BRAZIL Law and Practice Contributed by: Arthur Villamil, Villamil Advogados
13.4 Procedure for Enforcing Domestic and Foreign Arbitration The enforcement of domestic and foreign arbi- tration awards involves distinct procedures under the Brazilian Arbitration Law and interna- tional conventions like the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Domestic awards are enforceable in Brazilian courts similarly to court judgments, with no special formalities. If the losing party does not comply voluntarily, the prevailing party can file an enforcement action in a state court. The court will then enforce the award as it would any judi- cial decision, treating it as legally binding and final without re-examining the merits. For foreign arbitration awards, Brazil requires a recognition 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 interna- tional 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 resolu- tion processes. These are as follows.
• Law No 14.711/2023 allows for the extrajudi- cial enforcement of mortgage-backed credits, enabling creditors to enforce these credits outside the traditional court system. This reform is expected to streamline debt recov- ery and relieve court caseloads by offering a quicker alternative for creditors to secure repayment. • Bill No 3.293/2021 proposes updates to the Brazilian Arbitration Law, introducing limits on the number of cases in which an arbitra- tor may participate, guidelines on the duty of disclosure, and requirements 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 enforce- ment process. This proposal underscores a broader shift towards minimising judicial intervention and promoting efficiency in dis- pute resolution. These reforms and proposals indicate a strong legislative trend towards optimising both arbi- tration and enforcement proceedings, though the timing of implementation for pending bills depends on legislative approval processes. 14.2 Growth Areas The primary area of growth for commercial dis- putes in Brazil appears to be infrastructure and construction. This surge is fuelled by large-scale projects, public-private partnerships, and sub- stantial investments in sectors such as energy, transport, mining, and urban development. These high-stakes projects often lead to con- flicts related to contract execution, delays, cost
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