According to the World Bank’s Economic Outlook report, global growth is sharply decelerating in 2023 due to high inflation, higher interest rates, reduced investments, and the repercussions of the Russian invasion of Ukraine. This recession scenario will undoubtedly cause breaches of agreements and contracts, which will likely be brought to the courts for judicial discussion.
Considering the ongoing effects of intense globalization, it is not uncommon for a company to need to enforce a judgment issued by a foreign court in Brazil. Therefore, understanding the procedure for enforcing foreign judgments in Brazil is crucial for an effective asset recovery strategy, as it enables the enforcement of foreign court decisions within Brazilian territory.
Although there may be some flexibility in the standard procedure due to a bilateral or multilateral treaty signed between the country that issued the judgment and Brazil, the first step in the process of enforcing foreign judgments is obtaining recognition of the judgment by the Brazilian Superior Court of Justice.
To do so, it will be necessary for an attorney to file the request with the Superior Court and prove that: the judgment is final (meaning there are no further appeals), authentic, and issued by an authority with the power to do so; the parties were formally served with notice; it is translated (by a sworn translator in Brazil) and authenticated by the Brazilian Consulate.
The recognition of a foreign judgment typically takes, on average, two months, assuming there are no issues with the documentation.
Once the foreign judgment is recognized by the Superior Court, the creditor should request the issuance of a document called the “Letter of Judgment” and start the enforcement process before a Federal Court. This process may involve the seizure of assets and property in the country to secure the enforcement of the foreign judgment, as if it were a decision from a Brazilian court.
This means that from this stage onward, all the expertise in national credit recovery can be employed to ensure the effectiveness of the foreign decision through judicial and extrajudicial searches of the debtor’s assets. These assets can be frozen by the Brazilian judiciary system and delivered to the foreign creditor.
Undoubtedly, the enforcement of foreign judgments in Brazil plays a crucial role in the recovery of assets in transnational disputes. Through its legal framework, the country seeks to ensure that foreign court decisions are effectively enforced within its territory, promoting justice and respect for international law.