Brazil / 26 June 2007 / Brazil, Superior Tribunal de Justiça (Superior Court of Justice) / Guidosimplex Drive Ltda. v Cavenaghi, Cavenaghi e Companhia Ltda, / SEC 918
Country | Brazil |
Court | Brazil, Superior Tribunal de Justiça (Superior Court of Justice) |
Date | 26 June 2007 |
Parties | Guidosimplex Drive Ltda. v Cavenaghi, Cavenaghi e Companhia Ltda, |
Case number | SEC 918 |
Source |
http://www.stj.jus.br (Official Website of the Superior Tribunal de Justiça) |
Languages | Portuguese |
Summary | Guidosimplex Drive Ltda. (Guidosimplex) and Cavenaghi Cavenaghi e Companhia Ltda. (Cavenaghi) entered into a distribution contract in Italy containing an arbitration clause which provided for “Colégio Arbitral de Roma” arbitration. A dispute arose and an award was rendered in Italy. Guidosimplex sought recognition and enforcement (“homologação”) before the Superior Tribunal de Justiça (Superior Court of Justice). Cavenaghi opposed recognition and enforcement on the ground that Guidosimplex lacked standing to request the enforcement of the award since it had not participated in the arbitration proceedings. Cavenaghi also argued that the award was rendered beyond the scope of the arbitration agreement, pursuant to Article 38(IV) of the Brazilian Arbitration Act (which mirrors Article V(1)(c) NYC), because the arbitral tribunal had awarded damages as penalty for a breach of contract although there was no penalty clause in the contract. The Superior Tribunal de Justiça granted recognition and enforcement to the foreign award based on the Brazilian Arbitration Act. It dismissed the contention based on the lack of standing because it found that there was a valid representation agreement which granted standing to Guidosimplex despite the fact that it had not participated in the arbitral proceedings. Regarding Cavenaghi’s argument that the award exceeded the scope of the arbitration agreement, the Superior Tribunal de Justiça ruled that the issue pertained to the merits and therefore dismissed the argument. |
Attachment (2)
Original Language Adobe Acrobat PDF |
Unofficial Translation Adobe Acrobat PDF |