Positive Effect of the Arbitration Clause

Positive Effect of the Arbitration Clause – 1

4-/-0/1997 – Appeal 191/97-070 C – 6th Civil Chamber of the Rio de Janeiro State Supreme Court (TJRJ) – Biobrás vs. Merck

Negotiations regarding the extension of technology transfer, raw material supply and trademark use agreement – Agreements previously terminated – Negotiation documents containing an agreement to arbitrate evidenced by an arbitration clause – Unsuccessful negotiations – Agreement terminated without the signing of extension instruments – Suit for damages grounded on the breach of covenants during negotiation – Defendant’s objection to arbitration – Denied – Positive effect of the arbitration clause denied, since negotiation documents were not used for preparing the agreements – Appeal denied

Positive Effect of the Arbitration Clause – 2

4-/-0/2002 – Appeal 28808/2001 C – 6th Civil Chamber of the Rio de Janeiro State Supreme Court (TJRJ) – Evadin vs. Mitsubishi

Termination of long term agreement – International agreement involving parties of multiple nationalities – Agreement to arbitrate evidenced by an arbitration clause – Agreement prior to Law No. 9,307 – Suit for damages arising from agreement termination – Allegation that arbitration clause is a rule absolute, ruled by the law in force at the time the agreement was entered into (lack of positive effect of the arbitration clause) – Allegation that positive effect of the arbitration clause violates the mandatory jurisdictional control doctrine – Allegations refuted – Appeal denied

Positive Effect of the Arbitration Clause – 3

8-/-0/2005 – Special Appeal 712566/RJ SP – Superior Court of Justice (STJ) – Espal vs. Wilhem Fette

Agency agreement entered into in 1955, before the enactment and effectiveness of Law No. 9,307 – Agreement containing an agreement to arbitrate evidenced by an all-embracing arbitration clause – Agreement entered into in Germany, thus international – Cognitive proceeding dismissed without prejudice, grounded on the new rules introduced by the Brazilian Law No. 9,307 and Code of Civil Procedure – Objection to arbitration granted – Decision upheld – Special Appeal alleging violation to the rules concerning laws’ non-retroactive effect – Assertion that the outcome of an objection to arbitration would be the same (dismissal) based on the agreement being subject to the Geneva Protocol of 1923 – Assertion that new rules introduced by the arbitration act and Code of Civil Procedure are immediately applicable when concerning procedural effects.