The Superior Court of Justice reviewed its previous position provided for in the Thesis 677 to determine that the judicial deposit or seize of assets does not release the debtor from interest and monetary correction
The Superior Court of Justice reviewed the content of the Thesis 677 to determine that the judicial deposit made as a court guarantee or resulting from the seize of financial assets does not exempt the debtor from paying interest and monetary correction until the full amount is received by the creditor.
(Superior Court of Justice, Repetitive Theme 677)
Significant changes to the Brazilian Competition Act
On November 17, 2022, a new statute was enacted bringing new provisions to the Brazilian Competition Act (Law No. 12,529/2011). The main changes are the following:
(i) double damages as the standard compensation from losses suffered as a result of antitrust practice, except for cooperating parties who have entered into a leniency agreement or term of commitment to cease the practice (art. 47, §§ 1st and 2nd);
(ii) statute of limitations for antitrust claim was increased from three years to five years. The term will only start after the publication of the final decision rendered in the administrative proceeding (art. 46-A, §§ 1st and 2nd);
(iii) judicial courts will be able to grant preliminary injunctions based on CADE’s final decisions on the merits of the case.
The Superior Court of Justice rules that factoring companies can lend money with interest
The Third Section of the Superior Court of Justice ruled that factoring companies can grant a loan of money with interest, even if it is not a financial institution. To do so, the factoring companies must comply with the rules of this type of contract that are applicable to regular individuals, so that the interest rate of the loan cannot exceed 12% per year.
(Superior Court of Justice, Special Appeal No. 1.987.016/RS, Leading Justice Minister Nancy Andrighi, 3rd Section, ruled on 09/06/2022)
The Superior Court of Justice rules that the bankruptcy judge can authorize an alternative modality of sale of assets even when the proposal is rejected by creditors
The Fourth Section of the Superior Court of Justice ruled that when the creditors general meeting rejects the proposal for the sale of assets, the bankruptcy judge may authorize an alternative modality of sale as long as the trustee and creditors are heard, as provided by article 145 of the Bankruptcy Law, which allows alternative ways of sale of assets.
(Superior Court of Justice, Special Appeal in judicial secrecy, Leading Justice Minister Antonio Carlos Ferreira, 4th Section. News available on the Superior Court of Justice Website)
The Court of Justice of São Paulo recognizes the validity of funding of litigation by third parties and decides that it is not necessary to disclose the funders
The 2nd Chamber of Business Law of the Court of Appeals of São Paulo ruled that third-party funding is admitted in the Brazilian legal system and the identity of the financiers is not relevant to the case. According to the decision, the party must only disclose that the lawsuit is being financed and the mere existence of third-party funding is not capable of undermining the financed party legitimacy.
(Court of Justice of São Paulo, Interlocutory Appeal No. 2153411-63.2022.8.26.0000, Leading Justice Natan Zelinschi de Arruda, 2nd Reserved Chamber of Business Law, Ruled on 09/20/2022)