Albemarle Limitada v Emaresa Ingenieros y Representaciones S.A. & Or: A Chilean Challenge to “International” Commercial Arbitration

In this matter, Albemarle, a Chilean lithium company, initiated arbitration against Emaresa (Chile) and Cipatex (Brazil) over defective materials. Given Cipatex’s foreign involvement, the tribunal applied Chile’s international arbitration law. Though Cipatex was subsequently dismissed after claiming it was not bound by the arbitration agreement; the arbitral tribunal rendered an award applying Chile’s international arbitration law. Albermale filed two complaint recourses against the award arguing that the case had lost its “international character,” hence, the arbitral tribunal should not have applied Chile’s international arbitration law to render the award. Deciding the second complaint, the Chilean Supreme Court upheld the arbitral tribunal’s decision, emphasizing the tribunal’s discretion in matters of interpretation.  

According to Plaza, while the ruling has been said to reflect Chile’s arbitration-friendly approach, it could also present challenges moving forward. She emphasized that arbitral tribunals should remain vigilant during the early stages of a proceeding, making sure to preserve the “international character” of proceedings. She believes this decision may raise questions about the role of the “foreign element” in international commercial arbitration.

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