Brazilian Supreme Federal Court hosts event highlighting the importance of mutual support between arbitration and the judiciary | Practical Law

Brazilian Supreme Federal Court hosts event highlighting the importance of mutual support between arbitration and the judiciary | Practical Law

Eduardo Damião Gonçalves (Partner), Flávio Spaccaquerche Barbosa (Associate), and Débora Auler de Almeida Prado (Associate), Mattos Filho Advogados

Brazilian Supreme Federal Court hosts event highlighting the importance of mutual support between arbitration and the judiciary

by Practical Law
Published on 02 Jun 2011Brazil
Eduardo Damião Gonçalves (Partner), Flávio Spaccaquerche Barbosa (Associate), and Débora Auler de Almeida Prado (Associate), Mattos Filho Advogados
On 2 May 2011, the Brazilian Federal Supreme Court, in association with the Brazilian Arbitration Committee (CBAr), hosted a seminar, Judiciary and Arbitration: necessary dialogue, which aimed to promote a debate on the relevance of the judiciary’s support for arbitration and vice versa. The event was attended by ministers, judges and scholars, as well as national and international arbitrators.
A wide range of topics on how, and to what extent, arbitration and the judiciary support each other, were discussed in the seminar, such as:
  • Requests for coercive and injunction orders.
  • Enforcement of awards.
  • Actions to set aside.
  • The principle of non-intervention.
  • Challenges of international arbitration.
  • Recognition of foreign awards.
The Supreme Court Minister, Ellen Gracie, opened the seminar, stressing the relevance of methods of Alternative Dispute Resolution, such as arbitration, mediation and conciliation, in the achievement of justice. In her opinion, arbitration presents an advantage compared to judicial proceedings because in arbitration parties may appoint highly skilled arbitrators who can bring expertise to solve disputes and can offer a more suitable decision. The President of the Brazilian Arbitration Committee, Adriana Braghetta, added that arbitration was not intended to compete with state courts; it was just another method of dispute resolution.
The former Minister and Brazilian Permanent Court of Arbitration judge, Francisco Rezek, who has also acted in the International Court of Justice in The Hague, stated that arbitration in Brazil has only earned consistency and operability since the enactment of the Brazilian Arbitration Act in 1996 (Law n. 9.307/1996) (see Article, The Brazilian Arbitration Act 1996). Francisco Rezek observed that resistance to arbitral awards and the rate of parties not attending arbitral proceedings has been in decline over the last 15 years. Currently, cases where the arbitrators' authority is not recognised are rare, whilst unanimous decisions by arbitrators have become more common.
In view of major events due to be held in Brazil in the coming years, such as the 2014 FIFA World Cup and the 2016 Olympic Games, the Superior Court of Justice Minister, Nancy Andrighi, suggested the adoption of arbitration clauses in infrastructure contracts and mediation proceedings to solve small disputes that may arise during these events.
International experts also attended the seminar, such as the president of the American Society of International Law and Professor of International Arbitration at the New York University School of Law, Donald Donovan, who spoke about the successful experiences of arbitration in the US. Albert Jan van den Berg, Professor of Law and Arbitration at Erasmus University, Rotterdam and Chairman of the Netherlands Arbitration Institute, gave a lecture on international arbitration, addressing issues of the interpretation and enforcement of awards and the application of the New York Convention.
The seminar was a milestone for the Brazilian arbitration community and a huge step towards the recognition of the importance of mutual support between arbitration and the judiciary. Benefiting from a favorable approach from Brazilian courts and the development of a competent legal community in the area, arbitration is building a solid base in Brazil and gaining recognition.