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6 - Mandatory Arbitration of Intra-corporate Disputes in Brazil

A Beacon of Light for Shareholder Litigation?

from Part II - The Americas

Published online by Cambridge University Press:  29 January 2021

Brian T. Fitzpatrick
Affiliation:
Vanderbilt University School of Law
Randall S. Thomas
Affiliation:
Vanderbilt University School of Law
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Summary

Over the last two decades, policymakers and researchers have shown an interest in resolving shareholder disputes through mandatory arbitration and a ban on class actions. Litigation is increasingly seen as problematic due to the increase in nuisance lawsuits and the increase in settlement value, the costs of which are ultimately borne by shareholders. Earlier literature has examined the benefits of mandatory arbitration across several contexts, including Delaware corporate law. While researchers have identified several important benefits of mandatory intra-corporate arbitration, such as reduced cost and delays, relatively little is known about the attitudes and interests of the parties − such as corporations, limited liability companies, small and medium-sized enterprises, their law firms, and institutional investors − regarding intra-corporate conflicts and dispute resolution via mandatory arbitration.

Type
Chapter
Information
The Cambridge Handbook of Class Actions
An International Survey
, pp. 93 - 108
Publisher: Cambridge University Press
Print publication year: 2021

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