BRAZIL Law and Practice Contributed by: Arthur Villamil, Villamil Advogados
serving 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, especially mediation and arbitration, are increas- ingly encouraged as efficient and effective alter- natives 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 con- ducted 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 com- mercial 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 emphasises 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 traditional 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 gen- erally well organised and continue to gain promi- nence in Brazil. Organisations like the Brazilian Arbitration Committee (CBAr) and Chambers of Mediation and Arbitration are reputable, provid- ing structured ADR services with trained media- tors and arbitrators, standardised procedures, and international affiliations. Many chambers, 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 Arbitra- tion 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 servic- es across the country, offering ADR for a range of cases from commercial and contractual dis- putes to family and consumer matters. Public awareness and confidence in ADR are rising due to the strong institutional support and effective implementation of ADR practices.
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