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Brazilian Superior Court of Justice: arbitrator non-disclosure alone insufficient to annul award; parties must investigate and raise conflicts promptly (Raphael Brandão Moreira v ESHO, 18 June 2024)

Published on: 16 August 2024

Published by a LexisNexis Arbitration expert
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Article 14, paragraph no 1 of the Brazilian Arbitration Act stipulates that individuals appointed as arbitrators must reveal any circumstances apt to raise justifiable doubts about their neutrality and independence. Despite this rule, until recently Brazilian judicial case law left uncertain (i) the repercussions of an arbitrator’s breach of the disclosure obligation and (ii) how that sat alongside a party’s continuing duty to investigate during the arbitration. On one side, in matters such as Munich Re v Safra (Appeal No 1055194-66.2017.8.26.0100, 6 August 2021) and Fazon (Appeal No 1056400-47.2019.8.26.0100, 11 August 2020), the São Paulo Court of Appeals determined that an arbitrator’s non-disclosure suffices to annul an arbitral award, irrespective of the character of the undisclosed point. Conversely, in Raphael Brandão and another v Esho (Appeal No 1097621-39.2021.8.26.0100, 22 November 2022), that same court concluded that a failure to disclose does not, by itself, invalidate the award. The result was a split in approach: some courts favoured annulment purely for omission, while others required more than non-disclosure alone before ultimately disturbing the validity of the award...

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