Recently, the 3rd Panel of the Superior Court of Justice (STJ) upheld the decision of the 32nd Chamber of Private Law of the São Paulo State Court of Justice, which did not refund the amounts to the borrower after the loan defaulted, as provided for in Law No. 9.514/97 – the “Fiduciary Alienation Law”.
This jurisprudential understanding is drawn from a judgment by Justice Ricardo Villas Bôas Cueva, who ruled in a similar case that: “once the second auction of the property is frustrated, the debt is compulsorily extinguished and the contracting parties are released from their obligations, the property remaining with the fiduciary creditor”.
Therefore, the STJ reaffirmed in this decision that, in the absence of auction buyers, ownership of the property is consolidated in favor of the creditor, extinguishing the debt and obligations.
Justice Marco Aurélio Belizze noted that the decision of the 32nd Chamber of Private Law of the São Paulo Court of Justice is in line with the understanding adopted by the STJ. In addition, the sentence of the judgment clearly mentions the case law of this Superior Court.
In this way, the upholding of the decision by the Superior Court of Justice establishes clear parameters in similar cases, contributing to the consolidation of legal certainty and the effectiveness of decisions nationwide.
We are attentive to new developments in case law and discussions in all areas of the Judiciary in order to provide our clients with appropriate and effective advice.
