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São Paulo wins specialized courts in disputes arising from arbitration

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8/21/2015 2:55 PM Demarest News

At the example of other Brazilian States, The Court of Appeals of São Paulo (TJSP) has just broadened the jurisdiction of its benches for judicial reorganization and bankruptcy, who are now in charge of all litigation related to arbitration.
 
Even though arbitration takes place outside the state courts, parties very often need to request judicial remedies aiming urgent injunction, enforcement of arbitral decisions or procedural orders, as well as to challenge the validity of arbitration awards they might deem illegal.
 
In São Paulo, the city that seats the most of arbitrations in Brazil, all such litigation will therefore be analyzed and ruled exclusively by the three benches of judicial reorganization and bankruptcy, now under the name of "Benches for bankruptcy, judicial reorganization and conflicts related to arbitration" (Varas de Falências, Recuperações Judiciais e Conflitos Relacionados à Arbitragem).
 
In force since July 29, 2015, the changes result from Resolução n. 709/2015, which aims to fulfill Meta (benchmark) 2 of the National Council of Justice (CNJ). Such Meta 2 targets "the attribution of jurisdiction to two civil benches among those functioning in the capitals, to process and rule conflicts related to the arbitration act, transforming them in specialized judges in this subject matter".
 
The measure does not affect ongoing procedures, being applicable only to litigation brought forward after July 29, 2015.
 
Specialization is welcome, as the complexity and specialty of the conflicts in connection with arbitration, as well as the advance of this dispute resolution method in Brazil.
 
The in-depth knowledge of the magistrates will give rise to reasonable length of procedure, quality of decisions and predictability, as the criteria for judgment will be consistent. The judges of the corporate benches that deal with judicial reorganization and bankruptcy have broad knowledge on corporate law, which makes them still more appropriate to deal with litigation that now will be exclusively handled by them.
 
Demarest Advogados has a Litigation and Arbitration team that focus its practice and attention in all trends of laws and regulations, superior and state courts and arbitration institutions, in order to counsel in day-to-day matters their clients and friends.
 
To read the full text of the new regulation, please access:
 
1. Even though the resolution mentions the 1st, 2nd and 3rd Courts of Bankruptcy, Court-Supervised Reorganization and Arbitration Disputes, there are only two Courts currently operating in the Courthouse João Mendes Júnior.
 
Demarest Advogados
 
César Rossi Machado crmachado@demarest.com.br +55 11 3356-2196

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