If you intend to initiate arbitration in Brazil, it is important to consider the specifics of legal requirements in this jurisdiction. This article discusses the main aspects of regulating arbitral awards.
Requirements for arbitral awards filing
Arbitration allows the dispute participants to jointly find and settle those forms of conduct and protection that will contribute to the stability of the business relationship and the specific contract in the future.
If you encounter the need to resolve a dispute in Brazil through arbitration, please note that under local law, the arbitral award must include:
- correct names of the parties;
- brief dispute summary;
- analysis of factual and legal issues that formed the basis of the decision;
- verdicts issued to resolve the dispute in Brazil;
- term of execution of verdicts;
- date and place of the decision announcement.
In addition, the arbitral award must be signed by all arbitrators.
The term of arbitral awards
The Law on Arbitration provides that the parties may agree on the term of the arbitral award. If the parties have not agreed on a specified time limit, the relevant provision of the Arbitration Act applies by default, which states that a decision must be rendered within six months from the date of commencement of the proceedings.
Can one object an arbitral award in Brazil?
Arbitration decisions are not subject to appeal in court. However, the parties may agree in advance on the possibility of appealing the decision when drawing up the arbitration agreement.
The finality of the arbitral award facilitates the speedy resolution of disputes in Brazil. Arbitral awards, as a rule, do not pass all stages of review (appeal and cassation) and can be objected only on clearly stated grounds. This, of course, makes arbitration more attractive than state courts, where it can take a long time to complete all stages of the process and reach a final decision.
You can request the cancellation of the arbitral award in Brazil within 3 months of its receipt.
Foreign arbitral awards in Brazil
Brazil is becoming a more arbitrage-friendly country and a more comfortable place to arbitrate. However, foreign verdicts must be recognized by the Supreme Court. Once it has been recognized, it enters into force immediately.
A party insisting to enforce an arbitral award in Brazil (both foreign and domestic) must initiate enforcement proceedings. This authorizes the court to proceed with the enforcement of the award.
Brazil is developing practices that are in line with advanced arbitration standards and principles. An important factor in favor of arbitration in Brazil is the confidentiality of both the process and the arbitration award, in contrast to public courts, where cases are usually heard in open court and decisions are published, albeit with private information about the parties and other participants in the process. Many commercial companies want to maintain confidentiality about the substance of the dispute, especially when there is a potential risk of a negative solution for them.
If you need to resolve a dispute through arbitration in Brazil or other South American countries, you can contact the competent legal advisors of our company for personal consultation on arbitration in your chosen jurisdiction. For more information, please contact us by filling out the feedback form below.