Arbitration

Arbitration is an out-of-court court procedure for resolving conflicts in the field of consumer affairs that arises when opposing parties do not agree on the best solution to resolve the dispute and agree that a third party should resolve the issue, in this case an arbitration body, and they accordingly undertake to comply with the resolution that the latter dictates.

 
1. Characteristics of the arbitration

2. Presentation of an application

3. Processing an arbitration. Designation, hearing, tests

 
1. Characteristics of the arbitration

Consumer arbitration has the following characteristics:
 
  - Voluntary
 
  In order to resolve a dispute through consumer arbitration, it is enough for the consumer to submit an application and for the company to either approve this method or for it to be an express and voluntary member of the Consumer Arbitration System (link). Once this occurs, it can be said that there is an arbitration agreement.
 
Previously, the arbitration agreement can be incorporated as a clause in a contract. The arbitration agreement shall be in writing, as a signed document or as an exchange of letters, telegrams, telex, etc.
 
  - Free
 
  This procedure has no legal costs. However, if the parties choose to hire a lawyer to represent or advise them, the expenses incurred shall be paid by those who ordered them.
 
  Likewise, in the case that an expert’s report is required, the cost will be met by the party or parties who have requested it or by the Administration if it is the Arbitration Body which requests it.
 
  - Executive
 
  The decision of the Arbitration Body binds both parties in the dispute, and has the same effect as a court ruling and it is not possible to appeal against the decision.
 
  In addition, if a party does not meet the stipulations of the award or the final resolution of the conflict, the other party has the option to request that a judge of the first instance court forces the former to do so. This judge does not enter into the merits of the case, but merely enforces the decision.
 
  - Swift
 
  The consumer arbitration procedure is swift with short deadlines in terms of giving a hearing to the parties and making the award.
 
  - Objective
 
  It is an effective mechanism to provide a solution to a conflict with complete impartiality and independence.

 
2. Presentation of an application
(Downloading the form)

Once the request for arbitration has been submitted, it must be declared admissible by the president of the Consumer Arbitration Board. The president can reject those arbitration applications that are unfounded or those in which the rights and legitimate economic interests of consumers or users are not affected. Moreover, consumer arbitration may not be used in disputes which deal with poisoning, injury, death or conflicts in which there is clear evidence of a criminal offence, including liability for damages arising directly from them.
 
Consequently, consumer arbitration may only be used in disputes arising between consumers and users, and business and professionals or arising from the purchase of a product or a service contract.
 
Once the claim has been admitted, if an arbitration agreement exists, the arbitral proceedings are initiated and the parties are notified and the claimant is given 15 working days to present the allegations and submit the documents he/she deems appropriate.

If there is no arbitration agreement, the request is moved to the respondent party within 15 working days so that it may accept the proposed arbitration, or submit any allegations or documents it deems appropriate. The date of acceptance for the entry of the arbitration is the date when the arbitration process is considered to have begun.
 
If the respondent party does not accept arbitration, the president of the Consumer Arbitration Board shall order the application to be archived.
 
In both cases, once the arbitration proceedings have been initiated, the deadline for issuing the award is 6 months, which is extendable in certain cases.

 
3. Processing an arbitration. Designation, hearing, tests

Once the arbitration proceedings have begun, the president of the Consumer Arbitration Board shall appoint the arbitrator or arbitrators who will study the dispute. These persons will resolve the requests of the claimant and the respondent party, since the latter can also make any claims against the claimant it deems appropriate concerning the facts claimed. These claims are termed counterclaims.
 
Hearing. Once the Arbitration Body has been designated, the arbitrators are called and the parties name a date and time to appear to in front of the hearing. Attendance at this act is not mandatory, and the parties may also designate a representative to appear on their behalf.
This hearing may also be written or by videoconference.
 
Tests. In the hearing, the parties must come equipped with all the evidence to support their allegations (especially when dealing with pieces which are object of the arbitration request). The tests that are requested at the hearing, if necessary, must be authorized by the Arbitration Body. However, in its own name and only when it deems appropriate, it may carry out tests that are necessary for the resolution of the arbitration request.

Award. The award is the resolution which terminates the arbitration procedure. It is not possible to submit another application for arbitration or court order based on the same facts

Appeal and clarification. Although it is not possible to challenge the decision of the Arbitration Body, there are possibilities to annul it due to the following cases within two months from the making of the award before the Provincial Court:
 
  a) When the arbitration agreement does not exist or is not valid.
 
  b) When the appointment of an arbitrator or the arbitration actions have not been duly notified, or it has not been possible, for whatever reason, to enforce the party’s rights.
 
  c) When the arbitrators have resolved issues which are not subject to their decision.
 
  d) When the appointment of arbitrators or the arbitral procedure did not meet that agreed between the parties, except when this agreement is contrary to a peremptory norm of this Act or in the absence of an agreement, which does not comply with this Act.
 
  e) When the arbitrators have decided on issues which were not subject to arbitration.
 
  f) When the award is contrary to public policy.
 
Once the decision has been issued through the award, either party may request a clarification in order to correct a calculation, typing or copy error, to clarify a specific point or part of the award or as the supplement to the award with respect to lodged and unresolved applications. In any case, this application may not be used to disagree with the decision of the Arbitration Body. The deadline to submit it is 10 days from the notification of award.
 
Incompliance. If either party fails to meet the award made, the other party may demand that compliance be enforced. In this case, all the necessary documentation is provided so that its execution can be requested before the first instance courts where the decision has been issued.