Cuban Court of International Trade Arbitration

 

Decree Law 250 of July 30, 2007, constituted the Cuban Court of International Trade Arbitration, a continuance of the Court of Arbitration of Foreign Trade that was created in 1963 and that allowed learning and applying trade arbitration much earlier than most Latin American countries. Our country has 50 years of experience in arbitration.

When you choose the alternative of arbitration in our Court are using a system to resolve commercial disputes in a quick, efficient, economical and reserve manner, with the assurance that you can arrange appropriate arbiters for its training and impartiality, which dictate the arbitration award. It is a procedure that relies on the agreed wills of the parties on the dispute, the arbitrator shall not be separated from the desired and expected by them to entrust their mission. Its fundamental rule the arbitration agreement between the parties and the arbitration institution.

The Court has developed a model clause or arbitration agreement, whose inclusion in the contracts is recommended because it is the necessary condition so that in the event of disputes arising is ensured compliance with the will of the parties to appeal to arbitration by the Court.

It should be noted that the enforcement of Decree Law 250 opens the way to a new service of mediation that through its Regulation, today updated by the Resolution 21/2015 of the president of the Chamber of Commerce of the Republic of Cuba, constitutes an alternative to solve conflicts in the Cuban Court of International Trade Arbitration. To this end the Court has a list of mediators that are +in charge of providing this service.

Model clause of the Cuban Court of International Commercial Arbitration (CCITA)

 

"The parties shall abide by this contract in good faith. Any discrepancy in their interpretation or enforcement, or agreements arising or in connection therewith, shall be resolved through friendly negotiations or mediation if necessary.

 

If the parties not reach a deal, agree to submit such dispute to the Cuban Court of International Commercial Arbitration, by arbitration, subject to its Rules of Procedure. "

 

Executive Board of the Court.

Period 2015-2017

President of the Court: Dr. Rodolfo Dávalos Fernández.

Vice-presidents:       Dr. Narciso Cobo Roura.

                               Dr. Armando Castanedo Abay.

Secretary: Lic. Leticia Machín Domínguez

 

Arbiters of the CCITA

 

Period 2015-2017

  • Carlos Manuel Álvarez Llobera
  • Armando Castanedo Abay
  • Narciso Alberto Cobo Roura
  • Rodolfo Dávalos Fernández
  • Juan Ranulfo Duarte Álvarez
  • Omar de Jesús Fernández Jiménez
  • Julio Fernández de Cossío Rodríguez
  • Boris Florit Quero
  • Ydael León Montesino
  • Valentín Francisco López Álvarez
  • Juan Mendoza Díaz
  • María Elena Pubillones Marín
  • Georgina Ramón Pérez
  • Odalys Magnolia Seijo García
  • Michelle Abdo Cuza
  • Odalys de la Caridad Álvarez Lima
  • Sara Marta Díaz Rodríguez
  • Marta Milagro Moreno Cruz
  • María Amparo Santana Calderín
  • Giselle Sarracino Rivero
  • Dánice Vázquez D’Alvaré

 

Mediators of the CCITA

Period 2015-2017

  • Manuel Alejandro Dávalos Reymond
  • María Teresa Lanza López
  • Ana María Pozo Armenteros
  • Rodolfo Hernández Fernández
  • Yanet Souto Fernández
  • Yamila González Ferrer

 

Competence

What is the competence of the Cuban Court of International Commercial Arbitration?

The Court hears and resolves contractual and extra contractual litigation, of international character, emerging in the field of business, that they are voluntarily submitted by the parties.

A dispute is considered international when:

  1. The establishment or habitual residence of the parties is in different countries.
  2. When having his or her residence in the same State, in the case of natural or legal persons of different nationality or citizenship.       
  3. The place of performing the obligation or compliance, it is a different state.

The Court may also meet contractual or extra contractual litigation as may be submitted by joint ventures or wholly foreign-owned, incorporated in Cuba, in relation to each other or to legal or national individual, as well as parts of contracts international economic association, or other forms of joint ventures with foreign capital.

 

Litigation

When the Court is involved in litigation?

Where between the parties there is an agreement or arbitration agreement of submission to it.

Such compliance may also be expressed by the plaintiff by merely filing the lawsuit and the defendant by performing procedural steps that demonstrates its voluntary decision to submit to the jurisdiction of the Court.

The Court also hears disputes that the parties are required to submit to its decision to have been established competence in international treaties.

 

Begin of the Process

When the arbitration process begins?

Which are the requirements? 

The arbitration process is initiated by the submission of the application to the Court and the payment of arbitration rights is a prerequisite for the proceeding. The documents are to be submitted in sufficient copies for each party and the Court receive a copy of the document. The pleadings will be presented in Spanish and supporting documents shall be submitted in the language of the contract or that would have been made or the language in which the parties have exchanged correspondence.

The parties may appear in the process in their own right or attorney or duly accredited legal representation.

 

 Applicable Law

What law applies in disputes that are submitted to the Court?

The law applicable to the substance of the dispute is agreed by the parties.

In the case of disputes submitted to it by joint ventures or totally foreign joint ventures, as well as parts of the international economic association contracts or other forms of joint businesses with foreign participation Cuban law applies.

When the parties, if any, had not agreed to the applicable law, the arbitral tribunal applies the law determined by the rules of private international law of the place of the forum, and in the customs and principles of international trade. 

 

Completion of the Process

How and when the arbitration proceedings concluded?

It concluded by the award or order, award will be made in those cases where the substance of the dispute is resolved or when, at the request of the parties, is approved a transaction agreed by the same. Awards rendered by the arbitral tribunal are firm, definitive and binding on the parties within ten days from its notification.

 

Rights of Arbitration

What are the rights of arbitration?

Payment is due to the Court of Arbitration for general administrative expenses incurred by the arbitration activity in each process. It is indispensable for the proceeding requirement and is considered made at the time that the Court receives the corresponding amount according to the scale indicated below, which is established in the Resolution No. 19/2007 of the President of the Chamber of Commerce of the Republic of Cuba. Arbitration rights are set in each case depending on the amount of the claim or if the counterclaim.

Concluded the arbitration process, arbitration rights borne by the losing party in the proceedings, unless otherwise provided, if the demand is declared partially with place the rights of arbitration to welcome ends are distributed among the parties in proportion and not welcome in demand. The parties may agree amongst themselves a form of distribution other than the aforementioned arbitration.

Ratio for the payment of arbitration rights.

Arbitration rights are calculated and paid in Cuban convertible pesos, taking into account the means of payment officially approved in our country and the system of exchange rate set by the Central Bank of Cuba.

 

Amount of the claim (CUC)

 

Rights arbitration (CUC)

 

Until 30 000

 

500

 

From 30 001 to 50 000

 

4%, never less than 1500

 

4%, never less than 1500

 

2000 plus 2% of which exceeds of 50,001

 

From 100 001 to 200 000

 

3000 plus 1.5% of which exceeds of 100 001

 

From 200 001 to 1.000 000

 

5000 plus 1% of which exceeds 200 001

 

1,000 001 onwards

 

13 000 plus 0.5% of which exceeds of 1 000 001

 

Arbitration Rights are reduced:

  • In 50% if the applicant has withdrawn the demand before the day appointed for the first sight of the process.
  • In 40% if before the day appointed for the first view of the process, the parties communicated to the Court that it had reached an extra-procedural arrangement asking for its approval.
  • In 30% if the process is known and resolved by a single arbitrator.
        

    What are the costs of the procedure?

    Extraordinary expenses incurred by the Court of Arbitration in dealing with a process.

    What are the costs of the parties?

The costs incurred by the parties for the purpose of defending their interests.

 

Conciliation

The conciliation within the arbitration process.

In any dispute can be conciliation, which in our method can be applied voluntarily by the parties, or agree at the request of the court. The conciliation can be held with the Secretary of the Court or to one of the members of the tribunal to act as peacemaker, promoting an agreement to end the process.

The agreement, to which the parties arrive at conciliation process, may be approved by the Court and shall be binding on them.

Mediation. Another alternative to solving trade disputes models.

With the entry into force of Decree Law 250 of July 30, 2007 "From the Cuban Court of International Trade Arbitration" doors opened for Mediation as the Court may provide commercial mediation to natural and legal persons to do so interest under the principles of neutrality, fairness, confidentiality and efficiency, as an alternative method of dispute settlement.

For this service were appointed mediators by the President of the Chamber of Commerce, who offer this service for which they were trained with required skills. Also recently in 2015 it was delivered by the Chamber of Commerce the Resolution 21 "Mediation Rules the CCITA" that updates the previously issued regulations.

The current Regulation does a better development of the mediation process and effectively ensures compliance with mediation agreements reached by the parties.

Advantages of Mediation.

Mediation as an alternative dispute resolution method enables the belligerent parties to seek a rapprochement with the function that the Mediator, which is a neutral and impartial person who acts as a facilitator in the achievement of a solution proposed by the parties themselves.

The mediation process is entirely free for the parties, which are responsible for exercising control over it at all times and can finish it when they want.

It is important to note that the parties involved in a dispute are always better than the solution to the conflict be the parties themselves that the third party as in an ordinary or arbitral process.

Costs of mediation services.

The rights to pay for mediation services will apply the fees provided for in Article 3 of Resolution 19 / 2007 Regulation on the Rights of Arbitration Procedure Expenses and Costs of the parties, reduced by 50%.

The payment of the rights of Mediation will take place only once the parties their willingness to resolve the conflict thus been confirmed.

The parties shall pay the fees fixed mediation equally, unless otherwise agreed in writing. However a party may pay the outstanding balance of such rights if the other party fails to pay the corresponding portion.

The fees paid by the mediation services will only be reimbursed if the process is interrupted for reasons attributable to the mediator.

Compensation expenses

In the event that the mediation process initiated before the Court does not prove successful, the middle may use the services of arbitration of the Court itself as a solution to their conflict. For this purpose for the payment of fees for arbitration the amount paid as mediation rights in the mediation process that was unsuccessful before this Court will be taken into account.

Advantages of Arbitration

When you choose the alternative of arbitration is using a system to resolve commercial disputes in a fast, efficient, economical and reserved manner, with the assurance that they can arrange appropriate for their training and impartiality of arbitrators way, it is a procedure that relies on the Will agreed upon by the parties in dispute, the arbitrator shall not be separated from the desired and expected by them to entrust their mission.

Its fundamental rule is the arbitration agreement between the parties and the arbitrator or the arbitration institution. The arbitration agreement is therefore a high standard of arbitration within the limits imperatives of public order and allows the parties to make the appropriate choices of how you want to develop such arbitration. Arbitration is a more expeditious and flexible procedure to the ordinary courts, which is governed by rules of procedure and formal requirements necessary for compliance with legal certainty.

The Chambers of Commerce around the world have a leading role in creating work and development of arbitration systems, which have been in the past and in the future constitute an important instrument to solve the conflicts in the world of business.

Advantages of Legal Framework: Decree Law 250 of July 30, 2007 "From the Cuban Court of International Trade Arbitration".

  1. Encourages the future development of international commercial arbitration in Cuba.
  2. Extend the jurisdiction of the Court to disputes concerning foreign investment.
  3. Empowers the Court to directly take protective measures.
  4. Empowers the Court to decide on its own jurisdiction.
  5. It provides that the courts will provide support to the arbitration proceedings.

 

TO DOWNLOAD (information in Spanish)

Decreto-Ley 250/2007 "De la Corte Cubana de Arbitraje Comercial Internacional" 

Resolución no. 11-2007 de la Cámara de Comercio, Estatutos de la CCACI

Resolución no. 15-2009 Normas de Procedimiento de la CCACI

Resolución 21-2015 Reglamento de Mediación

Resolución no. 17-2007 de la Cámara de Comercio, Código de Ética de los árbitros de la CCACI

Resolución no 18-2007 de la Cámara de Comercio, Código de Ética de los mediadores de la CCACI

Resolución no. 19-2007 de la Cámara de Comercio, Reglamento sobre los derechos de arbitraje, gastos de procedimiento y costas de las partes