BRAZIL Law and Practice Contributed by: Arthur Villamil and Yuri Luna Dias, Villamil Advogados
cessful party is appropriately compensated and that justice is served based on the specifics of the case. 9.2 Rules Regarding Damages The legal framework for damages is centred on com- pensatory damages, which aim to fully restore the injured party by covering actual losses. These dam- ages include material damages, such as lost profits, repair costs, or medical expenses, and moral dam- ages, which address non-material harm like emotional distress or damage to reputation. For moral damages, the assessment is more subjective, and the courts determine the compensation based on the severity of the harm. Punitive damages are not recognised in Brazilian law and are not typically awarded. Brazilian law follows the principle of full reparation, and there are no fixed caps on compensatory or moral damages, but judg- es use their discretion to ensure fair and proportional awards, preventing unjust enrichment, especially in the case of moral damages. 9.3 Pre-Judgment and Post-Judgment Interest Pre-judgment interest accrues based on the nature of the obligation. For contractual liability, interest begins to accrue from the date the losing party is served with the lawsuit. In cases of non-contractual liability, such as torts, interest accrues from the date of the damaging event. Interest is also subject to inflation adjustments to preserve the real value of the awarded amount. Post-judgment interest starts accruing from the date of the judgment until the final payment is made, and it is also adjusted for inflation to maintain its value. There are no statutory caps on the total amount of pre- or post-judgment interest, ensuring that the suc- cessful party is compensated fairly for any delays in receiving payment. 9.4 Enforcement Mechanisms of a Domestic Judgment The enforcement of a domestic judgment is primarily carried out through a cumprimento de sentença pro- cedure, which the prevailing party can initiate once the judgment is final and unappealable. This action is
filed in the same court that issued the judgment and is designed to compel the losing party to comply with the court’s decision. For monetary judgments, the court can order the seizure of the debtor’s assets, such as freezing bank accounts, seizing property, or garnishing wages, and may impose fines or interest for delayed payment. For non-monetary judgments, which require specific actions like delivering goods or performing an act, the court can enforce compliance through daily fines to encourage adherence to the judgment. 9.5 Enforcement of a Judgment From a Foreign Country Enforcing a foreign judgment involves a homologação process before the STJ. The party seeking enforce- ment must file a petition with the STJ, including a certified copy of the foreign judgment, a Portuguese translation, and proof that the judgment is final in the issuing country. The STJ reviews whether the foreign judgment meets criteria such as the competence of the foreign court and adherence to due process. The respondent can present defences, but the STJ does not re-examine the case’s merits. If the STJ recognises the judg- ment, it can then be enforced as a domestic judgment through a separate action in Brazilian lower courts, using standard enforcement measures.
10. Appeal 10.1 Levels of Appeal or Review to a Litigation
The Brazilian legal system provides multiple levels of appeals and review mechanisms to ensure the fair- ness and consistency of judicial decisions. After a trial court issues a final judgment, a party may file an appeal ( apelação ). This appeal is used to chal- lenge the trial court’s final decision, whether it grants or denies the relief sought by the claimant. It allows for a comprehensive review of both the facts and the legal arguments presented in the case. The appeal is directed to a second instance court that reassesses
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