PERU Law and Practice Contributed by: Renzo Salvatore Monroy Pino, Roberto Shimabukuro Miyasato, Anibal Jong Urtecho Gómez and Alexander Montenegro, Monroy & Shima Abogados
Important exceptions exist where court approval is mandatory. Cases involving minors or incapacitated persons require judicial review to protect their inter- ests. Public interest litigation, including environmental cases or consumer class actions, typically requires approval to serve the broader public good. Cases with state entities need approval from courts and govern- ment authorities. Family law matters such as divorce, custody and support arrangements require judicial review despite agreement. Settlements contravening public policy, fundamental rights or mandatory legal provisions cannot be approved regardless of consent. In these exceptions, courts review terms to ensure legal compliance and protection of vulnerable parties or public interests. 8.2 Settlement of Lawsuits and Confidentiality In Peru, settlement agreements between private par- ties can remain significantly confidential, with certain limitations. Pre-lawsuit settlements are entirely private and can include enforceable confidentiality provisions under contract law. For ongoing lawsuits, parties can either withdraw claims without stating settlement terms in court records or present general settlement agreements without detailing specific terms. Complete confidentiality faces practical limitations. Court filings acknowledging settlements become public record, even when terms remain private. Cases requiring court approval need judicial review, creating limited official documentation. Settlements involving public entities are subject to transparency laws, limit- ing full confidentiality. While specific financial terms can be kept confidential through careful drafting, the settlement’s existence may remain in court records. Many parties maximise confidentiality through extra- judicial settlements with simple claim withdrawals or include liquidated damages provisions to deter con- fidentiality breaches. 8.3 Enforcement of Settlement Agreements In Peru, settlement agreement enforcement depends on whether the settlement occurred within or out- side judicial proceedings. For court-approved settle- ments, the agreement acquires the same force as a final judgment under Article 337 of the Civil Procedure Code, allowing direct enforcement without proving the underlying obligation again.
For out-of-court settlements, enforcement follows two paths: settlements formalised through notary public deeds qualify as enforceable documents under Article 688, allowing expedited enforcement; private agree- ment settlements require filing a claim to have the agreement recognised as an enforceable title before proceeding. During enforcement, courts can order specific performance, payment of agreed sums, or asset seizure if necessary. Debtors’ defences are lim- ited to proving payment or enforcement deadline expi- ration, creating a streamlined process that ensures properly formalised settlements provide reliable and efficient dispute resolution. 8.4 Setting Aside Settlement Agreements In Peru, settlement agreements can be invalidated under specific Civil and Civil Procedure Code circum- stances. Primary grounds include fraud (intentional misleading), duress (coercion), material mistake (fun- damental misunderstanding) and gross dispropor- tion (extreme bargaining power inequality resulting in unfair terms). Challenges must be filed within statutory limita- tions – typically two years for voidable transactions or ten years for void agreements. The challenging party bears the burden of proof, with courts balanc- ing settlement finality against protection from flawed agreements. Partial invalidation is possible for limited defects. Settlements violating public policy, involving impossible obligations or infringing inalienable rights can be set aside regardless of intentions, reflecting Peru’s approach of respecting settlements while safe- guarding against agreements undermining true con- sent or fundamental legal principles. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant In Peru, courts grant various remedies to successful litigants depending on claim nature. Monetary damag- es are most common, compensating for actual losses suffered. These typically include direct damages cov- ering actual losses incurred and lost profits for missed economic opportunities. Courts may also award moral
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