The arbitration agreement

The arbitration agreement is considered the ‘foundation stone’ of arbitration, typically setting out where, how and under what circumstances arbitrations between parties are to be conducted.

This subtopic contains practical guidance on the arbitration agreement and related matters. The various Practice Notes consider the nature, content and scope of the arbitration agreement, the doctrine of separability of the arbitration agreement, and the relevance of the New York Convention in this particular context. Guidance on how the law of the arbitration agreement may be determined is also provided, as well as content on how to effectively incorporate an arbitration agreement into a contract, the factors that may prevent an arbitration agreement from being upheld, and what disputes may be arbitrated (ie arbitrability). Guidance on the closely-related concept of the seat of arbitration (or arbitral seat) can also be found in this subtopic, as well as information on multi-party and multi-contract arbitrations, the impact of the Contracts (Rights of Third Parties) Act 1999 on arbitration, and unilateral option clauses.

Generally speaking, this subtopic provides guidance on the arbitration agreement under English and Welsh law and the

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Drawing the line—court review of arbitral institutions’ administrative decisions in Brazil (Vale v B3 & others)

Arbitration analysis: Reversing a first-instance judgment that had dismissed the claim for lack of jurisdiction and legal standing, the São Paulo Court of Appeals held that Brazilian courts may review administrative decisions rendered by arbitral institutions prior to the constitution of the arbitral tribunal. The dispute concerned a decision by the President of the Market Arbitration Chamber (CAM) applying Article 3.6 of its Rules to appoint all three arbitrators and to disregard respondent Vale S.A.’s prior appointment of a co-arbitrator. The court held that the provision presupposes both a plurality of parties and an actual ‘absence of consensus’, which was not present in the case at hand, as the multiparty claimants acted jointly and with convergent interests up to that stage of the proceedings. It further held that the statutory right of each party to appoint a co-arbitrator under the Brazilian Arbitration Act cannot be displaced by institutional discretion in such circumstances. The decision reinforces the judicial control over institutional acts that affect fundamental procedural rights in arbitration and clarifies the São Paulo Court of Appeal’s stance on the distinction between jurisdictional and administrative acts in arbitration. Written by Renato Stephan Grion, partner at Pinheiro Neto Advogados, and Thiago Del Pozzo Zanelato, senior associate at Pinheiro Neto Advogados.

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