Brazilian Court of Appeals decides Petrobras’s shareholder shall resort to arbitration in indemnity claims

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Brazilian 4th Regional Federal Court (Federal court of appeals) decided, unanimously, to dismiss an appeal of a shareholder after an unfavorable lower court decision, which considered that the existence of an arbitration clause in Petrobras’s bylaws compels all shareholders, who should resort to arbitration in any indemnity claims.

The court judgment emphasized shareholders could not abstain from adhering the clause, since the Company’s rules are accessible to everyone, under penalty of precluding its proper functioning.

It had also denied claimant’s allegation of impairment of the constitutional principle of access to jurisdiction, arguing that it shall apply only in case of abuse of rights or arbitrary or ilegal acts.

Finally, in accordance with first instance decision, it ruled that the legal provision regarding standard contracts does not apply, since the investor, unlike consumers, is expected to fully inform himself about rights, obligations and prerrogatives of his shareholder condition and shall not claim ignorance of company’s bylaws.

Sion Advogados counts with a highly qualified team to act in both domestic and international arbitrations and remain at disposal for any support or clarifications.

Check the full decision here in PDF. 

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