On 4th of May, pending a definitive judgment on its constitutionality, the Brazilian Supreme Court decided not to suspend on-going litigations regarding the purchase of rural properties by Brazilian companies’ majority constituted by foreign ownership.
Thus, the Brazilian Supreme Court decision overruled the previous monocratic decision of the Minister André Mendonça which held the suspension of all the national on-going litigations that applied the Law no. 5.709/1971. The reasoning behind such suspension was on the grounds that there was a legal uncertainty by the courts which were ruling the subject matter, as the law would not have been a reception of such when compared to the principles of free initiative of the Brazilian 1988 constitution.
However, despite the Minister’s respectable understanding, the majority opinion in the judgment resulted in the fact that legal transactions relating to purchases of rural properties by Brazilian companies’ majority constituted by foreign ownership should not be suspended, in view of the economic impact involved.
Thus, although the discussion is pending, these transactions for the purchase and sale of rural properties may continue without any type of suspension or interference.
Por: Giovanna Rossagnesi – lawyer
Lucas Morimoto – intern