Trade and Commercial Law Assessment - Honduras - Economic ...
Trade and Commercial Law Assessment - Honduras - Economic ...
Trade and Commercial Law Assessment - Honduras - Economic ...
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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004<br />
HONDURAS<br />
VII. COMMERCIAL DISPUTE RESOLUTION<br />
A. INTRODUCTION<br />
As in other Central American countries, in <strong>Honduras</strong> the process of commercial dispute<br />
resolution is hampered by the judiciary, out-of-date laws, <strong>and</strong> a lack of use <strong>and</strong> underst<strong>and</strong>ing of<br />
alternative methods of dispute resolution.<br />
B. LEGAL FRAMEWORK<br />
The Courts<br />
1. The Constitution<br />
The Judicial Power, addressed in Article 303-320 of the Constitution, provides for a Supreme<br />
Court of Justice, courts of appeal, <strong>and</strong> other courts established by law. A change in the<br />
Constitution increased the number of judges on the Supreme Court from 9 to 15 <strong>and</strong> their terms<br />
from 4 to 7 years. 80 However, as before, the judges of the Supreme Court are elected by the<br />
National Congress, a unicameral body. The Constitution formally provides for separation of<br />
powers (Article 4), an independent judiciary (Articles 303 <strong>and</strong> 304), <strong>and</strong> judicial review (Articles<br />
313 <strong>and</strong> 319). As discussed below, however, the independence of the judiciary is not effectively<br />
institutionalized.<br />
2. Legislation<br />
a. Organization of the Courts<br />
The operation of the courts is governed by the <strong>Law</strong> on the Organization <strong>and</strong> Powers of the<br />
Courts, Ley de Organización y Atribuciones de los Tribunales (LOAT), which took effect in<br />
1906. This law establishes the powers of small claims judges, civil law judges, appellate court<br />
judges, <strong>and</strong> Supreme Court justices. It also establishes the requirements that must be met by<br />
those who will be appointed as small claims judges or civil law judges or elected as senior<br />
judges.<br />
LOAT provides the legal framework under which all courts in <strong>Honduras</strong> operate. It establishes,<br />
not only the duties of the judges <strong>and</strong> senior judges, but also the authority of <strong>and</strong> limitations<br />
applicable to the other judicial officials. It also establishes the jurisdiction of the courts. With<br />
regard to salary raises, promotions, <strong>and</strong> job security, they are subject to the <strong>Law</strong> on Judicial<br />
Career.<br />
1) Small claims courts<br />
Every municipal seat whose jurisdiction does not exceed 4,000 inhabitants will have one regular<br />
small claims judge <strong>and</strong> one alternate. Departmental seats, or municipios, with populations<br />
80 The current number of judges <strong>and</strong> term of years is taken from the local reporter. The earlier number of judges <strong>and</strong><br />
term of years is found in Articles 304 <strong>and</strong> 305 of the Constitution of the Republic of <strong>Honduras</strong> 1982, Decree<br />
No. 131 of January 11, 1982 as amended to Decree No. -91 of January 30, 1991. Constitutions of the World<br />
(N.Y.; Oceana Pub., 1997).<br />
VII-1