Brazil Changes Legislation to Allow Arbitration in Government Contracts - WAMR 2006 Vol. 17, No. 8

Author(s):

Eduardo Grebler

Flávia Bittar Neves

Page Count:

1 pages

Media Description:

PDF from World Arbitration and Mediation Report (WAMR) 2006 Vol. 17, No. 8

Published:

August, 2006

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Author Detail:

Eduardo Grebler, Partner Grebler, Pinheiro, Mourão e Raso

Flávia Bittar Neves, Secretary General, Brazilian Chamber of Business Arbitration (CAMARB)

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Articles and Commentary

Brazil Changes Legislation to Allow Arbitration in Government Contracts

By Eduardo Grebler * & Flávia Bittar Neves +

Since the enactment of the Brazilian Arbitration Act of 1996, there has been

endless debate on the arbitrability of disputes arising from contracts between private

parties and governments, including State-owned companies. Brazilian scholars and

courts have been divided on this issue, leaving private parties to speculate as to whether

an arbitration clause contained in a contract would be enforceable or declared invalid

after the dispute has arisen.

In recent years, federal and state governments in Brazil realized that the

inefficiency of the judicial system affected investments in the infrastructure. Indeed,

various studies have circulated showing that the slow and bureaucratic distribution of

justice has played a decisive role in discouraging investments by domestic as well as

international investors.