Mandatory Arbitration of Intra-Corporate Disputes in Brazil: A Beacon of Light for Shareholder Litigation?
Cambridge International Handbook of Class Actions (Brian Fitzpatrick & Randall Thomas, eds.) (Cambridge University Press, 2020, forthcoming).
33 Pages Posted: 6 Apr 2020 Last revised: 9 Jun 2020
Date Written: April 2, 2020
We survey law firms, firms and institutional investors to better understand their preferred method of intra-corporate 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.
Keywords: Arbitration, Shareholder Litigation, Mandatory Arbitration Provisions, Mediation
JEL Classification: K22, K41, K42
Suggested Citation: Suggested Citation