Arbitration is a procedure for settling disputes that enables the parties to reach a settlement without having to go to court. 

 

Its essential purpose is to provide an alternative solution through an independent and impartial third party, outside the interests of those involved and chosen by them.

 

The arbitrator may be an individual or a group, composed of an odd number of individuals, specialized in the subject matter in question.

 

After analyzing the dispute, the arbitrator will issue an award (a decision to be issued after hearing both parties). The award has the same legal force as a court judgment. Mexico has signed several international agreements through with the beneficiary of the award may request its enforcement in other countries.

 

Advantages of arbitration:

 

Speed: arbitration is more expeditious than an ordinary trial; it does not admit an appeal and only in exceptional cases, an Amparo may be filed against it.

 

Legal certainty: Mexican laws, as well as the international treaties and conventions signed by Mexico, ensure that the awards be executed at home and abroad.

 

Flexibility: it carries fewer formalities than a judicial procedure and is also less expensive.

 

Impartiality: arbitrators are fully independent and have no interest in the conflict to be resolved, which, together with their professional expertise in the matter, gives certainty to the procedure.

 

Confidentiality: there is no obligation to publish the awards, which may be an important advantage for the parties involved.

 

Amicable settlement: parties to the arbitral proceedings often reach an agreement before the award is issued.