Costa Rica Reforms Arbitration Law to Streamline Processes

By IDEAS

In a significant move to modernize its legal framework and enhance judicial efficiency, Costa Rica has approved a reform to the Law on International Commercial Arbitration. The changes, which aim to alleviate the burden on civil courts and reduce judicial delays, include shortening procedural deadlines and introducing virtual hearings.

This reform brings Costa Rican regulations in line with international standards, mirroring similar frameworks implemented in countries like Brazil, Spain, and Mexico. By streamlining the arbitration process, the new law seeks to make it more accessible and efficient for all parties involved.

Key changes introduced by the reform include:

Reduced procedural deadlines: For certain domestic procedures, the timeframes have been significantly shortened. For example, the time for a party to contest an arbitrator in a domestic arbitration case has been reduced from 15 days to five days.

Enhanced arbitral tribunal authority: The arbitral tribunal will now have the authority to decide on preliminary exceptions before issuing an award. This is expected to expedite the process and reduce unnecessary delays.

Introduction of virtual hearings: The reform allows for the possibility of virtual hearings, providing greater flexibility and convenience for parties located in different jurisdictions.