29 Dic 23 Dispute Resolution: Proposed modifications in the Bill

Agustin Cerolini, Matías Ferrari, Natalia Artmann and Aranza Solis

On December 27, 2023 the Bill for Bases and Starting Points for the Freedom of Argentines (the “Bill”) was introduced to the Argentine National Congress by the Executive Power (the “PEN” for its acronym in Spanish). In one of its initial chapters, the Bill proposes to modify the dispute resolution process in the administrative and judicial areas. Below, we will detail the main proposed modifications.

Conciliation, Settlement, and Arbitration:

The Bill proposes that the PEN establishes mechanisms for conciliation, settlement, and arbitration, both within the Argentine Republic and abroad. This is aimed at resolving contractual or non-contractual disputes involving decentralized bodies or entities of the National Public Administration. The PEN may have the authority to enter into arbitration commitments and perform acts necessary for their implementation, granting arbitrators the same jurisdictional powers as judges.

Mediation:

The Bill proposes to amend subsection c) of article 5 of Law No. 26,589 (Compulsory Mediation Law), which currently excludes certain disputes from mandatory pre-judicial mediation. The amendment establishes exceptions for cases where the national government, provinces, municipalities, the Autonomous City of Buenos Aires, or decentralized entities predominantly operate under public law, except with express authorization.

Control to the Mediation Agreement:

The Bill proposes that bodies and decentralized entities of the National Public Administration implement internal procedures of legality, economic, financial and management control that guarantee that agreements are reasonable, well-founded and convenient to the public interest in mediation processes, in accordance with Law No. 26,589.

Transactional Agreements:

The Bill proposes that, in cases of disputes between a contractor and any body or entity of the National Public Administration, the PEN is authorized to enter into transactional agreements. The regulation of the procedure ensures the participation of the Procuration of the National Treasure and the Argentine Comptroller General’s Office (SIGEN), as well as the issuance of necessary opinions to determine the convenience of the agreement in accordance with the Civil and Commercial Code of the Argentine Republic.