By Marcelo Blecher

Ordinance 498/2020/PGF/AGU was published in the Official Gazette of the Union (“DOU”) last Monday, 21st, authorizing the conclusion of agreements in legal disputes, within the scope of the Federal Attorney General's Office (“PGF”), involving amounts greater than 60 (sixty) minimum wages and not processed in the Federal Special Courts.

The aforementioned Ordinance establishes the competent authorities to authorize agreements based on the amounts involved.[1], as well as the requirements for its execution, among which it is worth highlighting the assessment of the economic and legal advantage of the transaction to the federal public agency or foundation in relation to the probable outcome of the legal action. In other words, the execution of an agreement will depend on the prospects of success of the Public Administration in each case submitted for assessment, which will be determined by the PGF litigation unit responsible for monitoring the legal process.

The responsibility for concluding the agreements, determined based on the amount involved in the disputes, was established as follows:

• Proceedings of up to R$500,000.00: Federal Prosecutors officiating in the legal process;
• Processes from R$ 500,000.01 to R$ 2,000,000.00: Responsible for the Federal Sectional Prosecutors' Offices;
• Proceedings from R$ 2,000,000.01 to R$ 5,000,000.00: Chief Prosecutors in the States;
• Proceedings from R$ 5,000,000.01 to R$ 10,000,000.00: Federal Regional Prosecutors; and
• Proceedings from R$ 10,000,000.01 to R$ 50,000,000.00: Federal Attorney General

In relation to disputes involving amounts exceeding R$50,000,000.00, the agreement or judicial transaction will depend on prior and express authorization from the Attorney General of the Union, directly or through delegation, and from the Minister of State to whose area of competence the matter is assigned.

This is a relevant initiative in the search for advances in the implementation of alternative methods for resolving disputes involving the Federal Public Administration. The content of the Ordinance is relevant in enabling the conclusion of terminating agreements in legal disputes and the procedures that must be observed for their operationalization.

More information can be found in full at Ordinance published in the DOU.

Our tax team remains available for any questions regarding the matter.

[1] Art. 1º The executive bodies of the Federal Attorney General's Office (PGF) are authorized to enter into agreements or transactions, in court, to end litigation, in cases worth up to R$ 10,000,000.00 (ten million reais), subject to the following jurisdiction limits:

I – up to R$ 500,000.00 (five hundred thousand reais), by the Federal Prosecutors officiating in the legal proceedings;

II – up to R$ 2,000,000.00 (two million reais), subject to prior and express authorization from those responsible for the Federal Sectional Prosecutors' Offices;

III – up to R$ 5,000,000.00 (five million reais), subject to prior and express authorization from the Chief Prosecutors in the States;

IV – up to R$ 10,000,000.00 (ten million reais), subject to prior and express authorization from the Federal Regional Attorneys.