1. Even if a contract includes an arbitral clause, can I make a request for litigation or even be sued in national courts?

Yes. A party may initiate litigation before national courts. In this case, once respondent files the answer to the request, he can ask the judge to refer the parties to arbitration in accordance with article 1424 of the Commercial Code.

2. If the parties did not include an arbitral clause in their contract, is there any alternative for the parties to submit their existing disputes to arbitration?

Yes. The parties can submit an existing dispute to arbitration as long as they enter into an arbitration agreement.

3. What happens if the respondent does not file an answer to the request?

If any of the parties refuses or fails to take part in the arbitration proceeding, the arbitration shall proceed notwithstanding such refusal or failure (article 12.2 of CAM Rules of Arbitration), in the understanding that the arbitral tribunal will not hold claimant´s pleas as true.

4. What happens if the arbitrator is not impartial or independent?

Before appointment or confirmation by the General Council or the Secretary General, the prospective arbitrator shall sign a statement of independence and shall disclose in writing to the Secretary General any facts or circumstances which might be of such nature as to call into question his independence in the eyes of the parties (article 13.2 of CAM Rules of Arbitration). Consequently, an arbitrator is appointed or confirmed only if he has disclosed to be independent of the parties.

Within 10 days following the date of notification by the Secretary General of the appointment or confirmation of the respective arbitrator, or within 10 days following the date on which the interested party was informed of the facts and circumstances that might be of such nature as to call into question the arbitrator´s independence, the interested party shall present a written challenge which specifies the facts and circumstances on which it is based, to the Secretary General. The General Council will resolve said submission (articles 17 and 18 of CAM Rules of Arbitration).

5. What are the requirements in order to be an arbitrator of the Arbitration Center of Mexico (CAM)?

CAM does not have a list of arbitrators. When CAM is asked to appoint an arbitrator, CAM´s personnel looks for the right person depending on the particular circumstances of the case.

Nevertheless, CAM invites professionals with different backgrounds to form part of its extensive database of potential arbitrators. CAM also provides them with training in proceedings under it´s Arbitration Rules.

6. Is it necessary to make the notifications through a public authority?

The notifications in an arbitral proceeding do not require more formality than the agreed by the parties. Article 4 of CAM Rules of Arbitration establish the way notifications should be made (without establishing the necessity of the presence of a public authority). However, a party may retain this service by assuming the respective cost.

7. Can the arbitrator condemn in costs?

Yes, in the final award, the arbitral tribunal must decide which of the parties shall bear the costs of the arbitration or in what proportion they shall be borne by the parties (article 40.3.c of CAM Rules of Arbitration).

8. What happens if the parties want to reach a settlement before the arbitral proceeding ends?

If the parties reach a settlement after the file has been transmitted to the arbitral tribunal, they can request to withdraw the request for arbitration or move for settlement in the form of an arbitral award. In cases where arbitral proceedings end before the rendering of the final award, the General Council shall fix at its discretion the cost of the arbitration considering the procedural stage in which the arbitral proceeding ended and any other relevant circumstances of the case.

9. In an institutional arbitration, does the arbitration must be carried out in the same city of the location of the administered institution?

An arbitral institution can administer the arbitral proceedings without being necessary to be located in the place of arbitration. The better example for this is the International Arbitration Court of the International Chamber of Commerce, institution that is located at Paris, France, and from there offers its services of administration of proceedings that involve parties form over more than 150 countries.

10. Does the appeal recourse proceeds against the arbitral award?

By submitting the dispute to arbitration under CAM Rules of Arbitration, the parties waive expressly any appeal or any equivalent form of recourse (article 35.5 of CAM Rules of Arbitration).

11. What is the difference between mediation and arbitration?

Mediation and arbitration are two different ways for resolving disputes. Mediation is an autocompositive method, this is, the parties themselves directly resolve their disputes; the mediator only facilitates the communication between the parties. If the mediation proceeding is successful, the parties will obtain a written agreement establishing their rights and obligations.

Arbitration, on the other hand, is an heterocompositive method for resolving disputes. The disputes are resolved by one or more arbitrators through a binding resolution named award. The arbitral award can be recognized and enforceable by recurring before a judge.

12. Is there recommended language for an arbitral clause?

It is recommended to use the CAM model clause. If you have any doubt or a special requirement, you can send us your clause project for review at no cost.

13. Is arbitration expensive?

Arbitration is not an ideal method for resolving all kinds of disputes. One of the factors to be considered by the parties at the moment of choosing the method for resolving their disputes is the amount in dispute.

The cost of an arbitral proceeding administrated under CAM Rules of Arbitration has a variation from 7% to 5% of the amount in dispute. CAM arbitration is approximately 50% less expensive than ICC arbitration. You can easily calculate the cost of your arbitration by using the online calculator contained in this website.

14. Is it possible to order interim measures in an arbitral proceeding? Who is competent to order interim measures?

In an arbitral proceeding it is possible to apply for interim measures, either through a judicial authority or through the arbitral tribunal (article 1433 of the Commercial Code).

Notwithstanding, the parties usually apply before a judicial authority for interim or conservatory measures (article 1425 of the Commercial Code).

Once the arbitral tribunal has been constituted, it may order any interim or conservatory measure that it deems appropriate, either though a procedural order or through an arbitral award, as long as the following conditions are met: (i) that the arbitral tribunal has received the file; (ii) that a party has requested it; and (iii) that the requesting party furnishes the security fixed by the arbitral tribunal, if required. The arbitral tribunal is not an authority and consequently, does not have the ability to execute an interim measure. In case that the parties do not fulfill voluntarily the interim measures ordered by the arbitral tribunal, assistance of any competent judicial authority must be sought. The above, in the understanding that the arbitral tribunal shall consider, in the final award, the procedural conduct of the parties in order to decide which of them shall bear the costs of the arbitration and in what proportion.

15. Are the procedural rules of the commercial proceedings before the national courts applied supplementary in arbitration proceedings?

Book Five Title Four of the Commercial Code is the law that regulates independent and self-sufficient private commercial arbitrations.