International arbitration law and rules in Chile

Chile has a longstanding tradition of arbitration and in general arbitration is preferred to the Court procedure. The Chilean Law on International Commercial Arbitration (Law No. 19.971, dated 29 September 2004) only applies if the place of arbitration is Chile (Article 1, No. 2), with some exceptions.  Further, the Chilean Civil Code provides that Chilean law applies to all inhabitants of Chile, including foreigners, as well as any assets located in Chile (even if their owners are foreigners and do not reside in Chile).

1.1.1 There have been three main stages in the evolution of arbitration laws in Chile. 1 BIGGS, Gonzalo. “La Institucionalidad Chile y el Arbitraje Internacional”. www.camsantiago.cl/articulos_online/La%2520Institucionalidad%2520Chilena%2520y%2520el%2520Arbitraje%2520Internacional.doc+&cd=1&hl=es-419&ct=clnk&gl=cl.

1.1.2 The first took place with the establishment and regulation of arbitration tribunals by the Law of Organisation and Attributions of the Courts (Spanish: Ley de Organización y Atribuciones de los Tribunales or LOT), of 1875, and the regulation of the arbitration procedure by the Code of Civil Procedure of Chile (CPC), in 1902. These norms were well received at the time, as they helped the ordinary and arbitral justice system to function better, which until then had been governed by disparate laws that mostly came from the colonial era. 

1.1.3 The second stage began with the enactment of the Organic Code of Courts (Spanish: Código Orgánico de Tribunales, or COT) in 1943, which repealed LOT and consolidated, in a single text, the LOT of 1875, with modifications, and complementary legislation. These regulations on arbitration tribunals, together with the CPC regulations, constitute the current legislation on this matter in Chile.

1.1.4 The third stage began with Chile's gradual acceptance of international arbitration to resolve disputes over international investment and trade and the application within the country of institutional arbitration. All of this came together in the enactment of Law No. 19.971 on international commercial arbitration (Law No. 19.971), which was adopted with the aim of modernising the arbitration system and providing an effective tool for the resolution of international conflicts, which were previously only regulated by the CPC and COT. 2 VÁSQUEZ PALMA. María Fernanda. “La Nueva Ley de Arbitraje Comercial Internacional de Chile y su análisis comparativo con la Ley Española”. http://www.rdpucv.cl/index.php/rderecho/article/viewArticle/607

1.1.5 A final significant development in arbitration in Chile came with the creation, in 1992, by the Santiago Chamber of Commerce, of the Centre for Arbitration and Mediation (CAM). This Centre is directed by a council consisting of prominent business, legal and academic figures and has a list of arbitrators made up of the country's leading jurists. Parties wishing to submit to an arbitration process will most commonly approach CAM to initiate proceedings.

The creation of CAM was essential for the expansion of the coverage of national and international arbitration claims, mediation processes and dispute boards in Chile. CAM has reviewed more than 4,500 cases to date. 3

2.1.1 In domestic arbitrations, there is a distinction between voluntary and compulsory arbitrations. It is voluntary when an agreement between the parties initiates the arbitration process according to article 228 of the COT. Alternatively, it is compulsory when the law establishes that this is the only way to resolve the conflict, thus releasing the ordinary courts from the obligation to hear these matters (article 227 of the COT). Examples of compulsory arbitration include the partition and liquidation of communities or conflicts between partners of a public limited company or collective,.

2.1.2 The Chilean Law on International Commercial Arbitration (Law No. 19.971, dated 29 September 2004) applies only if the place of arbitration is Chile (Article 1, No. 2), with some exceptions. The foregoing stems from the principle of territoriality, which has long been accepted in the Chilean legal system. To this end, the Chilean Civil Code establishes that: "The law is mandatory for all inhabitants of the Republic, including foreigners" (Article 14) and, on the other hand, Article 16 of the same Code establishes that: "Assets located in Chile are subject to Chilean law, even if their owners are foreigners and do not reside in Chile”.

2.1.3 Furthermore, the International Commercial Arbitration Law establishes that an arbitration will be understood as international if:

• The parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different countries;
• The place of arbitration determined by agreement or the place of performance of the obligations is located outside the country in which the parties have their places of business; or
• The parties have expressly agreed that the subject matter of the arbitration agreement relates to more than one government.

2.2.1 The most important general principle in arbitration is that of autonomy. Because of this principle, the parties themselves decide to submit to an arbitration procedure for the reasons they deem appropriate, except in cases of compulsory arbitration established by law. Various questions have been raised about the constitutionality of this norm, which establishes forced arbitration precisely because it limits the autonomy of the parties and because of possible violations of the right to defence. This is because the parties must pay for access to justice required by law.

2.2.2 In addition, it is important to highlight the principle of competence. The principle establishes that the arbitrator himself must resolve the conflicts derived from the arbitration agreement, including any claim of nullity of the contract of which the arbitration agreement may be part, which is summarised in the idea that the arbitrator has competence to review his own competence. 4 VÁSQUEZ PALMA. María Fernanda. “Comprensión del Principio “Competencia-Competencia” y configuración de la nulidad o ineficacia del acuerdo arbitral”. https://scielo.conicyt.cl/scielo.php?script=sci_arttext&pid=S0718-80722010000200006.

2.2.3 This power of the arbitrator must be understood as the manifestation or extension of the arbitration agreement and its effects; and, at the same time, that courts are prohibited from ruling on this matter because it is subject to arbitration.

2.2.4 The principle in question has its origin in the importance of the contractual relationship of the parties. In effect, the parties confer total competence to the arbitrator to resolve a given matter. Therefore, the parties must know their own competence to initiate an arbitration proceeding. They will only be prohibited from doing so if the agreement is null and void.

3.1.1 The arbitration agreement is an agreement under which two or more parties decide to submit to arbitration all or certain disputes that have arisen or that could arise between them related to a specific contract or legal relationship. The arbitration agreement may be included as a clause within a contract or as a separate agreement. The arbitration agreement must be in writing.

3.1.2 Under local law, parties may arbitrate any dispute, except those pertaining to the following: (i) family law matters, such as alimony disputes, and the division of joint property in divorce cases; (ii) felonies or criminal offences; (iii) cases that must be heard by specific lower courts; and (iv) all matters in which the law requires a public prosecutor to hear them. Furthermore, cases involving public policy issues are not arbitrable, such as capacity or marital status; antitrust; employment and labour law; disputes between legal representatives and their clients; disputes concerning foreign investment agreements entered into under the Chilean Foreign Investment Law (Decree Law 600).

3.1.3 By contrast, some matters must be submitted to arbitration (see Art. 227 Code of Tribunals).

In relation to the arbitrability of international matters (ie international arbitration), article 34(2)(b)(i) of the International Commercial Arbitration Law (Law No. 19.971) establishes that an arbitral award may be set aside by the competent Court of Appeal only if the court finds that the subject matter of the dispute cannot be resolved by arbitration under local law.

4.1.1 In accordance with Article 225 of the COT, any person of legal age may be appointed arbitrator, if he/she has the right to freely dispose of his/her assets and can read and write. Lawyers authorised to practice law may be arbitrators even if they are minors. There must be consent from all parties for his/her appointment. In the event of disagreement, the ordinary courts must decide and the parties themselves may not choose.

4.1.2 In the case of institutional arbitration in accordance with articles 7 and 8 of the CAM Arbitration Procedure Regulations of 2000, the arbitral tribunal will be made up of one or three arbitrators. The parties will be responsible for the appointment of the arbitral tribunal, unless they delegate this power to the Santiago Chamber of Commerce, which, with the approval of the Arbitration Centre, will choose the tribunal from among the members that are part of the list of arbitrators kept by the Arbitration Centre.

4.1.3 Once the foregoing has been fulfilled, Article 9 of the same Regulations establishes that the Secretariat of the Arbitration Centre will oversee the appointment of the  arbitrator(s) and administer the oath to faithfully fulfil their function in the shortest possible time in accordance with the legal provisions. If all or part of the appointed tribunal rejects the appointment, the Secretary General of the Centre will proceed as provided by the parties.

4.1.4 In an arbitration before the CAM, the arbitrators directly appointed by the parties may be disqualified for legal reasons of lack of impartiality or recusation, in accordance with the procedure established by law. Notwithstanding this, when the arbitrators are appointed by the Chamber of Commerce of Santiago A.G., the parties may request the disqualification of the appointee for well-founded reasons. The Board of Directors will hear the motion to recuse.

4.1.5 Finally, with regard to the fees, the parties will set them by mutual agreement. In the case of institutional arbitration, the fees received by the arbitrators acting within the framework of the Santiago Arbitration and Mediation Centre and the administrative fees of the Centre will be subject to the fees in force at the time the arbitration procedure begins.

5.1.1 An arbitral tribunal has jurisdiction to rule on all permitted matters (see section 3), that have been submitted to its competence under the law or due to an arbitral agreement.

5.1.2 Under local law, the general rule is that, unless otherwise agreed between the parties or in the case of international arbitration, 5 Article 16(1) of the International Commercial Arbitration Law provides explicitly that "The arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement." the final decision on the jurisdiction or competence of the arbitral tribunal relies on ordinary civil trial courts

6.1.1 If a dispute arises between the parties to a contract [or other legal relationship], the interested party may request the constitution of an arbitral tribunal. In that regard, proceedings will depend on the matter and/or the arbitration clause. In a matter that must be submitted to arbitration, the general rule is that such request must be filed before local ordinary civil trial courts. The trial court will then appoint an arbitrator in the event that the parties disagree with the appointee.

6.1.2 Regarding international commercial arbitration, Law No. 19.971 provides that the arbitrator will be freely chosen by the parties, and that in the absence of agreement, the arbitrator will be appointed by the President of the Court. of Appeals corresponding to the place where the arbitration will be carried out.

6.1.3 Under an arbitration clause, the parties are authorised to submit the dispute to an institutional arbitration (the most common is the Santiago Arbitration and Mediation Centre), or to an arbitrator already appointed in the arbitration clause, or to be appointed by a local ordinary civil trial court (ad hoc arbitration). Once the appointed arbitrator accepts the appointment and takes the oath, the arbitral tribunal is constituted.

6.1.4 Depending on the nature of the arbitration (ie Arbitrator-At-Law, Arbitrator Ex Aequo Et Bono, Arbitrator-At-Law with Regards to the Substance of the Dispute and Ex Aequo Et Bono with Regards to the Procedure), the parties together with the arbitrator may determine the  procedural rules under which they will conduct the arbitration.

6.1.5 In international commercial arbitration, the law provides that the parties shall be free to agree on the procedure for the arbitration, and that, in the absence of an agreement, the arbitral tribunal may, subject to the provisions in this law, carry out the arbitration as it deems appropriate. This power includes the possibility for the Arbitral Tribunal to determine the admissibility, relevance and value of the evidence.

7.1.1 In matters of national arbitration, the law provides that the parties are free to agree on the seat of the Arbitral Tribunal, and that, in the absence of express mention, it will be understood to be the place in which the arbitration agreement has been entered into. (Article 235 COT).

7.1.2 The general rule is that the hearings must be held at the seat of the arbitral tribunal and before the arbitrator, with the exception of some evidentiary proceedings (such as testimonial or confessional evidence) that must be carried out outside its territorial jurisdiction, in which case the competent court will be requested to hold that hearing.

7.1.3 The language of the arbitration is Spanish. However, the parties may stipulate a different language in the arbitration agreement or in the Agreement on the Basic Terms and Conditions for the Procedure (Article 9 National Arbitration Rules of the Arbitration Centre). 

7.1.4 For international commercial arbitration, Law No. 19.971 provides that the parties may freely determine the place of arbitration and that, in the absence of an agreement, the arbitral tribunal will determine the place of arbitration, taking into account the circumstances of the case, including the convenience of the parties. The arbitral tribunal may, unless otherwise agreed by the parties, meet in any place it deems appropriate to hold discussions among its members, to hear witnesses, experts, or the parties, or to examine other goods or documents (Article 20).

7.1.5 Law No. 19.971 states that the parties may freely agree on the language or languages to be used in the arbitration proceedings. In the absence of agreement, the arbitral tribunal will determine the language or languages to be used in the proceedings (Article 22).

7.2.1 The law applicable to the procedure of the arbitration depends on the arbitration agreement.

7.2.2 In Chilean arbitration, the parties are not free to choose the rules of law that they consider appropriate, since Chilean law is mandatory and its application is a matter of Public Policy. In fact, the Arbitrator has the same duty as the Courts, in order to comply with the formal verdict requirements indicated in Article 170 of the Code of Civil Procedure.

7.2.3 In international commercial arbitration, however, the arbitral tribunal will settle the dispute in accordance with the rules of law that the parties choose to be applicable to the substance of the dispute, in accordance with Article 28 of Law No. 19.971.

7.2.4 The arbitral tribunal will apply the rules of law that it deems appropriate according to the circumstances of the case.

7.2.5 In international commercial arbitration, the arbitral tribunal will only dispense with the law and will solely consider what it deems fair and equitable in the case at hand if the parties have expressly agreed to do so.

7.3.1 In Chilean law there are no precise provisions regarding the timetable for arbitral proceeding to render the award. However, in general, the parties determine a time limit to render the award in the rules of procedure and this period caus the end of the procedure. Therefore, the award must be issued before this period ends.

7.3.2 Regardless of the foregoing, if the international arbitration procedure has been followed under Rules of International Commercial Arbitration of the Santiago Arbitration and Mediation Centre, in accordance with Article 31, the arbitral tribunal must render its award within six months. The six-month period will begin on the date of the reply to the request for arbitration or on the date of the answer to the counterclaim, as the case may be. If the respondent does not submit a reply within the period set by the arbitral tribunal, then the six-month period will begin the day after the expiration of the period for making said submission. The arbitral tribunal will act likewise if the respondent of the counterclaim does not submit its answer to the counterclaim.

7.3.3 In Chilean law, it is mandatory in any arbitration proceeding that the arbitration award must be written and signed by the arbitrator or arbitrators. In accordance with Article 170 of the Code of Civil Procedure, the verdict must detail:

• The precise designation of the parties and their addresses.
• Summary of the petitions, actions, exceptions, defences and allegations exercised by the parties.
• The factual and legal arguments that serve as the basis for the decision.
• The list of laws and statement of law on which the award is based.
• The decision of the dispute.

7.3.4 Likewise, Article 31 of Law No. 19.971, regarding International Commercial Arbitration, decrees that the arbitration verdict will be issued in writing and must contain a requirement similar to the Chilean arbitration award. 6 The rule decrees: “Form and content of the award. 1) The award will be rendered in writing and signed by the arbitrator or arbitrators. In arbitration proceedings with more than one arbitrator, the signatures of the majority of the members of the arbitral tribunal will suffice, provided that the reasons for the lack of one or more signatures are recorded. 2) The award of the arbitral tribunal must be explained, unless the parties have agreed otherwise, or it is an award rendered under the terms agreed by the parties in accordance with article 30. 3) The award will include the date on which it was rendered, and the place of arbitration determined in accordance with number 1) of Article 20. The award will be deemed rendered in that place. 4) After rendering the award, the court will notify each of the parties by delivering a copy signed by the arbitrators in accordance with number 1) of this article.”

7.3.5 Generally, the arbitrator or arbitral institution notifies the parties of the award through a certifying officer. There is no formal requirement regarding the notification of an international arbitration award

7.3.6 Frequently, the parties will have determined how to notify the award in the rules of procedure. However, in the Chilean arbitration procedure, where the parties have not specified the position, the arbitral tribunal will apply the rules of law applicable to the Courts and must order the notification of the verdict by a certifying officer  through a registered or written letter in accordance with Article 48 of the Code of Civil Procedure.

7.3.7 In the case of collegiate courts, the award will be rendered by majority, unless the parties agree otherwise and will be signed by all the arbitrators. 7 Article 29 of Law No. 19.971 and Article 237 of Court Code.

7.4.1 During arbitral proceedings, the parties may amicably resolve their conflict in whole or in part through a judicial or extrajudicial settlement. In both cases, the arbitral proceedings will be totally or partially terminated.

7.4.2 Any extrajudicial settlement must be included in the arbitral proceedings to bring about the end of the procedure.

7.5.1 The arbitral tribunal will set the procedural and personal costs of the arbitration, at the latest together with the final award, which will represent the reimbursement of the expenses actually incurred by the accredited parties in the process.

7.5.2 Arbitration costs include fees and expenses of any arbitral institution involved in the procedures. Generally, these amounts will be determined by the applicable arbitration rules.

7.6.1 In matters of national arbitration, the general rule is that arbitration proceedings are recorded in writing, therefore, all the actions of the parties and the tribunal must be incorporated into the arbitration case file, in such terms that, if they are not recorded in the file “they did not happen". Thus, for example, during the discussion period, the parties must communicate their arguments to the court by submitting statements of claim, answer and counterclaim. In addition, the arbitral tribunal must draw up a record of all the oral hearings that are carried out in the procedure, which includes the evidentiary proceedings, such as witness and expert testimony and examination, as well as confessions.

7.6.2 Regarding international commercial arbitration, Law No. 19.971 provides that, unless otherwise agreed by the parties, the arbitral tribunal will decide whether to hold hearings for the presentation of evidence or for oral arguments, or whether the proceedings will be conducted on the basis of documents and other evidence. However, unless the parties have agreed that no hearings will be held, the arbitral tribunal will hold such hearings at the appropriate stage of the proceedings, at the request of one of the parties (Article 24).

7.7.1 In national arbitration, the parties can present all the means of proof provided by law to prove their defence, which are: documentary evidence, testimonial evidence, admission of guilt, examination carried out by the tribunal and presumptions (article 341 CPC).

7.7.2 The means of proof may be surrendered prior to trial by interim measure (article 273 CPC), during the procedure, within the evidentiary stage (article 327 CPC), and in the rendering stage as a measure for the Arbitral Tribunal to better settle the dispute (article 159 CPC).

7.7.3 Regarding international commercial arbitration, Law No. 19.971 provides that, subject to this law, the parties are free to agree on the procedure to which the arbitral tribunal must follow and that, failing agreement, the arbitral tribunal may conduct the arbitration in the manner it deems appropriate. This power includes the possibility for the arbitral tribunal to determine the admissibility, relevance and value of the evidence.

7.7.4 Regarding the presentation of evidence, Law No. 19.971 provides that, within the term agreed by the parties or determined by the arbitral tribunal, the claimant must provide the facts on which the claim is based, the disputed points and the object of the claim, unless the parties have agreed otherwise regarding the elements that the claim and answer must contain. Likewise, it indicates that the parties may provide, when making their allegations, all the documents that they consider pertinent or make reference to the documents or other evidence that they are going to present (Article 23).

7.7.5 Likewise, Law No. 19.971 indicates that, unless otherwise agreed by the parties, the arbitral tribunal will decide whether to hold hearings to present evidence or whether the proceedings will be conducted on the basis of documents and other evidence. All statements, documents or other information that one of the parties provides to the arbitral tribunal will be transmitted to the other party. Likewise, said law orders that the expert opinions or evidentiary documents on which the arbitral tribunal may base itself when adopting its decision must be made available to both parties (Article 24).

7.7.6 Law No. 19.971 indicates that the arbitral tribunal or any of the parties, with the approval of the arbitral tribunal, may request the assistance of a competent court in Chile in taking evidence. The court may respond to said request within the scope of its competence and in accordance with the rules that are applicable to it regarding evidence.

7.8.1 In national arbitration, the law provides that an expert report will be heard in all those cases in which the law so provides (article 409 CPC). In addition, it indicates that expert evidence may be required on points of fact whose understanding requires special knowledge of some science or art; and, on points of law referring to some foreign legislation (article 411 CPC).

7.8.2 Every expert must be independent and impartial with respect to the parties and may be appointed by common agreement of the parties or, failing that, by the tribunal. The expert must, in writing, accept the position and swear to perform it faithfully in the shortest possible time.

7.8.3 The expenses and fees that arise from the evidence itself or from the appearance of the other party at the place where it must be gathered, will be the responsibility of the party which requested it, unless the tribunal deems the measure necessary to clarify the matter, and without prejudice to what the award decides on payment of costs. The tribunal, ex officio or at the request of a party, may order that a suitable amount be paid upfront to cover said expenses and fees (article 411 CPC).

7.8.4 The arbitral tribunal will indicate the period within which the expert must complete his assignment, which is understood to have been fulfilled by delivering an expert report that is included in the case file, which may be objected to or commented on by the parties. Likewise, the arbitral tribunal may set a hearing for the expert to make an oral presentation on his report. At said hearing, the parties and the arbitral tribunal may ask questions or request clarifications from the expert regarding specific matters that have been the subject of his report (Article 35 CAM Regulation).

7.8.5 In arbitrations at law, the tribunal will assess the probative force of the expert opinion in accordance with the rules of logic and experience (article 425 CPC).

7.8.6 In international arbitration, Law No. 19.971 provides that, unless otherwise agreed by the parties, the arbitral tribunal may appoint one or more experts to inform it about specific matters to be determined by the tribunal and may request any of the parties to provide the expert with all pertinent information or to present or provide access to all relevant documents, goods or other property for examination (Article 25).

7.8.7 Likewise, unless otherwise agreed, when a party requests it or when the arbitral tribunal deems it necessary, the expert, after presenting his written or oral opinion, must participate in a hearing in which the parties will have the opportunity to ask questions and to present experts to report on disputed points.

7.9.1 Normally, the arbitral proceedings end with the rendering of a final award containing the arbitral tribunal's decision.

7.9.2 The arbitral tribunal will terminate its proceedings when:

• the claimant withdraws its claim, unless the respondent objects and the arbitral tribunal recognises the respondent’s interest as legitimate in seeking a final solution to the dispute;
• the parties agree to conclude the arbitration proceedings; or
• the arbitral tribunal confirms that the continuation of the arbitration proceedings would be unnecessary or impossible (only in international arbitration proceedings). 8 Article 32 of Law No. 19.971.

7.10.1 The parties may request the arbitral tribunal (whether Chilean 9 Article 182 of Code Civil Procedure. or international 10 Article 33 of Law No. 19.971. ) to correct, clarify and render a supplemental award.

7.10.2 Regarding the international arbitral award, the Law (Article 33 of Law No. 19.971) decrees that any of the parties may request, within 30 days of notification of the award to the parties, that the arbitral tribunal:

• correct clerical mistakes, computational, typographical or similar errors in the award; and,
• Interpret a point or specify part of the award.

7.10.3 If the arbitral tribunal considers the request appropriate, it will proceed to rectify or interpret it within 30 days of receiving the request. Such interpretation will be part of the award.

7.10.4 The arbitral tribunal may, on its own initiative, correct any of the errors mentioned above within 30 days from the date the award was rendered.

7.10.5 Any of the parties may, within 30 days of notification of the award, request, with notification to the other party, that the arbitral tribunal render an additional award with respect to the claims made during the arbitration proceedings but omitted from the award.

7.10.6 If the arbitral tribunal considers the request appropriate, it will render the additional award within 60 days of receipt of the request.

7.10.7 The arbitral tribunal may extend, if necessary, the period to make a correction, render an interpretation or an additional award within the scope of this Article.

The provisions of Article 33 will apply in relation to the corrections or interpretation of the award o additional awards.

8.1.1 Chilean courts have limited ability to intervene in arbitration proceedings. When a business is regulated by an arbitration agreement or clause, the courts do not have jurisdiction to decide on the conflict.

8.1.2 Nevertheless, the courts can resolve some issues related to arbitration proceedings such as arbitrator appointment (in case the parties have not chosen the method) or when the award is challenged.

8.1.3 In Chilean arbitration proceedings, the final judgment may be challenged by appeal or cassation, and the courts of appeal have jurisdiction to amend or annul the award.

8.1.4 In international commercial arbitration, Chilean courts are limited by Article 5 of Law No. 19.971, which states: “In matters governed by this Law, no court shall intervene unless so provided by this Law.” This Law allows the courts limited judicial interventions in the following circumstances: 11 Jimenez F., Dyala and Armer R., Angie. “Notes On The New Chilean Law On International Arbitration”. Mealy´s International Arbitration Report, 2005. p. 4. Available at http://www.camsantiago.cl/articulos_online/DJ%206.PDF

• Cases in which one of the parties to a valid arbitration agreement requests the court to refer the case to arbitration;
• Cases related to the appointment of arbitrators, when there is no agreement between the parties on the process or when the process agreed by them is not complied with;
• Challenge of arbitrators, when there is no agreement between the parties on the process or when the process agreed by them is not complied with;
• Cases in which an arbitrator’s mandate is terminated, when there is no agreement between the parties on the causes of the termination;
• Cases in which one of the parties objects to the jurisdiction of the arbitral tribunal, alleging that it has exceeded the scope of its authority and the arbitral tribunal determines that it has jurisdiction;
• Cases in which the arbitral tribunal or one of the parties requests "assistance from a competent Chilean court in obtaining evidence”;
• Cases in which one of the parties requests the annulment of the award. It is in this provision that the Chilean legislature modified the Model Law and required the competent court to prioritise on the docket requests for annulment of awards; and
• Cases in which enforcement of the award is sought.

8.2.1 Generally, the parties will have stipulated the method of appointment of the arbitrator in the arbitration agreement or clause. In the absence of this, the court may appoint an arbitrator from a list formed by the courts of appeal through a special procedure for the appointment of an arbitrator.

8.2.2 In accordance with Article 11 of Law No. 19.971, the local courts of international commercial arbitration and specifically the President of the Court of Appeals may intervene in the selection of arbitrators when the parties do not determine a selection method for the arbitral tribunal or when the selection method agreed upon by them fails. 12 Article 11 of Law No. 19.971.

8.3.1 In international commercial arbitration procedures, Article 17 of Law No. 19.971 states that: “Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of one of the parties, order any of the parties to adopt interim measures of protection as deemed necessary by an arbitral tribunal with respect to the subject-matter of the dispute. The arbitral tribunal may request any party to provide adequate guarantees in relation to said measure”. If the interim measures are not complied with, the party to which the measure was granted may request its judicial enforcement before a civil court.

8.3.2 Additionally, the parties may also request interim measures directly from the courts, which does not affect the competence of the arbitral tribunal. In this regard, Article 9 of Law No. 19.971 states: “It is not incompatible with an arbitration agreement that a party requests, before or during arbitral proceedings, an interim measure of protection from a court and that a court grant it."

8.4.1 The Chilean courts may support the parties or the arbitral tribunal in complying with requirements for obtaining evidence.

8.4.2 In Chilean arbitrations, local courts may assist the arbitral tribunal in obtaining evidence, for example, to obtain evidence from witnesses and for document production orders.

8.4.3 In international commercial arbitration, in accordance with Article 27 of Law No. 19.971, the arbitral tribunal, or any party with the approval of the arbitral tribunal, may request the assistance of a competent court to obtain evidence. The court may execute the request within its competence and in accordance with its rules on obtaining evidence.

8.5.1 Article 635 of the Code of Civil Procedure establishes that the Chilean arbitral award has the same status as a court decision. 13 Art. 635. (792). For the enforcement of the final award, it is possible to petition the arbitrator who rendered it, if the term for which he was appointed has not expired, or the corresponding ordinary court, at the discretion of the party seeking enforcement. In the case of other types of resolutions, it is up to the arbitrator to order their enforcement. However, when compliance with the arbitration award requires enforcement procedures or the use of other compulsory measures, or when it affects third parties that are not party to the settlement agreement, the ordinary courts must be petitioned for the enforcement of the award.

8.5.2 International arbitral awards must be recognised first before enforcement. The court recognition and declaration of enforceability is called ‘exequatur’ and consists of a brief procedure before the Supreme Court. Once the exequatur has been issued, the award will be considered in Chile as a final and binding Chilean judicial verdict, and as such, it is enforceable through Chilean enforcement proceedings. 14 Articles 35 and 36 of Law No. 19.971.

9.1.1 According to Article 34 of Law No. 19.971, the only recourse available against an international arbitral award in Chile is an application for setting aside. This rule decrees:

“Article 34.- The request for annulment as the only recourse against an arbitration award.

1. An arbitration award may only be appealed before a court by means of a request for annulment in accordance with numerals 2) and 3) of this article.
2. The arbitration award may only be annulled by the respective Court of Appeal when:
   1. The party filing the petition proves:
      1. One of the parties to the arbitration agreement referred to in article 7 was affected by some incapacity, or that said agreement is not valid by virtue of the law to which the parties have submitted it, or if nothing was indicated in this regard, under the law of this State, or
      2. It has not been duly notified of the appointment of an arbitrator or of the arbitration proceedings or has not been able, for any other reason, to assert its rights, or
      3. The award refers to a dispute not provided for in the arbitration agreement or contains decisions that exceed the terms of the arbitration agreement; however, if the provisions of the award that refer to the matters submitted to arbitration can be separated from those that are not, only the latter may be annulled, or
      4. The composition of the arbitral tribunal or the arbitration procedure has not been in accordance with the agreement between the parties, unless said agreement was in conflict with a provision of this law from which the parties could not deviate or, in the absence of such agreement, the composition or procedure did not comply with this law, or
   2. The court verifies:
      1. According to Chilean law, the subject matter of the dispute is not subject to arbitration, or
      2. The award is contrary to public order in Chile.
3. The request for annulment may not be made after three months have elapsed from the date of receipt of the award or, if the request has been made in accordance with article 33, from the date on which that request was resolved by the arbitral tribunal.
4. The court, when requested to annul an award, may suspend the proceedings for annulment, when appropriate and when requested by one of the parties, for a period that it determines in order to give the arbitral tribunal the opportunity to resume the arbitral proceedings or to adopt any other measure that, in the opinion of the arbitral tribunal, eliminates the grounds for the petition to annul.
5. The Courts of Appeal will immediately place the annulment petitions on the docket and they will be given preference.”

9.1.2 In Chilean arbitration there is some recourse against awards. Such recourse can be waived in advance by the parties to the arbitration settlement or clause, except where annulment is sought for a lack of competence or there is a disciplinary action against the arbitrator in case of serious infraction or abuse.

9.2.1 The final arbitral award has the effect of res judicata and will be appealable in the manner established by law, depending on whether it is Chilean (Code of Civil Procedure) or international (Law No. 19.971), as indicated above.

10.1.1 As a general rule, an arbitration award in Chile does not require the approval of any authority. Thus, article 635 of the Code of Civil Procedure establishes that the enforcement of an award rendered in an arbitration procedure may be sought from the same arbitrator who rendered it (if the period of the arbitration is still in effect) or before a civil court, at the discretion of the party seeking enforcement.  However, when enforcement of the arbitration award requires enforcement procedures or the use of other compulsory measures, or when it affects third parties that are not party to the arbitration procedure, the enforcing party must directly resort to the ordinary courts to enforce the award.  In either case, the civil court does not have the power to review an award that was rendered by the arbitrator, since in accordance with Chilean law (for example, articles 222 and following of the Organic Code of Courts), an award validly rendered by an arbitrator is equivalent to the decision handed down by a judge. The arbitrator only lacks the powers to enforce the award, powers which are exclusive to the courts. 15 Notwithstanding the general rule, in special cases, Chilean law provides for court approval of an arbitral award by the courts. Approval of the ordinary courts is required when the arbitration has been initiated by a guardian or curator, on behalf of his ward, regarding his rights that are valued in money (Article 400 of the Civil Code) and in the case of a partition trial in which absent persons who have not appointed proxies, or persons under guardianship or curatorship have an interest (article 666 of the Code of Civil Procedure).

10.1.2 According to article 234 of the Code of Civil Procedure, once enforcement of an arbitration award has been sought from an ordinary judge, the party against whom enforcement is sought may only challenge enforcement by invoking defences related to the extinction of the obligation established in the arbitration award or the delay of its enforcement, for example, payment of the debt, remission, compensation, granting of extensions, etc.

10.2.1 The enforcement of foreign awards is regulated by different laws.

10.2.2 The enforcement of foreign awards is primarily regulated by Law No. 19.971, which applies to international commercial arbitration, without prejudice to any multilateral or bilateral treaty in force in Chile. 16 According to article 3 of Law No. 19.971, it is international arbitration if: a) the establishments of the parties to an arbitration agreement, at the time of the conclusion of that agreement, are in different countries, or; b) one of the following places is located outside the countries in which the establishments of the parties are located: i) the place of arbitration, if it has been determined in the arbitration agreement or pursuant to the arbitration agreement; ii) the place of performance of a substantial part of the obligations of the commercial relationship or the place to which the object of the dispute is more closely related, or c) the parties have expressly agreed that the matter that is the object of the arbitration agreement is related to more than one country. To determine the “international” character of the arbitration, the following establishments will be used: a) if any of the parties has more than one establishment, the one that is most closely related to the arbitration agreement. b) if a party does not have an establishment, its habitual residence

10.2.3 According to article 35 of Law No. 19.971, an arbitration award, regardless of the country in which it was rendered, will be recognised as binding and, after submitting a written application to the competent court, it will be enforced in accordance with said provisions and article 36. The party that invokes an award or seeks its enforcement must present the original or a duly certified copy of the award, and the original or a duly certified copy of the arbitration agreement. If the award or agreement is not rendered in an official language of Chile, the party must submit duly certified translations of said documents from the original language into an official language of Chile.

10.2.4 As provided in article 36 of Law No. 19.971, the recognition or enforcement of an arbitration award may only be denied, regardless of the country in which it was issued at the request of the party against whom it is invoked, when this party proves before the competent court of the country in which recognition or enforcement is sought that:

• one of the parties to the arbitration agreement referred to in article 7 is affected by an impediment, or the agreement is not valid by virtue of the law to which it has been submitted by the parties or if nothing has been indicated in this regard, by virtue of the law of the country in which the award was rendered; 
• the party against whom the award is invoked has not been duly notified of the appointment of an arbitrator or the arbitration proceedings or has been unable to assert its rights for another reason; or
• the award refers to a dispute not provided for in the arbitration agreement or contains decisions that exceed the terms of the arbitration agreement. However, if the provisions of the award that refer to the issues submitted to arbitration can be separated from those that are not, the former may be recognised and enforced; or
• the composition of the arbitral tribunal or the arbitration procedure has not been in accordance with the agreement between the parties or, in the absence of such an agreement, it has not been in accordance with the law of the country where the arbitration took place; or
• the award is not yet binding on the parties or has been annulled or suspended by a court of the country in which, or in accordance with whose law, that award was rendered, or

when the court verifies that:

• according to Chilean law, the object of the dispute cannot be subject to arbitration, or
• the recognition or enforcement of the award would be contrary to the public order of Chile.

10.2.5 Additionally, since 1975 Chile has been a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958. Should the foreign award be governed by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, the applicant seeking enforcement of the award must submit:

• the original or a duly certified copy of the award. This copy must contain a certification, issued under the rules of the arbitration procedure in which the award was rendered, or under the law of the foreign country, that the award is currently binding on the parties and/or that it has not been annulled or suspended by a competent authority of the foreign country;
• the original or a duly certified copy of the arbitration agreement;
• certified copies of the documents showing that the respondent received proper notice of the appointment of the arbitrator or of the arbitration proceedings, under the rules of the arbitration procedure;
• certified copies of the documents showing that the award was duly notified to the respondent, under the rules of the arbitration procedure.

10.2.6  Finally, the recognition and enforcement of foreign awards (rendered either by ordinary courts or arbitrators) are also governed by articles 242 to 246 of the Code of Civil Procedure.

10.2.7 Pursuant to those rules, awards rendered in a foreign country will have force in Chile, granted by the respective treaties, and the procedures established by Chilean law will be followed for enforcement, unless otherwise amended by the relevant treaties. If there are no relevant treaties with the country in which the award was rendered, then the award will be granted the same force in Chile that an award of a Chilean court would be given in that other country. If the award comes from a country where the awards of the Chilean courts are not enforced, the foreign award will not be enforced in Chile. Finally, if none of the foregoing rules are applicable, foreign awards will be enforced in Chile as if rendered by Chilean courts, provided that:

• This is not contrary to the laws of the Republic. Procedural laws that would have been applicable in Chile will not be taken into consideration for the enforcement proceedings;
• They are not contrary to the national jurisdiction;
• The party against whom the foreign award will be enforced must have been validly notified of the proceedings. Furthermore, that party may prove that, despite due notice, it was otherwise prevented from presenting a defence; and
• They are final in accordance with the laws of the country of origin – the authenticity and efficacy of the arbitration award will be attested to or bear a sign of approval issued by a higher ordinary court of the country where the award was rendered. 

11.1.1 Law No. 19.971 allows contracts in which one of the parties is a consumer to contain an arbitration clause. If the clause indicates the name of the arbitrator, the consumer may challenge it, with or without cause, and request that the competent judge appoint another arbitrator.  Notwithstanding the above, the consumer will always be entitled to exercise the legal actions that it deems appropriate before an ordinary court, even when the contract contains an arbitration clause.

11.2.1 Chilean law distinguishes between individual employment relationships (between a single employee and his employer) and collective employment relationships (that is, those between unions and an employer).

11.2.2 Chilean law establishes that conflicts relating to individual employment relations cannot be submitted to arbitration.

11.2.3 However, arbitration in the event of collective employment relationship disputes is regulated by articles 386 and following of the Labour Code.  These articles establish that the parties may at any time voluntarily submit a collective bargaining dispute to arbitration. According to article 363 of the Labour Code, arbitration will be obligatory for the parties in cases in which a strike is prohibited. Further, arbitration will be obligatory when, as a result of a lockout or strike, the resumption of work is determined by court order, in those cases where work stoppage causes serious damage to health, the environment, the supply of goods or services to the population, the country's economy or national security (taking into account the characteristics of the respective company).

11.3.1 In the event that one of the parties is declared in liquidation or bankruptcy, the arbitration procedure, as governed by the Chilean law applicable to national and international arbitration, is not affected.