Recognition and Enforcement of Foreign Titles in Brasil

Before recognition and enforcement proceedings, the creditor can issue certificates to ascertain the identity of the debtor and verify: (i) any ongoing or previous proceedings involving the debtor, (ii) any preexisting debts and obligations, (iii) if the debtor owns any shares in a company, and (iv) if they own any real estate or vehicles.

After recognition and enforcement proceedings have commenced, the creditor can gather information about the debtor's complete financial status, including assets (real estate, vehicles…), bank accounts, income sources, companies’ shares, investments. 

A foreign court judgment will only take effect in Brazil after it is ratified through a proceeding called "homologação de sentença estrangeira" (recognition of a foreign judgment) by the Brazilian Superior Court of Justice (Superior Tribunal de Justiça – STJ).

In Brazil, both EU and non-EU judgments undergo the same process and must meet the same conditions.

The requirements for the enforcement of a foreign judgment in Brazil are:

1. The judgment or act must have been issued by an authority with jurisdiction over the matter.
2. The parties must have been duly summoned according to the law of the place where the judgment was rendered, or there must have been a default judgment.
3. The foreign judgment must be unappealable and meet the enforceability requirements of the law where the judgment was issued.
4. The foreign judgment must be translated by a sworn translator or an authorized interpreter.
5. The foreign judgment must be ratified by the Superior Court of Justice (STJ).
6. The foreign judgment cannot contradict previous Brazilian decisions.
7. The foreign judgment cannot violate national sovereignty or public order.

It is important to note that some of these requirements may be waived under bilateral agreements between countries.

Regarding the steps to the recognition process, they are:

1. Document Submission: The plaintiff must provide a certified copy of the foreign judgment, duly translated by a sworn translator (or notarized unofficial translation) and authenticated by the Brazilian Consulate.
2. Primary decision: If rectifiable defects exist in the initial petition, the judge will set a deadline for amendment. Failure to rectify defects or meet the deadline will result in dismissal. Irreparable defects (e.g., violating Brazilian res judicata or public order) will lead to summary denial and case dismissal.
3. Defendant Response: The defendant has 15 days to respond to the recognition request.
4. Judgment: The judgment will take place. If the precedents are favorable, one judge may recognize the foreign title; if not, a group of five judges decides the request.

As discussed in the previous question, the conditions and process are the same for any foreign judgment. Therefore, the answer to question 3 applies to non-EU judgments as well.

The duration of the process can vary due to multiple factors, such as whether the defendant opposes the recognition request and which judge presides over the proceedings. Generally, the process can take around 4 to 8 months.

The court fees for recognition of a foreign process are 250 BRL, approximately 50 euros.

Since Brazil does not distinguish between EU and non-EU judgments, the grounds for challenge are the same for all foreign judgments. 

The recognition of a foreign judgment may be challenged if the requirements are not met. The requirements for the enforcement of a foreign judgment in Brazil are:

1. The judgment or act must have been issued by an authority with jurisdiction over the matter.
2. The parties must have been duly summoned according to the law of the place where the judgment was rendered, or there must have been a default judgment.
3. The foreign judgment must be unappealable and meet the enforceability requirements of the law where the judgment was issued.
4. The foreign judgment must be translated by a sworn translator or an authorized interpreter.
5. The foreign judgment must be ratified by the Superior Court of Justice (STJ).
6. The foreign judgment cannot contradict previous Brazilian decisions.
7. The foreign judgment cannot violate national sovereignty or public order.
   

It is important to note that some of these requirements may be waived under bilateral agreements between countries.

Since Brazil does not distinguish between EU and non-EU judgments, the grounds for challenge are the same for all foreign judgments. The previous answer fully applies.

There is no specific time limit for having a foreign judgment recognized. However, Brazilian law imposes a time limit on enforcement proceedings, typically 5 years from the date of the foreign judgment (it might be less, or more, depending on the nature of the obligation). Therefore, parties must recognize a foreign judgment before the enforcement period expires.

Generally, no, but the costs are low.

Once recognition is obtained, the creditor needs to initiate enforcement proceedings. During these proceedings, the debtor will be summoned to pay the debt within 15 days. If the debtor fails to pay, a 10% penalty will be added to the claim amount, along with 10% in attorney fees. Additionally, the debtor's assets may be subject to freezing or attachment.

In Brazil, insolvency processes are governed by distinct procedures: reorganization proceedings, akin to Chapter 11 in the U.S., and liquidation proceedings.

Under reorganization, judgment debts are assessed to determine their inclusion in the reorganization plan, with payments structured according to the plan's provisions.

In liquidation, creditors await the liquidation of debtor assets, with debts settled in accordance with the hierarchy established by Brazilian law.

Brazil adheres to the UNCITRAL Model Law on Cross-Border Insolvency, ensuring parity in treatment between foreign and domestic creditors.

Recognition of foreign arbitral awards in Brazil follows a process similar to that of foreign judgments, with additional requirements due to Brazil's adherence to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

To have a foreign arbitral award recognized, it must comply with the New York Convention, as Brazil is a signatory to this treaty.

The Submission of Documents must include a certified copy of the foreign arbitral award, authenticated by the Brazilian consulate and officially translated, and a certified copy of the arbitration agreement, also officially translated.

The foreign arbitral award will not be recognized if (i) the parties to the arbitration agreement lack legal capacity; (ii) the arbitration agreement is invalid according to the lex arbitri, (iii) due process was violated during the arbitration proceedings, (iv) the award exceeds the limits established by the arbitration agreement (v) the award is not yet binding, has been annulled or suspended (vi) Brazilian law prohibits arbitration for the subject matter of the dispute (vii) The award conflicts with Brazilian national public order.