URUGUAY Law and Practice Contributed by: Leonardo Melos, Bergstein Abogados
• maintain the status quo pending settlement of the dispute; • take steps to prevent any actual or imminent dam - age or impairment of the arbitral proceedings or refrain from certain acts that are likely to cause such damage or impairment of the arbitral pro - ceedings; • provide some means to preserve assets that will allow the award issued to be enforced; and/or • preserve evidence that could be relevant and perti - nent to the dispute. The precautionary measure will be granted by the arbitral tribunal when necessary to protect a right and when there is potential irreversible damage, in light of the duration of the process. This decision of the arbi - tral tribunal will not be considered as a prejudgment regarding the main subject of the dispute. 6.2 Role of Courts Local courts play a relevant role in ensuring that the preliminary or interim measure is pursued by one of the parties prior to the initiation of the arbitral pro - ceedings in cases of international arbitration. In this case, the arbitral proceedings should be started within 30 days, counted from the date the measure takes effect. If the interim measure is decided by the arbitral tribu - nal in the course of an arbitration proceeding, it may also request the assistance of a local court to enforce the measure against a party in breach. To that end, the local court will have the same jurisdic - tion to issue precautionary measures as the arbitration proceeding, regardless of whether or not the arbitra - tion is seated in Uruguay. For purposes of deciding whether to issue an interim or precautionary measure, the local court should take into account the principles of international arbitration and the particularities of the dispute. As regards the types of measures that could be granted by local courts, see 6.1 Types of Relief . Although the role of an emergency arbitrator has not been established under the AICA, local arbitral insti - tutions, such as the CCA, have ruled that an emer - gency arbitrator may issue interim and precautionary measures. According to the CCA rules, the emergency
arbitrator’s competence would be limited to precau - tionary measures to secure evidence or anticipated evidence that – owing to its nature or the circumstanc - es – should be received prior to the appointment of the arbitral tribunal. A party that wishes to request the intervention of an emergency arbitrator should file its request with the CCA in writing. The prior appointment of an emer - gency arbitrator does not prevent the local courts from assuming jurisdiction at the request of one of the parties or for the enforcement of the interim or
precautionary measure. 6.3 Security for Costs
Under Uruguayan law, neither local courts nor arbitral tribunals may require security for costs solely from the claimant. Costs for the arbitration are requested in advance from both parties equally.
7. Procedure 7.1 Governing Rules
Parties are free to establish the arbitral procedure in the arbitration agreement or after the dispute has started. If the parties fail to establish the arbitral pro - cedure, the arbitral tribunal is entitled to determine the most appropriate procedure for the dispute. Such a procedure would also regulate the admissibility and There are no specific steps required prior to pursuing international arbitration. However, if one of the parties refuses to enter into arbitration and consequently to honour the procedure established by the AICA, the other party is entitled to pursue judicial enforcement of the arbitration agreement before the local courts. In this case, the local court would – on behalf of the breaching party – enforce the arbitration agreement, appoint the arbitrator, set the procedure and indicate the matters that must be subject to decision by the arbitral tribunal. 7.3 Powers and Duties of Arbitrators Arbitrators’ powers over the arbitration procedure are equal to those held by a local judge, but without the assessment of evidence. 7.2 Procedural Steps
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