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The Arbitral Award is appropriate when there is no possibility of agreement.

When two or more parties are in conflict, it often becomes difficult to find an impartial resolution that benefits everyone. Whoever performs the task of mediating and making the appropriate decision in these situations must have the appropriate credentials and legality.

This legal and resolution figure works independently from the judicial system. and is present in most of the countries of the world, as its scope goes beyond the economic and commercial spheres.

Unlike a legal award, the award is subject to the limited will of an arbitrator. The judge acts in accordance with the law and the study of the corresponding case. For its part, the sentence corresponds to a judge expert in the area and its expression is the fulfillment of the law.

The appeal of the Arbitration Award

The award is regulated by the Arbitration Law. This legal remedy establishes that the award must be in written form and signed by the respective arbitrators. It must also specify the date, the place of arbitration and the costs of the arbitration.

The Arbitration Law establishes that the award must be rendered within six months of the commencement of the arbitration proceedings. The entire proceedings of an award shall be signed by the arbitrators, notarized and notified to the parties involved. After five days of the notification, the parties may request clarifications from the appointed arbitrators.

Recently, the arbitration award has been used to settle disputes between the parties. between the Venezuelan state-owned oil company Petróleos de Venezuela (PDVSA) and ConocoPhillips. The International Chamber of Commerce intervened in this process in order to find a solution to the conflict. In April 2018, the award ruled that the Venezuelan oil company should pay ConocoPhillips for the expropriation of its investments.

Like a legal judgment, the award, once determined, produces the same effects as the rulings of a judge. In that sense, it can only be subject to the appeal for review. However, Article 40 of the Arbitration Law determines the possible cases of annulment, referring to the situation in which the arbitrators have resolved issues not submitted to their decision or also when they have ruled on aspects not subject to arbitration. In these circumstances, the annulment of those decisions outside the established order, provided that they can be separated, shall be exclusively annulled. No appeal shall lie from the annulment of the challenged award.

On the enforcement of awards

The enforcement of awards shall be carried out by the parties involved.. If any of them do not comply with the stipulations, the system of forced execution will be used to enforce the corresponding measures.

In general, these awards are often financed by third parties because the parties involved do not always have all the economic resources necessary to execute them. This option has facilitated access to justice, ensuring that more people can enforce their rights, especially in international justice cases.

However, some legal professionals have also warned about some of the risks involved.The possibility of a considerable increase in litigation and, above all, the significant ethical dilemmas of including a third party funder in the legal process that could influence, in some way, the relationship between the client and the lawyer have been brought into the debate. Therefore, the risk that these relationships may condition decisions or compliance with confidentiality rules has been brought into the debate.

Sources consulted