The International Comparative Legal Guide To: Class & Group Actions 2014

1 CLASS/GROUP ACTIONS

1.1 Do you have a specific procedure for handling a series or group of related claims? If so, please outline this.

Yes, Brazil has some specific federal laws that provide for a group of related claims, commonly named in the country as class actions or collective claims. It is important to note that the Brazilian class actions system differs from the class action procedures in the USA in several aspects.

1.2 Do these rules apply to all areas of law or to certain sectors only e.g. competition law, security/financial services? Please outline any rules relating to specific areas of law.

The Brazilian class actions system aims to protect the environment, consumers, the cultural patrimony, economic/antitrust rights and other so-called diffuse, collective, and homogeneous individual interests. Tax matters are excluded from group litigation.

1.3 Does the procedure provide for the management of claims by means of class action (whether determination of one claim leads to the determination of the class) or by means of a group action where related claims are managed together, but the decision in one claim does not automatically create a binding precedent for the others in the group?

The Brazilian model provides for the management of claims by means of class actions, but again it is important to bear in mind that this system is unique and not very similar to American class action litigation.

1.4 Is the procedure 'opt-in' or 'opt-out'?

There are no opt-in or opt-out mechanisms similar to the ones in the American system of class actions. In fact, in most cases, the individuals whose rights are protected and litigated under the Brazilian class action system do not become aware of the filing of the lawsuit. However, even in these cases, the ruling will benefit the individuals.

1.5 Is there a minimum threshold/number of claims that can be managed under the procedure?

No, no minimum threshold is requested.

1.6 How similar must the claims be? For example, in what circumstances will a class action be certified or a group litigation order made?

The claims must involve similar situations and in most cases the claims derive from a common legal relationship or a common origin. Brazil does not have certification rules for class actions.

1.7 Who can bring the class/group proceedings e.g. individuals, group(s) and/or representative bodies?

The Attorney General (called in Brazil Ministério Público), the Federative Republic of Brazil, the States, Municipalities and the Federal District, administrative agencies, and private associations can bring such proceedings. Individuals do not have standing to sue.

1.8 Where a class/group action is initiated/approved by the court must potential claimants be informed of the action? If so, how are they notified? Is advertising of the class/group action permitted or required? Are there any restrictions on such advertising?

Public notice of the existence of the class action is made by a publication in an official newspaper. No advertising is permitted.

1.9 How many group/class actions are commonly brought each year and in what areas of law e.g. have group/class action procedures been used in the fields of: Product liability; Securities/financial services/shareholder claims; Competition; Consumer fraud; Mass tort claims, e.g. disaster litigation; Environmental; Intellectual property; or Employment law?

Brazil does not have such official data, but the number of class actions has increased in the last few years and it will probably continue to grow in the near future.

1.10 What remedies are available where such claims...