2. Confidentiality for the parties involved;
3. Flexibility in the resolution of the conflict;
4. Greater control over the procedure; and
5. The possibility of receiving the assistance of an expert (arbitrator or mediator) on the subject at hand.
In Chilean legislation, certain issues are a matter of mandatory arbitration or mediation, but the general rule is that such matters are voluntary. Essentially, any kind of private conflict may be submitted to arbitration or mediation, particularly, controversies relating to commercial partnerships, copyright, exports, insurance, construction, infrastructure, energy, maritime affairs, banking, finance, securities, among others.
Cases of mandatory mediation may be found in (a) family law, in matters regarding tuition and alimony, custody and visitation rights; (b) tort claims against hospitals or clinics in the public assistance network; and (c) conflicts regarding royalties from copyrights administrated by collective entities.
The most important cases of Mandatory arbitration are controversies relating to (a) joint-stock companies and (b) liquidation of collective corporations.
With regards to arbitration, it is important to note the existence of a dual regime. The first system, related to national arbitration, is governed by the rules of the Code of civil procedure and domestic court regulations. The second system, regulating international arbitration, is governed by Law Nº19.971, which closely follows the provisions of UNCITRAL model Law.
An important issue regarding international arbitration is language. Before Chilean law, in certain cases it is possible for any party to submit a review of an award before the Court of Appeals. Chilean Courts do not speak English and will only accept official translations from the Foreign Affairs Ministry, which are expensive and time-consuming. For these reasons, parties should conduct their proceedings in Spanish.
In Chile, the main institution providing both arbitration and mediation services is the Santiago Arbitration and Mediation Centre (CAM), of the Santiago Chamber of Commerce. In addition, other bodies include the National Centre of Arbitration (CNA) and the Controversy Resolution Centre for the Web Domain, an institution of Network Information Centre (NIC) of Chile.
Attorneys aid prospective clients with legal guidance and counsel, in the case of mediation. In arbitration, they tend to have a lead role, presenting claims, defences, evidence, petitions for review, and generally, any submission necessary to attain the client’s goals through an award or agreement with the assistance of the arbitrator.