BRAZIL Law and Practice Contributed by: Arthur Villamil and Yuri Luna Dias, Villamil Advogados
For foreign arbitration awards, Brazil requires a rec- ognition process known as homologation by the STJ. The party seeking enforcement submits a request to the STJ, which reviews the award to ensure it aligns with Brazilian public policy, procedural fairness, and due process standards. This recognition is necessary to give the award the same legal force as a domestic judgment. Once the STJ grants recognition, the foreign award can be enforced in Brazil like a domestic judgment. This two-step process, recognition by the STJ followed by enforcement in a lower court, ensures compliance with both international standards and Brazilian legal principles. 14. Outlook 14.1 Proposals for Dispute Resolution Reform There are multiple proposals and reforms aimed at enhancing and modernising dispute resolution pro- cesses. These are as follows. • Law No 14.711/2023 allows for the extrajudicial enforcement of mortgage-backed credits, ena- bling creditors to enforce these credits outside the traditional court system. This reform is expected to streamline debt recovery and relieve court case- loads by offering a quicker alternative for creditors to secure repayment. • Bill No 3.293/2021 proposes updates to the Brazil- ian Arbitration Law, introducing limits on the num- ber of cases in which an arbitrator may participate,
guidelines on the duty of disclosure, and require- ments for increased transparency in arbitration by publicising information about arbitral proceedings. These measures seek to improve the integrity and accountability of arbitration in Brazil, though this bill is still under legislative consideration. • Bill No 6.204/2019 focuses on reducing court involvement in enforcement proceedings, aiming to simplify and expedite the enforcement process. This proposal underscores a broader shift towards minimising judicial intervention and promoting effi- ciency in dispute resolution. These reforms and proposals indicate a strong leg- islative trend towards optimising both arbitration and enforcement proceedings, though the timing of implementation for pending bills depends on legisla- tive approval processes. 14.2 Growth Areas The primary area of growth for commercial disputes in Brazil appears to be infrastructure and construction. This surge is fuelled by large-scale projects, public- private partnerships, and substantial investments in sectors such as energy, transport, mining, and urban development. These high-stakes projects often lead to conflicts related to contract execution, delays, cost overruns, and regulatory issues, making infrastructure a focal point for commercial dispute growth. Additionally, cor- porate and M&A disputes are increasing, especially as companies navigate complex transactions, share- holder agreements, and restructuring processes.
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