TRF1 confirms decision of Minas Gerais Federal Court on application of Simplified Compensation System (Rough Justice)

Camila Vieira Guimarães
Lawyer at Marcos Martins Advogados

For the first time, the Brazilian courts have used the rough justice compensation system, which originated in common law and consists of applying a matrix of damages scaled for large-scale compensation cases in which proof of individual damages is difficult to produce.

The institute was applied by the Federal Court of Minas Gerais and was ratified by the Federal Regional Court of the 1st Region, based in Brasília/DF, in the compensation case filed as a result of the Mariana/MG dam collapse in 2015.

In lawsuits that contemplate reparations in large volumes based on an analysis of the individual lawsuit of each injured party, in addition to saturating the judicial machine with thousands of lawsuits, it would generate the risk of conflicting decisions. In addition, proof of the damage would be difficult to materialize and could jeopardize the final outcome of the case.

The new system, in addition to being swift, provides the injured party with the opportunity to present simplified documentation of the damage and receive compensation based on the category in which they fall. Participation depends on the consent of the injured party, who is not obliged to join the system. In this case, the compensation ranges from R$23,000 to R$94,000 depending on the category of the injured party. Adherence to the agreement through the rough justice system depends on the participation of a lawyer representing the injured party.

Marcos Martins Advogados is always aware of innovations affecting its clients’ interests and is available to seek strategic solutions to their needs.

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