PERU Law and Practice Contributed by: Renzo Salvatore Monroy Pino, Roberto Shimabukuro Miyasato, Anibal Jong Urtecho Gómez and Alexander Montenegro, Monroy & Shima Abogados
12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country In Peru, alternative dispute resolution has gained sig- nificant recognition over the past two decades as an effective complement to traditional litigation. The legal framework explicitly recognises ADR through Law 26872 (Conciliation), Legislative Decree 1071 (Arbi- tration), and Civil Code provisions on settlements. This formal recognition acknowledges ADR’s advan- tages in reducing court congestion, providing faster resolution and achieving more satisfactory outcomes. Arbitration is the most developed method, particularly for commercial and investment disputes, with Peru establishing an arbitration-friendly jurisdiction based on the UNCITRAL Model Law. Conciliation ranks sec- ond, functioning both independently and within judi- cial proceedings. Mediation lacks conciliation’s specific statutory frame- work but is often treated similarly in practice, while negotiation remains common though typically infor- mal. Specialised mechanisms include dispute boards for construction contracts and INDECOPI consumer complaint procedures. The business community views ADR favourably, particularly valuing arbitration for its confidentiality, expertise and finality. Public perception continues to improve as awareness spreads through educational campaigns and successful outcomes, reflecting growing appreciation for these alternative mechanisms throughout Peruvian society. 12.2 ADR Within the Legal System Peru’s legal system actively promotes ADR through multiple mechanisms. Law 26872 makes conciliation mandatory before filing most civil claims involving freely disposable rights, with courts rejecting law- suits that fail to meet this prerequisite. During pre- liminary civil proceedings, judges must convene con- ciliation hearings, where participation is mandatory though reaching agreement remains voluntary. The system focuses on procedural consequences rather than direct sanctions for refusing ADR, with a party’s unjustified absence potentially affecting cost alloca- tion decisions.
The state further promotes ADR by requiring arbitra- tion in government procurement contracts and per- mitting arbitration clauses in administrative contracts. Financial incentives exist through tax-deductible con- ciliation and arbitration expenses for businesses. Edu- cational requirements include mandatory ADR training in law schools, while the Ministry of Justice conducts public awareness campaigns highlighting ADR ben- efits. These comprehensive approaches demonstrate Peru’s commitment to integrating ADR within its jus- tice system while maintaining appropriate connec- tions to traditional judicial processes. 12.3 ADR Institutions Peru has developed a moderately organised insti- tutional framework for ADR services. Conciliation centres operate under Ministry of Justice authorisa- tion with specific accreditation standards, including both private centres (universities, bar associations, chambers of commerce) and public centres offering reduced-cost services. For arbitration, key institutions include the Lima Chamber of Commerce Arbitration Center, the American Chamber of Commerce and uni- versity centres (PUCP, Universidad de Lima), which maintain qualified arbitrator rosters and regularly update procedures. Though ADR services are concentrated in Lima, they have expanded to cities like Arequipa, Trujillo and Cusco. Government support includes training pro- grammes and technical assistance, while regional disparities persist with limited rural access. These gaps are being addressed through mobile services and virtual platforms, particularly following technologi- cal adaptations during the Covid-19 pandemic.
13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration
Peru’s arbitration framework is governed primarily by Legislative Decree 1071 (2008), based on the UNCI- TRAL Model Law with modifications reflecting local traditions. This comprehensive legislation establishes Peru as an arbitration-friendly jurisdiction, covering both domestic and international arbitration. The law enshrines key principles including separability of arbi-
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