For in-house counsel managing Latin American operations, arbitration has become the preferred mechanism for resolving cross-border commercial disputes. The rationale is well understood: concerns about judicial independence, procedural delays, and unpredictable outcomes in local courts make international arbitration an attractive alternative. Yet while significant attention is devoted to selecting the governing law, the arbitral institution, and the language of proceedings, one critical decision often receives insufficient analysis—the seat of arbitration. This article examines why the seat deserves careful consideration and makes the case that Miami represents an optimal choice for disputes involving Latin American parties, particularly given Florida's favorable rules permitting foreign attorneys to represent parties in international arbitrations.
Understanding the Distinction: Three Legal Frameworks
Before analyzing seat selection, it is essential to distinguish between three separate legal frameworks that govern any international arbitration. This distinction is fundamental, and in-house counsel should ensure that their external advisors—particularly those from the region where the underlying transaction takes place—help them navigate each layer.
First, there is the substantive law (lex causae)—the law that determines the parties' rights and obligations under the contract. This is typically specified in the choice-of-law clause and governs questions such as contract interpretation, breach, and damages. When parties choose the law of a Latin American jurisdiction to govern their contract, having counsel deeply familiar with that legal system becomes invaluable—not only during contract negotiation but especially when disputes arise.
Second, there is the procedural law or lex arbitri—the law governing the arbitration proceeding itself. This framework is determined by the seat of arbitration and addresses critical matters including the validity of the arbitration agreement, arbitrator appointment and challenge procedures, the conduct of proceedings, and the grounds for setting aside an award. The lex arbitri is the legal regime within which the arbitration takes place and to which it is ultimately anchored.
Third, there are the institutional rules—the procedural framework established by the administering institution (ICC, ICDR, LCIA, etc.). While these rules govern day-to-day procedural matters, they operate within the constraints of the lex arbitri and cannot override mandatory provisions of the law of the seat.
The practical implication is significant: you may choose Colombian, Mexican, or Guatemalan law to govern your contract and ICC Rules to administer your arbitration, but the courts of the seat will have supervisory jurisdiction over the arbitral process and exclusive authority to annul the award. This jurisdictional reality makes seat selection a matter of strategic importance that warrants expert guidance from counsel familiar with both the substantive law of the transaction and the procedural implications of the chosen seat.
Why the Seat Matters
The seat of arbitration determines several critical aspects of the dispute resolution process. Under the UNCITRAL Model Law on International Commercial Arbitration, which has been adopted in over 85 jurisdictions, the courts of the seat exercise supervisory jurisdiction over the arbitration. ¹ This includes the power to rule on challenges to arbitrator appointments, to provide interim measures of protection, and crucially, to set aside arbitral awards.
The standards for judicial intervention vary significantly across jurisdictions. While the Model Law provides a limited and internationally harmonized set of grounds for annulment, national courts differ in their interpretation and application of these grounds. Some jurisdictions have developed reputations for expansive review, while others maintain a strict policy of minimal judicial intervention. For parties who have chosen arbitration precisely to avoid local court litigation, the choice of a seat with unpredictable or interventionist courts may undermine the very purpose of the arbitration agreement.
Furthermore, the seat determines the "nationality" of the award for purposes of enforcement under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York Convention"). ² An award rendered at the seat is considered a "domestic" award in that jurisdiction and a "foreign" award everywhere else, triggering the Convention's enforcement framework in other contracting states.
The Case for an Extra-Regional Seat
If concerns about local judicial systems motivate the choice of arbitration over litigation, logical consistency suggests that the seat should also be located outside the region. Selecting a Latin American seat—even in jurisdictions with relatively well-developed arbitration frameworks such as Brazil, Chile, Colombia, Mexico, or Peru—still subjects the arbitration to the supervisory jurisdiction of courts that may present the very concerns that led to choosing arbitration in the first place.
While several Latin American jurisdictions have modernized their arbitration legislation and developed specialized commercial courts, the institutional environment remains uneven. Judicial appointments, procedural delays, and resource constraints continue to affect court performance across the region. An extra-regional seat removes these variables from the equation, providing an additional layer of neutrality and predictability.
This decision, however, raises a practical concern: will choosing a foreign seat require abandoning the expertise of Latin American counsel who understand the substantive law governing the contract? As discussed below, Miami offers a unique solution to this dilemma.
Miami: Strategic Advantages
Miami presents compelling advantages as an arbitral seat for Latin American disputes. From a legal framework perspective, the Florida International Arbitration Act³ provides a modern statutory basis largely modeled on the UNCITRAL Model Law. Florida courts have demonstrated consistent support for arbitration, with limited grounds for judicial intervention and a track record of enforcing arbitration agreements and awards. The federal courts in the Southern District of Florida, including specialized judges experienced in complex commercial matters, provide an additional tier of judicial quality.
Foreign Attorney Representation: A Critical Advantage
Perhaps the most significant—and often overlooked—advantage of Miami as a seat is Florida's permissive approach to foreign attorney representation in international arbitrations. Under Rule 1-3.11 of the Rules Regulating The Florida Bar, ⁴ lawyers admitted in other U.S. jurisdictions or in non-U.S. jurisdictions may appear in arbitration proceedings in Florida. For international arbitrations—broadly defined to include disputes involving foreign parties, property located outside the United States, contracts with foreign performance, or foreign investments—the requirements are particularly streamlined.
This rule has profound practical implications. When a dispute governed by Mexican, Colombian, Guatemalan, or any other Latin American law is arbitrated with Miami as the seat, the parties can retain their Latin American counsel to present arguments and examine witnesses on matters of substantive law. This approach offers several benefits: the attorneys presenting the case possess native expertise in the applicable legal system; they often have pre-existing relationships with the client and deep familiarity with the underlying transaction; and the arrangement typically results in meaningful cost savings compared to engaging entirely new counsel in the seat jurisdiction.