Originally from The Law and Practice of International Arbitration: Essays in Honor of John Fellas – Preview Page

1. INTRODUCTION 

Over the past two decades, arbitration has established itself as the preferred mechanism for resolving complex commercial disputes in Brazil. Although the country adopted the Brazilian Arbitration Law (Law No. 9.307/96, the “BAL”) in the mid-1990s, it was only after the Supreme Federal Court (in Portuguese, Supremo Tribunal Federal or “STF”) finally confirmed the law’s constitutionality in 2001 that arbitration truly took root.2 Since then, Brazil has seen rapid growth in the number of arbitration cases, institutions, practitioners and internationally attended arbitration conferences, establishing itself as a serious player in both domestic and international arbitration.3 

The BAL, inspired by the UNCITRAL Model Law, is recognized internationally as a modern statute for both domestic and international arbitration. The judiciary has played an instrumental role in fostering a mostly pro-arbitration environment.4 Brazilian courts generally uphold party autonomy, recognize the authority of arbitral tribunals to rule on their own jurisdiction (Kompetenz-Kompetenz), and intervene in arbitral proceedings only in exceptional circumstances. This consistent judicial support has reinforced arbitration as a reliable and secure forum for dispute resolution in Brazil. 

Despite its significant progress, arbitration in Brazil is still a relatively young and evolving field. As its use became more widespread and institutionalized, new challenges have emerged.5 One such challenge concerns the arbitrator’s duty of disclosure and, more specifically, the uncertainty regarding which facts give rise to a “justifiable doubt” as to an arbitrator’s independence and impartiality. While this issue is not unique to Brazil, the lack of clear statutory standards and inconsistent jurisprudence has led to a rise in annulment actions based, sometimes abusively so in the Authors’ view, on alleged breaches of disclosure requirements.