Trade and Commercial Law Assessment - Honduras - Economic ...

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
♦ Suspending, for disciplinary reasons, and dismissing officials it appointed for misconduct
or gross negligence in the performance of their duties.
The Supreme Court also considers appeals from the cases heard in the first instance by the courts
of appeal.
b. Commercial Law and Procedure
The civil procedure section of the 1906 Code of Procedure governs civil and commercial
litigation, except in cases involving enforcement of pledges. The 1950 Commercial Code
provides for enforcement through direct sale by a notary, sales agent, or two merchants, if the
contracting parties have so agreed.
The civil procedures portion of the Code of Procedures is said to be obsolete; and, of course, it is
to be expected that any procedural code that it almost 100 years old would be obsolete in many
respects. The reform desired by many involves not merely updating the existing model, but
converting to a new approach. Specifically, this will involve a switch to an oral procedure. Latin
American countries have traditionally followed the written procedure adopted from Spain.
Honduras, however, has switched in criminal cases to an oral procedure. Part of the critique of
the existing civil procedures involves advocacy of a similar move to an oral procedure in the
expectation that this will speed the process.
One way in which the current civil procedures are viewed as obsolete is its establishment of time
limits that are routinely disregarded by the courts. The failure of judges to adhere to time limits,
however, points less to a technical problem that can be solved by legislation than to more
fundamental administrative problems in the judicial system.
Arbitration
1. The Constitution
Article 15 of the Honduran Constitution states, “Honduras proclaims as ineludible the validity
and obligatory execution of arbitral and judicial awards of an international character.” Under
Article 16, international treaties are part of domestic law without any implementing legislation.
Article 137 of the Constitution provides “…an obligation to promote, organize and regulate
conciliation and arbitration procedures for the peaceful settlement of labor disputes.”
2. Legislation
A new law on arbitration, Decree No. 161-2000, was approved in 2000. This law is modeled on
the law of Colombia. It provides for arbitration organized by arbitration centers. The law also
authorizes chambers of commerce, professional associations, trade associations, and institutions
of higher education to organize such centers. To date, only two centers have opened, one in
Tegucigalpa and another in San Pedro Sula, both operated by the chamber of commerce.
Notaries are also able to organize arbitrations on their own.
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