Brazil: STJ Establishes Selic as Index for the Adjustment of Civil Debts
October 2024 – Rossetti Advogados
On August 21st, the Superior Court of Justice (STJ) concluded a highly significant judgment for the legal and business sectors, establishing the Selic rate as the index to be used for the adjustment of civil debts. This decision, rendered in Special Appeal No. 1.795.982/SP, brings uniformity to the legal scenario, facilitating the understanding and application of adjustments for inflation in cases involving compensation and other financial obligations arising from civil relations.
According to the understanding of the STJ, the Selic Rate, which is already widely used in tax matters, should now also be applied to adjust civil debts, including compensation and similar obligations. This decision considers the Selic rate to be an index that fairly and equitably combines the effects of inflation and late payment interest, providing a simplified and economically viable solution for adjusting amounts due.
The decision is based on article 406 of the Civil Code, as recently amended by Law No. 14.905/24, which expressly provides for application of the market interest rate as a benchmark for adjustment for inflation. By ratifying the use of the Selic rate, the STJ eliminates the application of other indices, such as the IPCA (National Broad Consumer Price Index) or simple adjustment for inflation, settling a uniform interpretation that provides greater legal certainty for both creditors and debtors.
It is important to emphasize that this STJ decision not only harmonizes legal practice, but also prevents a range of judicial disputes over which index should be applied in specific cases. With this clear definition, parties involved in civil disputes can rely on greater predictability and efficiency in judicial proceedings.
Therefore, we recommend that businesses and individuals pay attention to this new guideline to adjust their internal procedures and future agreements, ensuring alignment with current case law. Our law firm is available to provide consultancy and additional clarifications on how this decision may impact your transactions and contractual relationships.
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For more information on the above or other matters, please contact Maristela SA 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 foreign subsidiary as a comprehensive analysis of the matters referred to herein.
