As of August 2015, the First Instance Courts for Bankruptcy and Insolvency will also rule any and all lawsuits filed in the city of São Paulo related to the Brazilian Arbitration Act (Law No. 9.307/1996). This measure was established by the resolution No 709/2015 of the State of São Paulo Appellate Court and follows efforts established by the Brazilian National Council of Justice.
As a result, those judges must also adjudicate (i) provisional and injunctive reliefs before the constitution of the arbitral tribunal, (ii) parties' disagreements on the rules of the arbitral proceeding, (iii) motions for recognition and enforcement of an arbitration agreement, (iv) enforcement of arbitral awards, and other potential cases related to arbitration.
The resolution aims to increase the judges' knowledge on arbitration and to promote the culture of precedents, since only a few judges will decide cases related to the subject. Bankruptcy and Reorganization judges, however, are already overloaded with an increasing number of cases and, therefore, additional delays might be expected.
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