Award is a concept that is used in the field of right to name the resolution dictated by an arbitrator or a friendly composer that allows to settle a conflict between two or more parties.
The referee’s ruling can be compared to the judgment that dictates a judge, although the jurisdiction of the latter is established by the law and the jurisdiction of the arbitrator is in the autonomy of the will. This means that the arbitrator’s decision must be accepted by the parties for the dispute to be resolved.
Usually the parties to the conflict sign a agreement before going to the mediation of the arbitrator through which they undertake to accept and abide by the award that is proposed as a resolution of the conflict.
The award, therefore, you are not required to rely on the law. The parties may agree in advance that the arbitration focuses on criteria of fairness, beyond the legal. The execution of an arbitration award, however, requires a judge to order mediation.
Some of its main characteristics are the following:
* it is binding and mandatory;
* who assumes the role of referee has full exercise with regard to jurisdiction, although this is only valid temporarily (his power begins when he accepts his position and ends once he expresses his final decision in the award itself);
* the award can only contain the issues directly related to the controversy to be dealt with by the arbitrator, a limit similar to that which must be respected in a court, before a judge.
Regarding the last point, it is important to note that if certain points that are not within the framework of the controversy which gives rise to arbitration, then it must necessarily be annulled.
The final decision of an arbitrator must be substantiated; It is necessary that the reasons and motivations that lead to the making of the award can be arranged as logical pieces that explain and support the decision without the possibility of double interpretations and without giving rise to the suspicion of a favoritist attitude. The two parties to the litigation must see in the award a correct and respectable decision, based on the Justice and to seek a transparent solution, based on equity.
The existence of awards and arbitrations dates back to antiquity, since they are resolution mechanisms that function independently of the judicial and social systems. The award has always made it possible to resolve conflicts in a extrajudicial, with different scopes and guarantee.
It is possible to distinguish between various types of awards, such as awards of law, the equity awards, the total awards, the partial awards and the final awards, for instance.
The total award is the one that manages to resolve all the points that gave rise to the litigation, while the partial It occurs when only one or some of the points of the demand receive a solution. The final award (or firm) is the one in which all the controversial legal points that were submitted to the arbitral tribunal are found, as well as any decision that it has definitively determined on procedural issues or substances or of its competence and that it has qualified as an award.
A consented award has the purpose of raising a transaction involving two parties to an award; in other words, it seeks to give it an executive title. When one of the parties refuses to participate in the process and the arbitral tribunal has no choice but to do its job without your presence, there is talk of award in absentia.