On August 9, 2024, the Governor of Puerto Rico signed into law the Puerto Rico Arbitration Act, Act 147-2024 (the “Arbitration Act”) to update and improve our legal framework regarding arbitration procedures; a matter currently governed by legislation which dates back to the 1950s.
The main objectives of the Arbitration Act are to (1) update Puerto Rico’s legislation that governs arbitration processes, to be in accordance with the Revised Uniform Arbitration Act (“RUAA”), (2) address criticism and deficiencies to current arbitration procedures and promote the arbitration practice as an alternative to conflict resolution, and (3) repeal Act 376 of May 8 1951 and Act 10-2012, known as the Commercial Arbitration Act of Puerto Rico and the International Commercial Arbitration Act, respectively, and integrate both Acts core concepts in the Arbitration Act to unify arbitration processes into a single, cohesive body of law.
The Arbitration Act will take effect on February 5, 2025, and will not apply to arbitrations commenced or to rights accruing before its effective date.
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