By: Vitor Antony Ferrari and Ivan Kubala

As is public knowledge, since the declaration of a state of public calamity resulting from the Coronavirus Pandemic (COVID-19) by the National Congress in March 2020, numerous measures have been adopted by public bodies to mitigate the negative effects on private and public-private relations, especially due to mandatory confinement, border closures and restrictions on various commercial activities.

In fact, given the undeniable economic impact, the National Justice Council prepared a series of recommendations to the Judiciary, and several bills emerged in the National Congress.

One of the measures that stood out the most is Law No. 14,010/2020, which originated from Bill No. 1,179/2020, which provides for transitional and emergency rules to regulate private law legal relations during the Coronavirus pandemic.

The aforementioned rule already provided for the suspension of the granting of injunctions for the eviction of urban property in Eviction Actions, until October 30 of last year.

It is observed that the measures were being adopted in accordance with the reaction to the pandemic, as there was no, and still is no, expectation that the public calamity situation would end. Therefore, both the Judiciary and the Legislative Branches have acted in accordance with the advance of the pandemic and its impact on the economy, always with the aim of promoting greater security and balance in legal relations.

As an example, we can mention the recent discussions regarding the replacement of the IGP-M index by the IPCA in lease contracts that provide for the application of the IGPM for annual rent adjustment, due to the strong and disproportionate increase that the aforementioned index accumulated in the last year.

In this vein, on the 18th, the Chamber of Deputies approved Bill No. 827/20, which prohibits the eviction or vacating of properties until the end of this year. Despite being late, the approval has been seen positively given the increase in evictions carried out last year.

It is worth noting, however, that the rules provided for in the bill, if approved by the Senate and sanctioned by the Presidency of the Republic, will only apply to cases in which tenants prove a reduction in their economic and financial capacity due to dealing with the pandemic, in addition to being restricted to residential leases whose rent does not exceed the amount of R$$ 600.00, and to non-residential leases whose rent does not exceed R$$ 1,200.00, that is, for cases that do not fit the rules provided for in Bill No. 827/20, tenants will need to resort to out-of-court agreements or legal measures.

In any case, the aforementioned project adds strength to the measures to combat the devastating effects of the advance of COVID-19, the end of which, as stated, has no forecast.

Therefore, guidance from a professional who is up to date with the constant measures that emerge to combat the effects of the pandemic is always recommended.