/ NIC Chile recommends suspension of arbitration proceedings as new law 21.226 comes into force

April 24, 2020

José Silva

Associate Alessandri

As of the 2nd of April 2020, the new Law 21.226 has come into force, which establishes a legal regime of exception in court proceedings, hearings and legal proceedings due to the impact of the Covid-19 virus. NIC Chile has emitted a set of recommendations to the arbitrators of the dispute resolution system, in view of the effects of this law on arbitration proceedings in the dispute resolution system of “.cl” domains.

In view of the foregoing, NIC Chile has suggested that arbitrators suspend arbitration proceedings which fulfill certain requirements that will continue throughout the emergency situation.

The referee judges of NIC Chile are arbitrators in equity, that is to say their decisions are dictated by jurisprudence and equity, even if this goes against the express law, in order to find just solutions for specific cases. Therefore, they are not obligated to comply with Law 21.226, meaning that NIC Chile can only recommend the suspension of the proceedings, however it is the judge who resolves whether to suspend arbitration proceedings.

For more information, read the announcement of NIC Chile here (Spanish)