10/02/2025
Arbitration is a well-established dispute resolution method in Brazil, largely due to its adaptability and capacity for self-regulation, driven by the active engagement of the specialist in this domain.
As a field that constantly evolves, arbitration experienced significant innovations in 2024, such as the publication of new guidelines on arbitrators’ duty of disclosure, the increased use of arbitration alongside other dispute resolution methods, and the end of the controversy regarding the applicability of the Civil Procedure Code (“CPC”) to arbitration proceedings.
In the next paragraphs, we will delve into the main highlights in arbitration in 2024.
New Guidelines on the Duty of Disclosure. The scope of arbitrators’ duty of disclosure is a recurring topic of analysis within the arbitration community, both at the national and international levels, especially because of the importance of maintaining trust in the arbitral system. Therefore, to assist in evaluating situations that may compromise an arbitrator’s impartiality and/or independence, the International Bar Association (“IBA”) reviewed, in 2024, its Guidelines on Conflicts of Interest in International Arbitration (“IBA Guidelines”), originally published in 2004. Among the updates, the revised guidelines now establish that arbitrators should not accept an appointment if they are bound by professional secrecy and therefore are unable to disclose relevant information.
The Civil Procedure Code is Inapplicable to Arbitration. After assessing whether the CPC should be applied subsidiarily to arbitration proceedings, the Superior Court of Justice (“STJ”) ruled that the arbitral system operates autonomously from the CPC, in the case of Special Appeal n. 1.851.324/RS. The judgment, in line with prevailing legal doctrine, concluded that even subsidiary application of the CPC is inappropriate, reaffirming that the Brazilian Arbitration Act clearly defines the limited circumstances in which the CPC may be applied in domestic arbitrations and that, in the absence of an agreement on the procedural rule or an applicable arbitration chamber’s rule, the arbitrator is responsible for deciding on the approach to be followed.
Considerable Development of Adequate Dispute Resolution Methods. Undeniably, arbitration has reached a high level of maturity in Brazil. As a result of its strengthening, and in response to increasing market demand for other dispute resolution mechanisms, it has been noted that the use of other Adequate Dispute Resolution methods, such as mediation and dispute boards, has expanded alongside arbitration. The use of these methods has proven beneficial for arbitration stakeholders because they ensure a faster resolution while preserving long-term commercial relationships.
UNCITRAL Model Clauses. UNCITRAL developed four Model Clauses on Specialized Express Dispute Resolution that can be adapted to the specific needs of the parties involved, such as the Model Clause on Highly Expedited Arbitration that seeks to accelerate arbitration proceedings without compromising due process, as well as the Model Clause on Technical Experts that provides for the appointment of specialists to aid the arbitral tribunal in decision-making based on technical expertise.
Therefore, 2024 was a successful year for both domestic and international arbitration. The arbitration community’s responsiveness to market demands, combined with the judiciary’s support for arbitration – in the spirit of cooperation between the two jurisdictional spheres –, reflects the ongoing success of the arbitral system and allows reinforces arbitration’s role in Brazil and internationally, including by integrating it with other dispute resolution methods.
Co-authored by: Silvia Rodrigues Pachikoski, Mariana Dias Sallowicz, Gabriel Rogenfisch Quintans, José Victor Palazzi Zakia and Julia Guimarães Rosseto
