ECUADOR Law and Practice Contributed by: Jorge Sicouret Lynch, María Celeste Alvarado, Julia Rovello and Mateo Viteri, Coronel & Pérez
limitation period. Claims by merchants, suppliers, and artisans for goods sold at retail, as well as claims for services rendered on a periodic or incidental basis, prescribe in two years. Limitation periods may be interrupted either naturally, through an acknowledgment of the debt by the debtor, or civilly, by the formal service of the judicial claim. 2.2 Court Structure The Ecuadorian court system is hierarchical. In most matters, proceedings commence before individual first-instance judges with territorial jurisdiction over a canton. Appeals are heard by the Provincial Courts, which sit in specialised chambers and have jurisdic- tion at provincial level. Final review on points of law is available through cassation before the National Court of Justice, which also operates through specialised chambers and has nationwide jurisdiction. In certain matters, including tax and administrative disputes, the system provides for a single instance of adjudication, after which cassation may be pursued directly before the National Court of Justice. 2.3 Pre-Action Conduct Ecuadorian law does not impose a pre-action proto- col comparable to those found in some common-law jurisdictions. As a rule, proceedings begin with the filing of the statement of claim, although preparatory proceedings may be sought in advance to identify the proper parties or preserve urgent evidence. Those pre- paratory measures may include document production, inspection of property, recognition of private docu- ments and urgent witness evidence, among others. 4.2 Requirements to Engage in ADR deals with for - The stages provided for by law in ordinary proceed- ings are: first instance, appeal, and cassation. In the first instance, the procedural milestones are the complaint, the answer to the complaint, a preliminary hearing to ensure the proceedings are in order and to qualify the admissible evidence, and a trial hearing to produce the admitted evidence and adjudicate the dispute. On appeal, the procedural milestones are the mal requirements to engage in ADR. 2.4 Stages of Court Proceedings
appeal, the response to the appeal, and a hearing, following which a decision is rendered. In cassation, the procedural milestones are the statement of cassa- tion, the decision on the admissibility of the cassation, and, if it is admitted, the response to the statement of cassation, and a hearing, following which a decision is rendered. In practice, first-instance proceedings typically last about 18 months, appeals take about 12 months, and cassation proceedings take about 18 months. 2.5 Confidentiality There are no specific categories of disputes that are confidential. Court proceedings are generally public in Ecuador. The Constitution provides that, at all stages, proceedings and judicial decisions are public, except in the cases expressly provided by law. The Organic General Code of Processes ( Código Orgánico General de Procesos – COGEP) likewise states that judicial information, hearings and decisions are public, sub- ject only to exceptions strictly necessary to protect privacy, honour, reputation or safety, and in proceed- ings that the Constitution or the law expressly classify as reserved. Notwithstanding, mediation is confiden- tial by law, and arbitration by parties’ agreement. 2.6 Interim Relief Interim relief is available in Ecuador and is frequently sought in commercial litigation, particularly to pre- serve assets or secure recovery. Preventive measures may be requested before the claim is filed or while the proceedings are ongoing. The most common meas- ures include attachment of assets, prohibition on the transfer of real estate, retention of funds or credits held by third parties. 2.7 Final Relief The main forms of final relief in commercial disputes in Ecuador are monetary awards, specific performance where appropriate, and termination or rescission with damages were permitted by the governing substan- tive law. Interest and costs may also be awarded. These remedies are broadly available both in court litigation and in arbitration 2.8 Damages Damages are assessed under the substantive law governing the dispute, based on the evidence pro-
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