The Constitutional Court Strengthens Legal Certainty in Arbitration

Arbitration continues to establish itself as an effective mechanism for conflict resolution following the Constitutional Court’s recent ruling, which has limited judicial review of arbitral awards. In this context, Carlos Gutiérrez, a partner specializing in litigation and arbitration, analyzes—in an article written by Carlos Capa and published in Cinco Días— the impact of the ruling and emphasizes that “what really changes” is not only the reiteration of legal doctrine but “the effects resulting from the granting of the appeal,” noting that the Constitutional Court does not order a reversal of proceedings but rather “declares the operative part of the award to be final,” which had previously been annulled by the High Court of Justice of Madrid.

The expert points out that this is where “the major novelty” of the ruling lies, as it strengthens legal certainty in the field of arbitration and sends a clear message to the market regarding the limits of an action for annulment. Furthermore, the ruling offers an important lesson in procedural strategy by establishing that if the affected party does not raise an alleged violation “within the arbitration proceedings themselves,” it cannot subsequently raise it anew in an action to set aside the award.