Public Law in the Dominican Republic: A Guide for Companies in Their Relationship with the State (Part 2)

Public Law

After analyzing in the first installment how the relationships between companies and the State are structured—from the applicable legal framework to contracting and collaboration opportunities—it is now time to address the reverse side of that interaction: what to do when an act of the Public Administration affects legitimate rights or interests .

When an administrative decision harms a company or citizen—whether disqualification from a bidding process, the imposition of a penalty, the denial of a permit, or the early termination of a contract—immediate questions arise: what can I do, to whom, and within what timeframe? The Dominican Constitution guarantees the legality of administrative acts and the right to effective judicial protection. In other words, the State cannot act arbitrarily or without oversight .

For businesses and citizens, knowing the legal avenues for defense is essential to safeguarding rights, limiting economic damages, and preserving legal certainty.

This article examines in a transversal manner the main mechanisms available in response to administrative decisions: administrative appeals , contentious-administrative jurisdiction and alternative mechanisms such as arbitration .

Conflicts with the Public Administration

Any legal relationship with the State—whether as a supplier, concessionaire, contractor, or license applicant—can give rise to disputes that require an immediate response. In these scenarios, the first step is to verify that the administrative act respects the constitutional principles of legality, justification, due process, and effective judicial protection. Only then can it be determined whether there are grounds to challenge the decision.

When an irregularity is detected, the Dominican legal system offers tools for action. The following are relevant here:

• Law No. 107-13 , on the Rights of Persons in their Relations with the Administration and on Administrative Procedure (challenge in administrative headquarters).
• Law No. 13-07 , which organizes the contentious-administrative jurisdiction.

In addition to these, there are constitutional guarantees and, in the contractual sphere, the dispute resolution clauses agreed upon by the parties. In this context, individuals have a range of options, from domestic remedies to specialized legal actions , the common objective of which is to ensure that State actions remain within the limits of legality and respect for fundamental rights.

Optional nature of resources

Since Law No. 107-13 came into force, administrative appeals are optional , not mandatory. This means that individuals can choose between exhausting administrative remedies or going directly to the Superior Administrative Court (TSA) , whichever they consider most convenient. Even if an administrative appeal is initiated, the interested party may withdraw it at any time and bring the case before the administrative court without waiting for the administration’s final decision (except for specific exceptions provided for by special law).

Effects and precautionary measures

• The filing of an administrative appeal does not in itself suspend the execution of the contested act.
• The decision continues to have effect , unless a special law provides otherwise or the authority, ex officio or at the request of a party, issues a precautionary measure of suspension due to the risk of serious harm , or when manifest nullity is alleged and a guarantee for damages is granted .

Prohibition of reformatio in peius and guarantees

• The law prohibits aggravating the legal situation of the appellant when resolving the appeal (more serious sanctions than those originally appealed cannot be imposed).
• Nor can there be any retaliation for exercising the right to defense: challenging an act cannot lead to penalties or exclusion from future proceedings; it is a legitimate part of effective protection .

Contentious-administrative jurisdiction

When the conflict is not resolved in an administrative setting, the competent forum is the contentious-administrative jurisdiction . In the Dominican Republic, there is a specialized court of the Judiciary, the Superior Administrative Court (TSA) , which acts as an impartial arbitrator between individuals and the State, reviewing the legal compliance of administrative actions.

Arbitration and alternative mechanisms

In addition to judicial means, in certain cases, arbitration may be agreed upon to resolve disputes with the State. Arbitration is a valid means in the Dominican legal system if there is consent , usually through a contractual clause .

The Constitution (Article 220) provides that State contracts may provide for arbitration, even before international jurisdictions in accordance with treaties.

Special laws—such as those governing public-private partnerships —encourage arbitration due to the complexity and amounts often involved. If the contract provides for it, the parties may submit the dispute to a national or international arbitration tribunal , in accordance with recognized rules (e.g., ICC , UNCITRAL , among others).

By accepting arbitration, the State may waive its jurisdictional immunity with respect to that dispute and undertakes to abide by the award; it cannot subsequently invoke sovereignty to evade it.

Advantages for the administrator

• Confidentiality  and   procedural flexibility .
• Selection  of referees with  technical experience .
• In many cases,  greater speed  and  definitive decision  (without multiple instances).

Requirements and precautions

• There must be  legal authorization  for the public entity to submit to arbitration in this type of contract or matter.
• An express agreement is required  : a clear arbitration clause; if none exists, a  subsequent arbitration agreement must be reached  (which is difficult once the conflict has arisen).
• Many contracts require  mandatory prerequisites  (e.g., dispute committees, direct negotiations) that must  be completed  before arbitration.
• Costs : arbitrator fees, case administration, expert reports. The  amount in dispute should be assessed to determine whether  they are justified.
• Finality : The award is  practically unappealable , with  very limited grounds  for annulment. This requires approaching the arbitration  well prepared .

In short, arbitration is a  useful avenue  when available, but it requires  analyzing costs, scope, and enforceability  —even internationally—before choosing it.

Friendly solutions

In addition to arbitration, it is worth exploring conciliation or settlement agreements . With the appropriate administrative authorizations , entities can reach an agreement with the individual (voluntary payment of outstanding amounts, deadline extensions , reasonable adjustments), thus avoiding a protracted lawsuit.

These collaborative solutions save time and costs and should be exhausted in good faith before scaling.

Strategies for businesses and citizens

Litigation against the State entails particular challenges. However, with the right strategy, it is possible to enforce the rights of the citizen . Key recommendations:

• Specialized advice: rely on administrative law attorneys from the beginning of the relationship with the State. Not only for litigation, but also to prevent conflicts when signing contracts or accepting decisions .
• Comprehensive documentation: preserve and organize everything (communications, minutes, reports, decisions, receipts). Documentary evidence is often decisive before a judge or arbitrator.
• Exhaust amicable avenues before taking legal action: propose constructive solutions (e.g., payment schedules, contractual amendments, reconsideration of penalties with guarantees). If this doesn’t work, at least you have good faith .
• Evaluate dispute resolution clauses before entering into a contract: review whether the contract provides for arbitration or judicial forum , deadlines , technical procedures , grounds for termination , and adjustment formulas . Negotiate as much as possible before making a contract. Prevention is the best strategy .