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New way of dealing with conflicts (Brazil)

Rafael Herzberg's picture
Consultant energy affairs, Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

  • Member since 2003
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  • May 31, 2022

New way of dealing with conflicts

Conflicts are a natural part of business.The main question is how to solve them!

The classic way is to go to court. This is an expensive and time-consuming initiative.

The alternative (in Brazil) that is more widespread after Justice is Arbitration. It is generally an excellent path BUT it also involves significant financial resources and, although it is faster than the courts, it can take many months.

The proposal here is to initially suggest a Mediation.

Finding a Mediator who is neutral in the conflict, who knows about energy and who is accepted by the parties in conflict is the first step in seeking a solution.

Because it is essentially much simpler than Justice and Arbitration, and above all because it focuses on a negotiated solution between the parties, it explores a potential solution that has chances of being very successful.

Henry Craver's picture
Henry Craver on May 31, 2022

How can you ensure that the meditator is actually mutual? Especially in a part of the world where corruption runs rampant? 

Rafael Herzberg's picture
Rafael Herzberg on May 31, 2022

Hi Henry!

You brought a very important question! 

Mediation is potentially a great path for private companies and institutions - their environment tends to be healthier as compared to the Public sector.

Actually I have already participated in a number of arbitration cases involving private companies in connection with very large power contracts (deregulated markets).  The end result was a lot better when the comparison is the Justice. It took a fraction of the time to reach a conclusion and a fraction of the associated costs for both parties involved in the arbitration.


Rafael Herzberg's picture
Thank Rafael for the Post!
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