DOMINICAN REPUBLIC Law and Practice Contributed by: John Seibel, Fernando Henríquez, Patricio Silvestre, Cerjossy Tapia, Yeison Henríquez and Banahí Márquez, Seibel Henríquez
Disputes Most Commonly Referred to Arbitration According to statistical reports from the Arbitration Court’s secretariat covering the 2015 to 2024 period, the disputes most frequently submitted to arbitration involve real property matters, followed by sports-relat- ed disputes, corporate disputes, and contractual civil liability claims, in that order. 3.2 Restrictions on Use of Arbitration Exceptions Based on Public Order The arbitrability of disputes is limited by the principle of public order. Matters that cannot be freely negoti- ated or settled by the parties due to their public order nature cannot be referred to arbitration. These include questions of personal status and family law matters. Freely Disposable Disputes By contrast, disputes involving matters within the par- ties’ free disposition form the vast majority of commer- cial conflicts and are fully arbitrable. This encompass- es contractual disputes, property matters, commercial disagreements, and similar commercial issues. Arbitration offers substantially faster resolution than ordinary court proceedings. Parties may tailor the arbitral process to suit their particular circumstances, resulting in greater efficiency. The process also fea- tures restricted appeal mechanisms; arbitral awards are generally final and binding, with only limited grounds for challenge (namely, annulment) set out in the law. Party Control and Expertise Parties control the selection of arbitrators, which builds confidence in the process by enabling them to appoint specialists qualified in the subject matter of the dispute. Parties also select the arbitral procedure, choosing between institutional arbitration adminis- tered by a chamber of commerce or ad hoc arbitration conducted under ad hoc rules. Confidentiality Arbitral proceedings are conducted in strict confi- dence. Information and documents presented during the process remain private and are not accessible to 3.3 Advantages of Arbitration Speed and Procedural Flexibility
the public, which helps parties to protect commer- cially sensitive information. 3.4 Disadvantages of Arbitration Cost Considerations A significant disadvantage of arbitration is its cost. Arbitral fees are typically calculated as a percentage of the amount claimed, meaning higher-value disputes incur proportionally higher fees. Beyond the arbitra- tors’ honoraria, parties must also pay administrative fees to the arbitral institution or centre. Enforcement Requirements Arbitrations governed by the Chamber of Commerce Law (Law No 50-87) are enforceable without addition- al judicial proceedings. By contrast, arbitrations con- ducted under the Commercial Arbitration Law (Law No 489-08) require judicial recognition through an exequatur proceeding before enforcement can occur. Depending on the legal regime chosen, this additional step may pose a practical disadvantage. 3.5 Arbitral Institutions Institutional Centres Most arbitrations in the Dominican Republic are administered by arbitration centres established within the various chambers of commerce across the coun- try. The two most prominent institutions managing arbitral proceedings are the Chamber of Commerce and Production of Santo Domingo and the Chamber of Commerce and Production of Santiago. Arbitrator Panels and Regulations These chambers maintain curated lists of arbitrators who have been assessed for their competence and impartiality. Each chamber also publishes procedural rules governing arbitrations administered under its auspices. Prospective parties should review these rules before selecting their arbitral seat and proce- dural framework. Ad Hoc Arbitration Although less common in the Dominican Republic, parties may choose ad hoc arbitration, which operates outside an institutional framework.
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