New Brazilian Code Of Civil Procedure

On March 16, 2015, President Dilma Roussef signed a new Code of Civil Procedure that will enter into force after one year. The current Code of Civil Procedure was enacted in 1973 and has been criticized and received several amendments during the last decades. The new Code has been widely discussed since 2009 and has 1,072 Articles.

The underlying idea is to enhance the effectiveness of the dispute resolution method. Below are some of the relevant changes provided for in the new Code:

Policy of mediation and encouragement of settlements: Judges, lawyers and public attorneys and prosecutors must encourage amicable solutions. Unless the parties agree that an attempt to settle the case is fruitless or the dispute cannot be settled, the judge must schedule a preliminary hearing to be led by a mediator. These hearings seek to enable the parties to reach a settlement at the initial phase of the case. Consumer disputes when the trader is not in Brazil: Brazilian courts now have jurisdiction over consumer disputes even in cases when the trader or the supplier does not have a place of business in Brazil. Forum selection clauses: clauses that select a foreign forum to adjudicate the dispute are valid and now expressly established by the new Code. International cooperation: the new Code comprehensively regulates hypothesis where Brazil will internationally cooperate. These include not only service of process and assistance on evidence matters, but also interim reliefs and any other measures not forbidden by the Brazilian law. Piercing the corporate veil: due to the increasing number of requests for piercing the corporate veil, the new Code comprehensively describes the procedural steps to be followed by the parties and judges. The purpose is to avoid abuses and to the enhance predictability. Amicus curiae: in special and relevant cases, the judge may allow the participation of friends of the court, which will participate in the case to assist the judge to reach the best decision. This participation may happen in any moment of the case. Procedural flexibility: in principle, the parties are allowed to decide on certain procedural rules on the content and structure of the proceedings, including dates. Cooperation between courts and arbitral tribunals: since it is well established that arbitrators do not have coercive powers, the new Code establishes that arbitrators and parties may use arbitral letters to request assistance from courts to enforce arbitral...