Litigation, arbitration and dispute resolution
When property owners decide to file an eviction action against tenants, all means of repossessing the property have generally been exhausted. This indicates the urgency that lessors have in obtaining a preliminary court order that the property be returned.
With the extinction of so many airlines in Brazil over the last 20 years, it is essential to conduct an analysis of the factors that led these companies to fail, one after the other, unable to reorganize financially in order to continue operating in the market.
One of the biggest controversies under the Company Judicial Reorganization Act (LRE) is the limit on the Judiciary's role in controlling the legality of the judicial reorganization plan. Recently, this discussion has gained another chapter. In deciding Special Appeal No. 1.630.932/SP, filed by a São Paulo company in judicial reorganization, the Superior Court of Justice (STJ) ruled that the Referential Rate (TR) is valid as a criterion for correction of bankruptcy claims, if so approved by the creditors.
Signed by the President of the Republic on September 20, Executive Order No. 881/19, the Economic Freedom Executive Order, was converted into Law No. 13,874/19, instituting the Declaration of Rights of Economic Freedom, which establishes rules for the protection of free initiative and the free exercise of economic activity.
Law No. 9,307/96 (the Arbitration Law), which regulates arbitration in Brazil, has provided in its article 1, paragraph 1, since the changes introduced by Law No. 13,129/15, that the "direct and indirect public administration may use arbitration to settle disputes concerning alienable property rights." It was already possible, therefore, to submit for arbitration disputes between private and public entities over compensation amounts due to an act of expropriation (which clearly concern alienable property rights).
Two ordinances amended the rules governing recall campaigns in Brazil earlier this half of the year. The standards modernize the regulations of the procedure imposed by the Consumer Protection Code (article 10, paragraphs 1 and 2) whenever the supplier becomes aware of the possibility of having introduced into the Brazilian market a product or service that poses a risk to the health or safety of the consumer.
The Brazilian Securities and Exchange Commission (CVM) and the Superior Court of Justice (STJ), in two decisions in the first half of the year, made it clear that hotel operators may only be held liable for irregularities or damages in the offering of condo hotels if they participated actively in the efforts to sell the ideal fractions to buyers.
The Special Court of the Superior Court of Justice (STJ) advanced to put an end to the controversy over the limitations period applicable to claims based on contractual civil liability. In a judgment last May 14, the Justices decided, by a majority vote (7x5), that the ten-year statute of limitations is what is appropriate in these cases.
On May 14, the Fourth Panel of the Superior Court of Justice (STJ) reaffirmed its understanding that the presence of the same parties is not necessary to give rise to lis pendens in collective actions in which a party with extraordinary standing appears due to procedural substitution.
The 3rd Panel of the Superior Court of Justice (STJ) affirmed, in a non-unanimous decision, that judicial reorganization plans approved by the majority of the creditors of a company undergoing judicial restructuring may suppress secured or unsecured guarantees, even without the express consent of the creditor who holds the guarantee.
The text of The Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (Hague Service Convention) was promulgated on March 21 through Decree no. 9,734/2019. Signed in The Hague on November 15, 1965, the Hague Service Convention was originally signed by six states and is now in force in 73 countries. With the enactment of Decree no. 9,734/2019, the Convention will come into effect in Brazil on June 1, 2019.
The exhaustive list of cases for filing interlocutory appeals provided for in article 1,015 of the Code of Civil Procedure (CPC) was the subject of a recent review by the Superior Court of Justice (STJ) in the judgment of Special Repetitive Appeals No. 1.704.520 and No. 1.696.396, which occurred on December 5, 2018.