On June 5, 2024, Law No. 14,879 was enacted, bringing significant changes to the rules for choosing jurisdiction in civil contracts.
New Requirements for the Validity of Jurisdiction Choice: The new legislation significantly amends Article 63 of the Code of Civil Procedure, adding specific requirements for the choice of jurisdiction. From now on, it is not enough for the choice of jurisdiction to be written and linked to a specific contract; the chosen jurisdiction must also have a direct connection to the domicile or residence of one of the parties or to the place of performance of the obligation.
Presumed Abusive Jurisdiction Clauses: The new paragraph 5 of Article 63 establishes that jurisdiction clauses that do not respect this logical connection will be considered abusive. In such situations, the judge will have the prerogative to transfer the case to a more appropriate jurisdiction on their own initiative.
Exceptions for Consumer Relations: It is important to highlight that the new rule does not apply to consumer contracts when the jurisdiction clause benefits the consumer. This exception aligns with Article 101 of the Consumer Defense Code, which allows the consumer to file actions in the jurisdiction of their domicile.
Impacts and Objectives of the New Law: The main objective of Law No. 14,879/2024 is to avoid the choice of jurisdictions that have no relevance or connection with the parties involved or with the subject of the contract. The measure aims to ensure greater equity and fairness in the distribution of judicial processes, preventing the unfair favoring of one of the contracting parties, usually the economically stronger one.
Immediate Applicability: As a procedural law, its application is immediate, affecting even ongoing judicial processes, while respecting acquired rights, perfect legal acts, and res judicata.