Streamlining arbitration: Madrid Court of Arbitration's new Rules

Summary

Arbitration is one of the most effective tools when it comes to resolving commercial disputes, and its regulatory framework is constantly evolving to meet the changing needs of the parties and seeking to achieve the best practices. In this context, the Madrid Court of Arbitration (CAM) has approved a new set of rules (the New Rules) which came into force on 1 January 2025 introducing significant modifications to the previous rules. The aim is to make arbitral proceedings more efficient, transparent, and accessible. This post highlights the key innovations of the New Rules, emphasising their differences from the former rules and explaining how these new measures may impact arbitration both locally and internationally.

Key changes

The New Rules aim to achieve two main objectives: (i) to facilitate and harmonize the exchange of international procedures between the CAM and the Madrid International Arbitration Centre – Ibero-American Arbitration Centre (CIAM-CIAR), and vice versa, with regard to national procedures; and (ii) to simplify the arbitral process for parties, reducing procedural complexity by providing a more accessible regulatory framework and pursuing greater legal certainty for both parties and arbitrators. 

The New Rules offer greater procedural flexibility by removing some provisions that previously regulated the proceedings, especially the initial phases (Statement of Claim, Response to the Statement of Claim, Counterclaim, etc.). This allows the case to be adapted to the needs and circumstances that best suit the parties, maintaining the flexibility of arbitral procedure.

Another notable change is the careful approach taken by the New Rules to consolidation, joinder and intervention. The New Rules offer greater clarity on these areas, helping parties know how to proceed in an effective way when these issues arise in CAM arbitration proceedings.

The CAM has also introduced a new expedited  procedure into the New Ruless. In order to adopt this expedited process, the parties must expressly agree to it in writing, but do not have to do so within the arbitration agreement itself. The arbitrator of the expedited procedure must issue an award within three months of the Statement of Claim being filed.

New Annex 4 develops the optional annulment process which was introduced in the previous rules. It sets out  procedure to be followed for annulment (total or partial) of the award, the consequences that such annulment  and the actions of the arbitral tribunal (interaction between the draft award and the decision on the annulment).

Conclusion

The New Rules confirm the CAM's pursuit of excellence and innovation with a focus on increasing Madrid's attractiveness as an arbitral seat. The New Rules are focused on efficiency and flexibility and are strongly aligned with best practice internationally. The CAM aims to become a benchmark not only for arbitration in Spain, but also internationally, seeking to attract more international cases, particularly from Latin America.

For further information, please contact Javier de Carvajal (Partner), Jaime Porras (Junior Associate), or your usual Hebert Smith Freehills contact.