COLOMBIA Law and Practice Contributed by: Rebeca Herrera Diaz, Rebeca Herrera Abogados
• Finality: The foreign judgment must be final, mean- ing it cannot be appealed in the country where it was issued. The procedural steps of the exequatur process include submitting the foreign judgment, supporting docu- ments, and notifications to interested parties, enabling them to present objections, if applicable. Once the Supreme Court grants exequatur, the foreign judgment holds the same legal effect as a Colombian judgment and can be enforced through local courts. The CGP’s provisions balance respect for international judicial decisions with measures to preserve Colom- bia’s legal integrity. 9.5 Enforcement of Arbitration Clauses Arbitration clauses in commercial insurance contracts are enforceable in Colombia, although the situation has evolved over time. While Law 1480 of 2011 ini- tially classified insurance contracts as consumer con- tracts, leading to arbitration clauses being considered abusive, Law 1563 of 2012, the Colombian Arbitra- tion Statute, subsequently allowed for their inclusion in consumer contracts, subject to specific regulatory mechanisms. Decree 1829 of 2013 attempted to regu- late this through the “option contract” mechanism, but the Council of State annulled this section in 2022. Despite this, the Supreme Court recently ruled that arbitration clauses are not abusive in insurance con- tracts (even though they are considered consumer contracts) in the following cases: • when the insured purchases the policy for business purposes; • when the consumer is a corporation, and • when the insurance policy was purchased with the support of an insurance broker. In such cases, insurance companies can enforce arbi- tration clauses when policyholders, insured parties, or beneficiaries attempt to have them declared null and void before a judge. In contrast, reinsurance agreements are considered commercial contracts under Colombian law, and there are no restrictions on the parties’ agreement to and
enforcement of arbitration clauses in such agree- ments. 9.6 Enforcement of Awards If a party domiciled in Colombia receives an award in an arbitration, it can be enforced in Colombia if it is recognised under Colombian law. This means that awards made in other jurisdictions can be enforced in Colombia, provided that Colombian law recognises them. Recognition requirements are those of the New York Convention, to which Colombia is a party. Under Law 1563 of 2012 (Colombian Arbitration Stat- ute), the recognition and enforcement of foreign arbi- tral awards are addressed in Articles 111 to 116. This law adopts the principles of the New York Convention on the Recognition and Enforcement of Foreign Arbi- tral Awards, ensuring consistency with international arbitration standards. Accordingly, foreign arbitral awards are subject to the exequatur process for recognition and enforcement in Colombia, overseen by the Colombian judiciary. The foreign award must be final, binding, and issued by a tribunal with proper jurisdiction. Recognition may be denied on grounds of insufficient notice, procedural irregularities, or if the award con- flicts with Colombian public policy. These grounds align with those in the New York Convention, under- scoring Colombia’s commitment to international arbi- tration standards. If necessary, the party seeking enforcement must present a duly authenticated copy of the award and the arbitration agreement, along with certified transla- tions. Once exequatur is granted, the foreign award is enforceable in Colombia as if it were a domestic judgment. 9.7 Alternative Dispute Resolution Alternative dispute resolution, such as mediation, plays a minor role in resolving insurance disputes in Colombia. The same applies to consumer contracts or reinsurance contracts. As mentioned above, insur- ance companies must hire the services of a Financial Consumer Ombudsman, who must be a lawyer with conciliation powers to mediate among the parties in
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