The dilemma of the multi-tiered clauses in Colombia

Abstract

The multi-tiered clauses are increasingly used in current contracting both at national and international levels due to the facilities they provide in seeking satisfactory and efficient solutions to conflicts of great significance. However, the admissibility, validity and enforceability of such clauses have been controversial, mainly because of the difficulty in elucidating the legal consequences of not going through the less adversarial stages prior to arbitration. The issue in the Colombian legal system entails a greater controversy especially as a result of the entry into force of recent procedural legislation that enshrines an explicit prohibition regarding the agreement of procedural requirements not contemplated in the law. Given said circumstances, the present paper analyses: (i) the admissibility or non-eligibility of the multi-tiered clauses, their legal consequences and the practical convenience of having them agreed at international level; ii) the unequivocal prohibition contained in Colombian current procedural regulation regarding parties agreeing procedural requirements not contemplated in the law and the difficulties that it causes; and iii) the consequences of the nullity of the multi-tiered clause in the validity of the arbitration agreement inserted in it.