Tatiane Bagagí Faria
Lawyer at Marcos Martins Advogados
As a result of the Covid-19 pandemic that has taken hold in Brazil, companies in various sectors have found it difficult to meet their financial commitments, as the measures adopted to deal with the pandemic have directly affected the functioning of business activities and, consequently, the economy.
Considering this situation, a company in the construction industry filed a preliminary injunction with the 10th Civil Court of the District of Goiânia/GO, in order to suspend the effects of the protest of a promissory note in the approximate amount of R$1,500,000.00 (one million five hundred thousand reais), basically alleging that the company’s turnover and cash flow had been compromised as a result of the measures adopted to deal with the Covid-19 pandemic.
In a preliminary injunction, the magistrate ruled in favor of the company and granted the company’s request to stop the protest before the 2nd Notary Public of Protests and Registration of Legal Entities, Titles and Documents, as well as prohibiting the creditor from making new protests, on the grounds that the company’s business has suffered a profound economic setback, due to the suspension of non-essential activities and the economic crisis in the country. In addition, maintaining the effects of the protest tends to cause greater damage to the company, including jeopardizing the continuity of business activities. On this occasion, in the same vein as the decision, the court granted the company free legal aid on the grounds that it was unable to afford the procedural costs without jeopardizing the continuity of the company.
Faced with the whole situation involving the Covid-19 pandemic, the Marcos Martins law firm is attentive to new case law in order to provide adequate and effective advice to our clients.
