ECUADOR Law and Practice Contributed by: Jorge Sicouret Lynch, María Celeste Alvarado, Julia Rovello and Mateo Viteri, Coronel & Pérez
Coronel & Pérez 9 de Octubre y Malecón Simón Bolívar
Edificio La Previsora Piso 24. Guayaquil Ecuador
Tel: +593 4 3519 900 Email: marosemena@coronelyperez.com Web: coronelyperez.com
1. Dispute Resolution Methods 1.1 Main Dispute Resolution Methods Ecuador recognises both judicial adjudication and alternative dispute resolution mechanisms. Article 190 of the Constitution expressly provides for the use of arbitration, mediation, and other alternative methods for the resolution of disputes in matters that are legally subject to settlement. In commercial practice, the principal dispute reso- lution mechanisms are litigation before the ordinary courts, arbitration, and mediation. 1.2 Choice of Dispute Resolution Method Court litigation is the most used mechanism. Arbitra- tion is widely used in higher-value and more sophis- ticated commercial disputes, especially where par- ties seek confidentiality, procedural flexibility and a specialised tribunal. Mediation has also grown sig- nificantly in recent years. According to the Council of the Judiciary, the number of active mediation cen- tres increased from 84 in 2019 to 190 in 2024, while reported mediation cases rose from 76,464 in 2021 to 95,186 in 2023. In the public sector, arbitration is avail- able subject to constitutional and statutory require- ments. 1.3 Key Dispute Resolution Trends A key trend in Ecuador is the continued expansion of institutional mediation. As stated in 1.2 Choice of Dis- pute Resolution Method , recent official data shows sustained growth both in the number of active media- tion centres and in the volume of mediated cases,
which reflects increasing confidence in mediation as an effective dispute resolution method. Arbitration also remains a well-established mechanism for com- mercial disputes involving matters capable of settle- ment. At the same time, court proceedings continue to encourage early settlement, as judges are required to promote conciliation.
2. Litigation 2.1 Limitation Periods
Ecuador does not provide for a single, uniform limita- tion period applicable to all commercial claims. As a general rule, the Civil Code establishes that actions become time-barred from the moment the underlying obligation becomes due and enforceable. In broad terms, executive actions are subject to a five- year limitation period, while ordinary actions are sub- ject to a ten-year limitation period. Once the five-year term applicable to an executive action has elapsed, the claim may only be pursued as an ordinary action for a further five-year period, after which it becomes fully time-barred. Mortgage actions and other actions arising from accessory obligations prescribe together with the principal obligation to which they are linked. The law also provides for shorter limitation periods for specific types of claims. For example, claims for the fees of lawyers, doctors, engineers, teachers, and other liberal professionals are subject to a three-year
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