ABSTRACT
This chapter explores the existing literature and case law in order to investigate the role of transnational public policy in contemporary international litigation. It is quite a challenging task to understand the notion of transnational public policy and its function amidst a wide range of cases and opinions. The treble damage remedy has been controversial in international arbitration and tribunals have shown hesitance in applying the Act, even when the applicable law is US law. The tribunal, then, proceeded to apply the law that 'best fits the need of the international business community' which it found to be lex mercatoria. In other words, tribunals should apply mandatory rules only if there is a 'strong and legitimate interest to justify the application of such a law in international arbitration'. The Brazilian party objected to the arbitration proceedings, arguing that the Brazilian Constitution prohibited such arbitration proceedings as being against Brazilian public policy.
