BRAZIL Law and Practice Contributed by: Arthur Villamil and Yuri Luna Dias, Villamil Advogados
plaintiffs to support the high costs of specific demands in leading cases. 2.4 Minimum and Maximum Amounts of Third-Party Funding As there is no regulatory framework, third-party fund- ing lacks a defined minimum or maximum amount, and funding amounts are determined by each funder’s policies, case value, and anticipated returns. 2.5 Types of Costs Considered Under Third- Party Funding Litigation expenses encompass several categories. These are as follows. • Fees for filing claims, costs related to summonses and other communications, and appeal fees. • Fees for experts, whether appointed by the court or selected by the parties. • Attorney fees. • Any additional costs associated with the litigation process. All these costs may be funded by third parties. 2.6 Contingency Fees Parties and their counsel are free to negotiate contin- gency fee arrangements. In addition to the success fees negotiated with their own attorney, there are also recovery costs and attorney fees. 2.7 Time Limit for Obtaining Third-Party Funding There are no specific time limits by when a party to the litigation should obtain third-party funding.
Code, with limitation periods varying based on the type of claim and the specific legal context. Key limita- tion periods are as follows. • General limitation period: the general limitation period for civil claims is 10 years if no specific term applies. This covers many civil obligations. • Contracts and negotiable instruments: a five-year limitation period applies to claims involving con- tractual debts and negotiable instruments, trig- gered from the moment the obligation becomes due. • Torts: claims involving torts (eg, personal injury or property damage) have a limitation period of three years, starting from the date the injury or damage was known to the injured party. • Consumer rights: under the Consumer Protection Code, claims against suppliers for defective goods or services must be brought within five years from the date the consumer became aware of the defect. • Employment law: employment-related claims have a shorter limitation period, with claims having to be brought within two years of the employment relationship ending. The limitation period generally begins when the claim- ant becomes aware of the facts that give rise to the claim or when the obligation becomes due. Certain events, like fraud or concealment, may toll or pause the limitation period. Courts strictly enforce limitation periods and bar claims filed after the statutory dead- line. Furthermore, intervening prescription also exists in Brazilian civil procedural law, especially when the debtor’s assets are not found in debt collection suits after a variable period of time. 3.3 Jurisdictional Requirements for a Defendant Jurisdiction over a defendant is generally based on the defendant’s domicile, the location of the obligation, and the case’s subject matter. State courts handle most civil cases, while federal courts oversee cases involving federal entities or specific federal matters.
3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
In Brazil, there is no formal, standardised requirement for pre-action conduct similar to those seen in some other jurisdictions. 3.2 Statutes of Limitations The applicable periods for statutes of limitations vary depending on the underlying matter. The statutes of limitations for civil lawsuits are governed by the Civil
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