The Chilean Legal Environment

1
The Chilean Legal Environment Implications for
Business

• Meredith Fensom
• Law Policy in the Americas Program
• University of Florida
• October 4th 2005

2
Background to Reform

• Orthodox Inquisitorial System
• History of Judicial Independence
• Breakdown

3
Return to Democracy

• 1990 Judicial Bench is in Crisis.
• October 1999 law establishing a Ministerio
  Público published in the Diario Oficial
• Criminal justice system shifts to public trials,
  oral hearings, and adversarial presentation of
  evidence.

4
Civil Society Involvement
5
Coming Reforms

• Family Courts
• Employment Labor Laws
• Juvenile Justice
• Civil Commercial Legal and Procedural Reform

6
Increase in Civil Claims, Chile, 1990-2003
7
Implications for the Business Environment

• Public perception of civil and commercial justice
  in the Chilean courts is not favorable
• Increasing use of Arbitration
• Codification of Law N 19.971 (September 30,
  2004), International Arbitration Law, based on
  UNCITRAL but with important modifications
• Article 34 (2) (b) (ii) An arbitral award may
  be set aside by the competent court of appeal if
  the award is in conflict with the public policy
  of Chile.

8
Arbitration
9
Governance Indicators 2004 Rule of Law
10
Governance Indicators 2004 Control of Corruption
11
Levels of Corruption Perceived to be Lower
12
fensom_at_law.ufl.edu