PORTUGAL Law and Practice Contributed by: José Luís da Cruz Vilaça and Mariana Tavares, Antas da Cunha Ecija
feared harm would be irreparable or difficult to remedy through subsequent legal action, and that urgent judi - cial intervention is required. In addition, the court will consider whether granting the injunction would cause disproportionate harm to the respondent’s interests, and may deny relief where the balance of hardships weighs against intervention. Injunctive relief can be requested either before or during the main proceedings. If granted prior to the commencement of the main proceedings, the applicant must file the substantive claim within 30 days. In appropriate circumstances, the court may issue injunctive measures without prior notice to the respondent. Applicants may be required to provide security to cov - er potential damages if the injunction is later found to be unjustified. If the claimant ultimately fails in the main action, the injunctive relief will lapse, and the respondent may claim compensation for any losses incurred. In cases of private enforcement involving claims for compensation, Portuguese law allows creditors to request precautionary the seizure of the debtor’s assets if there is a credible risk of losing the patri - monial guarantee of a claim. This involves a judicial seizure intended to preserve assets in anticipation of a future judgment. Similarly, where there is a justi - fied fear that relevant assets or documents may be concealed, dissipated or otherwise lost, creditors may request an official description and deposit of such items to ensure their preservation. 10.2 Alternative Dispute Resolution ADR methods are available in Portugal, but they are not mandatory. Under Article 2 (s) of the Private Damages Act, ADR methods include mechanisms such as mediation, arbitration, conciliation and settlement agreements that allow parties to resolve damages claims outside of court. If parties engage in ADR, court proceedings between them are suspended for up to one year. Settlement agreements can limit further claims against settling
infringers and restrict the right of non-settling co- infringers to seek contribution from those that have settled. Courts must also take prior settlements into account when determining contribution among co- infringers.
11. Funding and Costs 11.1 Litigation Funding
Third-party funding is available in Portugal, particu - larly in the context of class actions. It remains a devel - oping area with ongoing judicial scrutiny and evolving legal standards. While such funding was historically rare, its use has increased significantly, especially in consumer- focused collective actions. The law mandates that the funder’s compensation must be fair and propor - tionate, taking into account the nature and risk of the proceedings. In class actions brought to protect consumer inter - ests, the legal framework governing third-party fund - ing is set out in Article 10 of the Private Damages Act on representative actions. The law requires claimants to submit a copy of the funding agreement to the court. This document must be written in Portuguese and include a financial summary detailing the sources of funding and a breakdown of costs and expenses covered by the funder. Any subsequent amendments or supplemental agreements must also be disclosed. The funding arrangement must guarantee the inde - pendence of the claimant and the absence of any con - flicts of interest. The claimant is expected to retain full control over the procedural aspects of the litigation, including the selection of legal counsel, litigation strat - egy, and decisions on whether to settle or appeal. The funder is expressly prohibited from influencing these decisions. If the funder has a conflict of inter - est, such as being a competitor of the defendant, the representative action will be deemed inadmissible. 11.2 Costs The general rule is that the losing party bears the costs associated with the proceedings.
131 A NTITRUST LI T IGATI O N 2026
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