The Consolidation Of Arbitration Proceedings And The Judiciary

The Court of Appeals of São Paulo recently rendered an important decision related to the consolidation of arbitration proceedings.

The case originated from the collapse of the mining dam of Córrego de Feijão, in Brumadinho, in the State of Minas Gerais, a terrible tragedy that took place in early 2019, caused many deaths and had huge environmental impacts in the region.

After the disaster, the Instituto Brasileiro de Ativismo Societário e Governança (“IBRASG”), an NGO, and other co-plaintiffs submitted two arbitrations against Vale S/A (“Vale”), the owner of the dam, before the Arbitration Chamber of the Brazilian Stock Exchange (“CAM-B3”), alleging the violation of the company's duty to inform its investors and shareholders of the risks of its operations and requiring the compensation by Vale for alleged damages suffered by such investors and shareholders.