In recent years, there has been a boom in international demand for Latin American commodities as well as massive foreign investment in the region, especially in the energy, mining and construction sectors. This has led to a corresponding increase in the number of international contracts involving a Latin American party and a foreign party that…
In Brazilian domestic arbitrations, it is not uncommon for parties to make arguments or requests based on the Brazilian Code of Civil Procedure (“BCCP”), even though the Brazilian Arbitration Act (“BAA”) does not provide for the application of such procedural rules to arbitral proceedings, not even on a supplementary basis. The question of whether the…
The advantages of exclusive jurisdiction agreements (“EJAs”) are well known; chiefly, that of knowing where a party can sue and be sued. In Brazil, EJAs are widely used in both cross border litigation and in the context of domestic contractual relations. Even in contracts providing for arbitration, it is typical for sophisticated parties to agree…
On 18 June 2024, the Brazilian Superior Court of Justice issued an important decision, which it clearly established the distinction between the breach of the duty of disclosure and the loss of impartiality or independence of arbitrators. Among other arguments, there was the claim of a violation of the duty of disclosure, capable of generating…
On 13 June 2024, Italian Arbitration Day took place in Rome. The full-day conference saw a large number of arbitration practitioners dealing with the issue of globalization and geography in the arbitration. This post offers an overview of the key takeaways from the discussion. Introduction: The Past, Present, and Future of Globalization After…
Under article 14, §1 of the Brazilian Arbitration Act (“BAA”), arbitrators bear the duty to disclose “any circumstances likely to give rise to justifiable doubt as to their impartiality and independence”. Because the concept of “justifiable doubt” is subjective, Brazilian jurisprudence often features incohesive and contradictory understandings of the scope and effects of such duty vis-à-vis…
Bill no. 2.925/2023 (“Bill”) is intended to amend federal law no. 6.385/1976 (regulating the Brazilian stock market and that created the Comissão de Valores Mobiliários, the Brazilian Securities and Exchange Commission – “CVM”) and law no. 6.404/1976 (regulating joint-stock companies/business corporations). The goal is to ensure transparency in class arbitration proceedings involving stock market investors,…
On 16 June 2023, the Brazilian Superior Court of Justice (“STJ”) resolved the Appeal in Special Appeal n. 1,905,505/SP (“Appeal”), reported by Justice Francisco Falcão. The decision was appealed, so that the case will still be judged by the STJ’s second chamber. Nonetheless, the decision is a relevant development concerning arbitration with public entities in…
The São Paulo Court of Appeals (“TJSP or “Court”) recently annulled a quantum arbitral award and referred the case back to the arbitral tribunal because one of the three arbitrators had failed to issue a dissenting opinion. The Court held that the co-arbitrator’s abstention amounted to a failure in the part of the arbitral tribunal…
It is undisputed that arbitration depends on the trust placed by the parties in the arbitrators. The Brazilian Arbitration Act (the “BAA”) reaffirms this principle when it provides that an individual may only act as an arbitrator if he/she “is trusted by the parties” (BAA, Article 13) and when it puts the burden to disclose…
On 25 October 2022, the Brazilian Superior Court of Justice (“SCJ”) upheld a decision that suspended the filing of a proof of claim in bankruptcy proceedings and, consequently, prevented the plaintiff from participating in the general meeting of creditors (see, Appeal to the SCJ n. 1.774.649, 25 October 2022, Amapari Energia S.A. v. Zamin Amapá…
In 2023, the ICC International Court of Arbitration (“ICC Court”) celebrated 100 years as the world’s leading arbitral institution. To celebrate this milestone, on 25 May 2023, the ICC Court and the National Committee of Brazil (“ICC Brazil”) organized the First ICC Arbitration Conference in the South of Brazil (“ICC South Conference”). The ICC South…
On May 9, 2023, the 4th Panel of Brazilian Superior Court of Justice (“SCJ”) judged the Special Appeal n. 1.988.894-SP (“Appeal”), reported by Minister Maria Isabel Gallotti. The Appeal was proposed by Mapfre Seguros Generales de Colombia S.A. (“Mapfre” or “insurer”) in an indemnification claim filed against LOG Wisdom S.A., Thorco Shipping S.S and Asia…
Arbitration can be defined as a dispute resolution mechanism by which parties submit their case to a specifically chosen decision-maker to render a binding decision. Arbitration is a consensual procedure and can only be initiated if parties have agreed to do so. As most arbitration laws, the Brazilian Arbitration Act (“BAA”) provides for the enforceability…
Despite being a relatively young market at just over 20 years old, Brazilian arbitration has experienced rapid growth. As of 2020, Brazil ranked second in the number of arbitrations filed with the International Chamber of Commerce (ICC), surpassing all European, African, and Asian jurisdictions. Brazil is also among the top five nationalities represented among arbitrators,…
The IXth Edition of the CAM-CCBC Arbitration Congress took place on 17 – 18 October 2022, in São Paulo, Brazil. The congress brought together practitioners to discuss “the today and the tomorrow” of the arbitration market. After two years of pandemic, the convention provided a unique forum to debate a wide range of topics, including…
The 1996 Brazilian Arbitration Act (the “BAA”), which subjects domestic and international arbitrations to the same set of rules, has been modified only once through the 2015 amendment (the “2015 Amendment”). On July 6, 2022, Brazilian party leaders signed a Motion of Urgency to bypass the standard legislative process – which usually comprises public consultations…
As most arbitration laws, the Brazilian Arbitration Act (Law n. 9307/1996; “BAL”) establishes a short deadline for any interested party to seek annulment of an arbitral award in court. The interested party has a 90-day period as from (i) notice of the partial or final arbitral award or (ii) the decision on a motion for clarification…
Five years ago, the Brazilian Arbitration Act (Law No. 9,307/96 or BAA) was amended by the Law No. 13,129/2015. Law No. 13,129/2015 repealed the item V of Article 32 of the BAA which provided for the annulment of an arbitral award when it does not address the entire dispute submitted to arbitration (infra petita award)….
On September 10, 2019, in considering an interlocutory appeal to stay arbitration proceedings, the Espírito Santo Court of Appeals decided to grant an exception to the competence-competence principle on grounds that the arbitration agreement was prima facie “manifestly illegal”. (Interlocutory Appeal No. 0013950-80.2019.8.08.0012, injunctive relief issued on September 10, 2019). Background In 2001, the…
The development of the Brazilian Arbitration Act concerning the Public Administration Under the original wording of article 1 of Law no. 9.307/96 (“Brazilian Arbitration Act”), any capable person was entitled to resort to arbitration to settle disputes relating to patrimonial and disposable rights. By referring to capable persons, article 1 of the Brazilian Arbitration Act…
A long-term dispute between Libra Terminais S.A., Libra Terminais Santos S.A., two companies belonging to one of the major port operating groups in Brazil (“Libra Terminais”), and the Dock Companies for the State of São Paulo (“CODESP”) seems to have been concluded by a recent arbitral award. The dispute concerned a concession agreement of two…
Recently, the 2018 White & Case International Arbitration Survey confirmed London, Paris, Singapore, Hong Kong, Geneva, New York and Stockholm as the most in-demand places for arbitration in the world. Brazil is well represented by São Paulo – the economic hub of the country – which occupied eighth place in the overall ranking. This result…
I. Introduction Despite the fact that commercial arbitration has experienced a huge development in Brazil in the last years and a general favorable approach by Brazilian courts, there are fields in which arbitration is still incipient, with complex discussions about its enforceability and to what extent consumer, labor or adhesion contracts can be discussed via…
