Special report: Arbitration
Roberto Guerrero, Guerrero Olivos
Fernando Mantilla-Serrano,
partner in the Paris office of
Latham & Watkins, says a key
concern for clients is seeking a
“rapid resolution at a reasonable
cost”.
The costs associated with
arbitration represent a significant
opportunity, as well as a challenge
for law firms, according to José
Feris, a partner at Squire Patton
Boggs in Paris. “Clients are
now much more conscious and
demanding regarding costs,
particularly states and state-
owned companies, and they
expect flexibility, value for money
and an efficient use of resources
from the law firms they hire,” he
says. Feris adds that parties often
resort to arbitration if the dispute
has a high level of technical
complexity and is international in
nature. “Without a doubt, Brazil
continues to be the leader in the
region in terms of the number
of arbitration cases, as well as
growth rates, and this is reflected
in the opening of an ICC office in
the country due to the demand
from both the domestic and
international markets,” according
to Feris. According to the ICC,
Brazil is the Latin American
country that has seen the sharpest
rise in arbitration cases.”
Shortage of lawyers
Growth in the use of arbitration
in Brazil is due to measures taken
over the last 15 years to promote
this form of dispute resolution –
this has involved the legislature
and judiciary, as well as the local
legal community, says Feris. He
The increase in arbitration cases in Chile is most evident in the construction, energy
and mining sectors
www.thelatinamericanlawyer.com
José Feris, Squire Patton Boggs
adds that this promotional effort
has not only taken place in Brazil’s
largest cities, but also in other
areas – this is unlike the situation
in Mexico where the majority of
arbitration cases are concentrated
in Mexico City.
Such measures have meant
that many companies and
industry sectors have switched
from litigation in the courts to
arbitration as their main method
of dispute resolution, not only
at an international level, but also
domestically. Meanwhile the
public administration in Brazil
has also adopted arbitration,
and even passed laws that
oblige parties to settle disputes
via arbitration. However, Feris
acknowledges that the lengthy
duration of arbitration cases is
a concern for clients, while the
shortage of arbitration lawyers
is also a problem. There are
also some question marks
about the processes adopted in
some cases. “In some regions
there is a lack of available
arbitration lawyers, and this
often leads to a poor process
and low-quality decision-
making, and that has led to
a search in Latin America for
foreign arbitration lawyers,”
Feris says.
Be proactive
According to Yves Derains,
Paris-based founding
partner of Derains &
Gharavi International, the
December 2018 • THE LATIN AMERICAN LAWYER • 25
>>