Brazil Produces Major Decision On Confirmation Of Foreign Awards

Arbitrator's failure to disclose potential conflict of interest prevents confirmation of foreign arbitral award in the country

In a widely publicized decision rendered on April 19, 2017, the Superior Court of Justice (STJ) held that an arbitrator's failure to disclose material facts affecting his independence and impartiality precludes the confirmation of the respective arbitral award in Brazil, as it violates the national public policy.

The case stemmed from the sale of the Ometto sugar cane and ethanol business to the Spanish company Abengoa. The Spanish company commenced arbitration proceedings under the auspices of the ICC, in which it basically sought damages arising from seller's alleged misrepresentation concerning the crushing capacity for one of the mills.