The Jurisdictional Character Of Arbitration And The Arbitral Precedent

• Author: Suzana Santi Cremasco - Tiago Eler Silva
• Position: PhD Student at Universidade de Coimbra - Portugal - LL.M from London School of Economics and Political Science, United Kingdom
• Pages: 184-204

184 VI ANUÁRIO BRASILEIRO DE DIREITO INTERNACIONAL | V. 2

The Jurisdictional Character of Arbitration and The Arbitral Precedent

suzanasantiCremasCo

1

tiagoeLersiLva

2

Resume

Um dos aspectos mais polêmicos sobre o instituto arbitral é sobre a natureza (ou

ausência) jurisdicional da arbitragem. E de acordo com o presente trabalho, citando alguns

expoentes da doutrina, a resposta é afirmativa. Contudo, a partir deste ponto, diversas outras

questões se depreendem como qual seria o efeito do caráter jurisdicional nos laudos arbitrais,

especialmente sobre sua extensão e uso como precedentes para casos futuros. Considerando

que os laudos arbitrais tem contando constantemente com mais pontos de similaridade com

as decisões judiciais em sua estrutura, efeitos e limitações, este trabalho pretende discutir se,

assim como as decisões judiciais, os laudos arbitrais podem ser usados como precedentes e

caso afirmativo, se devem ser considerados como referencia para casos futuros ou devem

ser tratados de acordo com a doutrina do stare decisis, não servindo apenas de referência

para árbitros no futuro, mas sim ditando uma solução aplicável aos casos que virão.

Abstract

One of the most polemical questions concerning the arbitral institution is whether

the arbitration has or not jurisdictional nature. And according to this paper, quoting

some doctrinal exponents the answer is affirmative. But from this point, some other

questions are raised such as what effects does this jurisdictional character has in the

arbitral awards concerning to its extension and its use as precedents to future cases.

From the point that arbitral awards become constantly more and more alike judicial

decisions in its structure, effects and limitations , the paper intends to discuss whether,

just like judicial decisions, arbitral awards can be used as precedents, and if so, if

they should be just references to future cases or should be taken according to stare

decisis doctrine, not serving as references to arbiters but further, dictating the solution

applicable to the cases to come.

Keywords

Arbitration – Jurisdictional Function – Precedents – Stare Decisis Doctrine –

Jurisprudence Constante

1 PhD Student at Universidade de Coimbra – Portugal. LL.M from Federal University of Minas Gerais (UFMG). Professor of Arbitration

at UFMG and at Center for Studies in International Law (CEDIN). Coordinator at the Center for Studies in International Law (CEDIN).

Member of the Brazilian Institute for Procedural Law (IBDP) and the Brazilian Academy of Civil Process Law (ABDPC), and Brazilian

Arbitration Committee (CBAr). Attorney-at-law.

2 LL.M from London School of Economics and Political Science, United Kingdom. LL.B from Federal University of Minas Gerais

(UFMG). Member of the Center for Studies in International Law (CEDIN).

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The Jurisdictional Character of Arbitration and The Arbitral Precedent 185

Summary

1. Arbitration as an alternative resolution method of conflicts.

2. The jurisdictional character of arbitration.

3. Principles applicable to arbitral jurisdiction.

4. The Jurisdictional Character of Arbitration and its effects on the arbitral

awards.

5. Difference between the precedent as an earlier case and the precedent as stare

decisis

6. The use of precedents in arbitration proceedings. 7. The precedents and ICSID´s

arbitral awards. 8. Conclusion. 9. Bibliographical References

The existence of conflict is inherent to life in society. The excess of demands and the

scarcity of goods needed for the satisfaction of such demands, along with the predatory

and selfish character that usually permeates human nature3, are often responsible for

placing individuals in opposed sides of disputes that require solutions.

Since the very beginning and throughout the history of civilization, the law has

always sought to create, recognize and improve the mechanisms for the settlement of

conflicts, given the unequivocal assertion that the preservation of peace and social

order, through the use of suitable methods, are indispensable to the maintenance and

survival of the individual and, in the final analysis, of society itself.

In this scenario, arbitration presents itself, fundamentally, as one of those methods

for the resolution of conflicts. More precisely, it is the mechanics of the composition

of disputes by which natural or legal persons, as long as they are capable of entering

into contract, reciprocally agree to trust the judgment of disputes involving alienable

rights to a court formed by one or more arbiters, chosen specifically for this purpose,

and having been nominated by the parties or not.

It is a method of conflict settlement in the way that it establishes a method of acting, a

path to be followed, from the realization of the existence of a controversy involving two

or more people that claims to be solved, to the achievement of the solution that presents

itself as the most convenient and fair for the situation. It comprehends, therefore, a

series of coordinated, continuous and preestablished acts, whose sole purpose is the

composition of the existing conflict, being this composition the result of the work of

third parties external to the conflict. The action of the third party classifies arbitration

among the so-called neutral third party dispute composition methods.

Arbitration is a special modality of dispute resolution that, even though is meant

for natural as well as legal persons indifferently, requires for its use the coexistence of

two fundamental requisites: a) the full juridical capacity of the parties involved in the

3 MANCUSO, Rodolfo de Camargo. A resolução dos conflitos e a função judicial no Comtemporâneo Estado de Direito. São Paulo: RT,

2009, p.35.

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