BRAZIL Law and Practice Contributed by: Arthur Villamil, Villamil Advogados
ing contractual duties, especially when mon- etary compensation is insufficient. Courts can also issue injunctive relief, either as preliminary measures to maintain the status quo or as per- manent orders to prevent a party from certain actions or to compel specific behaviour after a full trial. Declaratory relief allows courts to clarify the rights and duties of the parties, providing legal certainty in matters like contract interpretation or property rights without necessarily award- ing damages. Additionally, courts can order the rescission of contracts or annulment of legal acts when agreements are found to be void due to fraud, mistake, or breach. Finally, the winning party may recover court costs and legal fees under Brazil’s “loser pays” principle, where the losing party must cover the expenses of litigation. These awards are designed to ensure that the successful party is appropriately compensated and that justice is served based on the specifics of the case. 9.2 Rules Regarding Damages The legal framework for damages is centred on compensatory damages, which aim to fully restore the injured party by covering actual loss- es. These damages include material damages, such as lost profits, repair costs, or medical expenses, and moral damages, which address non-material harm like emotional distress or damage to reputation. For moral damages, the assessment is more subjective, and the courts determine the compensation based on the severity of the harm. Punitive damages are not recognised in Brazil- ian law and are not typically awarded. Brazil- ian law follows the principle of full reparation, and there are no fixed caps on compensatory or
moral damages, but judges use their discretion to ensure fair and proportional awards, prevent- ing unjust enrichment, especially in the case of moral damages. 9.3 Pre-judgment and Post-judgment Interest Pre-judgment interest accrues based on the nature of the obligation. For contractual liability, interest begins to accrue from the date the los- ing party is served with the lawsuit. In cases of non-contractual liability, such as torts, interest accrues from the date of the damaging event. Interest is also subject to inflation adjustments to preserve the real value of the awarded amount. Post-judgment interest starts accruing from the date of the judgment until the final payment is made, and it is also adjusted for inflation to maintain its value. There are no statutory caps on the total amount of pre- or post-judgment interest, ensuring that the successful party is compensated fairly for any delays in receiving payment. 9.4 Enforcement Mechanisms of a Domestic Judgment The enforcement of a domestic judgment is primarily carried out through a cumprimento de sentença procedure, which the prevailing party can initiate once the judgment is final and unappealable. This action is filed in the same court that issued the judgment and is designed to compel the losing party to comply with the court’s decision. For monetary judgments, the court can order the seizure of the debtor’s assets, such as freezing bank accounts, seizing property, or garnish- ing wages, and may impose fines or interest for delayed payment. For non-monetary judg- ments, which require specific actions like deliv-
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