It is an alternative form of solving a dispute, which in Brazil can be
used when it involves available assets. Arbitral decision is reached by
one or more arbitrators (always in uneven numbers) based on a private
set of rules, and agreed upon by the parties, having the same value as
a judicial decision.
was the Arbitration process adopted under Brazilian Law?
Under Federal Law Nº 9.307 dated 09.23.96, also known as Marco
Maciel law. This law enables parties to solve their disputes by
means of alternative means, without being obliged to submit them to the
official state justice.
Read more about the constitutionality of Law 9.307/96 by clicking here
Conducts the Arbitration Process ?
Arbitration is conducted by a trained Arbitrator, freely chosen by the
parties, usually associated to an Institution. This professional uses
methods and techniques to reach a solution, and is empowered by the parties
to do so.
are some of the most important characteristics of Arbitration ?
Arbitration is based on the good faith and autonomous will of the parties.
In Arbitration, the parties choose the Arbitrator, contrary to what happens
in an Official Judiciary process. Since it is not a state sponsored form
of solving disputes, all acts and facts are maintained confidential. In
other words they are free from becoming public. An Arbitration process
is conducted by an impartial third party who will pronounce his Arbitral
Sentence, which has the same effect as a Judicial Sentence.
Qualities should an Arbitrator have ?
He must conduct the process with impartiality, independence, competently,
diligently and with discretion. In Brazil, Arbitrators are liable to the
same punishments as the civil servants, in case of professional misconduct.
They in fact and lawfully practice a public function.
does Arbitration Work?
Arbitration in Brazil must be performed under rules established in Federal
Law 9307/96, as well as according to the Internal Covenants of an Arbitration
Institution, and finally in accordance to the Arbitrators Code of Ethics.
According to the Arbitration Law it is up to the parties to choose which
specific legislation the process should be based upon, or whether it should
be based on the principle of equity.
kind of disputes may be solved by Arbitration?
In Brazil the law stipulates that any kind of conflict, when involving
available assets and capable persons, may be solved by arbitration.
does one mean with available assets?
These are assets or rights immediately available to the owner, which can
for example be sold or negotiated at any time.
much does Arbitration cost to the parties?
When the Arbitration is conducted by a Private Arbitration Institution,
fees will be charged according to the Institution´s price list,
which is informed in its covenants.
When adhoc Arbitrations take place, fees are negotiated directly between
the parties and the arbitrator(s).
na Arbitral Sentence legally valid ?
An arbitral sentence is equivalent to a sentence obtained in a Justice
Tribunal. When an Arbitral decision is reached one cannot appeal to the
state justice. To appeal one will have to continue in the sphere of private
arbitration, with a tribunal of Arbitrators of three or more (always uneven
numbers). This will keep it a quick and diligent process. It may however
be legally cancelled, if conditions exist for such a decision.
is na Arbitral Sentence executed ?
As a in a Judicial Sentence, the Arbitral Sentence as an executive order
is executed by means of an executive judicial process.