Originally from Baker and McKenzie International Arbitration Yearbook 2014-2015

A. LEGISLATION, TRENDS AND TENDENCIES

A.1 New Civil Procedure Code to Favor Arbitration in Brazil

On December 16, 2014, the Brazilian Senate approved the text of the New Civil Procedure Code (“NCPC”), a federal statute regulating judicial proceedings before federal and state courts nationwide, which will come into force by early 2016.

The NCPC responds to widespread clamor for swifter administration of justice in Brazilian courts and provides for increased institutional reliance on and support of ADR mechanisms. Judges will be required to foster amicable conciliation of lawsuits, and appellate courts will provide conciliation and mediation facilities and make available a roster of conciliators and mediators. For instance, the NCPC provides for a conciliation hearing to be held after service of process and before the defendant is required to submit its answer. This conciliation hearing can also be converted into a mediation under the NCPC.

The NCPC also includes regulations on the cooperation between arbitral tribunals and state courts. It provides for the use of an arbitral letter (carta arbitral), through which arbitrators may request and obtain court support in favor of arbitration. In addition, the NCPC provides for confidentiality of the judicial proceeding related to an arbitration that is subject to confidentiality. The NCPC also regulates the recognition and enforcement of foreign arbitral awards, consolidating the favorable treatment granted by current case law and under the terms of the New York Convention.