Corporate disputes

Corporate mediation and arbitration

A dispute between partners can be resolved through faster and more discreet means than litigation. Mediation and arbitration offer alternatives to preserve the business relationship and the continuity of the company.

In one line

This is not traditional court litigation, but resolving the dispute before a mediator or an arbitral tribunal, as agreed or as required by law.

First steps

Bylaws or partnership agreement and their mediation or arbitration clauses
Identification of the matter in dispute and whether it is arbitrable
Documentation supporting the client's position
Record of prior negotiations or claims
Rules of the applicable arbitration or mediation center, if any
Analysis of jurisdiction and applicable procedural rules

Mediation and arbitration clauses

Arbitration agreements are governed by arts. 1649 to 1665 of the Civil and Commercial Code, which grant the parties the power to submit disputes over arbitrable matters to the decision of arbitrators. Many bylaws and partnership agreements include arbitration clauses that channel disputes between partners to arbitration.

Mediation may also constitute a useful or required preliminary step depending on the jurisdiction, aimed at reaching an agreement without the need for an imposed decision. Determining which mechanism applies requires reviewing the bylaws and the applicable rules.

Advantages and limits of these avenues

Arbitration tends to offer greater speed, specialized arbitrators, and confidentiality, which is valuable in corporate disputes where reputation and business continuity are at stake. The award has binding effects under the Civil and Commercial Code regime.

Not all matters are arbitrable: non-arbitrable matters and certain public-policy issues are excluded. We analyze the validity and scope of the arbitration clause and design the strategy best suited to the client in each case.

Common mistakes

Ignoring the bylaws' arbitration clause and filing an improper lawsuit
Submitting non-arbitrable or public-policy matters to arbitration
Failing to verify the validity and scope of the arbitration clause
Failing to make use of mediation as an early settlement avenue
Neglecting the deadlines and rules of the chosen arbitration center

Frequently asked questions

Which corporate disputes can be taken to arbitration?

Those concerning arbitrable matters, under arts. 1649 et seq. of the Civil and Commercial Code. Non-arbitrable matters or public-policy issues are excluded.

Is the arbitral award binding?

Yes. The award has binding effects on the parties under the Civil and Commercial Code regime, subject to the review avenues the law allows.

Must mediation be exhausted before litigating?

It depends on the bylaws and the jurisdiction. In many cases mediation is a useful or required preliminary step; the applicable rules should be reviewed.

What advantages does arbitration have over litigation?

It tends to offer greater speed, specialization, and confidentiality, although it does not replace advice on the arbitrability of each issue.

This page is informational and does not replace professional advice on your specific case. It does not imply any promise of results.

Choose the most suitable avenue

Let's review your bylaws' clause and the nature of the dispute to determine whether mediation or arbitration best protects your interests.

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