BRAZIL Law and Practice Contributed by: Arthur Villamil, Villamil Advogados
2.6 Contingency Fees Parties and their counsel are free to negotiate contingency fee arrangements. In addition to the success fees negotiated with their own attorney, there are also recovery costs and attorney fees. 2.7 Time Limit for Obtaining Third-Party Funding There are no specific time limits by when a party to the litigation should obtain third-party funding.
plex commercial and arbitration cases. However, the practice is still relatively new and lacks spe- cific regulation. 2.2 Third-Party Funding: Lawsuits There is no specific regulation in terms of third- party funding. Third-party funding is uncommon, but when it does occur, it is typically in litigation involving negotiable rights (such as property, damages, reimbursement, insurance, and com- pensation, among others). 2.3 Third-Party Funding for Plaintiff and Defendant Third-party funding is available to both plaintiffs and defendants. However, it is more commonly used by plaintiffs. 2.4 Minimum and Maximum Amounts of Third-Party Funding As there is no regulatory framework, third-party funding lacks a defined minimum or maximum amount, and funding amounts are determined by each funder’s policies, case value, and antici- pated returns. 2.5 Types of Costs Considered Under Third-Party Funding Litigation expenses encompass several catego- ries. These are as follows. • Fees for filing claims, costs related to sum- monses and other communications, and appeal fees. • Fees for experts, whether appointed by the court or selected by the parties. • Attorney fees. • Any additional costs associated with the litigation process. All these costs may be funded by third parties.
3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct
In Brazil, there is no formal, standardised require- ment for pre-action conduct similar to those
seen in some other jurisdictions. 3.2 Statutes of Limitations
The applicable periods for statutes of limitations vary depending on the underlying matter. The statutes of limitations for civil lawsuits are gov- erned by the Civil Code, with limitation periods varying based on the type of claim and the spe- cific legal context. Key limitation periods are as follows. • General limitation period: the general limita- tion period for civil claims is 10 years if no specific term applies. This covers many civil obligations. • Contracts: a five-year limitation period applies to claims involving contractual debts, triggered from the moment the obligation becomes due. • Torts: claims involving torts (eg, personal injury or property damage) have a limita- tion period of three years, starting from the date the injury or damage was known to the injured party.
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