BRAZIL Law and Practice Contributed by: Godofredo Mendes Vianna, Camila Mendes Vianna Cardoso and Lucas Leite Marques, Kincaid | Mendes Vianna Advogados
regulates the multi-modal transport of cargo in Brazil and sets forth the rules for the issuance of multi-modal bills of lading and the rights and obligations of the multi-modal transport operator. In addition, there are a number of domestic commercial laws dealing with sea transport and the bill of lading, such as the 1850 Commercial Code, the National Tax Code and, mainly, the 2002 Brazilian Civil Code, which is the most com - plete and important legislation in terms of private and commercial law in Brazil. 4.2 Title to Sue on a Bill of Lading All parties to the contract of carriage represented by the bill of lading have title to sue, such as the con - signee, the shipper or the carrier, who are entitled to file a claim in the case of a breach of contractual obli - gations. The subrogated underwriters of the cargo are also entitled to a recovery lawsuit against the carrier under the bill of lading. 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages The general rule in Brazil, set forth in the Brazilian Civil Code, is that anyone who causes damage to the other party must fully compensate the damages caused. As Brazilian law does not provide for punitive damages, as a rule indemnity is limited to the direct damages suffered by the party. Indirect losses are generally excluded, unless otherwise agreed. Moreover, Article 750 of the Brazilian Civil Code establishes that the carrier’s liability is limited to the value inserted in the bill of lading. Liability may also be limited by the par - ties under a contract. However, if the contract is con - sidered a contract of adhesion, the limitation clause might be considered null and void by Brazilian courts. 4.4 Misdeclaration of Cargo While there is no specific rule regulating liability for the misdeclaration of cargo in Brazil, general liability rules would apply in such a situation. Therefore, a car - rier that suffers damages due to the misdeclaration of cargo by the shipper would, in principle, have a claim against the shipper. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo In general, a three-year time bar applies to indem - nity and civil lawsuits related to unlawful acts, as
prescribed by the Brazilian Civil Code. Specifically in relation to cargo claims resulting from sea carriage, Federal Decree No 116/1967 provides a one-year time bar from the date of discharge, similarly to the Law on Multi-modal Transportation (Law No 9,611/98) and the Law for Inland Carriage (Law No 11,442/2007). A time bar may be interrupted once at court, through a judicial notification. Once interrupted, the time bar is renewed for an equal period. It is not possible to extend the time limit by agreement between the par - ties, as this is a question of legal certainty that cannot be changed by the will of the parties. 5. Maritime Liens and Ship Arrests 5.1 Ship Arrests Brazil has not ratified the International Convention relating to the Arrest of Sea-Going Ships, 1952, nor the International Convention on Arrest of Ships, 1999. However, Brazil is part of the 1926 Brussels Interna - tional Convention for the Unification of Certain Rules of Law Relating to Maritime Liens and Mortgages, which, despite not providing rules for the arrest of ships, establishes additional credits that will be admit - ted under Brazilian law to give rise to an arrest. Usually, arrests are requested in Brazil following the rules prescribed by the Commercial Code, together with the Civil Procedural Code, which sets out the lat - ter of which sets out the possibility to request injunc - tions to seize assets, such as an arrest of a vessel. The Civil Procedural Code determines some requirements to be met, such as to show the probability of the right and that there is an element of urgency – eg, the ves - sel may attempt to leave Brazilian waters. 5.2 Maritime Liens Maritime liens in Brazil are governed by the Com - mercial Code and the 1926 Brussels Convention on Maritime Liens and Mortgages. Based on a joint inter - pretation of both of these, the following claims can be considered to give rise to maritime liens: • federal taxes; • legal costs and expenses; • claims resulting from the employment of the Mas - ter, crew and ship personnel;
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