arbitration institution, even one that is outside of your country, to administer their arbitration in a domestic arbitration Yes
* Are parties to an arbitration free to choose any arbitration institution, even one that is outside of your country, to administer their arbitration in an international arbitration Yes
Comment N/A
* Are there any arbitration institutions administering commercial arbitrations in your country? Yes
List the arbitration institutions Arbitration and Conciliation Center of the Chamber of Commerce of Guatemala - CENAC (Centro de Arbitraje y Conciliacion de la Cámara de Comercio de Guatemala);
Commission for Dispute Settlement ...more of the Chamber of Industry of Guatemala - CRECIG (Comis ...less
* List the arbitration institution's Web sites http://www.negociosenguatemala.com/index.php?option=com_content&view=article&id=128&Itemid=129 ...more
http://www.industriaguate.com/index.php?option=com_content&view=article&id=131&Itemid=213
cdca.arbitraje@gmail.com
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* How long, typically, would you estimate the period to be from the filing of the request for arbitration to the constitution of the arbitration tribunal in a domestic arbitration? Answers: 1=Under 30 days; 2=30-180 days; 3=181 days-1 year; 4=over 1 year 2
* How long, typically, would you estimate the period to be from the filing of the request for arbitration to the constitution of the arbitration tribunal in an international arbitration? Answers: 1=Under 30 days; 2=30-180 days; 3=181 days-1 year; 4=over 1 year 2
* How long, typically, would you estimate the period to be from the first hearing of the arbitration tribunal on the merits to the rendering of the arbitration award In a domestic/ international arbitration in your country? Answers: 1=Under 30 days; 2=30-180 days; 3=181 days-1 year; 4=over 1 year 2
* How long, typically, would you estimate the period to be from the first hearing of the arbitration tribunal on the merits to the rendering of the arbitration award In a domestic/ international arbitration in your country? Answers:1=Under 30 days; 2=30-180 days; 3=181 days-1 year; 4=over 1 year 3
Estimate the number of domestic commercial arbitrations carried out in your country's most commonly used arbitration institution within the past 12 months Answers: 1=0-5 cases; 2=6-20 cases; 3=21-100 cases; 4=101-1000 cases; 5=over 1000 cases; 6=N/A 2
Estimate the number of international commercial arbitrations carried out in your country's most commonly used arbitration institution within the past 12 months Answers: 1=0-5 cases; 2=6-20 cases; 3=21-100 cases; 4=101-1000 cases; 5=over 1000 cases; 6=N/A 1
Comment N/A
* In an arbitration between a foreign owned company and your state or a state entity, can the parties freely choose the seat of arbitration (i.e., seat outside of your country)? Yes
* In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose institutional arbitration or ad hoc arbitration? Yes
* In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose the nationality of the arbitrators? Yes
* In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose foreign counsel? No
* In an arbitration between a foreign owned company and the state/state entity, can the parties freely choose the applicable procedural rules? Yes
Are there any other restrictions with respect to party's autonomy in commercial arbitration if one of the parties is the state or a state entity? No
Comment
** How often does the state (or state entities) include arbitration clauses in their contracts with foreign companies? Answers: 1=Rarely; 2=Occasionally; 3=Usually; 4=Always or nearly always 1
* Is there a public authority designated to handle administrative, logistical and other issues related to investors’ disputes with the state or a state entity (e.g., specific agency, office of the Prime Minister, etc.)? No
Comment State Attorney General
** How frequently do private parties in your country agree to attempt to settle their commercial disputes through mediation or conciliation? Answers: 1=Rarely; 2=Frequently; 3=Usually; 4=Always or nearly always 1
* Is there an institution (or institutions) in your country that administers the mediation or conciliation of commercial disputes? Yes
Comment Center of Mediation and Conciliation of the Judiciary Branch;
Arbitration and Conciliation Center of the Chamber of Commerce of Guatemala - CENAC (Centro de Arbitraje y Conciliacion de la Cámar ...morea de Comercio de Guatemala);
Commission for Dispute Settlement of the Chamber of Industry of Guatemala - CRECIG (Comisión de Resolución de Conflictos de la Cámara de Industria de Guatemala).
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Have any of the courts in your country adopted mandatory procedures for mediating commercial disputes (e.g., for screening cases and referring to mediation those that appear susceptible of settlement by mediation, or by establishing “multi-door court houses” that enable parties to choose between litigation and mediation of their disputes)? No
Comment N/A
Additional Comment N/A
* Scored ** Bonus Question
This index compares the extent of judicial assistance before, during, and after the arbitration proceedings.
QuestionAnswer
* Have the courts in your country stated a “pro-arbitration policy”, i.e., a general policy in favor of enforcing arbitration agreements and arbitration awards, in applying your national law of arbitration In domestic/international arbitrations taking place in your country? No
Comment N/A
* If the parties have expressly agreed (i.e., in writing) that the arbitration tribunal can rule on its own jurisdiction, will that be upheld by your national courts? Yes
Comment N/A
* If a party brings an action in a court of your country with respect to a dispute that the parties have previously agreed (in a valid arbitration agreement or other writing) must be arbitrated (either in your country or elsewhere) how frequently would the courts in your country decline to hear the case and refer the parties to arbitration In domestic/international arbitrations taking place in your country? Answers: 1=Rarely; 2=Usually; 3=In all or nearly all cases 3
* If a party brings an action in a court of your country with respect to a dispute that the parties have previously agreed (in a valid arbitration agreement or other writing) must be arbitrated (either in your country or elsewhere) how frequently would the courts in your country decline to hear the case and refer the parties to arbitration in international arbitrations taking place in your country? Answers: 1=Rarely; 2=Usually; 3=In all or nearly all cases 3
Comment Guatemalan law provides that by entering into an arbitration agreement, the parties bind themselves to submit their disputes to arbitration. The existence of the arbitration agreement will prevent a ...moreny legal action in court in connection with the arbitrable dispute, unless a party invokes the exception of incompetence. ...less
* Does your national law provide for domestic courts to assist the arbitration process by ordering the production of documents or the appearance of witnesses In domestic arbitrations taking place in your country? Yes
* Does your national law provide for domestic courts to assist the arbitration process by ordering the production of documents or the appearance of witnesses In international arbitrations taking place in your country? Yes
* Are requests for court assistance by ordering the production of documents or the appearance of witnesses generally granted In domestic arbitrations? Yes
* Are requests for court assistance by ordering the production of documents or the appearance of witnesses generally granted in international arbitrations? Yes
Comment The Code of Civil and Commercial Procedure contains provisions on collection of evidence and states that courts are required to assist arbitration tribunals in resolution of cases. The arbitration t ...moreribunal can request assistance, in writing, from a domestic court either:
(i) to oversee production of evidence under the exclusive direction of the domestic court; or
(ii) to order the production of evidence under the direction of the arbitration tribunal.
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* Does your national law provide for your courts to assist the arbitrators or parties by granting interim relief to prevent immediate and irreparable injury (e.g., preliminary injunctions, the sequestration of property) while the arbitration is pending or before the arbitration has commenced In domestic arbitrations taking place in your country? Yes
* Does your national law provide for your courts to assist the arbitrators or parties by granting interim relief to prevent immediate and irreparable injury (e.g., preliminary injunctions, the sequestration of property) while the arbitration is pending or before the arbitration has commenced In international arbitrations taking place in your country? Yes
* If an immediate need can be shown, how often do courts grant interim relief requests for assistance? Answers: 1=Rarely; 2=Usually; 3=In all or nearly all cases 3
List the law and article which provide for courts' assistance with interim relief. Code of Civil Procedure
Comment Arbitration tribunals tend to avoid requesting the assistance of domestic courts due to courts' lack of credibility.
Given the amount of the arbitration award ($US100, 000) and the location of the assets (your country's largest business city), what court in your country has jurisdiction to enforce an arbitration award rendered in your country (in domestic or international proceedings)? Civil Court of First Instance of Guatemala Department
** Is the court for enforcement of arbitration awards rendered in your country, a higher level court or a specialized court? No
* May a judgment of that court enforcing the award be appealed to a higher court or courts? Yes
May a judgment of that court denying enforcement of the award be appealed to a higher court or courts? No
If Yes, indicate the name of the court(s) of appeal Court of Appeals
* In the case of a domestic award, if a party brings an action in court to set aside (vacate or annul) a domestic arbitration award against it, is the court authorized to review that award on the merits? No
* In the case of an international award, if a party brings an action in court to set aside (vacate or annul) a domestic arbitration award against it, is the court authorized to review that award on the merits? No
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Invalidity of the underlying arbitration agreement or lack of capacity of a party? Yes
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Lack of a fair hearing? Yes
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Award deals with matters outside the scope of the arbitraton agreement? Yes
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Arbitration procedures not in accordance with the parties' s agreement or the governing arbitration law? Yes
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Subject matter of the dispute not subject to arbitration? Yes
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Enforcement of the award would be contrary to country's public policy? Yes
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Error of law? No
Under your national law, can a domestic award rendered in favor of a local company be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country on the following grounds: Award not supported by substantial evidence? No
Under your national law, list any additional grounds under which the domestic award rendered in favor of GlobiCo may be denied confirmation or enforcement, or be set aside, annulled or vacated, by a court in your country. (i) Composition of arbitration tribunal not in accordance with the parties' agreement or with the governing arbitration law;
(ii) Award is still not compulsory for the parties or has been annul ...moreled or suspended by a domestic court of the country, in which or in accordance with the law of which the award was rendered.
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* What is the likelihood that your courts would enforce a domestic arbitration award if no objection to enforcement were filed? Answers: 1=Rarely; 2=Usually; 3=In all or nearly all cases 3
* What is the likelihood that your courts would enforce an international arbitration award if no objection to enforcement were filed? Answers: 1=Rarely; 2=Usually; 3=In all or nearly all cases 3
* Number of days on average necessary to enforce a domestic and international arbitration award in your country: (a) From the filing of an application for enforcement to the date of a hearing for such an application in the first instance court ? 30
* Number of days on average necessary to enforce a domestic and international arbitration award in your country: (b) From the date of the first hearing to the first instance court decision, if no objection to enforcement has been filed? 120
Number of days on average necessary to enforce a domestic and international arbitration award in your country: (c) From the first instance court decision to the decision of the final court of appeal (assuming that all avenues of appeal were pursued). In the second column, please list all relevant courts of appeal? 273
* Number of days on average necessary to enforce a domestic and international arbitration award in your country: (d) From the final court decision granting enforcement to GlobiCo obtaining a writ of execution attaching Supplier’s assets (e.g. bank account)? 60
Comment N/A
Given the amount of the foreign arbitration award ($US100, 000) and the location of the assets (your countrys' largest business city), what court in your country has jurisdiction to enforce a foreign arbitration award (i.e. an award rendered outside of your country)? Civil Court of First Instance of the Department of Guatemala
** Is the court for enforcement of arbitration awards rendered outside your country, a higher level court or a specialized court? No
* May a judgment of that court enforcing the award or denying enforcement be appealed to a higher court or courts? Yes
If Yes, indicate the name of the court(s) of appeal N/A
Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground of "invalidity of the underlying arbitration agreement or lack of capacity of a party"? Yes
Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground of lack of a fair hearing? Yes
Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground of that the award deals with matters outside the scope of the arbitraton agreement? Yes
Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground that the arbitration procedures not in accordance with the parties' s agreement or the governing arbitration law? Yes
Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground that the award was set aside in the country where it was made? Yes
Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground that the subject matter of the dispute not subject to arbitration? Yes
Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground of public policy? Yes
* Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground of "error of law"? No
* Under your national law may an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts on the ground of that the award not supported by substantial evidence? No
* Under your national law, list additional grounds under which an arbitration award rendered in another country be denied recognition or enforcement by your country’s courts (i) Composition of arbitration tribunal not in accordance with the parties' agreement or with the governing arbitration law;
(ii) Award is still not compulsory for the parties or has been annul ...moreled or suspended by a domestic court of the country, in which or in accordance with the law of which the award was rendered. ...less
* What is the likelihood that your courts would enforce a foreign award if no objection to enforcement were filed? Answers: 1=Rarely; 2=Usually; 3=In all or nearly all cases 3
* Number of days on average necessary to enforce a foreign arbitration award in your country: (a) From the filing of an application for enforcement to the date of a hearing for such an application in the first instance court ? 30
* Number of days on average necessary to enforce a foreign arbitration award in your country: (b) From the date of the first hearing to the first instance court decision, if no objection to enforcement has been filed? 120
Number of days on average necessary to enforce a foreign arbitration award in your country: (c) From the first instance court decision to the decision of the final court of appeal (assuming that all avenues of appeal were pursued). In the second column, please list all relevant courts of appeal? 273
* Number of days on average necessary to enforce a foreign arbitration award in your country: (d) From the final court decision granting enforcement to GlobiCo obtaining a writ of execution attaching Supplier’s assets (e.g. bank account)? 60
Comment No appeals of the first instance court decisions are permitted by law.
* In arbitrations involving a state or state entity, can your court(s) review the arbitration award on its merits in connection with recognition and enforcement proceedings? No
Additional Comment N/A
* Scored ** Bonus Question