BRAZIL Law and Practice Contributed by: Eduardo Perazza, Glaucia Coelho, Débora Chaves Martines Fernandes and Agnes Domingues, Machado Meyer
2. Litigation 2.1 Limitation Periods Limitation periods in Brazil vary depending on the nature of the claim. • General rule – ten years for civil actions where no specific term applies. • Five years applies to claims involving contractual debts and enforcement of litigation costs. Under the Consumer Protection Code, claims for com- pensation for damages caused by a product or service accident (product/service liability) are also subject to a five-year limitation period. • Three years applies to general civil liability claims and for unjust enrichment. This is perhaps the most relevant period for commercial disputes. 2.2 Court Structure Brazil operates a dual-track judicial system under the Federal Constitution, comprising both ordinary and specialised courts. State Courts State Courts handle the vast majority of commercial disputes at first instance. Each of Brazil’s 27 states (including the Federal District) has its own court sys- tem. First-instance decisions are reviewed by State Courts of Appeal. Federal Courts Federal Courts of first instance have jurisdiction over disputes involving federal entities, federal taxes and matters of federal interest. Appeals are heard by the Federal Regional Courts, which are organised into five regions covering the entire country. Specialised Courts In addition to the ordinary court system, Brazil has specialised branches for specific subject mat- ters. Labour Courts have exclusive jurisdiction over employment disputes. Electoral Courts handle mat- ters related to elections and political parties. Military Courts deal with crimes committed by members of the armed forces. Finally, Special Civil Courts offer expedited procedures for lower-value claims up to 40 minimum wages, providing a faster and more acces- sible forum for simpler disputes.
Higher Courts The STF sits at the apex of the judicial hierarchy, with exclusive jurisdiction over constitutional matters. The STJ is the highest court for non-constitutional federal law, ensuring uniformity in statutory interpretation. Brazil also has the Superior Labour Court (TST) for employment matters and the Superior Military Court (STM) for military justice. 2.3 Pre-Action Conduct Brazilian law does not impose a general duty to attempt settlement before filing suit. However, cer- tain claims against public entities (eg, social security benefits), consumer claims (eg, health insurance deni- als) and document disclosure lawsuits require demon- strating prior refusal by the opposing party. Failure to comply with pre-action requirements may result in dismissal for lack of interest. 2.4 Stages of Court Proceedings Brazilian civil proceedings follow a structured sequence: • initial petition and service of process; • mandatory conciliation/mediation hearing; • defence filing; • pretrial order defining the issues and evidence to be produced; • evidentiary phase; • final arguments; and • judgment. After judgment, parties may appeal to the State or Federal Courts of Appeal, and subsequently to the Superior Courts. Once a final judgment is obtained, the prevailing party initiates enforcement proceedings to compel compliance. Typical Duration A typical civil lawsuit takes approximately three years to reach a decision on the merits. Appeals to supe- rior courts may add another one to two years. After obtaining a favourable judgment, enforcement pro- ceedings may take five to six years to locate assets and complete the necessary procedural formalities.
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