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In response to the growing demand for resolving disputes through arbitration, the Brazilian government has recently made some changes to the country’s arbitration laws. According to them, government agencies can now settle disputes involving transfer of property rights through arbitration in Brazil. The amended legislation also provides for temporary remedies, and the drafting of “arbitration letters” allowing arbitrators to request a judgment.

Brazilian arbitration laws make no distinction between domestic & international proceedings; however, arbitral awards rendered outside Brazil are deemed foreign arbitral awards.

Post-Judgement Developments

Following receipt of a notification of an award (usually 5 days), either of the parties may request for correction of misprints or other ambiguities capable of influencing a court’s verdict. It will then take a court ten days to either grant or reject a request for revision. 

Brazil: Challenging/Canceling Arbitration Awards

Arbitration awards granted by Brazilian courts can be challenged if they:

  • have been rendered by individuals that weren’t qualified to be arbitrators;
  • don’t meet requirements laid down in arbitration agreements;
  • have been delivered after expiration of previously specified deadlines;
  • prevent equal treatment of arties & arbitrators’ impartiality.

While resolving commercial disputes through arbitration in the Republic of Brazil, arbitration courts may cancel awards if an arbitration clause is invalidated. Requests for invalidating decisions must be made within ninety days of receipt of a notification/decision regarding a correction request.

Filing Appeals

There's a 5-year wait period for parties seeking to appeal decisions rendered by 1st instance courts. However, filing a request for invalidation doesn’t prevent awards from being executed. It’s estimated that costs involved in such proceedings shouldn’t exceed four per cent of the contested amount.

Those contemplating initiating arbitration proceedings in a Braxilian court should keep in mind that getting a final decision may take up to eight years.

Brazil: Recognizing & Enforcing Arbitration Awards

Parties seeking to initiate arbitration proceedings in the Federal Republic of Brazil should bear in mind that decisions rendered by Brazilian arbitration courts are enforced automatically. Because of that, they have a right to initiate enforcement of judgments once they’ve been rendered. However, awards rendered by foreign courts can only be enforced after completion of a recognition procedure (which involves verifying an award’s compliance with Brazxilian legislation). Decisions deemed to be non-compliant with Brazilian legislation will neither be recognized nor enforced in that jurisdiction.

Brazil: Executing Arbitral Awards

There’s a limitation period for resolving disputes through arbitration in the Republic of Brazil. Its duration depends on the nature of the rights & obligations under negotiation. A limitation period for enforcing foreign courts’ judgments can’t be established by Brazilian courts. According to Brazilian arbitration legislation, awards may not be granted if their execution has been suspended by state courts at arbitration sites.

Conclusion

Parties wishing to avoid having to go through the recognition process should keep in mind that their only alternative is to agree on favorable dispute settlement provisions. They should also be mindful of the fact that arbitration in the Republic of Brazil provides them with an opportunity to settle a dispute in the Federal Republic of Brazil by resorting to an applicable foreign law.

Seeking to resolve a commercial dispute through arbitration in the Republic of Brazil? Need legal advice on arbitration legislation in Brazil? IQ Decision UK is at your service. Our team of highly qualified experts will be happy to fulfil your legal needs & ensure the result you’ve been looking forward to achieving.