Arbitration moves R $ 6 billion and grows as an alternative to the judiciary in business disputes

THE arbitration has gain more and more space among companies when it comes to corporate disputes, concessions, fusions and other types of contracts. The model is an alternative to judiciary which involves agility, confidentiality and impartiality.

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In 2024, arbitral disputes moved about R $ 6 billion in Brazil, according to the Arbitration and Mediation Center of the Brasil-Canada Chamber of Commerce (CAM-CCBC).

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The number of new cases in the year was 126, which represents growth of 7.7% compared to the previous year. The average value in dispute was R $ 56 million.

Considering all cases in progress, the amount goes to 482. The average duration of the processes closed by 2024 was 26.5 months.

According to Ricardo de Carvalho Aprigliano, vice president of CAM-CCBC, the model has become a strategic tool for Brazilian companies.

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“Arbitration has grown consistently in recent years, especially because it offers a private mechanism for complex dispute solutionwhich is carried out with all procedural guarantees, more quickly and with specialized judgments, ”he says.

Disputes take place in various sectors such as Agribusiness, Energy, Civil construction, Financial, Health and Telecommunications.

According to Aprigliano, almost half of the arbitral proceedings involve corporate disputes, covering conflicts in companies purchase and sale operations, corporate reorganizations and clashes between shareholders.

“The second preponderant block is infrastructure themes, especially the conflicts related to electricity, such as the implementation of new projects, construction of energy plants and marketing,” he says.

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Among sectors, he also highlights agribusiness disputes, related to the corporate reorganization of companies in the sector; supply of inputs; and disputes on agro financing tools.

Despite being a private conflict resolution, state -owned companies also use the model. In 2024, there were 3 new arbitration involving state -owned companies, totaling 37 processes in progress.

Last year, CAM-CCBC ended 91 arbitration processes. It is noteworthy that, unlike the Common Justice, there is no possibility of appealing the decision of an arbitral sentence. The average length of processes closed by 2024 was 26.5 months.

Confidential, Technical and Fast

While business proceedings can drag itself for over a decade, arbitration has resolved millionaire or even billionaire disputes in less than three years.

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In traditional justice, judges are designated by the state and the lawsuits follow a fixed and public rite. Arbitration is a private path, provided for in contracts, made confidentially, with referees elected by the involved themselves.

The arbitral way is regulated by the Arbitration Law (9.307/1996). In 2001, the Supreme Federal Court (STF) Declared the constitutional law, allowing conflicts to be resolved without the need for later judicial approval.

The vice president of CAM-CCBC also points out that the model is relevant to the business environment, which can often not expect years and years for a final decision of the judiciary.

Different from mediation, in which a third facilitates dialogue for the parties to reach an agreement in themselves, the arbitration involves the decision of the arbitral tribunal, whose sentence has mandatory strength, such as that of a judge.

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Aprigliano holds a PhD in Civil Procedural Law and professor at the Faculty of Law at USP. He also acts as an arbitrator and points out that anyone can be chosen to fulfill the function.

“Brazilian law does not require the arbitrator to have a legal formation, only that it is capable, acts with impartiality and independence, diligence and discretion,” he says. Although most professionals come from law, it is not a legal requirement.

According to him, the most common model involves three referees: one nominated for each party and the third, president of the arbitration court, chosen for consensus between the first two. In exceptional cases, the House itself can appoint professionals.

In the capital market, companies listed in the new market of B3 They are required to predict in their statutes the use of arbitration as a way to resolve disputes with shareholders, counselors and administrators.

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In these cases, the controversies are administered by the Market Arbitration Chamber (CAM-B3), linked to the bag itself. According to Aprigliano, the requirement is associated with the corporate governance requirements required for adherence to the segment.

“Companies choose to include arbitration as a requirement to put themselves in this specific capital market segment, and B3 indicates the market arbitration chamber as the institution that will manage these disputes,” he says.