Common use of Arbitration at Law Clause in Contracts

Arbitration at Law. Non-Technical Disputes will be resolved by means of arbitration at law, in accordance with Sections 1 and 2 of Article 57 in Legislative Decree 1071, a procedure in which the arbitrators must resolve in accordance with applicable Peruvian legislation. The arbitration at law may be local or international, according to the following: i. Where non-technical disputes amount to more than thirty million United States dollars (US $ 30,000,000) or their equivalent in national currency, the Parties shall seek to resolve disputes by direct negotiation, within a period of six (6) months established in Section 14.5 of Clause 14, and may be extended by joint decision of the Parties in the established terms. In the event of failure by the Parties to reach an agreement within the direct negotiation referred to in the preceding paragraph, arising disputes shall be settled by international arbitration at law, through a procedure conducted in accordance with the Rules of Conciliation and Arbitration of the International Center for Settlement of Investment Disputes (ICSID) established by the Convention on the Settlement of Investment Disputes between States and Nationals of other States, adopted by Peru through Legislative Resolution No. 26210, to which the Parties unconditionally submit. In order to process international arbitration proceedings under the ICSID arbitration rules, the Grantor representing the State of the Republic of Peru declares that the Concessionaire is considered to be a "National of Another Contracting State" because it is subject to foreign control as provided in Article 25 (2) (b) of the Convention on Settlement of Investment Disputes between States and Nationals of Other States, and the Concessionaire agrees to be considered as such. Arbitration shall take place in Washington D.C., United States of America, and shall be conducted in Spanish, and the arbitration award shall be issued, in accordance with provisions in the arbitration regulations of the corresponding administrative arbitration institutions. If, for any reason, ICSID declines to register arbitration under this clause, the Parties agree in advance to submit the dispute in the same terms as those set out in the UNCITRAL Arbitration Rules (United Nations Commission on International Trade Law Alternatively, the Parties may agree to submit the dispute to another jurisdiction, if they deem it appropriate. i. Non-Technical Disputes in which the amount involved is equal to or less than thirty million Dollars of the United States of America(US $ 30,000,000), or its equivalent in national currency, and those disputes of as a matter of law that are not quantifiable In money, will be settled through arbitration at law and must be administered by the Arbitration Center of the Chamber of Commerce of Lima, Center for Analysis and Resolution of Conflicts - PUCP, Arbitration Center of the Lima Bar Association or American Chamber of Commerce of Peru - AMCHAM. In the absence of agreement for managing the arbitration, the Party requesting the arbitration shall decide. Arbitration shall take place in the city of Lima, Peru, and shall be conducted in Spanish, and the corresponding arbitration award shall be issued within one hundred and eighty (180) calendar days after the date the Arbitral Tribunal is installed. Exceptionally, the award may be issued outside this period when the Arbitral Tribunal deems it indispensable to present evidentiary measures such as expert opinion or ocular inspections outside the city where the arbitration is carried out within a period previously agreed upon by the Parties.