Brazil STJ Begins Hearing on Annulment of Foreign Arbitral Award
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TL;DR
- STJ is reviewing if Brazilian courts can annul foreign arbitral awards.
- Case concerns two banks and an arbitration held in New York.
- The rapporteur voted to allow Brazilian judicial review.
- This will be the STJ's first precedent on the issue.
Overview
The Brazilian Superior Court of Justice (STJ) is considering whether the country's judiciary has the authority to annul an arbitral award issued in a foreign jurisdiction.
The dispute centers on two banks who previously engaged in arbitration in New York concerning an acquisition.
The case represents the first time the STJ will set a precedent on this issue.
What Happened
The Superior Court of Justice (STJ) in Brazil has started reviewing whether the Brazilian judiciary can annul a foreign arbitral award.
The case involves two banks that were previously in arbitration in New York over the acquisition of one by the other.
Justice Nancy Andrighi, serving as the case's rapporteur, has cast the first vote in favor of admitting the case for judicial review by the Brazilian courts.
This marks the first time the STJ will set a precedent on the annulment of a foreign arbitral award.
Context
Arbitral awards are generally recognized and enforced across jurisdictions unless specific grounds for refusal or annulment exist under the New York Convention or local laws.
Brazilian courts have not previously set a clear precedent regarding their authority to annul foreign arbitral awards.
Why It Matters
- The case could establish whether foreign arbitral awards can be annulled by Brazilian courts, providing a precedent for future cross-border enforcement and review of international arbitration outcomes.
- This may affect the certainty and enforceability of international arbitral awards in Brazil's jurisdiction.
Sources
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Tribunal julga anulação de sentença arbitral estrangeira
valor.globo.com