PORTUGAL Law and Practice Contributed by: Rita Samoreno Gomes and Petra Carreira, PLMJ
8.3 Enforcement of Settlement Agreements
• the complexity of the case; • the number of parties and their conduct; • the nationality of the parties; • the number of witnesses to be heard; and • the need for expert opinions. However, the duration of a commercial dispute is generally up to 18 months from filing the claim through trial. The typical duration of trials for commercial disputes is from one to three days, although several days, weeks or even months may pass between each trial session. The need for court approval to settle a lawsuit depends on whether the settlement is made within the proceedings or out of court. If the par- ties agree to settle before the proceedings end, the court will have to validate whether the right in dispute can be subject to an agreement and whether the settlement complies with all proce- dural rules. If the parties reach an out-of-court settlement involving the withdrawal of the claim by the plaintiff, the court will limit itself to validat- ing the withdrawal. 8.2 Settlement of Lawsuits and Confidentiality The settlement of a lawsuit can remain confi- dential if made out of court. This is usually the purpose of out-of-court settlements, followed by the plaintiff’s withdrawal of its claim. To achieve this, the parties usually submit a joint written application informing the court that they have reached an agreement without disclosing the terms of the settlement. The plaintiff then with- draws the action and the judge ratifies this with- out knowing the terms of the settlement. 8. Settlement 8.1 Court Approval
If the settlement agreement was entered into by the parties within court proceedings and approved by the court, the court’s decision to approve the agreement and end the case has the force of a judgment. This makes it possible to bring enforcement proceedings if one of the parties does not comply with the agreement. If parties reach an out-of-court settlement, they will be responsible for ensuring the agreement is enforceable if it is breached. Generally, this is achieved by making the agreement subject to a specific notarisation or having it authenticated by a lawyer. 8.4 Setting Aside Settlement Agreements Settlement agreements can be set aside based on unilateral breach by one of the parties or on revocation by both parties. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A successful litigant will have a judgment in its favour that can be fully enforced against the los- ing party if the latter does not voluntarily comply with the court decision. Under Portuguese law, there are no remedies available at the full trial stage. 9.2 Rules Regarding Damages The general rule under civil law is that the duty to compensate only exists in respect of damage which the injured party would probably not have suffered had it not been for the event that led to the damage.
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