Regulations of the Central American Chamber of Commerce and Industries of Honduras

OBJECTIVE. Based on the Conciliation and Arbitration Law, the Law on Chambers of Commerce and Industries of Honduras, its Regulation and the Internal Regulation of the Chamber of Commerce and Industries of Cortés, this institution organizes the Center for Conciliation and Arbitration, as a dependent unit of the entity, whose primary objective is to contribute to the resolution of controversies or conflicts that are presented to it, through the institutionalization of alternative methods for conflict resolution. The conflicts submitted to the Center for Conciliation and Arbitration of the CCIC shall be resolved in accordance with the procedures and rules established in the Conciliation and Arbitration Law and in this regulation.

DEFINITIONS. For the proper handling of this regulation, the following definitions are established:

• a)

  Arbitration: It is a mechanism for conflict resolution, by which the parties decide through an arbitration agreement or clause that their conflicts arising from or not from a contractual relationship shall not be resolved by ordinary courts but by an arbitration tribunal.

• b)

  Chamber: Chamber of Commerce and Industries of Cortés.

• c)

  Center: Center for Conciliation and Arbitration of the Chamber of Commerce and Industries of Cortés.

• d)

  Arbitration Clause: It is the clause included in a contract by which the parties decide of their own volition to submit any controversy resulting from that contract to an arbitration tribunal that shall decide on the controversies submitted to its determination.

• e)

  Commission: Commission for Conciliation and Arbitration of the Chamber of Commerce and Industries of Cortés.

• f)

  Conciliation: It is a direct mechanism for conflict resolution, by which the parties with the collaboration of a neutral and qualified third party called a Conciliator, who is designated by the Center, attempt to self-compose their conflict, executing a conciliation agreement, which has the same legal effects as a judicial sentence.

• g)

  Arbitration Agreement: It is the agreement executed after the execution of a contract, by which the parties decide of their own volition to submit any controversy resulting from the performance of a contract or from any other commercial transaction to an arbitration tribunal that shall decide on the controversies submitted to its determination.

• h)

  Director: Director of the Center for Conciliation and Arbitration of the Chamber of Commerce and Industries of Cortés.

• i)

  Board of Directors: Board of Directors of the Chamber of Commerce and Industries of Cortés.

• j)

  Award: Sentence rendered by an arbitration tribunal.

• k)

  Law: Conciliation and Arbitration Law.

• l)

  Regulation: Regulation of the Center for Conciliation and Arbitration of the Chamber of Commerce and Industries of Cortés.

• m)

  Tribunal: Arbitration Tribunal or Arbitral Tribunal.

FUNCTIONS OF THE CENTER. The center has the following functions:

• a)

  Administer arbitrations and conciliations, national and international, when requested to do so, providing advisory and assistance services.

• b)

  Designate arbitrators and conciliators when applicable.

• c)

  Maintain lists of arbitrators and conciliators ascribed to the center, which must have a sufficient number of experts to enable the provision of services in an agile and effective manner.

• d)

  Establish the Commission for Conciliation and Arbitration, which may only be modified by the Board of Directors of the Chamber of Commerce and Industries of Cortés.

• e)

  Process inquiries and issue opinions requested of it, related to arbitration and conciliation.

• f)

  Design training programs for arbitrators and conciliators, either directly or through developing joint programs or executing agreements with other centers, universities and, in general, with analogous entities of a national or international order.

• g)

  Maintain statistics that allow knowledge of the quantitative and qualitative development of alternative methods for conflict resolution.

• h)

  Conduct analysis and studies on alternative methods for conflict resolution, both at the national and international level.

• i)

  Promote the execution of agreements aimed at strengthening relationships with analogous organisms and institutions, of a national or international order, to maintain a permanent process of collaboration that results in the development and dissemination of alternative methods for conflict resolution.

• j)

  Administer any other alternative method for conflict resolution, develop the procedure if necessary and the respective training plan.

• k)

  Any other function related to alternative methods for conflict resolution.

CONFIDENTIALITY. The processing of alternative methods for conflict resolution is of a confidential and reserved nature. CHAPTER TWO ADMINISTRATION OF THE CENTER FOR CONCILIATION AND ARBITRATION SECTION I OF THE COMMISSION FOR CONCILIATION AND ARBITRATION

DEFINITION. The commission is composed of three titular members and three alternate members, elected annually by the Board of Directors of the CCIC, taking into account their affinity with the subject of alternative methods for conflict resolution and in accordance with the internal regulation of the CCIC. The Board of Directors shall designate the president of the commission. The members of the commission may be re-elected taking into consideration the performance they have demonstrated.

FUNCTIONS OF THE COMMISSION. The functions of the commission are the following:

• a)

  Ensure that the center's regulation is complied with and that services are provided efficiently, in accordance with the law and this regulation, taking into account the specific ethical principles applicable to the center.

• b)

  Approve or reject applications submitted to join the lists of conciliators and arbitrators.

• c)

  Approve the exclusion of conciliators and arbitrators from the center's lists, when applicable.

• d)

  Serve as advisory body to the director of the center to whom they shall indicate the policies and general guidelines to be followed.

• e)

  Resolve matters of recusal of arbitrators.

DISQUALIFICATIONS AND IMPEDIMENTS. The members of the commission are disqualified or shall declare themselves impeded in the following cases:

• a)

  To be elected as arbitrators, when the designation corresponds to the CCIC.

• b)

  When any of the members of the commission has an interest in a matter or litigation submitted to conciliation or arbitration, they shall be disqualified from participating in the sessions in which such matter is dealt with. In this case, the remaining members of the commission shall summon an alternate member of the same.

• c)

  When any member of the commission considers that it is their ethical duty not to exercise their functions in relation to a specific case, they shall declare themselves impeded.

OF THE DIRECTOR. The director of the center is the person in charge of the management and administration of the center and must be an expert in the handling of the techniques, procedures and services provided by the center.

FUNCTIONS OF THE DIRECTOR. The director of the center shall exercise the following functions:

• a)

  Shall ensure that the provision of services offered by the center is efficient and conforms to the law, this regulation and is within the general principles of ethics.

• b)

  Shall act as secretary of the Commission for Conciliation and Arbitration.

• c)

  Shall act as conciliator in the conciliation hearing prior to the formation of an arbitration tribunal.

• d)

  Shall verify that applicants to join the lists of conciliators and arbitrators meet the requirements required for that purpose.

• e)

  Shall resolve matters of recusal of conciliators.

• f)

  Shall keep updated the lists of conciliators and arbitrators with their respective curricula vitae.

• g)

  Shall directly develop the functions of the center, in accordance with the policies and general guidelines that the commission designates in order to achieve the proposed objectives.

• h)

  Shall promptly submit to the consideration of the commission the names of persons who request to be enrolled in the lists of conciliators and arbitrators.

• i)

  Shall issue certificates and certifications that accredit the status of conciliators and arbitrators of the center.

• j)

  Shall promptly submit to the consideration and approval of the commission changes in the management of the center when it considers convenient or necessary.

• k)

  Shall manage the public relations of the center directly or through an official designated for such purpose.

• l)

  Shall review that the written application for conciliation meets the requirements mentioned in article 12 of this Regulation.

• m)

  Shall review that the arbitration claim and the written response to it comply with the requirements established in articles 38 and 41, respectively, of this Regulation.

• n)

  Shall provide technical assistance to the Conciliator and the Arbitral Tribunal in the different conciliatory and arbitral proceedings presented before the Center, for this purpose, is fully authorized to participate in each of the hearings held in the processing of the same. o) In general, shall execute all actions aimed at improving the functions of the center and its image.

SUBDIRECTOR OF THE CENTER. The Chamber may, if necessary, appoint a subdirector who shall act as director of the center during temporary, accidental or permanent absences of the director and shall be in charge of the activities assigned or delegated to him by the director of the center or, failing that, by the Executive Director, the Commission for Conciliation and Arbitration or the Board of Directors of the CCIC. This appointment may be temporary or permanent.

GENERAL FUNCTION. The center shall conduct, in accordance with this regulation, the conciliation proceeding to promote the solution of extrajudicial conflicts in controversies whose resolution is deferred to it and the law permits to be resolved by this mechanism.

APPLICATION FOR CONCILIATION. The application to obtain the conciliation services of the center shall be directed in writing to the director of the center, whether by one or more parties directly, or through a legal representative expressly authorized to attend the conciliation and to settle. The application must meet the following requirements:

• a)

  Name and address of the parties and their representatives or legal agents when applicable, indicating telephone numbers, fax and email addresses, when applicable.

• b)

  A brief description of the conflict.

• c)

  The rational estimation of the amount or a statement that it lacks a determined value.

• d)

  The documents considered relevant.

• e)

  When the application is submitted by a legal entity, an authenticated copy of the public deed of constitution of said company shall be attached. The appearance shall be through a legal representative, who shall attach the public deed of power in favor of the legal representative or, failing that, a copy duly authenticated by a Notary.

• f)

  The receipt evidencing payment of administrative expenses in favor of the CCIC and the fees of the conciliator.

PROCEDURE. Upon receipt of the application, the director of the center shall proceed to review it and shall observe that it meets all and each one of the requirements mentioned in article 12 of this Regulation and within 3 business days following the date of receipt shall proceed to admit or deny it, as appropriate. Once the conciliation application is admitted, the director of the center shall proceed to communicate in writing to the other party about the application for conciliation; and if they agree to attend to it in writing, shall proceed to consult both parties about the circumstances of time, manner and place of these, so that when setting the date of the hearing, it will be convenient equally to the interests of the parties.

GROUNDS FOR NOT ADMITTING A CONCILIATION APPLICATION. If the conciliation application does not meet the requirements mentioned in article 12 of this Regulation, the director of the center shall proceed to declare its inadmissibility, notifying the requesting party so that they proceed to remedy what corresponds, within three (3) business days following the notification.

APPOINTMENT OF THE CONCILIATOR. The designation of the conciliator who is to attend the conciliation hearing in each case shall be made by the Commission for Conciliation and Arbitration, by drawing lots, in a rotating manner, among those who make up the respective list, excluding those who having been designated have not exercised their functions without justified cause. In which case, the conciliator shall have three (3) business days to state in writing whether or not they accept the position. Once the conciliator has accepted the nomination, the director of the center shall communicate to the parties the acceptance of the position by the conciliator. If the parties, within two (2) business days following the communication of the conciliator's acceptance, do not file an objection to the appointment of the conciliator, they shall be summoned by means of communication sent to the address registered in the application, indicating the place, date and time in which the hearing shall take place.

DISQUALIFICATION AND RECUSAL OF CONCILIATOR. Conciliators shall have the same grounds for disqualification and may be recused on the same grounds established for arbitrators and judges of the judicial body. Recusal based on prior grounds shall be presented to the center director within two (2) business days after the parties have been notified of the appointment. Recusal based on grounds that arise during the conciliation process shall be presented to the center director by the affected party as soon as it becomes aware thereof. In both cases, the center director shall forward the matter to the conciliator for written pronouncement within three (3) business days stating whether or not the conciliator accepts the recusal, along with the arguments and evidence of the case. Once the conciliator's pronouncement is received, the director shall have three (3) business days to decide on the recusal. No appeal shall lie against the director's decision. The center director is obligated to inform the Commission in writing.

PERSONAL APPEARANCE. The parties must appear personally at the conciliation hearing, and in the case of legal entities, through their legal representative or judicial representative. In the event that the parties appear with their representatives, these may be present at the hearing and provide advice to their clients, but shall not intervene directly in the same, unless the conciliator deems it appropriate. In the event that the parties cannot attend directly, they must be represented by duly authorized representatives with express authority and in accordance with the provisions of Article 12, subsection e) of this Regulation.

CONCILIATION HEARING. The conciliator shall conduct the meeting in accordance with the parameters established and shall take into account the following aspects:

• a)

  Shall act with equity and impartiality, ensuring that the parties understand clearly that its sole interest is to assist them in an impartial manner so that they may reach a self-resolution of their conflict.

• b)

  Shall clarify the steps or rules that the parties shall respect during the course of the hearing.

• c)

  The conciliator shall emphasize the principle of confidentiality and secrecy that must prevail with respect to the matters discussed in the hearing, for which purpose, the conciliator shall sign jointly with the parties a confidentiality agreement. This agreement must be signed at the beginning of the hearing.

• d)

  Once the conflict is defined, shall encourage the parties to present settlement formulas, taking note of the approaches that occur, considering the true interest of the parties.

• e)

  Shall take special interest and care in evaluating that the agreements produced are viable.

IMPOSSIBILITY OF HOLDING HEARING DUE TO NON-APPEARANCE. In the event that both parties have confirmed in writing their attendance at the conciliation hearing and on the scheduled day one or both of them fail to appear, the following criteria shall apply: a) The center director shall communicate with the parties and if they are willing to proceed, shall reschedule the hearing according to the time, manner and place most convenient for the parties. b) If one or both of the parties are unwilling to proceed, the center director shall request that the conciliator sign the corresponding report stating that it was impossible to hold the hearing due to the non-appearance of one or both parties, as appropriate. In the case of subsection a) of this article, having the parties expressed their decision to appear at the new hearing, if one or both fail to appear, the center director shall request that the conciliator sign the report of impossibility of agreement due to non-appearance of one or both parties.

REPORTS. Reports shall be clear and precise, containing precisely the rights and obligations acquired by the parties, if there is agreement, or the record that there was none, always preserving the confidentiality that characterizes the process. The conciliator, in order to prepare the report, shall follow the following rules:

• a)

  In the event that a total or partial conciliation agreement is reached, the conciliator shall immediately prepare the report, which shall be signed by the parties, clearly stating that they have the capacity to settle. The entire body of the report shall be signed by the parties and the conciliator.

• b)

  If, having been cited, any of the parties does not appear or, appearing, manifests not having conciliatory intent and there is no agreement, the proceedings shall be concluded and a record of what occurred shall be made in a report signed by the participants that shall serve as evidence of impossibility of conciliation, without prejudice to the provisions of Article 19, subsection b) of this regulation.

• c)

  The place and date on which the report is drawn up.

• d)

  If any of the interested parties cannot sign, another person shall sign on their behalf at their request and shall leave a fingerprint. All of the foregoing shall be recorded in the report.

NEW HEARING. When the parties have not been able to reach a conciliation settlement but jointly express in writing to the center their intention to continue with the process, they shall be cited for a new hearing, for which purpose the procedures established in this Regulation shall be followed. In this latter case, the center director shall proceed to cite the parties again for the holding of a new hearing. Likewise, the director shall proceed to notify the parties that from that new hearing onward they must pay pro rata the respective surcharge which shall be fifty percent (50%) of the amount initially paid to cover administrative expenses in favor of the CCIC and fifty percent (50%) surcharge to cover the conciliator's fees. The foregoing up to a maximum of three (3) additional sessions. In the event that they decide to continue with the conciliation process, for each session to be held, thirty percent (30%) of the amount initially paid shall be paid to cover administrative expenses and thirty percent (30%) to cover the conciliator's fees. Each of these amounts mentioned in this article shall be paid by both parties pro rata and the same shall be paid before beginning each of the hearings. It is understood that the conciliation process shall not proceed if these amounts are not properly paid to the satisfaction of the CCIC Conciliation and Arbitration Center.

RETURN OF FEES. Once the conciliation request is admitted by the center director and after the director has notified the counterparty of the request and the counterparty has manifested in writing its non-acceptance of the same, the center director shall proceed to return to the requesting party what corresponds in the concept of fees, but shall not return the administrative expenses, these shall remain for the benefit of the Chamber of Commerce and Industries of Cortés. The return of fees shall not apply if the parties have been cited and have stated that they would appear, and one of them fails to do so or both fail to appear and do not manifest their intention to reschedule the hearing.

GENERAL FUNCTION. The center shall attend to, administer and develop in accordance with the law and with this regulation, all arbitration demands that are entrusted to it.

ARBITRAL PROCESS PROCEDURE. In the Center of the Chamber, the arbitral process shall develop in accordance with the provisions of the Conciliation and Arbitration Law and this regulation.

SCOPE OF APPLICATION. When the parties have agreed in writing that controversies or differences arising between them shall be submitted to arbitration in accordance with the center's arbitration regulation, such disputes shall be resolved in accordance with this regulation without prejudice to any modifications the parties may agree to in writing. Everything not provided for in this regulation shall be resolved, in the first instance, by the Commission and once the Arbitral Tribunal is constituted, it shall resolve what is pertinent.

ORALITY OF THE PROCESS. The Tribunal shall be guided by the principle of orality of the arbitral process and shall endeavor, to the extent possible, that the proceedings be carried out in accordance with this principle. All proceedings shall be recorded in reports.

MANNER OF DECIDING MATTERS. The Arbitral Tribunal shall decide the matter submitted to its consideration subject to law, in equity or in accordance with technical standards and principles, in accordance with the provisions of the agreement or arbitral clause. In the event that the parties have agreed to nothing in this regard, the tribunal shall resolve according to law.

PRESENTATION OF DOCUMENTS. All proceedings related to the arbitral procedure must be presented at the center's offices and within the established time periods. The presentation may be made by the parties in person, or through a judicial representative, messenger, certified mail, courier service, or any other means available that guarantees the certainty of sending and receipt.

TACIT SUBMISSION. If the arbitration demand is not accompanied by proof that the arbitration agreement or clause is in writing, the center director shall notify or inform the other party, in accordance with legal provisions, of the demand filed, and if it appears in the proceedings, answering the demand without objecting to the procedure, within the time period established in Article 40 of this Regulation, it shall be understood that it gives its consent to resort to arbitral jurisdiction and that there is a tacit arbitration agreement and it submits to the provisions of this regulation.

NOTIFICATIONS AND COMMUNICATIONS. The following criteria are adopted regarding notifications and written communications:

• a)

  Every notification and any other written communication delivered personally to the recipient or to whoever has their representation, at their address, at the establishment where they carry out their main activity or at their usual residence shall be considered valid.

• b)

  When it is not possible to locate any of the places indicated in the preceding subsection, every notification or written communication that has been sent by certified mail or any other means that leaves a record of the fact shall be considered received, at the last known establishment, address, or usual residence.

• c)

  Notifications shall be equally valid when made by certified mail, telex, facsimile, electronic mail or any other means of electronic communication, of which there remains evidence of having been received by its recipient.

• d)

  The center director, the person designated by the director, or the person designated by the Arbitral Tribunal shall have the authority to notify all resolutions, communications, or proposals made in relation to the different procedures. In the cases of subsections a), b) and c) above, the notification or communication shall be considered received from the day following the delivery.

COPY OF PROCEEDINGS AND DOCUMENTS. Copies of all proceedings, documents, and any other information that either party provides to the Center or to the Arbitral Tribunal shall be delivered to the other party without the need for an order to that effect. In the same manner, expert reports or evidentiary documents on which the Arbitral Tribunal may base its decision shall be made available to both parties.

THE CASE FILE. The case file as a whole belongs to the Center and under no circumstances shall it leave these offices; the parties to the proceedings may consult it in said offices as many times as they deem appropriate; all of the foregoing is without prejudice to the transfers corresponding to these parties of documents that are presented and to the transfer to the Court of Appeals when the nullity appeal is filed. The case file shall be formed with the pleadings, documents, and proceedings of all kinds that are presented or occur in the process. Every pleading shall be presented to the Arbitral Tribunal through the Center's Secretariat and shall be headed with a summary indicating its contents or the procedural matter involved. Along with each original pleading that belongs to the Center, there shall be attached on plain paper as many copies as there are arbitrators comprising the Arbitral Tribunal; likewise, there shall be attached as many copies as there are parties to whom corresponding transfers must be given. The Center's Secretariat shall verify the copies presented against the original. All documents that must form the case file shall be added successively according to the order of their presentation. At the time of adding them, the Center's Secretariat shall number each page in numerals and in words. Documents are excepted when, by their nature, they cannot be added or when for justified reasons they are ordered to be reserved outside the proceeding.

DURATION OF THE PROCESS. Absent agreement to the contrary by the parties, the term for the duration of the arbitral process shall not exceed five (5) months, counted from the acceptance of the last designated arbitrator. This acceptance must be given in writing and must be communicated to the parties. Likewise, it is the responsibility of the Center to notify the parties of the date the process begins, without prejudice to the parties agreeing, prior to its expiration, to suspend or extend the term of the process.

DEADLINES. The deadlines in the different proceedings that are conducted before the Conciliation and Arbitration Center of the CCIC shall follow the following criteria:

• a)

  For the computation of deadlines established in this regulation, they shall begin to run from the day following when a notification or communication is received; if the last day of this deadline is a holiday or non-business day, the deadline shall be extended until the first business day following.

• b)

  The deadlines stipulated in this regulation are understood to be expressed in business days and hours, unless expressly stated otherwise. Business days and hours are considered to be those during which the Center's offices are open to the public. The Center's business hours are from seven thirty in the morning (07:30 a.m.) to five in the afternoon (5:00 p.m.), Monday through Friday, except on holidays when there shall be no service. However, for sending communications by fax, it is understood that these may be sent until five in the afternoon (5:00 p.m.) of the day on which the deadline for receiving said communication expires.

• c)

  The tribunal shall have the freedom to establish deadlines, except those expressly provided for in this regulation. However, the tribunal may extend deadlines if it deems that an extension is justified. Subsections a) and b) shall apply to conciliation.

SEAT OF ARBITRATION. The seat of the Arbitral Tribunal is the address of the Center and all documents related to the proceedings shall be delivered at its offices. Notwithstanding the foregoing, and absent agreement to the contrary, the tribunal may meet in any place it deems appropriate.

LANGUAGE. With respect to all matters relating to language, the following criteria shall be taken into account:

• a)

  The language of the arbitration shall be Spanish.

• b)

  In hearings, either party may request the tribunal to appoint a translator. The cost of translation shall be borne by the party making such request.

• c)

  The tribunal shall order that documents attached to the claim or to the answer, and any documents or supplementary instruments presented during proceedings in a language other than Spanish, be accompanied by a translation. The translation shall not require any formality other than being made by a person qualified to do so.

• d)

  In the case of international arbitration, the parties may freely agree on the language or languages to be used in the arbitral proceedings. In the absence of such agreement, the arbitral tribunal shall determine the language or languages to be used in the arbitral proceedings.

DEMAND FOR ARBITRATION. Once the conflict has arisen, either party that is a signatory to the arbitration agreement or clause shall address the Center of the CCIC in writing to request, by means of a demand for arbitration, that the Arbitral Tribunal be constituted in accordance with what was provided for by them in the arbitration clause or agreement. The Center's director shall carry out the corresponding legal and regulatory procedures. With the demand, there shall be presented as many copies as there are arbitrators to comprise the Arbitral Tribunal and parties in the process. Of all documents that either party presents before the Center, all copies for the respective transfers and for the members of the Arbitral Tribunal must be attached. There shall also be attached a copy of the document containing the arbitration agreement or clause and the receipt for payment of fifty percent (50%) of the administrative expenses and arbitrator fees, all in accordance with the current tariffs.

REQUIREMENTS OF THE DEMAND FOR ARBITRATION. The demand for arbitration shall contain:

• a)

  Full name, business name or corporate designation of the parties, their address, telephone, fax, email, statutory information of the parties and their representatives or attorneys-in-fact.

• b)

  When the demand is presented by a legal entity, a copy of the public deed of incorporation of said corporation shall be attached. Likewise, the public deed of power of attorney in favor of the judicial representative shall be attached. If photocopies are presented, they must be properly authenticated by a Notary.

• c)

  The relief sought, the issues in dispute, the facts on which they are based, and the evidence intended to be produced; in the case of arbitration of law, the legal grounds.

• d)

  A reasonable estimate of the amount in controversy or a statement that it lacks a determined value.

• e)

  Copy of the document containing the arbitration agreement or clause. This document shall not be required when arbitration is tacit.

• f)

  Any attachments that may be relevant.

• g)

  Copies of all documents, as well as the demand itself, shall be in accordance with the number of arbitrators who are to comprise the Arbitral Tribunal and however many parties there are in the process.

• h)

  Photocopy of the receipt from the CCIC that evidences payment to it corresponding to fifty percent (50%) of the total amount of the value of the arbitral process in accordance with current tariffs.

GROUNDS FOR NOT ADMITTING A DEMAND FOR ARBITRATION. The Center's director shall verify that the demand for arbitration meets all the requirements mentioned in the preceding article; if not, he or she shall proceed to declare the same inadmissible, notifying the claimant party so that it may proceed to remedy what is appropriate, within three (3) business days following the date of notification.

TRANSFER AND DEADLINE FOR ANSWERING THE DEMAND FOR ARBITRATION. If the director admits the demand, he or she shall notify and transfer the same to the respondent for a term of ten (10) business days to answer the demand. If notification is impossible in accordance with what is provided in article 30 of this regulation, the Center's director shall make a note of this so that the Arbitral Tribunal may appoint a guardian ad litem. If the respondent, with the answer to the demand, proposes exceptions or counterclaims, the transfer shall be made for a term of six (6) business days to the judicial representative of the claimant so that it may pronounce on the exceptions and the counterclaim, as the case may be. If the judicial representative of the respondent does not answer the demand within the term to do so or it is impossible to notify in accordance with what is established in article 30 of this regulation, the proceedings shall continue their course and the respondent shall be notified and communicated with in accordance with article 30 of this regulation. The respondent may appear before the tribunal at any stage of the proceedings and request that it continue in accordance with this regulation, respecting in all cases the principle of preclusion. The Center's director shall make a note of all of this for the knowledge of the Arbitral Tribunal.

REQUIREMENTS OF THE ANSWER TO THE DEMAND FOR ARBITRATION. The answer to the demand for arbitration shall contain:

• a)

  Full name, business name or corporate designation of the parties, their address, telephone, fax, email, statutory information of the parties and their legal representatives or judicial attorneys-in-fact.

• b)

  When the answer to the demand for arbitration is presented by a legal entity, a copy of the public deed of incorporation of said corporation shall be attached. Likewise, the public deed of power of attorney in favor of the judicial representative shall be attached. If photocopies are presented, they must be properly authenticated by a Notary.

• c)

  The relief sought, the issues in dispute, the facts on which they are based, and the evidence intended to be produced; in the case of arbitration of law, the legal grounds.

• d)

  A reasonable estimate of the amount in controversy or a statement that it lacks a determined value.

• e)

  Copy of the document containing the arbitration agreement or clause. This document shall not be required when arbitration is tacit.

• f)

  Any attachments that may be relevant.

• g)

  Copies of all documents, as well as the answer itself, shall be in accordance with the number of arbitrators who are to comprise the Arbitral Tribunal and however many parties there are in the process.

• h)

  The receipt from the CCIC that evidences payment corresponding to the remaining fifty percent (50%) of the total amount of the value of the arbitral process in accordance with current tariffs.

GROUNDS FOR NOT ADMITTING THE ANSWER TO THE DEMAND FOR ARBITRATION. The Center's director shall verify that the answer to the demand for arbitration meets all the requirements mentioned in the preceding article; if not, he or she shall proceed to declare the same inadmissible, notifying the respondent party so that it may proceed to remedy what is appropriate, within three (3) business days following the date of notification.

TRANSFER OF THE ANSWER TO THE DEMAND FOR ARBITRATION. If the answer to the demand for arbitration meets all the requirements mentioned in article 41 of this regulation, the Center's director shall proceed to admit the same and shall transfer it to the claimant party.

THIRD-PARTY CLAIM. It is the action promoted by a third party who claims to have an equal or better right in an arbitral dispute already pending before the parties who originally promoted it. It is understood that the third party intervening by promoting the third-party claim was not a signatory to the arbitration clause or agreement and presumes that the arbitral award will be prejudicial to his or her right.

FORM AND TIME FOR FILING THE THIRD-PARTY CLAIM BRIEF. The brief containing the third-party claim shall be filed before the period for proposing evidence and shall contain the following requirements:

• a)

  Full name, business name or corporate designation of the parties, their address, telephone, fax, email, statutory information of the parties and their legal representatives or judicial attorneys-in-fact.

• b)

  When the third-party claim is presented by a legal entity, a copy of the public deed of incorporation of said corporation shall be attached. Likewise, the public deed of power of attorney in favor of the judicial representative shall be attached. If photocopies are presented, they must be properly authenticated by a Notary.

• c)

  The relief sought, the issues in dispute, the facts on which they are based, and the evidence intended to be produced; in the case of arbitration of law, the legal grounds.

• d)

  A reasonable estimate of the amount in controversy or a statement that it lacks a determined value.

• e)

  Any attachments that may be relevant.

• f)

  Copies of all documents, as well as the third-party claim brief itself, shall be in accordance with the number of arbitrators who are to comprise the Arbitral Tribunal and however many parties there are in the process.

• g)

  The receipt from the CCIC that evidences payment corresponding to fifty percent (50%) of the total amount of the value of the arbitral process in accordance with current tariffs.

FORM OF PAYMENT IN A THIRD-PARTY CLAIM. The party appearing in an arbitral proceeding by means of a third-party claim shall pay, as concept of administrative expenses and arbitrator fees, fifty percent (50%) paid by each of the parties in the same proceeding. This payment shall be made at the time of filing the action.

REVIEW OF THE THIRD-PARTY CLAIM BRIEF. The Arbitral Tribunal shall verify that the brief of third-party claim meets all the requirements mentioned in Article 45 of this regulation; otherwise, it shall proceed to declare the inadmissibility thereof, notifying the party that filed it so that it may proceed to remedy what corresponds, within three (3) business days following the notification.

ADMISSION AND TRANSFER OF THE THIRD-PARTY CLAIM. If the brief of third-party claim meets all the requirements mentioned in Article 45 of this regulation, the Arbitral Tribunal shall proceed to admit it and shall serve a copy to the plaintiff and defendant parties, respectively. These shall have a common term of six (6) business days to render a specific pronouncement thereon.

EXECUTION OF THE ARBITRAL AGREEMENT. Once the third-party claim has been admitted and the responses to the transfers from the plaintiff and defendant parties have been received, respectively; the Arbitral Tribunal shall proceed to evaluate each of the briefs submitted and if it determines that the third party's right is merited, it shall convoke the parties for the execution of the respective arbitral agreement.

INADMISSION OF THE THIRD-PARTY CLAIM. If the Arbitral Tribunal determines that the right alleged by the third party intervening by means of a third-party claim is not merited in the case already pending, it shall proceed to notify the petitioner and the parties that already form part of the proceeding. In this case, it shall order the Center to proceed with the refund of twenty percent (20%) of the amount paid by it. Thirty percent (30%) shall be retained by the Center to cover fifteen percent (15%) of the administrative expenses of the Center and the remaining fifteen percent (15%) to cover the arbitrator fees. This latter percentage shall be divided equally among the members of the Arbitral Tribunal.

DEFAULT. In the arbitral proceeding there shall be a declaration of default, so that in the absence of an answer to the claim the proceeding shall continue its normal course, without prejudice to the defaulting party being able to appear in the arbitral proceeding and formulate its arguments. This declaration shall not grant the right to propose and present any evidence permitted by law.

CONCILIATION HEARING IN THE ARBITRAL PROCEEDING. The director of the center, once the arbitration claim and its answer have been admitted, or as the case may be, the counterclaim and its answer or the third-party claim brief, shall cite the parties to hold a conciliation hearing, which shall be conducted under his direction at the respective center. If a total agreement is reached and all pretensions of the parties are reconciled, the director of the center shall deem the arbitral proceeding concluded. If the settlement is partial, the proceeding shall continue with respect to the non-reconciled pretensions. If conciliation does not succeed, the director of the center shall proceed to form the tribunal in accordance with what was provided by the parties or stipulated in this regulation. In the event that a total agreement is reached, the director of the center shall order the refund of what corresponds as arbitrator fees.

APPOINTMENT OF ARBITRATORS. In the event that in the agreement or arbitral clause, the parties have not designated the arbitrators, their number, or the form of their designation, these shall be designated by the Conciliation and Arbitration Commission and the designation or appointment of arbitrators shall be made from the official list of the CCIC. The appointment shall be made by drawing lots and in a rotating manner, taking into account their specialty. The number of arbitrators shall be three (3) if the parties have not pronounced themselves on this matter in the arbitral clause or agreement. If the designation of arbitrators or the form of designation does not correspond to the CCIC, the director of the center shall take into account the will of the parties and the current legal provisions. Once the director of the center has been informed that the designation does not correspond to the CCIC, he shall proceed to communicate in writing with the person or institution that is to make the nomination, informing them that they have five (5) business days to communicate in writing to this Chamber the name or names of the persons designated as arbitrators; if after this term the person or institution does not proceed to inform the Chamber, the director shall place on record in writing this fact and shall remit the matter to the commission so that it makes the corresponding designation. The appointment shall be communicated in writing to the arbitrators personally and they shall have five (5) business days to manifest in writing whether they accept it or not. The lack of written manifestation during the referred term shall be considered a rejection and shall permit proceeding with the respective replacement. If in the conduct of the arbitral proceeding there is a need to proceed with the substitution of arbitrators and this has not been foreseen by the parties, it shall be done by the commission. The parties shall determine the number of arbitrators which, in any case, shall be odd. In the absence of agreement by the parties, the arbitrators shall be three (3) if the dispute is of greater value and one (1) if it is of lesser value.

INITIATION OF THE ARBITRAL PROCEDURE. The arbitral procedure is considered initiated when the last of the designated arbitrators has manifested in writing to the parties through the intervention of the Center his acceptance of the position. From this moment, the term of duration of the arbitral tribunal shall be counted, which, unless otherwise agreed by the parties, may not exceed five (5) months, without prejudice to the parties being able to, by common agreement and prior to its expiration, decide to extend it.

CASES OF GREATER OR LESSER VALUE. In cases considered of greater value, the parties must act through a legal professional. In those cases in which the pretensions are considered of lesser value, they may act on their own behalf or avail themselves of a legal professional, at their discretion. For purposes of this regulation, matters of greater value are considered those in which the pretensions are equal to or exceed the sum equivalent to fifty (50) monthly minimum legal wages for the larger commercial sector and those of lesser value are those which have a value less than that indicated.

RECUSAL AND ITS PROCEDURE. Arbitrators may refrain from acting as such or be recused on the same grounds established by the Code of Civil Procedure for holders of the judicial organ. This recusal shall be raised at the time of appointment, in the installation hearing or in the preliminary hearing. In the same manner, they may be recused for not meeting the conditions that, in accordance with the law, this regulation and the Ethical Principles of the center of the Chamber have been established for such purpose.

• a)

  The party that recuses an arbitrator must communicate it in writing to the director of the center, to the Arbitral Tribunal, and to the other party; explaining the reasons for the recusal. The recusal motion shall be filed within a period of three (3) business days after having received the acceptance of the appointment of this arbitrator, or after having become aware of the circumstances that it considers give rise to justified doubt regarding the impartiality or independence of the arbitrator.

• b)

  When an arbitrator has been recused by one party, the other party and/or the recused arbitrator shall have the right to present the corresponding defenses. This right shall be exercised within the period of three (3) business days after having received the communication referred to in the previous subsection, with a copy to the center, to the Arbitral Tribunal, and to the party that filed the recusal.

• c)

  The director of the center or the Arbitral Tribunal, as the case may be, at their entire discretion, may suspend or continue the arbitral procedure while the resolution of the recusal by the commission is pending.

• d)

  The other party may agree with the recusal or the recused arbitrator may voluntarily resign. If either of the two situations referred to in this subsection occurred, the arbitrator shall be replaced, without this implying that the reasons for the recusal are valid.

• e)

  If the other party does not agree with the recusal and if the recused arbitrator does not resign, the decision on the recusal shall be made by the commission. Against the decision of the commission by which the recusal is resolved, no appeal shall be allowed.

• f)

  The parties may not require that the reasons for the decision referred to in the previous subsection be explained.

INSTALLATION OF THE TRIBUNAL. Once the appointments have been accepted by all members of the tribunal, the director of the center shall convoke the arbitrators to a hearing in order to proceed with the installation of the tribunal, where the arbitrators shall be delivered a copy of the case file containing the proceedings. From this moment, the Arbitral Tribunal with the collaboration of the center shall develop the arbitral process as appropriate. In this same hearing, in the event that the tribunal is composed of more than one arbitrator, they shall elect among themselves a president, secretary and shall designate the director of the center for technical assistance to the Arbitral Tribunal.

DETERMINATION OF THE PROCEDURE. Subject to the provisions of the Conciliation and Arbitration Law and this Regulation, the Arbitral Tribunal shall have broad powers to conduct the arbitral procedure in the manner it considers appropriate. This power conferred upon it includes that of establishing terms when the Law or this Regulation do not expressly prescribe them, determining its competence, resolving exceptions, nullities, admissibility, relevance and value of evidence, among others.

PRELIMINARY HEARING. Once the tribunal has been installed, it shall convoke the parties to a preliminary hearing, establishing for this purpose the date, time and place of this hearing. The tribunal must communicate to the parties and shall resolve, among others, the following points:

• a)

  In the preliminary hearing, the Arbitral Tribunal shall consult with the parties whether, regarding the case brought to their knowledge, there exists any final judicial sentence rendered by any court.

• b)

  Competence: The tribunal is empowered to decide on its own competence, including on objections relating to the existence, effectiveness or validity of the arbitral agreement, as well as objections relating to the seat of the arbitral proceeding, shall resolve exceptions, nullities, admissibility, relevance and value of evidence, among others. Total or partial objection to arbitration on the grounds of non-existence, ineffectiveness or invalidity of the arbitral agreement or clause, or for arbitration not being agreed upon to resolve the disputed matter, must be formulated when the parties present their initial pretensions. The arbitrators, however, may consider these matters on their own motion. The tribunal must resolve these matters as a preliminary question; however, the tribunal may proceed with the proceedings and decide on such objections in the award.

• c)

  Resolution of preliminary exceptions.

• d)

  Amendment of nullities or any other incident that affects evident procedural or material elements.

• e)

  Resolution on the admitted facts.

• f)

  Establishment of the facts in controversy which it must resolve, the parameters that shall guide the arbitral proceeding, the calendar of hearings for the presentation and evacuation of evidence, the manner in which evidence shall be evacuated, and any other aspect it considers relevant for the proper conduct of the proceeding. The tribunal shall draw up a record in which all these facts are documented.

• g)

  The tribunal may request from the parties clarification, correction or completion of the claim, the answer to it, the counterclaim to the claim or the answer to it, who shall answer within the term of three (3) business days counted from the day following the conclusion of this hearing. The other party shall have an equal term of three (3) days to pronounce itself with respect to the clarifications, corrections or completions that are presented. This term shall be counted from the day following when it receives the corresponding brief.

ADMISSIBILITY AND VALUE OF EVIDENCE. The Arbitral Tribunal shall have the exclusive power to determine the admissibility, relevance and value of evidence as well as the periods for the presentation and evacuation thereof. Each party must assume the burden of proof on which it bases its actions or defenses. At any stage of the proceeding, the arbitrators may request clarifications or information from the parties; they may also order on their own motion the evacuation of the evidentiary means they deem necessary. In the case of expert evidence, they may order that the opinion be explained or expanded. The tribunal may consider the periods of stages already completed by the parties as expired. The inactivity of the parties does not prevent the continuation of the proceeding or the issuance of the award based on what has already been acted upon. The tribunal may, with stated reasoning, dispense with evidence not evacuated, if it considers itself adequately informed, by means of a ruling that shall have no appeal. The presentation of evidence, except in the case of documentary evidence, shall be carried out in a hearing for which purpose the parties shall be informed with sufficient advance notice of the date, time and place in which the respective hearing or proceeding shall take place. Evidence shall be presented by the tribunal in plenary; for evidence that must be conducted outside the place of domicile, it may either conduct it directly or delegate it to some judicial authority of the place to conduct it. For the presentation of evidence abroad, the tribunal must resort in the same form and terms as ordinary judges do in accordance with the Code of Civil Procedure.

EXPERT WITNESSES. The parties may request the appointment of expert witnesses to report to the tribunal on specific matters that the latter shall determine. The expert witness fees shall be paid by the party requesting the appointment. Likewise, the tribunal may appoint expert witnesses ex officio when it deems necessary, in which case the expert witness fees shall be covered by both parties pro rata at the moment when the expert witness's intervention in the process is concluded.

CLOSING ARGUMENTS AND ALLEGATIONS. Once evidence has been presented, the tribunal shall convene the parties to hear their closing arguments and allegations, establishing for this purpose the date, time, and place, and the parties shall deliver, at that moment in writing, a summary of their closing arguments and allegations.

TRIBUNAL VOTING. The awards or decisions of collegial tribunals shall be rendered by unanimity or by simple majority of votes. When for any reason there is no majority, the president of the tribunal shall have a double vote. CHAPTER FIVE OF THE AWARD

CONTENT OF THE AWARD. The award shall be rendered in writing, must be reasoned, and shall contain the following:

• 1)

  Place and date.

• 2)

  Names of the parties, their representatives if applicable, and the arbitrators.

• 3)

  The matter submitted to arbitration and a summary of the allegations and closing arguments of the parties.

• 4)

  The evaluation of the evidence presented.

• 5)

  The resolution, which must be clear, precise, and consistent with the claims and other relief properly asserted in the litigation, making the clarifications that they require, condemning or absolving the respondent, and deciding all disputed points that were subject to debate. When these have been multiple, the corresponding pronouncement shall be made with proper separation for each of them.

• 6)

  The determination of the costs of the process if any exist.

• 7)

  Signature of the tribunal members and the secretary.

FORCE AND VALIDITY OF THE AWARD. The award has the same force and validity as a judicial sentence; it shall be notified to the parties at the hearing that the tribunal shall call for this purpose or within three (3) business days of being rendered, with delivery of an authentic copy thereof.

CLARIFICATION AND CORRECTION OF THE AWARD. The award shall be subject to correction, clarification, or completion and shall be final once the proceedings are concluded, when applicable. Within three (3) business days following notification of the award to the parties, they may request clarification, completion, or correction thereof for calculation error, copying error, typographical error, or the arbitrators may carry it out ex officio. The tribunal must clarify, complete, or correct the award, if applicable, within a period not exceeding seven (7) business days counted from the respective request. No appeal shall lie against this decision.

EFFECTS OF THE AWARD. The final arbitral award produces the effects of res judicata and has executive force in the same form and terms established in the Code of Civil Procedure for judicial sentences. CHAPTER SIX OF APPEALS

APPEALS. Against the arbitral award only the appeal for annulment may be filed, and against the decisions of the arbitrators other than the award, only the appeal for reconsideration shall lie, unless the Conciliation and Arbitration Law has provided that no appeal is available, both appeals shall be resolved in accordance with what is established in the Conciliation and Arbitration Law. The appeal for reconsideration must be filed and argued at the same hearing in which the arbitral decision is rendered. The Arbitral Tribunal must resolve the appeal at the same hearing or suspend it to resolve the matter later, provided that in no case may it exceed three (3) business days counted from the day following the notification.

APPEAL FOR ANNULMENT. Against the arbitral award only the appeal for annulment may be filed within seven (7) days following notification thereof or of the order by means of which it is clarified, corrected, or completed. The appeal must be filed in writing before the Arbitral Tribunal, which must immediately send it to the competent appellate body and shall only proceed for the grounds that are exhaustively established in the Conciliation and Arbitration Law and in this Regulation. Its processing shall correspond to the Court of Appeals of the jurisdiction of the place where the award was rendered. However, the parties, at their own cost, even if not agreed in the arbitration agreement, may agree that the appeal shall be processed and decided before a new Arbitral Tribunal. If the parties decide that the arbitral process for the appeal for annulment shall be developed at the Center for Conciliation and Arbitration of the Chamber of Commerce and Industries of Cortés, the latter shall be constituted in the form provided by the parties. If they have not manifested themselves on this matter, it shall be the Conciliation and Arbitration Commission of the CCIC that shall decide on its constitution in accordance with what is provided in this Regulation, and the fees of the members of this Arbitral Tribunal shall be equivalent to twenty-five percent (25%) of what was paid to the members of the Arbitral Tribunal that ruled in the first instance. The appellate Arbitral Tribunal shall be constituted solely to hear the annulment, and shall be constituted in the form as established by the Conciliation and Arbitration Law in its Title II, First Section of Chapter III.

GROUNDS FOR ANNULMENT. The only grounds for annulment of the award are the following: 1. The absolute nullity of the arbitration agreement arising from unlawful object or cause. Other grounds for absolute or relative nullity may only be invoked when they have been alleged in the arbitral process and have not been cured or validated during the course thereof. 2. The Arbitral Tribunal has not been legally constituted, provided that this ground has been expressly alleged from the beginning of the arbitral proceeding. 3. Notifications have not been made in the form provided in the Conciliation and Arbitration Law and in this Regulation, unless from the procedural record it appears that the interested party knew or should have known of the order. 4. When without legal foundation evidence timely requested has not been ordered or the necessary proceedings to present such evidence have not been carried out, provided that such omissions have an impact on the decision and the interested party has claimed them in the proper form and time, except as provided in Article 62, fifth paragraph of the Conciliation and Arbitration Law. 5. The award has been rendered after the expiration of the term fixed for the arbitral process or its extensions. 6. The award has been rendered in equity when it should have been rendered according to law, provided that this circumstance appears manifest in the award. 7. The operative part of the award contains arithmetical errors or contradictory provisions, provided that they have been timely alleged before the Arbitral Tribunal. 8. The award has been rendered on points not subject to the decision of the arbitrators or more has been granted than was requested. 9. Matters subject to arbitration have not been decided.

ADMISSIBILITY OF THE APPEAL FOR ANNULMENT. The Court of Appeals or the Arbitral Tribunal shall reject outright the appeal for annulment when it appears manifest that its filing is untimely or when the grounds do not correspond to any of those indicated in the preceding article. In the order by means of which the Court or the Arbitral Tribunal, as the case may be, takes cognizance of the appeal, if it should be admissible, it shall order successive transfers for five (5) days to the appellant to sustain it and to the opposing party to present its argument. The transfers shall be carried out in the secretariat and without need of new order. In the event that the appeal is not formalized by the appellant, the Court or the Arbitral Tribunal, as the case may be, shall declare it abandoned with costs charged to the appellant.

CONSEQUENCES OF THE APPEAL FOR ANNULMENT. After the transfer is made and necessary evidence is presented at the discretion of the Court or the Arbitral Tribunal, as the case may be, the appeal shall be decided, for which the Court or the Arbitral Tribunal shall have a period not exceeding one (1) month. When any of the grounds indicated in items 1, 2, 3, 4, 5, and 6 of Article 70 of this Regulation is successful, the Court or the Arbitral Tribunal, as the case may be, shall declare the award null. In the other cases, it shall proceed to order the Arbitral Tribunal to make the corresponding corrections or additions. No appeal shall lie against the order of the Court of Appeals or the Arbitral Tribunal, as the case may be.

PRECAUTIONARY ORDER IN CASE OF APPEAL FOR ANNULMENT. Upon filing the appeal for annulment, the party having an interest may request before the tribunal hearing the appeal the precautionary orders necessary to ensure the full effectiveness thereof.

EXECUTION OF THE ARBITRAL AWARD. The competent judicial body that would have jurisdiction over the controversy in the absence of arbitration shall have jurisdiction over the execution of arbitral awards.

CASES IN WHICH THE ARBITRAL TRIBUNAL CEASES. The Arbitral Tribunal shall cease in its functions: 1. When the deposit of expenses and fees provided in this regulation and in accordance with the current rates is not timely made. 2. By agreement of the parties. 3. When the award becomes final with its additions, corrections, or complements. 4. By the filing of the appeal for annulment, except when it concerns grounds 7, 8, or 9 of Article 70 of this regulation. 5. By the expiration of the term fixed for the process or its extension. 6. When there is total agreement in the conciliation hearing. CHAPTER SEVEN GENERAL PROVISIONS FOR CONCILIATORS AND ARBITRATORS

OFFICIAL LIST OF CONCILIATORS. The official list of conciliators of the center shall be prepared and kept up to date in accordance with the following rules: a) To be included in the roster of conciliators, the applicant must submit a request to the director of the center, accompanied by a curriculum vitae, an authenticated copy by Notary of the degree issued by a university institution certifying that the applicant is a university professional, a professional credential card, a copy of the diploma certifying that the applicant has completed the Conciliation course offered by the Center, and any other requirement that the Commission or the director deems necessary to present. b) The director of the center shall verify that the required requirements are met and, when appropriate, shall submit the applicant's name for consideration by the commission so that it may decide on the registration request.

PROFILE TO INTEGRATE THE LIST OF CONCILIATORS. In order to act as a conciliator of the Chamber's center, the following characteristics and requirements must be met:

• a)

  Have a clear sense of justice.

• b)

  Believe in conciliation as a means to resolve conflicts in a peaceful manner.

• c)

  Possess broad awareness and sensitivity, consistent with the humanistic function performed.

• d)

  Have the capacity to constantly review and update one's personal paradigm, to adapt attitudes, positions, and beliefs in favor of conciliation.

• e)

  Be an agent of cultural change that contributes to the transition from a culture of litigation to a culture of peaceful coexistence.

• f)

  Have the capacity to give real and practical meaning to the civic values that characterize democracy and pluralism: solidarity, dialogue, respect, individual freedoms, and the common good.

• g)

  Be previously familiar with the ethical principles that govern the center, have the attitudes that facilitate their practice, and comply with the regulations.

• h)

  Be trained, in accordance with the center's requirements, in the handling of conciliation techniques.

• i)

  Be trained, in accordance with the center's requirements, in the handling of negotiation techniques.

• j)

  Have attended and passed the training course on the subject required by the center.

• k)

  Meet any other requirements that the law, this regulation, or the commission require.

EXCLUSION FROM THE LIST OF CONCILIATORS. The commission, at its discretion or upon a reasoned request from the director, shall remove from the list the name of a conciliator in the following cases:

• a)

  When the conciliator fails to comply with legal or regulatory duties or incurs ethical violations.

• b)

  When the conciliator maliciously suggests or makes manifest any change to the current fees for conciliator compensation and administrative expenses.

• c)

  When, without justifiable cause, the conciliator does not exercise the conciliation function for which he or she has been designated.

• d)

  When the conciliator repeatedly fails to participate in academic or promotional activities coordinated or directed by the Chamber through the center.

• e)

  When the conciliator is sanctioned criminally or disciplinarily or incurs ethical violations that damage the image of the center. Exceptions are made for criminal sanctions related to negligent crimes.

• f)

  When, in the commission's judgment, it is most convenient for the Center's interests.

OFFICIAL LIST OF ARBITRATORS. The official list of arbitrators of the center shall be prepared and kept up to date in accordance with the following rules: a) To be included in the roster of arbitrators, the applicant must submit a request to the director of the center, accompanied by a curriculum vitae, an authenticated copy by Notary of the degree issued by a university institution certifying that the applicant is a university professional, a professional credential card, a copy of the diploma certifying that the applicant has completed the Arbitration course offered by the Center, and any other requirement that the Commission or the Director deems necessary to present. b) The director shall verify that the required requirements are met and, when appropriate, shall submit the applicant's name for consideration by the commission, so that it may decide on the registration request.

PROFILE TO INTEGRATE THE LIST OF ARBITRATORS. Those aspiring to be part of the roster of arbitrators of the Chamber's center must meet the following requirements:

• a)

  Be previously familiar with the ethical principles that govern the center, have the attitudes that facilitate their practice, and comply with the regulations.

• b)

  In the case that the applicants are legal professionals, they must be legally incorporated in the Bar Association of Honduras in order to integrate those arbitration tribunals that must rule in accordance with law.

• c)

  Be a university professional with appropriate credentials and expertise in the corresponding technique, to integrate those tribunals that must rule in accordance with the technical knowledge relative to the matter submitted to arbitration.

• d)

  Have attended and passed the training course on the subject required by the Chamber's center.

• e)

  Meet any other requirements that the law, this regulation, or the commission require.

EXCLUSION FROM THE LIST OF ARBITRATORS. The commission, at its discretion or upon a reasoned request from the director, shall remove or exclude from the official list the name of an arbitrator in the following cases:

• a)

  When the arbitrator fails to comply with legal or regulatory duties or incurs ethical violations.

• b)

  When the arbitrator maliciously suggests or makes manifest any change to the current fees for arbitrator compensation and administrative expenses.

• c)

  When the arbitrator is sanctioned criminally or disciplinarily or incurs ethical violations that damage his or her image or that of the center. Exceptions are made for criminal sanctions related to negligent crimes.

• d)

  When the arbitrator repeatedly fails to participate in academic or promotional activities coordinated or directed by the Chamber through its center.

• e)

  When, without justifiable cause, the arbitrator does not exercise the arbitral function for which he or she has been designated.

• f)

  When, in the commission's judgment, it is most convenient for the Center's interests.

SIMULTANEITY IN THE CENTER'S OFFICIAL LISTS. The same person may simultaneously integrate the lists of arbitrators and conciliators; however, whoever is excluded from one of them shall be automatically and permanently excluded from the others. Once a person is selected as an arbitrator or conciliator, he or she is not disqualified from being selected in the other lists of which he or she is a member.

ETHICAL PRINCIPLES. The ethical principles that govern the center shall be approved by the Board of Directors of the Chamber of Commerce and Industry of Cortés, as well as any amendments thereto.

FEES. Upon the proposal of the commission, the Board of Directors of the Chamber shall have the authority to establish and review the fees for administrative expenses for the processes conducted in the institution; compensation for conciliators, arbitrators, and other persons involved in the processes; as well as fees for any other service provided by the center. The fees approved by the Chamber of Commerce and Industry of Cortés form part of the Regulations of the Center for Conciliation and Arbitration of the CCIC and the same reflect a percentage (%), which shall be calculated at all times by taking as reference the amount of the dispute.

COMPENSATION. The compensation established in the fee schedule for processing the various processes administered by the Center for Conciliation and Arbitration of the CCIC shall be paid individually for each arbitrator or conciliator who participates in the respective processes.

SEAT OF PROCEEDINGS. When the arbitration clause or agreement does not designate the physical location for the conduct of the arbitration procedure, but mentions in either of them that the procedure to be used shall be that established in the Regulations of the Center for Conciliation and Arbitration of the CCIC, it shall be understood at all times, without any objection, that the location and physical space for the conduct of all proceedings shall be the physical facilities occupied by the Chamber of Commerce and Industry of Cortés; consequently, the Chamber shall be the institution that shall conduct and administer the entire process. Accordingly, the parties and all persons involved in the various proceedings accept and recognize, for all legal purposes, the norms regarding lists of conciliators, arbitrators, hours of operation, working days, fees, and others, under which the Center for Conciliation and Arbitration of the Chamber of Commerce and Industry of Cortés operates.

INDETERMINATE AMOUNT. Indeterminate amount means all those cases brought before the Center to be resolved through conciliation or arbitration, provided that in such cases the claim does not have a pecuniary character; that is, the claim does not consist of obtaining an economic value as the final result. If a case is brought for an indeterminate amount and collection is made based on that amount, and at the conclusion of the case the decision reflects an amount, the prevailing party shall immediately pay to the Chamber the value determined by the center, deducting therefrom what was already paid initially.

AMENDMENTS TO THE REGULATION. This regulation shall be amended by the Board of Directors when circumstances warrant.

EFFECTIVE DATE. This Regulation shall enter into effect on the date of its approval by the Board of Directors of the Chamber of Commerce and Industry of Cortés.