In Brazil, can a contract force mediation before arbitration, and what if I want to skip mediation?
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Diego Marialva - Advocacia
â Question: In Brazil, can a contract force mediation before arbitration, and what if I want to skip mediation?
Answer:
Yes. Under Brazilian law, a contract can validly require mediation as a mandatory step before arbitration â this is commonly known as a multi-tier dispute resolution clause or pre-arbitration mediation clause.
This type of clause is recognized and enforceable under both the Brazilian Mediation Law (Law No. 13,140/2015) and the Brazilian Arbitration Law (Law No. 9,307/1996), provided that the process is clearly defined â for example, by specifying the mediation center, applicable rules, and time limits.
ð In practice:
If the contract requires mediation before arbitration, skipping this step may cause the arbitral tribunal or the chosen arbitration chamber to suspend or reject the arbitration until the mediation requirement is fulfilled. Essentially, the mediation serves as a contractual condition precedent to arbitration.
âąïļ Timelines:
Most Brazilian arbitration institutions (such as CAM-CCBC, CIESP/FIESP, and CBMA) provide short pre-arbitration mediation periods, typically lasting 30 to 60 days, unless the parties agree to extend them. If no settlement is reached within that timeframe, arbitration can proceed without any procedural risk.
âïļ In summary:
Pre-arbitration mediation clauses are valid and enforceable in Brazil;
Bypassing mediation may delay the arbitration process;
Completing mediation â or formally showing you attempted it â protects your right to arbitrate and may even save time and costs if a settlement is reached.
If you want to move forward efficiently, itâs crucial to review your contractâs dispute resolution clause and document your compliance with the mediation step before filing for arbitration.
ðAbout the firm:
Diego Marialva Law Office specializes in complex litigation, mediation, and domestic and international arbitration, assisting companies and individuals in drafting and enforcing arbitration clauses, as well as representing clients in strategic dispute resolution proceedings.
ðđ Practice Areas: Business Law, Arbitration, and Dispute Resolution
ðđ Based in: SÃĢo Paulo, Brazil â serving clients nationwide
Dr. MaurÃcio Ejchel
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