BizCLIR

Without a firm foundation in the Rule of Law, commercial dispute resolution in Guatemala remains problematic at best. The country needs stable legal institutions to overcome the effects of its recent internal conflict. A number of constitutional and legal events since 1985 have improved matters: a new constitution in 1985, new laws on habeas corpus and amparo (court-order protection), reforms in the action of the Constitutional Court to nullify the President’s attempt to dissolve Congress and the Supreme Court in 1993, constitutional reforms in 1994, and the Peace Accords in 1996 (which ended the 36-year internal conflict). On the other hand, coup attempts, failed anticorruption efforts, and human rights violations marked that same ten-year period.

Corruption undermines the judicial system and drives businesses to alternative dispute resolution.  The Center for Public Integrity comments as follows:

Citizen confidence in the judiciary is extremely low. Most citizens would not choose to take disputes to a court of law and recourse to extra-judicial forms of dispute resolution is high. Most people view the judiciary, particularly the lower courts, as ineffective and corrupt. Because it can take years for cases to be concluded, many view recourse to judicial means as a waste of time and money.