Judgment of the Supreme Court of Justice of 2014-09-30

Dismissal of manager – Just cause – Manager’s duties – Duty of Loyalty –Unfair competition – Competitive practice

In this decision, the  Supreme Court of Justice (SCJ) was requested to rule  on the dismissal of a manager on grounds of the breach of his duties of care, diligence and loyalty, in accordance with Article 64 of Código das Sociedades Comerciais (Companies Code), due to the pursuit of an activity competing with the company’s activity.

The case revolved around the fact that the Defendant was, at the same time, managing partner of the company CC and sole partner and manager of the company GG, both companies engaged in the catering business, which they pursued in the same geographical space.

The SCJ considered that there was unfair competition in the situation in question, that is, the competing activity pursued by the Defendant implied customer poaching from company CC to company GG, and that the Defendant had seriously breached his duties of care, diligence and loyalty, and that therefore there was just cause for dismissal.

Judgment of the Supreme Court of Justice of 2014-09-07

Legal relations – Legal persons - Source of obligations – Civil liability

In this decision, the  Supreme Court of Justice (SCJ) was requested to rule on the possibility of a company being awarded compensation for non-pecuniary damages, and which are the specificities in these situations.

The case revolved around a company’s demand to be compensated for non -pecuniary damages, namely for offenses to its image caused by the Defendant with its successive suspensions of call services arising from the refusal to pay unduly issued invoices