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The financial inability to cope with an arbitration process could lead to the suspension of the application of the arbitration clause

| News | International Arbitration / Litigation

Conference on the David Guetta Case: the suspension of the arbitration agreement in times of insolvency

In most cases, arbitration proceedings are more costly than going to ordinary jurisdiction. In the event that one of the parties does not have sufficient financial capacity to meet the costs of the arbitration, a request for suspension of the arbitration clause could be made on the grounds that such a situation could be assimilated to a refusal of access to justice in the event of such a suspension being refused, which would be in breach of Article 6 of the European Declaration of Human Rights.

This was explained by Íñigo Rodríguez-Sastre, partner of Andersen Tax & Legal and director of the firm's arbitration area, during the conference on David Guetta: the suspension of the arbitration agreement in times of insolvency, which took place in the Andersen Madrid Auditorium and was attended by Manuel Penadés, independent arbitrator and Professor at The Dickson Poon School of Law, King's College London, Blas Piñar, senior lawyer at Samaniego Law, and Luis Cortezo, partner at Andersen Tax & Legal, and with the collaboration of the Spanish Arbitration Club.

During the event, Íñigo Rodríguez-Sastre analysed the concept of impecuniousness and the request for suspension of the effects of the arbitration agreement, presenting solutions in comparative law, while Blas Piñar highlighted the main lines of the Sentence of the Commercial Court of Santander that has given rise to the 'David Guetta case' and Manuel Penadés explained the basic issues surrounding the collision of an arbitration agreement with an insolvency procedure.

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