BRAZIL Law and Practice Contributed by: Cláudio Finkelstein, Maria Isabel Gori Montes and Laura Martini Brevilieri, Finkelstein Advogados
Finkelstein Advogados Martiniano de Carvalho Street n. 864, Room 1505 Zip Code 01321-000 São Paulo/SP Brazil Tel: +55 11 3253-0151 Email: contato@finkelstein.com.br Web: www.finkelstein.com.br
1. General 1.1 Prevalence of Arbitration
1.2 Key Industries International arbitration activity in Brazil has been par - ticularly significant in corporate disputes, construction and infrastructure projects, energy, oil and gas, and complex commercial contracts. Corporate matters consistently lead in the number of new arbitrations, followed by construction and energy disputes and general commercial contracts. The prevalence of arbitration in these sectors is partly explained by the complexity and high value of the transactions, the frequent involvement of foreign investors or parties, and the need for specialised decision-makers. In some areas, arbitration is manda - tory, such as in certain energy-related disputes and in corporate disputes involving publicly held companies listed at specific levels of B3, the São Paulo Stock Exchange. A more recent development is the growth of labour arbitration, which has stood out in the statistics in the last few years. This followed Law No 13,467/2017, which introduced Article 507-A into the Consolida - tion of Labour Laws (CLT) and allowed arbitration to resolve labour disputes involving employees whose salaries exceed twice the ceiling for General Social Security benefits – typically executives and employ - ees in management or senior positions. Arbitration has also been developing considerably in the maritime and sports sectors. 1.3 Arbitration Institutions According to the well-known survey Arbitragem em Números conducted by Professor Selma Lemes, the
Although most disputes in Brazil are still resolved before the judiciary, arbitration has become a widely accepted method for complex business disputes, par - ticularly high-value and technically complex matters involving corporate issues, infrastructure, construc - tion, energy, oil and gas, capital markets, M&A and other sophisticated commercial transactions. That said, litigation remains the most common dispute resolution method in Brazil overall, given the volume of cases before the courts. This development followed the enactment of the Bra - zilian Arbitration Act (BAA) and the consolidation of a pro-arbitration legal environment, supported by party autonomy, limited judicial intervention and the courts’ recognition of the effectiveness of arbitration agreements and arbitral awards. A key milestone was the Federal Supreme Court’s (STF) recognition of the constitutionality of the BAA in 2001, which defini - tively affirmed the validity of arbitration agreements and removed lingering doubts about their enforce - ability. Brazil’s accession to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) further reinforced its integration into the international arbitration system. Brazil – and São Paulo in particular – also serves as a seat in some international arbitrations connected to Latin America, supported by the maturity of the Brazilian arbitration market and the development of experienced domestic arbitration institutions.
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