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Paper wants to take the dispute with J&F for Eldorado Celulose to Paris

Indonesians criticize Brazilian judiciary and say they are forced to go to foreign jurisdiction.

From the Editors

 

Friday, January 17, 2025

 

Updated at 08:45

 

Paper Excellence, involved in the turbulent dispute over the failed purchase of Eldorado Celulose, has taken an unusual step by appealing to the International Chamber of Commerce (ICC), based in Paris, to contest what it describes as procedural abuse by J&F. As is known, companies are litigating on several fronts after  the arbitration in which they participated was challenged in court.

 

According to information released by Folha de S.Paulo and the newspaper O Globo, Paper is seeking that the CCI order J&F to pay US$ 3 billion (approximately R$ 18 billion).

 

This strategy by the Indonesian company raises questions about the limits for invoking an international arbitration court, especially when this may represent an affront to national sovereignty and disrespect for the decisions of the Brazilian Judiciary.

 

Mise-en-scène

 

The impasse began in 2017, with negotiations for the sale of Eldorado Celulose. When the deal was about to be concluded, obstacles arose that prevented its closing. Paper accuses J&F of hindering the finalization of the agreement, while J&F claims that Paper failed to comply with previously agreed clauses.

 

In view of the mutual accusations, the dispute was submitted to a Brazilian arbitration court. In 2021, an arbitration award was issued, apparently ending the conflict. However, based on art. 33 of the Arbitration Law, J&F challenged the impartiality of the arbitrators and sought to have the decision annulled in court.

 

This legal process gave rise to successive appeals and various questions.

 

 

After setbacks in Brazilian jurisdiction, Canadian company appealed to foreign arbitration court. 

Goodbye

 

In view of these developments, Paper, apparently dissatisfied with the exercise of the right to petition by J&F, and disregarding settlement initiatives - including an attempt that was being made within the scope of the STF -, took its dissatisfaction to a foreign arbitration court.

 

In the arguments presented, although it denies it, Paper indirectly attacks the Brazilian Judiciary by claiming that J&F abuses its right to litigate thus justifying its choice of Paris. The company asks the ICC to recognize Paris as the appropriate forum to resolve the impasse, claiming that it is neutral. For those who read carefully, it is implicit that, in Paper's view, Brazil would not offer this neutrality - so much so that, as an alternative, the company requests that, if another headquarters is chosen, it should not be in Brazil.

 

It is worth noting that, in the event of the alleged abuse of the right to litigate, the Brazilian legal system has effective instruments to curb such practice, without the need to resort to international courts.

 

If this is not the case, Paper's attitude could be interpreted as a simple nonconformity with the complexity inherent in the business environment or, worse, as disrespect for the Brazilian Judiciary. Such conduct is especially serious coming from a company from Indonesia - a country that still adopts the death penalty (it was abolished here in 1889) - which puts in check the Judiciary of the 8th largest economy in the world, known for being home to multinationals for over a century, in a healthy business environment.

 

Even though Paper insists that this is not a generalized criticism of the national Judiciary, the distrust it casts on Brazilian decisions is evident, questioning the competence and integrity of our Justice system.

 

Déjà vu

 

Arbitration, although recognized by the Judiciary as a legitimate means of resolving conflicts, cannot ignore the limits imposed by national sovereignty and judicial control.

 

Still regarding the request made in France, the reader of the document tells us that there is no more, no less, than 17 times the word frivolous or "frivolity" in the text, demonstrating, therefore, that there are frivolities in abundance, literally.

 

In this sense, between frivolities and abuses, it is appropriate to remember the old and wise Freudian rule: when so-and-so talks about so-and-so, more is revealed about so-and-so than about so-and-so.

 

 link: https://www.migalhas.com.br/quentes/423097/paper-quer-levar-disputa-com-a-j-f-pela-eldorado-celulose-para-paris