Mandatory Arbitration of Intra-Corporate Disputes in Brazil: A Beacon of Light for Shareholder Litigation?

Mandatory Arbitration of Intra-Corporate Disputes in Brazil: A Beacon of Light for Shareholder Litigation?

Patricia Gil Lemstra, Joseph McCahery

Series number :

Serial Number: 
525/2020

Date posted :

June 09 2020

Last revised :

June 09 2020
SSRN Share

Keywords

  • arbitration • 
  • shareholder litigation • 
  • Mandatory Arbitration Provisions • 
  • Mediation

We survey law firms, firms and institutional investors to better understand their preferred method of intracorporate dispute resolution in Brazil. Consistent with a number of theories, we find that these organizations prefer arbitration to judicial claims as the method of intra-corporate dispute resolution.

Our findings suggest that their choice of arbitration is based on the parties’ preferred ranking of objectives: quality of the decision; time to resolution; and costs. We find that parties choose to resolve disputes involving up to US$ 2.5 million through mediation or conciliation. We also find that arbitration and mediation or conciliation are almost equally preferred methods for intra-corporate dispute resolution involving values above US$ 2.5 million.

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Published in

Published in: 
Publication Title: 
Cambridge International Handbook of Class Actions (Brian Fitzpatrick & Randall Thomas, eds.) (Cambridge University Press, 2020, forthcoming).

Authors

Real name:
Patricia Gil Lemstra
Professor
Real name:
Joseph McCahery
Research Member
Tilburg University Faculty of Law and Tilburg Law and Economics Center