mARCH 2012 www.lawyer-monthly.com Global Arbitration 21

In addition, I am a member of the Commercial Arbitration Committee, in the International Law Association, and an arbitrator at the most

important Portuguese arbitration Centre of Lisbon Commercial Association. José Carlos Soares Machado

Nowadays arbitration is a safe and sophisticated jurisdiction that attracts the best lawyers, national and internationally. This is a safeguard for choosing this method of dispute resolution.

There have been too, it is true, some

troubles, some difficult situations and some abuses or inanities from arbitrators. You have to choose well and be aware of the risks.

The only situation where I would prefer

court action is in complex cases, when arbitration clauses do not bind every party or every claim that arises from a legal relationship.

Q

The recent breakdown in relations between carmakers Suzuki and Volkswagen has recently pushed Suzuki to demand that Vw submit to arbitration as it attempts to force the company to sell a 20% stake it owns in the Japanese group. what are your opinions on this case?

It is a dispute that, as far as I know, has not yet reached the courts and that both parties will most probably want to submit to arbitration. It is of course a very good example of a case where the several inconveniences of going to court will certainly recommend the choice of international arbitration.

Q

Do laws and regulations differ for domestic companies, as opposed to foreign companies?

Not at all. In Portugal, the Arbitration Act

recently passed in Parliament is applicable to domestic and foreign companies without any particular difference.

Q

How do you assist clients involved in arbitration? Is there any general advice you could offer clients to prevent the situation from escalating?

Basically, we think that we must always be making a profound risk evaluation of the dispute, its facts and applicable law, as well as all the opposite party probable arguments, since the very beginning of a pre/litigation phase, and then permanently during the subsequent phases of the case. It is very important to give the clients an objective view of their cases and help them to see them in a correct perspective.

Q

Do you foresee the need for legislative change in 2012, if so why?

Our new Arbitration Act, recently approved, is entering into force in March 2012. It is an entirely new law based on the UNCITRAL Model Law, version of 2006. It includes provisions over interim measures, including the section about preliminary orders. Confronted with the previous law, it is a huge step towards the modernization of Portuguese arbitration. Note that this Act applies both to domestic and international arbitration. The following years will, undoubtedly, test the advantages and disadvantages of the new law. Only after some years or practice the need for changes will arise.

The Government is willing to legislate on mediation and has publicly presented

a legislative project over the subject. Mediation is still not applied to business disputes in Portugal, but I would argue that in the future will be a common way of conflicts resolution. LM

CONTACT:

José Carlos Soares Machado Partner

Rua Dom Francisco Manuel de Melo, 21 1070-085 Lisbon Portugal

Tel: +351 21 313 20 00

Email: soares.machado@srslegal.pt Website: www.srslegal.pt