What remedies do I have for a supplier breach under Paraguayan commercial law?

Dear Sir/Madam, please find below answer to your questions in accordance with current Paraguayan law:

Court or Arbitration?: If the contract includes a valid arbitration clause, the ordinary courts will lose jurisdiction. In Paraguay, the parties are obligated to submit to the agreed arbitration, unless the clause is manifestly null and void.

Recoverable Damages: You can claim full compensation. This includes actual damages (direct losses due to the defective merchandise) and lost profits (earnings you failed to receive), provided they are duly proven. Court costs (legal expenses) are generally imposed on the losing party.

Timeframes: An ordinary civil and commercial lawsuit typically takes between 3 and 5 years. Arbitration, although initially more expensive, is usually resolved within 12 to 18 months, resulting in a final and technically sound award.

Hi. In Paraguay the parties' choice of forum is respected, so if your supply contract contains a valid arbitration clause you must first submit the dispute to the designated arbitral tribunal (usually under the rules of the Cámara de Comercio o de la Corte Suprema de Justicia) and you cannot simultaneously sue in ordinary court unless the parties later agree to waive arbitration or the clause is found void (e.g., for lack of consent or improper scope); the court's role would then be limited to recognizing and enforcing the arbitral award, not rehearing the merits. Arbitration in Paraguay typically takes 12-18 months from the filing of the request to the issuance of a final award (though complex cases can run longer), whereas a civil-commercial lawsuit in the civil courts often lasts 2-4 years because of the docket backlog and possible appeals. Under Paraguayan civil-code principles you may recover direct damages (the price difference for the delayed or defective goods), consequential losses such as lost profits that are proven with reasonable certainty, interest on the overdue amount at the legal rate, and reasonable litigation costs (attorney fees, expert fees, and court expenses) if the contract or law allows cost-shifting; however, speculative or purely indirect losses are generally excluded. To enforce your rights you should first send a formal notice of breach, invoke the arbitration clause, select an arbitrator or panel, present evidence of the late deliveries, quality reports, and the quantification of your actual loss (including invoices, sales forecasts, and profit margins), and, if the award is favorable, file for its recognition with the Paraguayan courts to obtain a binding judgment for collection. Sincerely, A-i-c