Volume 54
Issue
2
Date
2023

Constitutional Injunctions Against International Arbitral Awards in Latin America and Spain

by Martín Ruiz García

International arbitration must strike a balance between two often competing principles. On one hand, parties have an interest in obtaining a prompt and final decision resolving their dispute. On the other hand, both states and parties have an interest in assuring that arbitral proceedings are fair and consistent with basic notions of due process. The interplay between these two principles has led to the conclusion that judicial review of arbitral awards must be limited, thus the widespread notion that the only recourse against an award should be an annulment petition under limited grounds related to the jurisdiction of the arbitral tribunal, the integrity of the arbitral procedure, and the public policy of the arbitration’s seat. However, that balance may conflict with the constitutional traditions of Spain and several Latin American states. The possibility of filing applications for constitutional injunctions for the protection of constitutional rights in those states begs the question: Is it possible to file an application for a constitutional injunction against an international arbitral award issued in an arbitration seated in a state that allows applications for constitutional injunctions against judicial decisions?

This Article examines court decisions in Spain, Colombia, Peru, and Ecuador on the matter. As context, the Article analyzes the origins of applications for constitutional injunctions, the current contours of such applications, and the relationship between Latin American constitutionalism and international dispute settlement. Then, the Article turns to a discussion of each specific court decision. While Spain has rejected the possibility of filing applications for constitutional injunctions against arbitral awards, the Latin American states have reached the opposite conclusion. This Article argues that the approach taken by the Latin American states fails to strike an optimal balance between the principles of finality and fairness. Reconceptualizing the notion of a violation of public policy as a ground for annulment to include the protection of constitutional rights is necessary to reconcile long-held constitutional traditions with the promotion of international arbitration as a fair and efficient method for the resolution of transnational disputes.

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