July 2020 – Brazil – Rossetti Advogados

Law No. 14.010/20 was published on June 10, 2020 to establish the Emergency and Temporary Legal System (“RJET”) of legal relationships governed by private law for the duration of the covid-19 pandemics. Such Law amends various rules, including the Civil Code, the Consumer Protection Code, the General Personal Data Protection Law and the Lease Law. 

The idea is to attenuate the social and economic consequences of this period of pandemics, so as to preserve agreements and serve as grounds for future court orders. 

We note the following amendments from among those we deem to be the most relevant:

1. Relationships in residential condominiums. Face-to-face condominium meetings and the respective resolutions on the items of the agenda may be carried out by virtual means, on an emergency basis, until October 30 this year. Remote meetings may also be held in business companies.

• Extension of the term for the opening and closing of probate processes and distributions. For successions opened as from February 1^st, 2020, the initial term shall occur only on October 30, 2020. In addition, also for cases involving successions opened before February 1^st, the term of twelve (12) months to conclude probate processes shall be suspended until October 30, 2020.

• Right of regret. The rule also suspends, until October 30, 2020, the right of regret set forth in article 49 of the Consumer Protection Code, which authorizes consumers to desist from the agreement, within up to seven (7) days, without any justification, whenever the agreement on the supply of products and provision of services is made outside the business establishment. The suspension of this right is valid only for the delivery of medicines and food.

• Imprisonment for noncompliance with support obligation. The law further sets forth that, until October 30, the imprisonment for noncompliance with support obligation shall be exclusively in the modality house arrest, without prejudice to the enforceability of the respective obligations.

• Suspension of terms. The limitation and peremptive periods, in addition to the terms for the acquisition of real or movable property, in the different forms of adverse possession, are suspended from June 12, 2020 to October 30, 2020.

• Data Protection. The effectiveness of the articles that provide on sanctions of the General Data Protection Law (LGPD) is extended to August 2021. Previously, these instruments should be effective as from August this year. 

Finally, the President vetoed some articles of the original bill approved, which shall be analyzed by the Brazilian congressmen and senators in the future.

The vetoes include the article that granted other powers to condominium managers, including the power to prohibit meetings in the owners’ exclusive areas, grant of preliminary injunction ordering urban properties to be vacated in actions for eviction instituted as from March 20, when the pandemics was at its initial stage, and the provision that sets forth a reduction by at least 15% in the fee charged from drivers by transportation apps and taxi services, claiming that this measure would violate the free initiative.

For more information on the above or in other matters, please contact Maristela Abla Rossetti (mar@rraa.com.br) or Gilberto Rossetti (gmr@rraa.com.br).

This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice or as a comprehensive analysis of the matters referred to herein.

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