Brazilian Court sets scope of arbitrator disclosure duty (U. R. V. Ltda v C. de P. de C.)
Arbitration analysis: The São Paulo State Appellate Court vacated an arbitral award on the grounds of lack of sufficient disclosure by one of the arbitrators. The decision presents multiple topics, but the discussion on the effects of lack of disclosure will probably produce more immediate impact on Brazilian practice. It held that an arbitrator's failure to disclose ongoing and significant professional relationships with counsel of one party undermined confidence in impartiality, warranting nullification of the award. This decision underscores the delicate balance between ensuring transparency and avoiding disclosure overload. The case prompts consideration on whether Brazil's arbitration regime requires additional legislative intervention or refined institutional practices to guide arbitrators and parties. Written by Martim Della Valle (partner at Marchini, Botelho, Caselta, Della Valle Advogados) and Felipe Sartório de Melo (arbitration counsel at Marchini, Botelho, Caselta, Della Valle Advogados).