Dominican Republic

Part I: what can be enforced?

1. What counts as an arbitral “award” that can be enforced?

In the Dominican Republic, Law No. 489-08 on Commercial Arbitration (Law No. 489-08) defines the arbitral award as the conclusive decision rendered in writing by arbitrators concerning the contentious matters outlined in the arbitration clause or agreement.

2. Formal requirements that an award needs to conform with to be enforceable

Depending on the arbitral procedure involved, whether it’s ad hoc or institutional, there are different mechanisms for its enforcement. In the ad hoc procedure, the award must be authorised by the competent court of first instance, whereas in the case of the institutional procedure, it is final and not subject to appeal.

Foreign awards require an exequatur from the Dominican courts to be enforceable in the Dominican Republic.

3. Orders on interim measures: enforceability

a. Domestic awards

Unless otherwise agreed by the parties, the arbitral tribunal may order interim or provisional measures. The tribunal may require the applicant to provide appropriate security in connection with these measures. This implies that orders on provisional measures issued by the arbitral tribunal are enforceable domestically (Law 489-08 Art 21).

In addition, pursuant to the arbitral regulations of the Dispute Resolution Center of the Chamber of Commerce and Production of Santo Domingo (Articles 30.1 and 30.2), interim measures should be provided in a provisional award by the arbitral tribunal upon request of the parties, including assets preservation or any other measures deemed necessary.

The parties may also request judicial courts to adopt precautionary measures before and after the constitution of the arbitral tribunal. The court competent for the enforcement of the award shall have jurisdiction. When these measures are requested before the constitution of the arbitral tribunal, the arbitration claim must be submitted within 60 days following the date of the decision granting such measures. The judicial court may require the submission of a guarantee.

b. International commercial arbitration awards

Foreign arbitral awards require exequatur to be enforceable in the Dominican Republic, with jurisdiction vested in the Civil and Commercial Chamber of the Court of First Instance of the National District, administratively. Once the exequatur is granted, the award has an effect throughout the Dominican Republic. Awards that grant precautionary measures must also undergo this process.

4. Emergency awards: enforceability

a. Domestic awards

Despite the role of an emergency arbitrator not being expressly established in the law and the rules of domestic institutions (unless otherwise agreed by the parties), it is generally perceived that the appointment of such a figure can be considered an interim measure ordered by the arbitral tribunal or ordinary courts in their role of judicial assistance.

b. International commercial arbitration awards

Foreign orders resulting from emergency awards can be enforced in the Dominican Republic after obtaining due recognition and an exequatur from the corresponding Dominican courts.

Part II: resisting enforcement

5 a. How are awards set aside?

The law provides that a petition for annulment of domestic awards and the exequatur of international awards may be filed before the Civil and Commercial Chamber of the Court of Appeal in the judicial department where the award was issued.

b. Can enforcement be resisted if the defendant has not formally requested annulment of the award?

It cannot be opposed unless the defendant has filed for the annulment of the award.

c. Can non-parties seek annulment?

Generally, only the parties to the arbitration can seek annulment of an arbitral award. However, third parties could oppose it if they demonstrate a legitimate and direct interest affected by the award.

d. Grounds for seeking annulment

Awards can be challenged or set aside by annulment upon demonstrating the following:

• A party to the arbitration was affected by some incapacity or the agreement is invalid under the law to which the parties have subjected it, or under Dominican law.
• There has been a breach of due process, resulting in a violation of the right to defence.
• The award deals with a dispute not contemplated in the agreement or decisions that exceed the matters of the arbitration agreement. Nevertheless, if the decisions on matters submitted to arbitration can be separated from those not submitted, only that part of the award may be set aside.
• The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was against a provision of the law that the parties cannot derogate from, or, failing such agreement, was not in accordance with the law.
• The matter of the dispute is not arbitrable under the laws of the Dominican Republic.
• The award is against the public policy of the Dominican Republic.

e. Timelines to seek setting aside

The action for annulment of the award must be filed within one month following its service of notice, or, in the case of a request for correction, clarification, or completion of the award, from the service of notice of the resolution on this request.

f. Grounds for resisting enforcement

The filing of an annulment petition.

g. Which court to go to for setting aside?

If the parties have not previously waived the right to file any appeals against the awards, the competent court for the annulment of an arbitral award issued in the Dominican Republic is the Civil and Commercial Chamber of the Court of Appeal of the judicial department where the award was issued.

h. Formal requirements before the court can grant annulment

See question II(e).

i. Do courts grant stay on enforcement as an interim measure?

During the annulment process, the award remains enforceable, unless suspended by the president of the competent Court of Appeal, acting as judge of the summary proceedings. Between the service of the suspension claim and the first hearing, the award shall be deemed suspended by law. In any case, the arbitral process shall continue. In case the suspension claim is accepted, the plaintiff is required to provide a cash bond or through an insurance company of the Dominican Republic.

j. What is the appellate mechanism against the decision of the court of first instance?

Judgments on the annulment of the award can be appealed through cassation. However, orders issued by the president of the court regarding suspension cannot be subject to such an appeal.

Part III: enforcing foreign awards

6. New York Convention applicability

The Dominican Republic ratified the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (New York Convention) in 2002, incorporating this international treaty into its legal framework to facilitate the recognition and enforcement of foreign arbitral awards.

7. Timelines for enforcement

According to Law 489-08, any action for annulment must be filed within one month following the service of the award.

8. Which court to go to? Relation with location of assets?

The Civil and Commercial Chamber of the Court of First Instance of the National District is the court designated by Law 489-08 to grant exequatur to foreign awards. The location of assets is not applicable in this context.

9. Can non-parties resist enforcement?

Generally, only the parties to the arbitration can resist the enforcement of an arbitral award. However, third parties may oppose if they demonstrate a legitimate and direct interest that would be affected by the enforcement of the award.

10. Compelling disclosure of local assets? How to identify assets available for enforcement?

Parties are not automatically obliged to disclose their local assets. Identifying assets may require additional investigations or the filing of claims.

11. Are third-party funded awards enforceable?

Arbitral awards financed by third parties are enforceable under the Dominican Republic laws and the New York Convention, provided they meet the general requirements of the convention and Law 489-08.

12. What interim reliefs are available pending enforcement of awards? Which of those reliefs are granted ex parte?

In the Dominican Republic, both judicial and arbitral tribunals can grant provisional or interim measures. These measures can include provisional orders to protect assets or prevent actions that may affect the arbitration outcome.

13. Formal requirements for enforcement application: what documents need to be filed in court?

To apply for the enforcement of an arbitral award under the New York Convention, the following must be submitted: (i) the original award or a duly certified copy; (ii) the original arbitration agreement or a certified copy; and (iii) certified translations of these documents if they are not in Spanish.

14. Enforcing awards that have been annulled/set aside at other courts. Enforcing when an annulment application is pending at a foreign court

Under the New York Convention, an award can be refused if it has been annulled by a competent authority. If annulment is pending, courts may, at their discretion, suspend its enforcement.

15. Once application for enforcement is allowed, how does the actual enforcement against assets work? What are the remedies available for tracing assets during enforcement proceedings including for assets disposed of by fraud?

Once an exequatur is granted by the Dominican Court, the award is enforced as a judicial judgment. Available resources include seizure orders and other provisional measures to secure assets. Courts have the authority to order the tracing of assets and can take measures so that assets are not fraudulently disposed of, upon the request of the parties.

16. What is the procedure for repatriation of sums awarded after obtaining an order for enforcement?

After obtaining an enforcement order, awarded sums can be repatriated through the available legal and financial mechanisms, ensuring compliance with any exchange control regulations and tax obligations.

17. Do courts grant orders for security for costs?

Courts can grant security for cost orders to ensure that the costs of arbitration and enforcement are adequately covered.

18. Exchange control regulations: do they affect payments to foreign award holders?

After obtaining an enforcement order, awarded sums can be repatriated through the available legal and financial mechanisms, ensuring compliance with any exchange control regulations and tax obligations.

19. Enforcing awards from non-New York Convention places

For awards from countries not signatories to the New York Convention, enforcement will depend on local legislation and any applicable bilateral or multilateral treaties.

20. Enforcing against sovereigns

Enforcement against sovereign states is subject to the rules of sovereign immunity, which may limit the ability to enforce awards against state assets (Law 489-08 Art 5).

21. Appellate mechanism available?

The foreign award submitted for obtaining exequatur is examined by the local court administratively, in accordance with Law 489-08 and within the limits of the international conventions that may be applicable. If there is a response to the order issued, it will be heard and ruled on in the case of annulment by the competent Court of Appeal, in a sole and final instance and as established by the corresponding international convention (Law 489-08 Art 44).

Part IV: enforcing domestic awards

22. Timelines for enforcement

Law 489-08 does not specify a particular deadline for the enforcement of arbitral awards. However, it mentions that the action for annulment must be exercised within one month following the service of the award, implying that parties must act promptly (Law 489-08 Art 39.5).

23. Which court to go to? Relation with location of assets?

The enforcement of arbitral awards must be carried out by the Civil and Commercial Chamber of the Court of First Instance of the location where the award was issued.

24. Compelling disclosure of local assets? How to identify assets available for enforcement?

Law 489-08 does not specify an explicit obligation to disclose local assets. However, the court may order interim measures to identify and preserve the assets.

25. Are third-party funded awards enforceable?

Law 489-08 does not specifically mention third-party financing in the context of enforcing arbitral awards. As it is not prohibited by law, third-party funded awards are enforceable.

26. What interim reliefs are available pending enforcement of awards?

Precautionary measures can be requested by the court.

27. Formal requirements for enforcement application: what documents need to be filed in court?

The primary document required to enforce an award is the service of notice to the applicable parties, which must be carried out by a bailiff or through due procedure and verified by the court.

28. Filing for enforcement when application for annulment is pending

During the annulment process, the award remains enforceable, unless suspended by the president of the competent Court of Appeal, acting as judge of the summary proceedings. Between the service of the suspension claim and the first hearing, the award shall be deemed suspended by law. In case the suspension claim is accepted, the plaintiff is required to provide a cash bond or through an insurance company of the Dominican Republic.

29. Once application for enforcement is allowed, how does the actual enforcement against assets work? What are the remedies available for tracing assets during enforcement proceedings including for assets disposed of by fraud?

Once an exequatur is granted by the Dominican court, the award is enforced as a judicial judgment. Available resources include seizure orders and other provisional measures to secure assets. Courts have the authority to order the tracing of assets and can take measures so that assets are not fraudulently disposed of, upon the request of the parties.

30. Do courts grant orders for security for costs?

Courts can grant security for costs of arbitration and enforcement to be adequately covered.

31. Appellate mechanism available?

Judgments on the annulment of the award can be appealed through cassation. However, orders issued by the president of the court regarding suspension cannot be subject to such an appeal.