TYPES OF ARBITRATION (LAW/EX AEQUO ET BONO)
Most arbitrations solved within Madrid Court of Arbitration are law arbitrations because it is provided in the arbitration clause agreed by the parties or because they agree in that sense at the beginning of the proceeding However, it is important to highlight that ex aequo et bono arbitrations are processed by experts in the conflict’s topic, so the parties obtain highly satisfying solutions for both of them.
TYPES OF PARTIES
Most of the arbitrations that are developed within the Court of Arbitration of Madrid are instances of legal persons. The abundance of business in the course of commerce requires companies to protect frequently the traders’ interests against possible conflicts. One of the most effective guarantees is the inclusion of an arbitration agreement in the contract that guarantees a solution to potential problems in a specific and reasonable time. The Arbitration Court stands as a safe and effective institution to enforce its claims and is therefore trusted by the major market players. Furthermore, despite of the lack of knowledge of this practice -frequent in individuals-, in the last year have been increased the number of arbitration proceedings with cause in a lease, Owners Communities Statutes or claims between individuals, thus demonstrating that arbitration alternative that offers the Court of Arbitration is available to both small and big market players.
NUMBERS OF ARBITRATORS
As it is specified in the Rules of Madrid Court of Arbitration, the general rule is the appointment of a sole arbitrator to solve the controversies. This option has a big amount of advantages for the parties. The exceptional qualification of the arbitrators, both in procedural and law matters, makes possible that the major issues can be solved this way. Through this system with a sole arbitrator the parties have to pay lower found provisions than the ones that are due when they choose a three-member arbitral tribunal. The fact is the sole arbitrator is a growing trend, and it could be chosen in the arbitration clause or by the express agreement of the parties.
AMOUNT OF THE PROCEEDINGS
The Arbitration Court of Madrid has seen an increase of the number of proceedings with value exceeding 1 million euros in the last year. The speed of the processing procedures and the effectiveness of the awards made in the heart of this Court have resulted in an extensive reliance of large economic operators in the institution. The Court also handles a big amount of arbitrations with value lower than 100,000 euros. The relationship between costs and provisions for the handling of arbitration, which are calculated on the amount gradually, and the fast and efficient processing way, make this institution an attractive alternative as a method of dispute resolution also for small businesses and individuals.
A big number of economic operators choose to include in their contracts an arbitration clause, pointing this Court as the administering institution so settle the potential disputes between the parties. This way, the contracts including this provision are about different scopes and topics. However, the current economic situation make the conflicts processed in this Court are mostly about construction. In addition, an important number of the topics arbitrated within Madrid Court of Arbitration are about energy and ICT, both of them important economic sectors nowadays.
SPEED OF THE AWARDS
One of the advantages of arbitration versus ordinary jurisdiction is the shortening of the settle time. Thus, one of the biggest concerns of Madrid Court of Arbitration is to offer the solution to the parties as soon as possible. The majority of the awards are decided by the arbitrators in less time than a year after the beginning of the proceeding. That means, not only the great competence of arbitrators, but also that Madrid Court of Arbitration is at the vanguard of the fast and efficient dispute settlement.
Madrid Court of Arbitration has a significant international presence. One in three arbitrations processed in Madrid Court of Arbitration involve businesses or companies with international draft. This global projection shows how growing and important is Madrid Court of Arbitration’s role. As a result, and due to the great success of this Court, Madrid becomes location for international arbitrations.