A recent decision rendered by an arbitral tribunal constituted under the Centre for Arbitration and Mediation of the Chamber of Commerce Brazil-Canada has ended a 20-year dispute over the largest container port in South America. The outcome of this arbitration is positive, as it demonstrates that Brazil's arbitral framework is well established and well functioning – even in disputes involving public administration.
The Superior Court of Justice recently upheld a Sao Paulo State Appellate Court decision which had set aside an arbitral award due to alleged irregularities during the formation of the arbitral tribunal in the context of a multi-party dispute. The Superior Court of Justice's decision confirms the appellate court's opinion that the proceeding which had been adopted to form the arbitral tribunal contravened public policy.
The Superior Court of Justice recently confirmed the jurisdiction of an arbitral tribunal constituted before the Market Arbitration Chamber to render a decision connected to a company that had filed a lawsuit for a recovery plan before the competent court of law. In addition to taking a pro-arbitral stance on an important national case, this decision reinforces the jurisdictional nature of arbitration and solidifies the case law on conflicts of competence.
A recent Superior Court of Justice decision has broadened the interpretation of consent to an arbitration agreement to include economic groups, which could – by implication – pierce the corporate veil in such cases and extend arbitral jurisdiction to non-signatory parties. The decision sets a precedent for this issue and will serve as a parameter for future decisions by both the lower courts and the Superior Court of Justice.
The Sao Paulo State Appellate Court recently rendered an important precedent on the interpretation of Article 4(2) of the Arbitration Act. The appellate court ultimately dismissed the franchisee's appeal, despite arguments that, among other things, the franchise agreement entered into by the parties was a contract by adhesion, pursuant to Article 54 of the Consumer Protection Code. As such, the arbitration clause was invalid because it did not follow the requirements contained in Article 4(2) of the Arbitration Act.
The Superior Court of Justice recently decided on the consequences of a successful application to set aside an arbitral award. The court's decision resulted from a declaration by the state courts that the nullity of arbitral awards is provided for in Article 33 of the Arbitration Act. Notably, this case was considered under the original version of the Arbitration Act (ie, before its 2015 amendment) due to the date on which the lawsuit had been filed.