As in the judicial sphere with judgments, the reasoning behind arbitral awards constitutes an obligation that has reached almost universal recognition in comparative law and has been introduced in Panamanian law.
However, in exceptional circumstances, cases in which procedural public policy and the arbitral tri¬bunal’s powers are materially and substantially affected, the breach of the duty to state the reasons of the awards are not subject to the judicial review of arbitral awards (setting aside or enforcing proceedings). Without a doubt, the lack of legal sanction does not preclude the application of “sanctions” by users of arbitrations in cases where the quality of the award is poor.
Iurgium [previously Spain Arbitration Review]