Brazilian (not so) timid take on transnational jurisdiction: OGX Austria included in the Brazilian bankruptcy

I had recently commented on OGX bankruptcy.

Specially about the possible inclusion of its foreign subsidiaries in the Brazilian bankruptcy.

At the end of the first post, I said:

Brazilian general procedural rules are very cautious when dealing with extraterritorial competence. In general terms, only companies with a permanent place of business in Brazil (or, at leas, a fixed representative here) can be included in litigation procedures as if they were nationals.

Third, the judge has claimed that including foreign subsidiaries in the Brazilian bankruptcy would amount to piercing the corporate veil.  He didn't elaborate much, but I think his reasoning was that doing so would be unfair to other foreign partners who might participate in the OGX Austria, for example. Also, the arbitrary inclusion of foreign controlled companies could pave the way for the inclusion of foreign investors in the bankruptcy. This would generate and absurd jurisprudence, that could upset markets and make Brazil an undesired place for the world's money. 

I think the Judge was right. Let's see what the court of appeal will say about it. 

The Court of Appeal has had its say, and declared that: OGX'S international  unit in Austria, OGX Austria GmbH, must be added to its bankruptcy filing in Brazil. (check the Reuter's report here)

This is singular and extraordinary.

 I think this is the most audacious decision on transational jurisdiction ever made in Brazil. It will certainly be the leading case for similar situations. 

Is there any Austrian lawyer among the readers that may iluminate how is Austria going to handle this?

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Brazilian lawyer in Europe - part 4 - Moot competitions

A great international law-related event that takes place in Vienna once a year around Easter is the Willem C Vis International Commercial Arbitration Moot Competition, in which I had the pleasure to participate in 2006.

The Moot was created 1993, organized by University of Vienna and Pace Law University (New York, USA) as the result of a joint desire to develop the study of international commercial arbitration through the application of the UNCITRAL Model Law on International Commercial Arbitration and the United Nations Convention on Contracts for the International Sale of Goods (CISG).

The Vis Moot, as it is kindly referred to, is an educational event for law students and it runs around a fictitious problem released by the organization involving a commercial controversy that arises out of a sales contract between parties located in different countries that have ratified the CISG. Normally, according to the contract any controversy shall be resolved by arbitration, in the country of Oceania, a Model Law jurisdiction, following the rules of an international arbitral institution (the institution varies from year to year).

The work for the students is to act as attorneys for the parties and to develop their legal arguments, encompassing issues of arbitration and of the contractual controversy, in written memorials and in oral pleadings that take place in the Juridicum (University of Vienna’s Law School).

It is an amazing learning experience that has been strongly contributed to the formation of great international lawyers across the globe, but also an incredible opportunity to meet people from around the world, from different legal backgrounds and different cultures, all united for the same purpose: discussing international commercial law.

And, of course, keeps Vienna ever more relevant, and the work of the Uncintral scholars who meet here ever more vivid.

I love this city.

By the way, the Vis Moot problems are hard!