DOMINICAN REPUBLIC Trends and Developments Contributed by: John Seibel, Fernando Henríquez, Patricio Silvestre, Cerjossy Tapia, Yeison Henríquez and Banahí Márquez, Seibel Henríquez
Framework for Recognition and Enforcement of Foreign Decisions in the Dominican Republic The Dominican Republic has emerged as one of the leading countries in the Central America and Carib- bean region for attracting foreign investment. In this commercial context, legal certainty regarding the enforcement of foreign judicial decisions has become a fundamental pillar to consider for investors seeking opportunities in the country. The increasing sophisti- cation of cross-border commercial transactions has naturally resulted in a greater frequency of disputes resolved outside Dominican territory. Consequently, the effectiveness of rights recognised in foreign forums depends entirely on the efficiency and predictability of the local enforcement mechanism. Dominican judicial practice has evolved towards a sys- tem of decision recognition that prioritises the validity of international agreements and the finality of awards issued in other jurisdictions. For the foreign investor, understanding the technical operation of enforcement in the Dominican Republic is an essential element of financial viability. This article examines the regulatory structure currently governing this issue, highlighting the courts’ respect for commitments undertaken in the international arena. Constitutional Framework and Hierarchy of International Treaties In matters of commercial arbitration, the Dominican Republic is governed by the New York Convention of 1958, which it ratified in 2001. This instrument impos- es a pro-enforcement standard, limiting the function of the local judge to verification of formal requirements and prohibiting examination of the merits of the dis- pute. This restriction on judicial review is the factor that generates the greatest confidence among trans- national investors. It is important to highlight that Article 26 of the Con- stitution recognises that provisions from duly ratified international conventions govern in the domestic legal order and form part of the so-called constitutional block. This ensures that enforcement rights recog- nised in decisions with the authority of res judicata cannot be restricted by provisions domestic laws that seek to impose additional restrictions that conflict with the New York Convention.
In practice, the hierarchy granted to international con- ventions allows for the direct invocation of interna- tional treaties before Dominican courts, even in the presence of contradictory domestic procedural rules. This normative stability is decisive in the structur- ing of sophisticated financial operations, especially in regulated sectors such as energy and mining, on the understanding that rules relating to recognition and enforcement of foreign decisions will remain unchanged despite domestic legislative changes, eliminating legal risks that might inhibit large scale capital investment. Furthermore, the Inter-American Convention on Inter- national Commercial Arbitration, that is, the Panama Convention of 1975, complements this framework at the regional level. The coexistence of both treaties offers parties a flexible regulatory system that facili- tates the recognition of awards rendered within the American hemisphere. Enforcement Framework Under the DR-CAFTA Trade Agreement For disputes relating to investment protection, the Dominican Republic–Central America Free Trade Agreement (DR-CAFTA) establishes a specialised enforcement regime. Under Chapter 10, in the sec- tion concerning investor-state dispute resolution, it is established that awards issued in investor-state arbi- tration proceedings, particularly those administered under the rules of the International Centre for Settle- ment of Investment Disputes (ICSID), are recognised as having the same enforceability as final judgments of national courts. This level of protection is imperative in sectors where the Dominican state acts as contractual counterparty, such as infrastructure and telecommunications. DR- CAFTA removes the traditional procedural barriers to enforcement against sovereign entities, ensuring that international awards are directly binding and enforce- able. This framework has been decisive in reducing jurisdictional risk in relations between foreign inves- tors and the public administration.
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