Contributed By Demarest Advogados
Arbitration cases related to Brazil and/or involving Brazilian parties are mostly concentrated in infrastructure and construction disputes, or undisclosed contingencies related to the acquisition of companies or assets in Brazil.
On the construction and infrastructure front, the granting of consent to arbitrate by State Entities, Agencies, Instrumentalities and Governed Owned Companies (together “Government Entities”) has recently enhanced these trends. These consents are usually expressed by the passing of laws, regulations and ordinances setting forth the subjective and objective limits for entering into arbitration with these Government Entities.
On the corporate front, disputes have increased due to the repercussions of the recent financial and economic crises the country has met and also as a consequence of recent corruption scandals that have been unveiled. The imbalances in consortium and joint venture agreements tainted by corruption have triggered the filing of several disputes for the proper allocation of responsibilities among the different consortium or joint venture members.