URUGUAY Law and Practice Contributed by: Leonardo Melos, Bergstein Abogados
• Any decision on these issues by the competent court will be final. When appointing an arbitrator, the competent court will take due account of the conditions required for an arbitrator under the parties’ agreement and take the necessary measures to ensure the appointment of an independent and impartial arbitrator. In the case of sole arbitrator proceedings, the court will also take into account the convenience of appointing an arbitra - tor of a nationality different from the parties’ nationali - ties. 4.4 Challenge and Removal of Arbitrators A party that wishes to challenge an arbitrator must send a notification to the arbitral tribunal within 15 days following the day on which it becomes aware of the constitution of the arbitral tribunal or of any of the circumstances that give rise to the challenge. As stated in 4.1 Limits on Selection , challenges to arbi - trators may be based on the absence of impartiality or independence. An additional ground to challenge an arbitrator is the lack of qualifications agreed by the parties in the arbitration agreement or in a sepa - rate document. The challenge must state in writing the reasons for that challenge. Unless the challenged arbitrator resigns or the other party accepts the chal - lenge, it will be for the arbitral tribunal to decide on the challenge. If the challenge initiated is unsuccessful because the arbitral tribunal rejects the request, the challenging party may request that the court review that decision within 30 days of receipt of notification of the deci - sion. The court will have a maximum of 60 days to rule and its decision will be final. While that request is pending, the arbitral tribunal will suspend its proceed - ings, which will resume either once the challenge is resolved or 60 days after the challenge is initiated. 4.5 Arbitrator Requirements Arbitrators are subject to the same independence and impartiality standards applicable to local judges (Article 485.3 of the CPC). Arbitrators are obliged to disclose any prior relationship (of any kind) maintained with any of the parties that could affect their impartial - ity. Although there is no statute or specific regulation in this regard, the International Bar Association (IBA)
Guidelines on Conflicts of Interest in International Arbitration serve as a reference for scholarly opinions and rulings. For local arbitration, it is established that no judge or individual under the age of 25 can be appointed as an arbitrator.
5. Jurisdiction 5.1 Challenges to Jurisdiction
In Uruguay, the arbitral tribunal is entitled to rule on its own jurisdiction; the competence-competence prin - ciple is consistently applied by local courts in both international and local arbitral proceedings. Accord - ing to Article 475.2 of the CPC, the arbitral tribunal is competent to rule on all matters related to the validity and effectiveness of the arbitration clause or agree - ment. According to Article 16 of the AICA, the arbitral tribunal is also empowered to decide on its own juris - diction, including on objections relating to the exist - ence or validity of the arbitration clause or agreement. A defence based on absence of jurisdiction must be filed jointly with the response to the complaint at the latest. The parties will not be prevented from filing an absence of jurisdiction defence owing to the fact that they have already appointed an arbitrator or partici - pated in their appointment. An objection based on the argument that the arbitral tribunal has exceeded its mandate must be raised as soon as the matter alleg - edly exceeding its mandate arises during the arbitral proceedings. The arbitral tribunal may, in any case, examine an objection filed after the term has elapsed if it considers the delay justified. The arbitral tribunal may rule on the absence of jurisdiction defence as a preliminary procedural matter or in the final award. 5.2 Circumstances for Court Intervention If the arbitral tribunal decides that it has jurisdiction over the dispute, any party – within 30 days of notifica - tion of that decision – may request that the competent court review the matter within a maximum period of 60 days and the court’s decision will be final. During that time, the arbitral tribunal may continue its proceedings and issue an award. Courts in Uruguay have generally shown reluctance to intervene in disputes subject to an arbitration agree -
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