BRAZIL Trends and Developments Contributed by: Thaís Vasconcellos de Sá, Bermudes Advogados
Bermudes Advogados Praça XV de Novembro, 8th Floor Rio de Janeiro/RJ CEP 22010-010 Brazil Tel: +55 213 221 9000 Email: thaissa@sbadv.com.br Web: www.bermudes.com.br
Each crisis is unique, although they are all inher- ently complex and multifaceted by nature. Any and all steps taken for crisis response will be under considerable scrutiny by the authorities, the media and the general public. A misstep can not only lead to significant legal exposure and liability but can create turmoil that prevents the most well-intentioned company from surviving a crisis and from adequately addressing the impacts on itself, its employees and third par- ties. Navigating Through Brazilian Statutes and Courts As can be understood in much more detail in the Law & Practice section of this guide, the Brazil- ian legal framework has its challenges. The mul- tiple consequences of a crisis involve different legal statutes, and comprehending how these work together is not simple. Brazil is a civil law country, so legislation must take precedence over case law and other sources of law. While case law will provide guidance on interpretation, identifying consistency in the application of legal provisions by the courts may prove challenging. Historically, not many procedural pathways were available under the Civil Procedure Code to help form binding judicial precedents, though this is expected to change in the coming years with
the application of new procedural instruments introduced by the Civil Procedure Code of 2015. Despite the efforts of judges, a clear and con- cise application of Brazil’s laws is not an easy task, given the country’s complex legal system and the immense volume of pending judicial pro- ceedings that repeatedly put its courts at the top of global rankings for most proceedings handled within a year. Adding to this already complex landscape, the Brazilian system also has an overlap of consti- tutional and legal competences of governmen- tal authorities, particularly the justice institu- tions (public prosecutors and public defenders), whose members also enjoy autonomy even within their own institutions. A crisis with mul- tiple potential legal liabilities will definitely bring with it dozens – if not hundreds of thousands – of demands from authorities and third parties in such a highly contentious country. A company facing a crisis that impacts on and damages collective/diffuse interests or third par- ties’ individual rights should be prepared to be subject to multiple proceedings at the outset of the crisis. Depending on the territorial extent of these impacts, such proceedings can be brought before different courts in Brazil, and involve over-
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