ARTICLE
30 April 2025

Supreme Court Analyzes Effects And Deadlines For Rescission Actions

On Wednesday, the Federal Supreme Court (STF) concluded the analysis of a Question of Order in Rescission Action No. 2,876. The order was raised by Reporting Justice Gilmar Mendes...
Brazil Litigation, Mediation & Arbitration

On Wednesday, the Federal Supreme Court (STF) concluded the analysis of a Question of Order in Rescission Action No. 2,876. The order was raised by Reporting Justice Gilmar Mendes and concerned the constitutionality of provisions in the Brazilian Code of Civil Procedure (CPC) that establish the deadline for filing Rescission actions.

Rescission actions aim to annul final and unappealable judicial decisions in specific situations set forth in the CPC. They are, therefore, an exceptional legal remedy, although increasingly broadened by recent court rulings.

The point of order also addressed concerns about the time period that a rescission of a judicial decision could cover, considering the lengthy duration of legal proceedings that is common in Brazil.

In this judgment, the STF upheld the CPC provisions that allow the filing of a Rescission action within a two-year peremptory term, counted from the final and unappealable judgment rendered by the STF that contradicts the earlier individual final judgment.

The full text of the ruling has not yet been published, but certain points are likely to be the subject of future debate, such as the scope of the term "retroactive effects of the rescission" and the implications of the temporal modulation for future cases (i.e., prospective effects).

For taxpayers involved in ongoing Rescission actions, it is possible to evaluate the applicability of the theses and the opportunity to restrict the scope of the rescission sought by the Treasury in each case, in accordance with the STF's decision.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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