Replies to post #44379 on Global Digital Solutions Inc (GDSI)

[PhenixBleu]

The Framework I mentioned previously is now within your message. That's a great first step toward finding common ground.

The following laws and regulations govern the recognition and enforcement of foreign judgments in Brazil:

Articles 105(I)(i) and 109(x) of the constitution;

Articles 513 to 538 and 960 to 965 of the Civil Procedure Code (Law 13.105/2015); and

Articles 216-A to 216-N of the Rules of Procedure of the Superior Court of Justice.

Any reference to Arbitration does not apply in this case. I highlighted in red those references. The Inter-American Convention on Extra-Territorial Validity of Foreign Judgements does not apply as the U.S. is not a Signatory so that is also noted in red font. Brazil has no Convention on Recognition and Enforcement, just Service.

https://www.oas.org/juridico/english/sigs/b-50.html

Brazil is party to various instruments, international conventions and bilateral treaties which cover the reciprocal recognition and enforcement of foreign judgments – for example:

the Convention on Obtaining Evidence Abroad in Civil or Commercial Matters, signed in The Hague in March 1970 and enacted in Brazil by Decree 9.039/

the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the New York Convention), enacted in Brazil by Decree 4.311/2002;

the Inter-American Convention on the Extraterritorial Validity of

Foreign Judgments and Arbitration Awards, enacted in Brazil by Decree 2411/1997;

Thank you for acknowledging that Recognition and Enforcement are separate steps.

The meaning and implementation of recognition and enforcement differ. The ‘recognition’ of foreign judgments implies the effectiveness of judgments (ie, a final and non-appealable decision rendered by a foreign court). The ‘enforcement’ of foreign judgments implies the concrete realisation of the decision and not just the acknowledgment of rights granted. It allows the applicant to undertake enforcement measures.

The remaining portion broadly states elements of the Recognition phase.

The interested party must submit a formal request filed by a Brazilian attorney for recognition of a foreign judgment to the Superior Court of Justice. The request must be accompanied by the following documents that demonstrate the ratification requirements:

the original or notarised copy of the judgment to be recognised;

other documents deemed necessary for the recognition of the foreign judgment (the applicant must provide evidence that the final decision was made by a competent authority and that the parties were regularly summoned); and

a certified translation into Portuguese, which in some cases (more often in family matters) must be authenticated by the competent Brazilian consular authority.

Brazilian law does not permit the review of the merits of a foreign judgment. The Superior Court of Justice can only approve, partially approve or disapprove the judgment; it cannot change the decision regarding the merits of a foreign judgment.

The Superior Court of Justice reviews the service of process only when it was invalid or absent.

I never said the Bro's could challenge the merits of the U.S. case. They can challenge the viability of the Judgement based on allowable conditions in Brazil--such as working against Brazil's Public Policy. I've noted these previously.

They must be served within Brazil. That process flows through the Brazil Court and happens after the Brazil Court receives the documents you mention. The Bros must be served the Judgement. They then have a voice in the Recognition phase and their counsel can bring to light the reasons the Court can do just what you mentioned: Approve, Partially Approve, or Disapprove the Judgement. This is not a quick process. Thus, the 30-60 day comment on Service. GDSIs Judgement will be in a work queue in line with other Court filings needing to be reviewed by their Central Court. A separate hearing may be scheduled during the Recognition phase.

The law links in my Stickie are fairly recent. These are composed by experienced International lawyers working in Brazil. They say it can take a year. I won't diss their information. I'm going to watch this unfold. I think they're spot on.