Arbitration Clause and Acceptance: The Role of Silence and Fair Dealing in L'Aiglon S.A V. Têxtil União S.A. - A Brazilian Experience

Abstract

The acceptance of an arbitration clause usually occurs with the express agreement of both parties involved. Nevertheless, in certain cases, the silence of one party can be interpreted as consent thereof. This line of thought was adopted by the Brazilian Superior Court of Justice in pronouncing its first homologation of a foreign judgment, emphasizing the importance of preserving the principle of good faith and the principle of fair dealing, which, in conjunction, guide the parties towards the achievement of what was previously agreed upon. The article therefore calls attention to the remarkable decision of the Brazilian Superior Court of Justice, which showed a pro-arbitration approach by reinforcing the role of silence and fair dealing in arbitration proceedings.