Litigation funding—Brazil—Q&A guide
Litigation funding—Brazil—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Litigation funding—Brazil—Q&A guide
  • 1. Is third-party litigation funding permitted? Is it commonly used?
  • 2. Are there limits on the fees and interest funders can charge?
  • 3. Are there any specific legislative or regulatory provisions applicable to third-party litigation funding?
  • 4. Do specific professional or ethical rules apply to lawyers advising clients in relation to third-party litigation funding?
  • 5. Do any public bodies have any particular interest in or oversight over third-party litigation funding?
  • 6. May third-party funders insist on their choice of counsel?
  • 7. May funders attend or participate in hearings and settlement proceedings?
  • 8. Do funders have veto rights in respect of settlements?
  • 9. In what circumstances may a funder terminate funding?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to litigation funding in Brazil published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Atelier Jurídico—Luiz Olavo Baptista; Adriane Nakagawa

1. Is third-party litigation funding permitted? Is it commonly used?

Third-party funding is not a regulated activity in Brazil. Aside from the Centre for Arbitration and Mediation of the Chamber of Commerce Brazil-Canada (CAM-CCBC) Administrative Resolution No. 18, issued in July 2016, there are no other rules expressly dealing with the subject, and no statutory regulation exists. Despite the lack of regulation, third-party funding activities in Brazil are increasing, especially in arbitrations. The same is not true as far as litigation is concerned.

Since last year’s survey, the number of third-party financed arbitrations has increased from four to fifteen. However, it would be an exaggeration to say third-party funding is commonly used. There is no record of court cases involving third-party funding issues and, consequently, there is no common understanding or approach concerning funding by third parties in Brazil.

2. Are there limits on the fees and interest funders can charge?

There are no specific statutory limitations for the fees or the interest owed to the funder.

However, should a limit apply, the chances are that the court or arbitral tribunal would consider a limit of around 30 per cent, given a relevant

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