Costs, settlement and funding

Costs

What are the rules regarding attorneys’ fees and costs on appeal?

There are mandatory court fees to file an appeal.

The appellate court decision will order the defeated party to reimburse the other party’s court costs and attorneys’ fees, usually ranging from 10 per cent to 20 per cent of the award (article 85, Civil Procedure Code (CPC)). On setting a value for attorneys’ fees, the judge must consider:

  • the length of the proceedings;
  • the nature of the claim;
  • the level of professional care;
  • the place where the service was performed; and
  • the work provided by the lawyers.

 

The CPC also establishes that, on appeal, the appellate court must increase the attorneys’ fees previously set by the lower court judge taking into account the additional work involved and the subject of the appeal, as the case may be.

Settlement of first instance judgment after appeal lodged

Can parties enter into a settlement agreement to vacate the trial court judgment after an appeal has been taken?

The CPC contains several provisions encouraging the parties to find a mutually acceptable solution in respect of their interests, fostering mediation and settlement as means of resolving disputes submitted to the judiciary. Parties can enter into a settlement agreement after the trial court judgment.

Limits on settlement after commencement of appeal

Are there any limits on settlement once an appeal has been taken?

There are no limits on settlement until res judicata. The only requirements comprise the capacity of the parties and their legal representation, which are general conditions for the effectiveness of any contract or agreement. Non-disposable rights cannot be the subject of settlement. Examples of non-disposable rights (those the holder may not dispose of) include the right to vote and the right to live.

Third-party funding

May third parties fund appeals?

There is no regulation on this matter in Brazil.

Disclosure of litigation funding

If litigation funding is permitted in an appeal, must funding sources be disclosed to the court or other parties to the litigation?

The only requirement to file appeals is the payment of the court fees, and the appeal is legally admissible regardless of whoever provided funds for payment by the party of the court fees. There is no necessity to disclose who funded the payment of the court fees.

Law stated date

Correct on

Give the date on which the above content is accurate.

19 March 2021.