ECUADOR Law and Practice Contributed by: Oswaldo Santos Dávalos and Bernarda Haro Aillón, Santos Burbano de Lara
2. Governing Legislation 2.1 Governing Law
Draft Legislative Reform A bill to reform the Organic Code of the Judicial Func - tion, which includes amendments to the LAM, is being considered by the National Assembly. The bill pro - poses amendments relating to the enforcement of arbitral awards. The most significant proposal grants arbitral tribu - nals powers to enforce their own awards, with pow - ers analogous to those exercised by judges at the enforcement stage. If enacted, it would alter the divi - sion of competences between arbitral tribunals and the ordinary courts described in 8.3 Powers of Com- pulsio n and 12.2 Enforcement Procedure . Article 5 of the LAM requires the arbitration agree - ment to be in writing. Article 4 requires capacity to settle ( transigir ), and Article 1 requires the dispute to concern a matter capable of settlement. Agreements With the Public Sector Article 4 of the LAM adds four requirements where a public-sector entity is involved: that the agreement be entered into before the dispute arises or, in the alter - native, that the Attorney General be consulted (whose opinion is binding); that the legal relationship be con - tractual; that the agreement set out the method for selecting the arbitrators; and that it be signed by the person authorised to contract on behalf of the institu - tion. Failure to meet any of these requirements renders the arbitration agreement void. On the additional requirements applicable to interna - tional arbitration with public entities, see 7.1 Govern- ing Rules . 3.2 Arbitrability Article 1 of the LAM allows disputes capable of settle - ment to be submitted to arbitration. Capacity for set - tlement depends on the parties being able to dispose freely of the rights at issue. 3. The Arbitration Agreement 3.1 Enforceability
The LAM governs domestic and international arbitra - tion, and was enacted in 1997 and codified in 2006. Its Regulations (RLAM) were issued in 2021. The LAM partially adopts the UNCITRAL Model Law on International Commercial Arbitration. It embraces principles such as party autonomy, separability of the arbitration agreement, kompetenz - kompetenz and minimal judicial intervention. The grounds for annulment set forth in Article 31 of the LAM are entirely procedural: infringements to the right of due process, extra and ultra petita decisions, and violation of the procedures for appointing arbitrators or constituting the arbitral tribunal. Those grounds do not include arbitrability or public policy infringements, unlike Article 34 of the Model Law. The LAM also differs from the Model Law in other respects. For example, it does not contain its own catalogue of grounds for challenging arbitrators or a complete regime for the taking of evidence, mat - ters that the Model Law does develop. The General Organic Code of Procedure (COGEP), which is more formalistic in nature, applies on a subsidiary basis. On those differences, see 7.2 Procedural Steps , 8.3 Rules of Evidence and 11.1 Grounds for Appeal . 2.2 Changes to National Law There have been no legislative reforms to the LAM in the past year. The Constitutional Court has, however, carried out a constitutionality review of the RLAM and there are also debates on future reforms. Constitutionality Review of the Regulations In judgment 74-21-IN/25, of February 2025, the Con - stitutional Court decided six joined public actions of unconstitutionality against the RLAM. The Court reviewed the arbitration and mediation rules, but did not declare any arbitration provision of the regulations unconstitutional.
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