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ARTICLE · 06 SEPTEMBER 2019

Brazilian Superior Court Of Justice Rules That Arbitration Clauses Cannot Be Dismissed By Consumer Protection Code

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An arbitration clause cannot be dismissed by the rules of the Consumer Protection Code (CDC), and arbitral tribunals must rule on the validity of the arbitration agreement prior to a Brazilian judicial

BrazilLitigation, Mediation & Arbitration
Gustavo Fernandes De Andrade
Gustavo Fernandes De Andrade
João Marçal Martins
João Marçal Martins
Gustavo Scheffer Da Silveira
Gustavo Scheffer Da Silveira
Maria Rita Dutra
Maria Rita Dutra
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An arbitration clause cannot be dismissed by the rules of the Consumer Protection Code (CDC), and arbitral tribunals must rule on the validity of the arbitration agreement prior to a Brazilian judicial court under the Kompetenz-Kompetenz principle.

This was the recent ruling of the Third Panel of the Brazilian Superior Court of Justice (STJ) in a special appeal (REsp 1.598.220) filed by Sonangol Hidrocarbonetos Brasil Ltda. (Sonangol) against TPG Indústria e Comércio Ltda. – Me (TPG). Sonangol prevailed,  confirming the validity of the arbitration clause entered into between the parties—and the pro-arbitration stance of the STJ.

The case involved the question of whether an arbitration agreement could be directly dismissed by Brazilian courts by an analogical application of the CDC.

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