Dispute Boards
The Dispute Board is an adequate peaceful dispute resolution system, under which an independent panel of experts, normally set up at the start of contract performance, helps the parties resolve their disagreements through informal assistance and issuance Recommendations or Decisions, depending on the model adopted. Due to its nature, it operates on contracts with a certain technical content, which are of medium to long term execution and in which the timely solution of any disagreement presents a particularly attractive benefit for the parties.
Dispute Review Board (DRB)
The DRBs provide early informal assistance to discrepancies or disputes and issue Recommendations related to them. Upon receiving a Recommendation, the parties may voluntarily abide by it.
Dispute Adjudication Boards (DAB)
The DABs provide early informal assistance in discrepancies or conflicts and issue Decisions related to them. A Decision is binding on the parties from the moment it is received and is understood to be part of the Contract. The parties must comply without delay even if there is a manifestation of disagreement.
Combined Dispute Boards (CDB)
The CBDs provide early informal assistance in disagreements or disputes and issue Recommendations or Decisions.
Rules of Dispute Boards
Article 1
Scope of application of the Rules
- The Dispute Boards, hereinafter referred to as DB, established in accordance with this Rules helps the Parties resolve early disagreements or conflicts that may arise during the term or execution of the Contract. They can provide permanent informal assistance or issue Determinations. The DBs are not arbitral tribunals and their Determinations produce the regulated effects for each case, as determined by the same parties in accordance with the provisions of this Rules and what is established in the Contract.
- When applying the Rules, the Arbitration and Mediation Centre of the Santiago Chamber of Commerce, hereinafter referred to as the CAM Santiago, may provide administrative services to the Parties, which includes making appointments of DB members, as well as the adoption of the decisions referred to the objections and disputes related to members’ fees, in accordance with the provisions of this Rules.
Article 2
Definitions
For the purpose of the provisions of this Rules, the following definitions shall apply:
- “Dispute Board” or “DB”: a technical panel composed of one or three members, intended to provide informal support to the parties when facing disagreements or disputes that may arise during the term of the Contract, as well as issuing Determinations in accordance to this Rules.In every particular case, the term “Dispute Board”, or its English acronym “DB”, will also mean a “Dispute Review Board” (“DRB”), a “Dispute Adjudication Board” (“DAB”) or a “Combined Dispute Board” (“CBD”), in accordance with this Rules.
- “Party”: a part of the Contract, and – as the case may be – comprises one or more parties.
- “Contract”: agreement or convention signed between the parties that contains the stipulations for the constitution of a DB in accordance with this Rules, or that is subject to such provisions.
- “Determination”: includes a Recommendation or Decision issued in writing by the DB, in accordance with this Rules.
- “Recommendation”: written assistance provided by the DB to the Parties, with the purpose to contribute the resolution of early discrepancies or conflict between them, in accordance with this Rules.
- “Decision”: written assistance from the DB to the Parties, which is understood to be part of the Contract upon reception and which is issued by the DB in accordance with this Rules.
Article 3
Submission agreement to the Regulations
- The parties may agree to the application of this Rules by a clause within the Contract or through any expression of will in this same regard provided in a subsequent agreement.
- In the agreement referred to in the preceding paragraph, the parties must establish whether the DB is a DRB, DAB or a CDB. If the parties do not specify this, it will be understood that a DRB was agreed.
Article 4
Dispute Review Board (DRB)
- DRBs provide an early informal assistance to discrepancies or controversies in compliance with Article 15 and issue Recommendations related to them.
- Upon receiving a Recommendation, the parties may voluntarily abide by it, notwithstanding the provisions of the following paragraph (3).
- If neither party has notified in writing to the other party and the DRB of their total or partial disagreement regarding a Recommendation(s) within 15 days from its reception, the Recommendation shall be binding on the parties and shall be deemed to form part of the Contract. In such a case, the parties must comply with the Recommendation without delay.
- If one of the parties does not comply with a mandatory Recommendation, the other Party may submit this breach to arbitration – if the parties have so agreed – or, in the absence of such agreement, before any competent Court of Justice.
- A Party who disagrees with a Recommendation must send – within 15 days of reception – a written notice to the other Party and to the DRB stating its disagreement. For further information, this notification must specify the reasons that motivate the disagreement of that Party.
- If one of the parties sends such written notification stating its disagreement with the Recommendation, or if the DRB does not issue its Recommendation within the period specified in Article 19 of this Rules, or if the DRB is dissolved in accordance with the Rules prior to issuing a Recommendation related to a dispute, this will be resolved definitively by arbitration, if the parties have so agreed, or in the absence of such agreement, by any competent Court of Justice.
Article 5
Dispute Adjudication Boards (DAB)
- DABs provide early informal assistance in discrepancies or conflicts specified in Article 15 and issue Decisions related to them.
- A Decision is binding on the parties from the moment it is received and is understood to be part of the Contract. The parties must comply without delay even if there is a manifestation of disagreement in accordance with this article.
- If a Party does not comply a binding Decision in accordance to this Article 5, the other Party may submit this breach to arbitration, if the Parties have so agreed, or, in the absence of such agreement, take the matter to the competent Court of Justice.
- A Party who disagrees with a Decision must send – within 15 days of its reception – a written notice to the other Party and to the DAB stating its disagreement. For further information, this notification must specify the reasons that motivate the disagreement of that Party.
- If one of the Parties sends a written notification stating its disagreement with the Decision, or if the DAB does not issue its Decision within the period established in Article 19, or if the DAB is dissolved in accordance with the Rules before issuing a Decision related to the disagreement, this will be resolved definitively by arbitration, if the parties have so agreed, or in the absence of such agreement, by any competent Court of Justice. Until the disagreement has not been definitively resolved by arbitration or other means, or unless the arbitration tribunal or the judge decides otherwise, the Decision must be complied with by the parties.
Article 6
Combined Dispute Boards (CDB)
- The CBDs provide early informal assistance in disagreements or controversies in accordance with what is specified in Article 15 and issue Recommendations in accordance with Article 4. Likewise, they can issue Decisions in accordance with Article 5, as specified by the following numerals.
- If one of the parties requests a Decision regarding a disagreement or controversy, and no other Party objects to such request within 15 days of the communication pertaining the request by the other Party, the CBD will proceed to issue such Decision in accordance with Article 5.
- If one of the parties requests a Decision and some other party objects to such a request, the CBD must refrain from issuing a Decision, unless it justifiably considers that one of the following circumstances exists:
a) If, for reasons of urgency or other pertinent considerations, a Decision may facilitate the execution of the Contract or prevent any important damage or injury for any of the Parties.
b) If a Decision allows to prevent the Contract’s interruption.
c) If a Decision is necessary to retain evidence or proof.
Article 7
Appointment of the DB Members
- The DB will be established in accordance with the provisions of the Contract or, failing that, to this Rules.
- When the parties have agreed on the constitution of a DB in accordance with the Regulations but have not yet agreed on the number of members of the panel, this panel will be composed of 3 members.
- If the DB is made up of a single member, the parties will appoint them by mutual agreement, within 15 days from the signing of the Contract or from the award thereof or from the start of its execution, whichever occurs first, or during the term that they agree, which will not exceed 15 days starting from any of the aforementioned events if no agreement is achieved.When the DB is composed by three members, the parties will appoint 2 of the members by mutual agreement, within 15 days from the signing of the Contract or from the award thereof or from the start of its execution, whichever occurs first, or during the term that they agree, which will not exceed 15 days starting from any of the aforementioned events if no agreement is achieved. The other 2 members that have already been appointed, in the same term, will appoint the third member. The members of the DB will elect their president.
- In case the members have not been appointed as the points 2 and 3 indicate, either of the parties may submit a written request and the CAM will proceed to designate the members of the DB.
- When a DB member must be replaced due to death, resignation, supervening ineligibility clause or termination of the judicial mandate, the member who replaces them will be appointed in the same way and under the same conditions as the member they are replacing, unless otherwise agreed between the parties. All the measures taken by the DB prior to the substitution will remain valid. When the DB is composed of three members and one of them must be replaced, the other two will continue to exercise their functions. However, as long as one member has not been replaced, the remaining two will abstain from holding hearings or issuing Determinations, unless otherwise agreed between the parties.
- The appointments made by the CAM Santiago will be made from the members of this entity’s arbitral body and from the roster of experts from the same institution, prior analysis of the qualities of the candidate(s) relevant to the circumstances of the case, their availability, nationality and linguistic knowledge.
Article 8
The Contract of the Dispute Board Member
Prior to the DB activities, each DB member must sign a “Dispute Board Member Agreement” (“DB Member Agreement”) with the parties, in accordance with the conditions that the parties agree with each DB member.
Article 9
Independence
- All DB members must be and remain independent of the parties, throughout the term of the Contract.
- Any candidate to be elected as a member of the DB must sign a declaration of independence and communicate in writing to the parties, the other members and the CAM Santiago, if applicable, any fact or circumstance, existing or supervening that may affect their impartiality or independence.
- To challenge a DB member on the basis of lack of independence or impartiality, the parties will have a period of 15 days since they have learnt the fact or underlying cause of the claim and submit to the CAM Santiago a challenge request that includes a written statement of the facts in question. The CAM Santiago will ultimately decide on the challenge, after having granted the challenged member, as well as the other members of the DB and the other party, the opportunity to make their claims.
- If a DB member’s challenge is accepted, that member’s contract with the parties will terminate immediately. The new member will be appointed in accordance with the same procedure used to designate the member which is to be replaced.
Article 10
Confidentiality
- By accepting their appointment, the members of the DB will undertake to perform their functions in accordance with this Rules, and in accordance with the internal procedural rules that the DB itself agrees.
- Unless otherwise agreed by the parties or by requirements imposed by the applicable legislation, any information obtained by a member of the DB in the exercise of their functions, will be used by that member exclusively in the activities of the DB and will be treated as confidential.
- A DB member may not participate in any judicial, arbitration or similar proceedings related to a disagreement or disagreement submitted to DB, whether as a judge, arbitrator, expert, representative or counselor, witness or expert of any of the parties, in attention to the obligation of confidentiality that they must safeguard.
Article 11
Meetings and Site Visits
- The DB will start its activities once all its members and the Parties have signed the DB Member Contract(s).
- At the beginning of its activities, the DB must set a meetings schedule and, if the nature of the Contract requires it, visits to the site where the work is located or the place related to the execution of the Contract. Likewise, the parties, under their own responsibility, must provide the DB with a valid communication address, either if it pertains to a physical location and/or to an email address.
- The Parties shall fully cooperate with the DB, both in providing the required information in a timely manner and in granting the necessary facilities for on-site visits.
- The DB, in the same act in which it establishes the schedule mentioned in numeral 2 above, and prior consultation to the parties, must register the must register the person or persons designated by each Party who, bestowed with decision-making powers and on their behalf, will act and relate themselves to the other party and to the DB in all the matters of the Contract.
- Unless agreed otherwise by the parties and the DB, when the nature of the Contract requires visits to the site, they will take place at least 3 times per year. The parties and the DB will participate in all meetings and visits.
- Visits to the site will take place at the location or locations of the execution of the Contract. The meetings may be held at any location agreed by the parties and the DB.
- During the scheduled meetings or site visits, the DB shall discuss the execution of the Contract with the Parties and, in case of disagreement, may provide informal assistance as stipulated in article 15.
- Any of the parties may request an urgent meeting or visit to the site, in addition to the scheduled meetings and visits. The DB members should agree to these requests promptly, doing their best efforts to be available for such meetings or urgent site visits within 10 days of the request.
- After each meeting or each site visit, the DB will write a report, including a list of the people present.
Article 12
Written notifications or communications
- Any and all written notifications or communications, including the attached documents and annexes, sent by a party to the DB or by the DB to the parties, must be communicated simultaneously to all parties and all members of the DB, to the physical and/or electronic addresses provided by each one.
- A notification or communication will be considered made on the day it has been received by the recipient or his representative. Unless proven otherwise and unless otherwise agreed by the parties, letters will be considered received 3 days after dispatched.
- The deadlines specified in this Rules, or set in accordance therewith, shall begin to run on the day following that in which a communication, notification or event is deemed to have been carried out, in accordance with the provisions of the preceding paragraph.
- The deadlines will be measured in business days, considering as such the days that are not Saturdays, Sundays or legal holidays.
Article 13
Powers of the DB
- The proceeding before the DB shall be governed by this Rules and, where the Rules is silent, by any rules that the parties or, failing them, the DB may settle on.
- In particular, in the absence of agreement of the parties with respect thereto, the in this regard, the DB shall have the power, among other things, to: a) Determine the language or languages of the proceedings before the DB, due regard being given to all relevant circumstances, including the language of the Contract. b) Require the parties to produce any documents that the DB deems necessary in order to issue a Recommendation or Decision. c) Call meetings, site visits and hearings. d) Decide on all procedural matters arising during any meeting, site visits or hearings. e) Question the parties, their representatives and any witnesses they may call.
- Decisions of the DB regarding the rules governing the procedure shall be taken by the sole DB member or, when there are three DB members, by a majority vote.
- The DB may take measures for protecting trade secrets and confidential information.
Article 14
Termination of the DB activities
- The DB will conclude its functions with the termination of the Contract, in accordance to the conditions stipulated therein; or when the parties have so agreed.
- Any Disagreement arising after the dissolution of the DB will be definitively resolved by arbitration or mediation, when the parties have so agreed, or in the absence of agreement, by the Courts of Justice.
Article 15
Informal assistance in disagreement
- With the prior agreement of the parties, the DB may, informally, help them resolve any disagreements that may arise during the execution of the Contract.
- Informal assistance of the DB may take the form of a conversation between the DB and the parties, separate meetings between the DB and any party with prior agreement of all of the parties, informal views in written form or orally by the DB to the parties, or any other form of assistance that the DB deems may help the parties resolve the disagreement.
- If called upon to issue a Determination in connection with a disagreement or discrepancy on which it has provided informal assistance, the DB shall not be bound or disabled by any views that it may have given in the course of the informal assistance.
Article 16
Formal referral of a disagreement before the DB
- In order to refer a disagreement to the DB, the requesting party must submit a written statement to the DB, with a copy to the other party of all the records. The statement of case shall include:a) A clear and precise description of the nature and circumstances of the dispute. b) The contractual or legal provisions supporting the claim.
c) Any documentation or other records that justifies the provenance and magnitude of the request; such as documents, sketches, schedules and relevant correspondence.
d) A statement of objective or relief sought of the Determination requested to the DB by the requesting Party. - The date on which the statement of case is communicated to the other party by the DB shall, for all purposes, be deemed to be the date of commencement of the referral (the “Date of Commencement”).
- The parties remain free to settle the dispute at any time, with or without the assistance of the DB.
- Unless the parties agree otherwise, the procedure of the request referred to in this article will not have effect in the execution of the Contract.
Article 17
Response and additional documentation
- Unless otherwise agreed by the parties or unless otherwise ordered by the DB, the responding Party shall respond to the formal referral (the “Response”) within 15 days from the Date of Commencement. The Response must include:
a) A clear and precise statement of its position with respect to the formal referral of the dispute.
b) Any documentation or other records supporting its position, such as documents, sketches, schedules and correspondence.
c) A statement of the request made by the reffering party to the DB. - The DB may at any time request a party to submit additional information to assist the DB in preparing its Determination.
Article 18
Organization and conduct of hearings
- Unless otherwise agreed by the parties, the DB will order the hearing to be held within 15 days of receiving the Response.
- The hearings will be held in the presence of all DB members. Otherwise, the parties must authorize the hearing to be held.
- If any of the parties refuses or fails to take part in the DB procedure or at any stage thereof, the DB may proceed notwithstanding such refusal or abstention.
- The DB, through its president, shall be in full charge of the hearings.
- The DB shall act fairly and impartially and ensure that each Party has a reasonable opportunity to present its case.
- The parties shall appear in person or through duly authorized representatives who are in charge of the performance of the Contract. Likewise, they may be assisted by advisors.
- The DB may request the parties to provide written summaries of their statements.
- The DB may deliberate at any location it deems appropriate before issuing its Determination.
Article 19
Time limit for issuing a Determination
The DB shall issue its Determination within 15 days of receiving the Response, or at the date of the hearing is conducted in accordance with the preceding article, as appropriate. However, and at the request of the DB, the parties may agree to an extension of said time limit.
Article 20
Contents of a Determination
- The Determination must state its conclusions and the reasons upon which they are based.
- The Determinations may also include the following elements, without limitations and without necessarily following the same order:a) A summary of the dispute, of the respective positions of the parties concerned
b) A summary of the relevant provisions of the Contract.
c) A chronology of the relevant events.
d) A summary of the procedure followed by the DB; and
e) A list of the submissions, documents and other records produced by the Parties during the course of the procedure.
Article 21
Issuing the Determination
- When the DB is composed of three members, the Determinations will be adopted by a majority. The DB Member who disagrees with the Determination, must state within five days the reasons that motivated their disagreement in a document that is not part of the Determination.
- The Recommendations or Decisions that are issued during the term of the contract will not disable the DB from learning about other matters that are submitted to it by the parties after it becomes known.
Article 22
Correction and interpretation of the Determination
- On its own initiative, the DB may correct any typographical, calculation or similar errors of a similar nature contained in the Determination, provided such correction is submitted to the parties within 15 days from the date of such Determination.
- Any of the parties may apply to the DB for the correction of an error of the type referred to the preceding paragraph or for the interpretation a Determination. Such application shall be made to the DB within 15 days following the date of receipt of the Determination.
- After receipt of the application by the sole member of the DB or the president of the DB, the DB shall grant the other Party a short time limit that shall not exceed 5 days following the date of receipt of such application by that Party, to submit any comments thereon. Any correction or interpretation of the DB must be issued within 15 days.
Artículo 23
General Considerations
- Each Party will contribute in equal parts with all the fees and expenses incurred by the DB members.
- The failure of any party to pay its share of expenses of any of the members of the DB, will entitle the DB member to request the corresponding payment from the parties, who must provide full payment pay of the amount within 10 days of the reception of the notice that communicates the parties such decision. If the payment is not made within said time limit, the DB must suspend the procedure, which will only resume with the repection of the payment.
Article 24
Fees
- Each DB member will receive a fee expressed in UF per hour, as set out in the respective DB Member Contract or, alternatively, according to the CAM Santiago rate.
- Such fees will cover the time spent on the following activities:a) Meetings and site visits;
b) Hearings;
c) Internal meetings of the DB;
d) Study of the documents submitted by the parties in connection with procedures before the DB.
e) Preparation of a Determination.
f) The coordination and organization activities of the DB.
Article 25
Travel costs and expenses
- Unless otherwise provided in the DB Member Contract, travel expenses by any means of transport will be reimbursed based on the rates corresponding to the journey between the DB Member’s home and the destination.
- The accommodation and subsistence expenses incurred by the DB members in DB work for on site visits to the location of performance of the contract will be reimbursed by the parties at cost.
Article 26
Administrative fee of the CAM Santiago
- The Centre will charge an administrative fee as stipulated in its rate list, whose payment must be verified when requesting the first intervention of the CAM Santiago by one of the parties.
- The Centre will open an administrative file related to the Contract, its applications for appointments, challenges and claims, as appropriate.
Article 27
Application of the Rules
In all matters not expressly provided for in this Rules, the DB shall act in spirit of its provisions and always striving to ensure that the Determinations are issued in accordance with this Rules.
File a Request for Dispute Board
The application must be submitted by completing our online forms or by personally approaching our office located in Monjitas 392, 11th floor, accompanied by the following information:
- Copy of the contract in which the Dispute Board clause is included, in addition to its annexes and administrative or technical bases, if necessary. If you want to start the procedure and your contract does not contain such clause or the conflict is of a non-contractual nature, please contact the CAM Santiago.
- Should one of the parties be a company or legal person, a copy of the public deed where the power of representation was conferred and judicial mandate in event the person signing is the company’s attorney.
- In the event the dispute settlement clause contemplates the designation of the name of all or some of the members of the Dispute Board by mutual agreement, if possible, attach copies of the communications and procedures that have been made between the parties for these purposes.
Regulation
We invite you to read the current regulation.
Frequent questions
Costs & Payment
Fees of the Dispute Board members
The fee of the Dispute Board members will be determined by the parties, in accordance with the Dispute Board Member Agreement that they must sign with each expert that is in the Dispute Board (DB).
In case of a lack of agreement, the fee of each member of the DB will be 7 UF – in the event that the DB is made up of one member – and 5 UF when the DB is a panel composed by three experts. This applies for each hour worked in the study of background information, meetings, visits to the site, and hearings. The parties may agree on monthly caps and differential treatment for the hours or fractions of hours used in transportation to the project site.
The expenses associated with the completion of the tasks by the panel will be paid by both parties, in equal proportion, unless otherwise agreed.
In case of disagreement between one or more of the parties and the CAM Santiago on the amount of the fee of the single or the panel of the Disputes Board, the parties may appeal to the Board of Directors of the Centre for a final resolution.
Dispute Board’s administration fee of Cam Santiago
For the services it provides in accordance to its rules, the CAM Santiago charges an annual administrative fee of 25 UF to each party. This amount is final; it is not refundable and must be paid whenever one of the parties requires the Centre’s first intervention. Without this payment, the requested application will not be processed.
The one-year period is counted from the moment the payment is made to the CAM Santiago.
Unless the parties agree otherwise, the mediators’ fees and the administrative fee will be paid by them in equal parts.