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Ley 1/ de Enjuiciamiento Civil - Law - Spain
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Write a customer review. Feedback If you need help or have a question for Customer Service, contact us. Would you like to report poor quality or formatting in this book? Click here Would you like to report this content as inappropriate? Once the test for third-party legal standing is satisfied, tribunals can conclude that the requesting party has a direct interest in the annulment proceedings.
Then the question becomes whether or not third-party interests are significant enough to break with the majority position of rejecting third-party standing in annulment proceedings.
Ley 1/2000 de Enjuiciamiento Civil
Third-party interests in arbitration have grown exponentially in recent years due to the consolidation of this dispute resolution mechanism. In practice, this means that, in many instances, other parties that have not been part of the arbitration will be affected by the award. As a consequence, third parties will try to find a way to protect themselves from the potential negative effects of an arbitral award. As Professor Brekoulakis points out:.
- Ley 1/2000 de Enjuiciamiento Civil or LECn);
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The fact that third-party recourse against domestic awards has been accepted in some jurisdictions provides evidence that the interests of a third party might well be adversely affected by arbitration proceedings. In this regard, it is worth mentioning a recent decision from the Belgian Constitutional Court dated 16 February , 20 which has ruled that third parties must be provided with an opposition procedure against arbitral awards, as is the case for third parties in ordinary judicial proceedings.
Likewise, the French Supreme Court has acknowledged third-party interests — at least in domestic arbitration — by ruling on 5 May 21 that a joint guarantor has standing to challenge an award if it directly affects their interests. Third-party standing to seek annulment remains a controversial issue in case law and scholarly work. In arbitration, as opposed to in judicial proceedings, only the parties that have signed an arbitral agreement are bound by arbitration and, in principle, are the only ones entitled to seek annulment of the award.
In Spain, the majority view was that third parties lack standing to annul an award in all cases.
EUR-Lex Access to European Union law
However, since the enactment of the Spanish Arbitration Act, the wording of article The judgement in question seems to have taken the stance of opening the door to third parties that wish to annul an award even if they have not been a party to the arbitration, as long as they show a direct interest in the outcome of the proceedings.
Direct interest is understood to be a basis for a due process claim, ie, that the third party lacked the opportunity, or was unjustly denied the chance of participating in the main arbitration proceedings. In that scenario, third parties would be able to intervene in pending annulment proceedings in order to defend their interests.
Nevertheless, future judicial decisions that develop this concept of direct interest of third parties to seek annulment of an arbitral award would be needed to further clarify the issue. With offices in Madrid, Barcelona, London and New York, the firm advises both national and international clients, including major banks, public and private companies, national and regional government authorities, national and international investors and funds and prestigious foreign law firms. The firm has continued experience in cross-border transactions. Our legal advice is tailored to the requirements of national and international companies within the main sectors of Spanish law: This team is principally dedicated to defending the interests of the client companies, with lawyers acting before all legal forums throughout Spain.
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