DOMINICAN REPUBLIC Law and Practice Contributed by: John Seibel, Fernando Henríquez, Patricio Silvestre, Cerjossy Tapia, Yeison Henríquez and Banahí Márquez, Seibel Henríquez
1. Dispute Resolution Methods 1.1 Main Dispute Resolution Methods Judicial and Alternative Dispute Resolution Options Commercial disputes in the Dominican Republic are resolved through either the judicial system or ADR mechanisms. The available options include litigation, arbitration, and mediation. Parties typically select the most appropriate method based on the nature of the dispute, desired confidentiality, timeline, and cost considerations. The choice between these mecha- nisms significantly affects procedural requirements, enforceability, and ultimate resolution timeframes. Certain Disputes Require Judicial Resolution Specific categories of disputes cannot be resolved through arbitration or other ADR mechanisms and must proceed through the courts. These non-arbitra- ble matters include labour and employment claims, land and property disputes, tax disputes, intellectual property infringement cases, and certain administra- tive matters. The restriction reflects policy decisions that certain disputes require public oversight or affect broader legal principles that courts are best positioned to address. Applicable Legal Framework Judicial disputes are governed by specialised statutes tailored to the specific matter type, supplemented by the Dominican Civil Procedure Code and the Law No 834-14 for procedural gaps or where specific rules do not otherwise apply. This dual framework ensures that procedural flexibility adapts to different dispute categories while maintaining baseline procedural standards. Arbitration and mediation are regulated separately through specific legislation governing their respective processes, allowing parties to select appropriate mechanisms with clearly defined legal frameworks. Growing Demand for Alternative Dispute Resolution Arbitration and mediation have experienced signifi- cant growth as preferred dispute resolution mecha- nisms in the Dominican Republic. This trend reflects increasing recognition of ADR’s practical advantages, including greater confidentiality, faster resolution time-
lines, reduced costs compared to extended litigation, and flexibility in selecting decision-makers with spe- cialised expertise. Parties, particularly those engaged in cross-border or complex commercial transactions, increasingly structure agreements to include ADR clauses as a primary dispute resolution pathway. 1.2 Choice of Dispute Resolution Method Court Litigation Court litigation remains the overwhelmingly preferred method of dispute resolution in the country. This is true in most commercial and personal claims that could be resolved through arbitration, but it is most evident in matters that are legally barred from arbi- tration. Therefore, labour claims, land disputes, chal- lenges to administrative acts, family law, and other similar claims can all be heard by the judicial branch. Arbitration Arbitration has been growing steadily through the implementation of modern legislation and the edu- cation of different stakeholders. The most common arbitration cases in the Dominican Republic involve contractual breaches, commercial leases, sports disputes, energy sector disputes, and investor-state claims under the Dominican Republic–Central Amer- ica Free Trade Agreement (DR-CAFTA). Conciliation and Mediation Conciliation is often a prerequisite in certain mat- ters such as labour, telecoms, or consumer products claims. Mediation is less used in the dispute resolution sphere, but it has been steadily increasing through mediation procedures within the judicial branch and private mediation administered by the local Chambers of Commerce. 1.3 Key Dispute Resolution Trends The Advance of ADR The recognition of arbitration and other ADR mecha- nisms has been on the rise. There has been a general recognition of ADR by the judicial branch, including the creation of mediation and conciliation processes and entities within the judicial process. Courts have been more open to recognising arbitration clauses and agreements, and have been consistent in approv- ing the enforcement of foreign arbitral awards.
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