BRAZIL Law and Practice Contributed by: Arthur Villamil and Yuri Luna Dias, Villamil Advogados
to the attorney. Some litigants may not be charged with loss of suits if they proceed in forma pauperis. 11.2 Factors Considered When Awarding Costs Courts award costs primarily based on the case out- come, with the losing party typically covering the winning party’s expenses. Additional factors include the economic benefit gained or equitable discretion in difficult to quantify cases, the case’s complexity, the parties’ conduct during litigation, and, for court- awarded attorneys’ fees 10–20% of the judgment. This approach ensures that cost awards are fair, reflective of case specifics, and discourage bad faith litigation. 11.3 Interest Awarded on Costs Litigation costs subject to reimbursement are adjusted for inflation from the date they were incurred up to the reimbursement date, preserving their real value. If the losing party delays reimbursement beyond the specified deadline, default interest is also applied in addition to the inflation adjustment. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Alternative dispute resolution (ADR) methods, espe- cially mediation and arbitration, are increasingly encouraged as efficient and effective alternatives to traditional litigation in Brazil. Mediation is one of the most popular ADR methods, particularly for family law, consumer disputes, and business conflicts. It’s often conducted within judicial or private settings, where a neutral mediator facilitates negotiations between parties to help them reach a mutually agreeable solution. Arbitration is also widely used, especially in commer- cial and contractual disputes, and allows parties to appoint an arbitrator who issues a binding decision. 12.2 ADR Within the Legal System The Brazilian legal system formally supports ADR through Law No 9.307/1996 (the “Brazilian Arbitration Law”) and the Civil Procedure Code, which empha-
sises the use of ADR in resolving civil and commercial disputes. Arbitration can be made compulsory if both parties have agreed to an arbitration clause in their contract, making it legally binding and precluding tra- ditional court proceedings for that dispute. Other methods like conciliation are encouraged at preliminary stages of litigation. ADR has grown in popularity due to its confidentiality, flexibility, and the potential to provide quicker and more customised solutions than the traditional court system. 12.3 ADR Institutions Institutions offering and promoting ADR are generally well organised and continue to gain prominence in Brazil. Organisations like the Brazilian Arbitration Com- mittee (CBAr) and Chambers of Mediation and Arbitra- tion are reputable, providing structured ADR services with trained mediators and arbitrators, standardised procedures, and international affiliations. Many cham- bers, such as the Arbitration and Mediation Centre of the Brazil-Canada Chamber of Commerce (CAM- CCBC), the Chamber of Conciliation, Mediation, and Arbitration of São Paulo (CIESP/FIESP), the Centre of Commercial Mediation and Arbitration – CAMARB, and the Stock Exchange Arbitration Centre – CAM B3 have developed detailed rules and guidelines aligning with best practices in ADR. Additionally, the International Court of Arbitration of the International Chamber of Commerce (ICA-ICC) has opened a branch in São Paulo to support the expanding commercial arbitration market in Brazil. These organisations have also expanded services across the country, offering ADR for a range of cases from commercial and contractual disputes to family and consumer matters. Public awareness and con- fidence in ADR are rising due to the strong institu- tional support and effective implementation of ADR practices.
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