DOMINICAN REPUBLIC Law and Practice Contributed by: John Seibel, Fernando Henríquez, Patricio Silvestre, Cerjossy Tapia, Yeison Henríquez and Banahí Márquez, Seibel Henríquez
Types of Recoverable Damages In contract disputes, courts focus on direct damages and foreseeable losses flowing from the breach. In tort claims, courts may award a broader range of damages beyond direct losses. Loss of profits is recognised as recoverable in both contract and tort contexts when the profits were reasonably foreseeable. Moral dam- ages ‒ compensation for non-economic harm such as emotional distress, reputational injury, or loss of dignity ‒ are also recoverable. While traditionally asso- ciated with individuals, jurisprudence has extended moral damages to legal entities to compensate for harm to their extra-patrimonial rights, including their good name, commercial honour, public trust, corpo- rate image, and credit reputation. Role of Expert Evidence Courts frequently rely on expert evidence, particularly accounting expertise, to help quantify damages and establish the financial impact of the injury or breach. However, courts are not bound by expert opinions and retain the authority to accept, reject, or modify damage calculations based on their own assessment of the evidence, provided that the court gives a duly reasoned justification for doing so. Characteristics of Dominican Damage Awards In practice, damage awards in the Dominican Repub- lic tend to be conservative compared to those in com- mon law jurisdictions. This is because the Dominican legal framework is strictly governed by the principle of full compensation, which limits recovery to the exact loss suffered to restore the injured party, and does not recognise punitive or exemplary damages.
court is not bound by expert opinions. The burden of proving damages falls on the claimant. Specific Performance When monetary compensation is inadequate, courts may order specific performance of the contractual obligations. This remedy is available when the prom- ised performance can still be executed. The court may compel a party to fulfil their original contractual obliga- tions rather than merely paying damages. Contract Termination and Restitution In cases involving material breach, courts may declare the judicial termination of the contract. Such termina- tion orders typically include an award of damages to the non-breaching party and an order for restitution of any consideration already paid or benefits transferred. Declaratory and Restitutionary Relief Courts issue declaratory judgments to determine the validity, scope, or correct interpretation of contractual rights or obligations. Additionally, courts may order the delivery or restitution of specific property or funds wrongfully withheld or transferred. Interest and Litigation Costs Final judgments routinely include interest calculated from the date of breach or filing, as applicable, apart from any post-judgment default interest assessed against the judgment debtor, which accrues from the date of the judgment until its full satisfaction. The los- ing party typically bears an award of the prevailing party’s litigation costs and attorney fees, though such awards are limited by statute to reasonable amounts. 2.8 Damages Judicial Discretion in Assessing Damages Dominican civil liability legislation does not provide rigid formulas or parameters for calculating damages. The courts possess substantial discretionary authority to determine what constitutes full restitution in each dispute. While the Supreme Court of Justice (SCJ) has established broad guidelines over time, individual courts retain wide discretion to determine the appro- priate damages based on the specific facts and cir- cumstances.
3. Arbitration 3.1 Prevalence
Arbitration in the Dominican Republic remains under- developed relative to formal litigation. However, insti- tutional centres are gradually building case portfolios. Since 2015, the Arbitration and Alternative Conflict Resolution Court of the Dominican Republic Cham- ber of Commerce and Production (the main arbitration centre in the country) has processed approximately 20 cases annually.
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