BRAZIL Law and Practice Contributed by: Arthur Villamil and Yuri Luna Dias, Villamil Advogados
1. General 1.1 General Characteristics of the Legal System Brazil is a constitutional state, organised as a fed- eration, and operates under a civil law system com- bining the features of inquisitorial and adversarial approaches, with a judge playing a central role in managing proceedings. The judge has the authority to independently order collection of evidence, but the parties involved are also called upon to cooperate in this. Proceedings are mainly conducted through writ- ten submissions, although there are opportunities for oral submissions. Unlike systems that utilise juries, Brazil relies on a sin- gle judge to evaluate all submissions and evidence before delivering an initial verdict. In appellate courts, cases are reviewed by a panel, ensuring a level of oversight and consistency in rulings. The Superior Court of Justice (STJ) and the Supreme Federal Court (STF) serve as the pinnacle of the judicial hierarchy, handling appeals on matters of law and constitutional interpretation. 1.2 Court System Brazil’s judicial hierarchy begins with the STF, which has ultimate jurisdiction over constitutional matters. Below it is the STJ, which is tasked with ensuring uni- form interpretation of federal law by reviewing appel- late court decisions. At the appellate level, cases are typically heard by a panel of three judges, while first instance courts generally have a single judge presiding over cases. In the first instance, cases are conducted and adjudicated by a single judge, with all evidence collection exclusively undertaken at this stage. Within the general court system, there are both fed- eral and state courts. Federal courts handle cases involving the federal government or its entities, such as federal agencies and federal tax. State courts, on the other hand, have jurisdiction over all other matters not specifically assigned to federal courts and are well distributed across the country. Specialised courts in Brazil include labour, electoral, and military courts. In major cities, courts are often organised by speciality, such as family, commercial,
intellectual property, and insolvency, to better address specific types of legal issues. 1.3 Court Filings and Proceedings Judicial proceedings are generally public and open for any individual to access. Since 2019, electronic sys- tems have been widely adopted across most jurisdic- tions, enabling full online access to case files. How- ever, some exceptions exist, such as cases involving arbitration; the enforcement of arbitral awards; family law matters; and competition and antitrust disputes. Furthermore, parties may petition for confidentiality in specific cases, provided they present valid reasons, although the final decision is at the discretion of the judge. 1.4 Legal Representation in Court As a rule, parties must always be represented by an attorney appointed through a power of attorney. Only Brazilian lawyers, registered with the Brazilian Bar Association (OAB), are permitted to act in judicial proceedings in Brazil. In specific proceedings in small claims and labour courts, parties are not required to be represented by an attorney. A corresponding power of attorney must also be included in the case records. However, people with proven low income can count on a public defender system. Third-party litigation funding is possible, and it has been gaining acceptance, especially in complex com- mercial and arbitration cases. However, the practice is still relatively new and lacks specific regulation. 2.2 Third-Party Funding: Lawsuits There is no specific regulation in terms of third-party funding. Third-party funding is uncommon, but when it does occur, it is typically in litigation involving nego- tiable rights (such as property, damages, reimburse- ment, insurance, and compensation, among others). 2.3 Third-Party Funding for Plaintiff and Defendant Third-party funding is available to both plaintiffs and defendants. However, it is more commonly used by 2. Litigation Funding 2.1 Third-Party Litigation Funding
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