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Brazil: São Paulo court annuls award over arbitrator’s duty of disclosure; prior counsel ties and public domain defence rejected (Orion v Engie)

Published on: 13 May 2025

Published by a LexisNexis Arbitration expert
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Article summary

Orion Geradora de Energia Joint Venture 2 Ltda v Engie Brasil Energia Comercializadora Ltda, Apelação Cível No 0024255-13.2023.8.26.0100, Court of Appeals of the State of São Paulo

What are the practical implications of this case?

The Brazilian Arbitration Act (Federal Law No 9,307/1996) treats arbitral independence and impartiality as a cornerstone of the process. Accordingly, prospective arbitrators are bound to disclose any circumstance that might give rise to 'justified doubts' regarding their impartiality and independence. Moreover, disputes about an arbitrator's neutrality and autonomy may justify annulment of arbitral awards.

In recent years, Brazilian courts have adopted differing views on what constitutes 'justified doubts' as to an arbitrator's impartiality and independence. They have also diverged on salient aspects, including:

  • (a) whether the pertinent details are in the public domain;
  • (b) how far the parties must co-operate to secure comprehensive disclosure;
  • (c) whether the parties are under a duty to carry out their own checks on prospective arbitrators; and
  • (d) the extent to which a non-disclosure, by itself, may constitute a 'justified doubt' as to an arbitrator's impartiality and independence...

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