The New Brazilian Arbitration Law

This article selects four landmark events: the enactment of Law No. 9.307 on Sept. 23, 1996 (the “1996 Arbitration Law”); (ii) the recognition of the constitutionality of such law by the Supreme Court in 2001; (iii) the ratification of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 2002; and (iv) the enactment of Law No. 13.129 on May 26, 2015 (the “Amendment”). The first three events are analyzed jointly with the fourth event, in order to identify novel important legal issues involving arbitration in Brazil: (a) subject arbitrability concerning state and state entities; (b) the compromise between institutional rules and parties’ choice by means of changes at the roster of arbitrators and multiparty arbitration, focused at reduction of arbitral awards annulment risks; (c) the amendment of arbitration agreement by using terms of reference, which adjusts limitation periods by the exact date of its interruption; (d) the annulment of arbitral awards and its application in precedents; (e) the provision concerning foreign awards recognition and enforcement, which is closely identified with the New York Convention on the Recognition and Enforcement of Arbitral Awards (“NYC”), strictly interpreted by the Superior Court of Justice in several foreign arbitral decisions recognition precedents; (f) the ‘arbitral letter’, also included and provided as a mechanism of cooperation between arbitrators and courts; finally, (g) the inclusion of arbitration agreements in bylaws of Brazilian corporations, in order to face the growing disputes involving companies since the enactment of the Constitution in 1988