JD Supra Ecuador

Publisher:
JD Supra
Publication date:
2019-04-29

Publisher

Latest documents

  • Mediation in the Public Sector

    [author: Ximena Bustamante]
 
 In countries with a continental European legal tradition, it is very rare for State institutions to undergo mediation procedures. And even if they do, it is highly unlikely that they would reach binding agreements that would resolve their disputes. Nonetheless, Ecuador is an exception. As a result of the enactment of the Arbitration and Mediation Law, there has been a significant development of mediation in which a public entity intervenes. Two ingredients have combined to make this development happen. On the one hand, there are regulations that allow and guide the State to solve disputes through mediation, and on the other hand, there are procedures that take into account the nuances of having public officials sitting at the negotiation table, based on the principles of mediation confidentiality and legality of public law.
 
 Ecuador has broad experience in mediation with the State. The Mediation Center of the State Attorney General’s Office has witnessed a steady growth in these types of proceedings. In 2013, it received 421 requests for mediation involving a public entity. By 2019, that number approached 900 new requests. Mediations performed in other mediation centers throughout the country are not included in those numbers. It is important to note that mediation in Ecuador is voluntary; therefore, the fact that the parties choose this method demonstrates their confidence in it. Thus, both public entities and their private counterparts have succeeded in resolving cases that are extremely technical and complex, and involve significant amounts of money and widespread national interest.
 
 Please see full Publication below for more information.

  • Mediation in the Public Sector [Spanish]

    [author: Ximena Bustamante]
 
 En países con una tradición jurídica continental europea, resulta muy poco común que las instituciones del Estado se sometan a procedimientos de mediación. Y aún si lo hacen, es poco probable que lleguen a acuerdos vinculantes que pongan fin a sus controversias. Sin embargo, el Ecuador es una excepción, pues desde la promulgación de la Ley de Arbitraje y Mediación hasta la fecha se ha podido constatar un importante desarrollo de la mediación en la que interviene una entidad pública. Dos ingredientes se han combinado para hacer posible este desarrollo. Por un lado, una normativa que permite y guía al Estado en la búsqueda de acuerdos para resolver controversias a través de mediación. Por otro, el diseño de un procedimiento que toma en cuenta las particularidades de tener sentados en la mesa de negociación a funcionarios públicos, basándose en los principios de confidencialidad de la mediación y de legalidad del derecho público.
 
 Ecuador tiene amplia experiencia en mediación con el Estado. El Centro de Mediación de la Procuraduría General del Estado ha sido testigo de un crecimiento sostenido de este tipo de procedimientos. En el año 2013 recibió 421 solicitudes de mediación en las que intervenía una entidad pública, ya para el año 2019 ese número se acera a las 900 nuevas solicitudes. A estos números se agregan las mediaciones de este tipo que se llevan a cabo en otros centros de mediación del país. Es importante resaltar que en el Ecuador la mediación es voluntaria, por lo que el hecho de que las partes opten por este mecanismo refleja la confianza que ha adquirido la mediación para resolver este tipo de controversias. Así pues, tanto las entidades públicas cuánto sus contrapartes privadas han logrado resolver asuntos enorme de complejidad técnica o jurídica, de cuantías importantes y de interés nacional.
 
 Please see full Publication below for more information.

  • Establishing A Business Entity In Ecuador (Updated)

    1. GENERAL INTRODUCTION:
 
 In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and by payment to the State of a royalty according to the respective contracts negotiated with the State after the corresponding biddings.
 
 2. BENEFITS AND EXEMPTIONS OF TAXES:
 
 a) Ecuador offers a TOTAL EXEMPTION of income tax in ALL NEW INVESTMENTS, whether local or foreign, for 12 years, in the following fields, as long as they are located in other locations than Guayaquil and Quito (in order to foster the development of other areas of the country, and not only in the two main cities)...
 
 Please see full Chapter below for more information.

  • Ecuador Announces Tender Process for Largest Refinery in the Country

    The Ecuadorian Ministry of Energy and Non-renewable Resources (“the Ministry”) recently announced a tender process for the Administration, Operation, Repair, Fuel and Emissions Quality Improvement, and Construction of a High-Conversion Unit, for the State-owned Refinery in Esmeraldas Province.

  • Ecuador’s Labor Justice Act Protects Women Who Are Pregnant, Breastfeeding, or on Maternity Leave

    The Labor Justice Act (Ley de Justicia Laboral) published in the Statutes at Large, has introduced unfair dismissal protection for pregnant women as well as for women who are union leaders.

  • Buying And Selling Real Estate In Ecuador (Updated)

    KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER ECUADOREAN LAW -
 
 I. STANDARD FORMS OF AGREEMENTS -
 
 A. Offer to Purchase sets forth Buyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal Promise of Purchase and Sale agreement, which for validity has to be a notary public deed.
 
 B. Promise of Purchase and Sale Agreement sets forth the complete terms of the purchase and sale...
 
 Please see full Chapter below for more information.

  • Establishing A Business Entity In Ecuador

    1. GENERAL INTRODUCTION: 
 
 In Ecuador, foreign individuals or corporations in general are permitted by law to invest, except in the so called “strategic sectors of the economy”: electricity, water and sewage, highways, airports, ports and railways infrastructures, oil and others. However, those fields can also be given in concessions or associations by the State for a certain period of time and by payment to the State of a royalty according to the respective contracts negotiated with the State after the corresponding biddings....
 
 Please see full Chapter below for more information.

  • Expanding Cannabis Operations in Latin America & The Caribbean: Ecuador

    Medical Use: No. There is proposed legislation (Health Code) for congress approval.
 
 Recreational Use/Adult Use: Recreational/adult use is not permitted.
 
 Current Regime/Legislation (or Proposed Legislation):
 
 Current: The Criminal Code establishes that possession of narcotic or psychotropic substances for personal use or consumption in the amounts established by the corresponding regulations shall not be punishable: for cannabis is 20ml- (Official registration supplement 628 of Nov 16, 2015)....
 
 Please see full Chapter below for more information.

  • Almost Entire Ecuadorian Population Affected by Massive Data Breach

    The Ecuadorian Ministry of Telecommunications and Information Security has announced an investigation into data analytics company Novaestrat after news broke this week that the company left an Elasticsearch server open without any password protection, allowing open access to the data.

  • Buying and Selling Real Estate in Ecuador

    KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER ECUADOREAN LAW -
 
 I. STANDARD FORMS OF AGREEMENTS -
 
 A. Offer to Purchase sets forth Buyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal Promise of Purchase and Sale agreement, which for validity has to be a notary public deed.
 
 B. Promise of Purchase and Sale Agreement sets forth the complete terms of the purchase and sale...
 
 Please see full Chapter below for more information.

Featured documents

  • Newsletter TAX – Transfer Pricing Ecuador

    The Internal Revenue Service in Ecuador (hereinafter, “SRI” for its acronym in Spanish) established  regulations in regards to indirect expenses in order to apply a deductibility threshold for these expenses when calculating the Income Tax for Ecuadorian taxpayers, when expenses have been allocated ...

  • The Empire (State) Strikes Back: Six Highlights of New York’s New Cybersecurity Regulations for Financial Institutions

    The New York Department of Financial Services (NYDFS)’s finalized Cybersecurity Requirements for Financial Services Companies (“regulations”), went into effect on March 1, 2017. NYDFS has provided a 6 month safe harbor to enable institutions to become compliant: initial compliance is expected by...

  • Debt Dialogue: May 2017 - Follow-up: Second Circuit Affirms Dismissal of Action on Ecuador Debt Based on Expansive No-Action Clause

    The January 2017 issue of Debt Dialogue reported on a decision rendered in federal court for the Southern District of New York, Penades v. The Republic of Ecuador (SDNY Sept. 30, 2016), on the application of a no-action clause found in an indenture governing sovereign debt of Ecuador....

  • Ecuador’s New Competition Law

    On October 11, 2011, Ecuador passed a new competition law, two weeks after it was approved by the legislature. The new Regulation and Control of Market Power Law (the Law) introduces merger control in Ecuador as well as behavioural penalties for cartels and abuse of dominance. The new law also...

  • LATIN AMERICA & THE CARIBBEAN: A Legal Guide for Business Investment and Expansion - Ecuador

    1 .What role does the government of Ecuador play in approving and regulating foreign direct investment? 
 
 The Ecuadorian state guarantees and promotes foreign investments. Foreign investors have the same rights and obligations as Ecuadorian individual and institutional investors.
 &#13...

  • Ecuador Appellate Court Affirms Judgment Against Chevron

    We have posted several times on the U.S. aspects of the international dispute between Chevron and the plaintiffs from Ecuador suing for environmental contamination. We have followed the Southern District’s decision granting an injunction as well as the Second Circuit’s reversal of that decision. We ...

  • Ecuador’s Termination of Bilateral Investment Treaty With the United States Impacts E-2 Visa Holders

    On May 18, 2018, the Department of State (DOS) announced the termination of a bilateral investment treaty (BIT) between the United States and Ecuador, a year after the government of Ecuador provided notice of the termination. The termination of the BIT affects the availability of E-2 treaty...

  • Ecuador Granted Section 1782 Discovery Over Chevron’s Objection

    In re Republic of Ecuador and Dr. Diego Garcia Carrion’s Application Under 28 U.S.C. Sec. 1782, 2:11-mc-00052 (GSA) (E.D. Cal. 2011), is an application the Ecuador among others to take the testimony in the U.S. of one Douglas M. Mackay.  Chevron moved to stay the discovery application.   The use to ...

  • Buying and Selling Real Estate in Ecuador

    KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER ECUADOREAN LAW -
 
 I. STANDARD FORMS OF AGREEMENTS -
 
 A. Offer to Purchase sets forth Buyer’s offer of price, date for closing, contingencies for inspections, financing etc. and date for signing a formal Promise of Purchase and Sale...

  • International Arbitral Panel Enjoins Ecuador in the Chevron Matter

    In the ongoing battles between Chevron and Ecuadorian plaintiffs and, relatedly, with Ecuador itself, an international arbitration tribunal has issued a Second Interim Award on Interim Measures.  The matter is captioned, In the matter of arbitration  before a tribunal consistituted in accordance...