Put Leonardo Neri and Barbara Oliveira – 15/05/2020
The Chamber of Deputies approved yesterday, May 14, Bill 1,179/2020 (PL 1,179/2020), authored by Senator Antonio Anastasia (PSD), which provides for the emergency and transitory legal regime for private law legal relations (RJET) during the new coronavirus pandemic.
Bill 1,179/2020 was presented on March 30 and approved by the Senate on April 3, with changes to the original text. In the Chamber of Deputies, the bill also underwent changes, having been approved in the form of the substitute presented by deputy Enrico Misasi (PV-SP).
Below are the main provisions of PL 1,179/2020, with the amendments approved by the Chamber of Deputies.
Prescription and Decay
The prescriptive periods are suspended or prevented, depending on each case, from the entry into force of the Law until October 30, 2020. The same applies to the limitation period, with the exception provided for in article 207 of the Civil Code.
The provisions do not apply while the specific hypotheses of impediment, suspension or interruption, already provided for in current legislation, continue.
Acts of Associations, Societies and Foundations
The holding of meetings and assemblies by associations, societies and foundations during the validity of the Law is restricted, and the health determinations of the local authority must be observed. To this end, the holding of general meetings by electronic means was authorized, even if not provided for in the articles of association of the legal entity.
In this sense, electronic statements by participants will have the same effects as in-person signatures, as long as their identification and vote security are guaranteed.
Termination, Resolution and Contract Review
Contractual relations have been one of the most discussed topics since mandatory measures were instituted to deal with the COVID-19 pandemic and, therefore, Chapter IV of Bill 1,179/2020 should be the most anticipated.
Initially, it is established that the contractual consequences of the COVID-19 pandemic will not have retroactive legal effects, including civil liability arising from unforeseeable circumstances or force majeure.
Furthermore, for the purposes of reviewing or terminating a contract due to excessive burden, the increase in inflation, exchange rate fluctuations, devaluation or replacement of the monetary standard will not be considered unforeseeable events, with the exception of the review based on the Consumer Protection Code or the Tenancy Law (Law No. 8,245/91).
Consumer Relations
Regarding consumer protection rules, the right to regret, provided for in article 49 of the Consumer Protection Code, is suspended for home delivery purchases of perishable or immediate consumption products and medicines.
Urban Property Rentals
Another great expectation of PL 1.179/2020 are the provisions regarding the leasing of properties, since the restriction on the operation of certain activities caused a large part of the leased properties to lose their function, without being able to be occupied.
In order to ensure the balance of rental relationships, Bill 1,179/2020 determines the prohibition of granting an injunction for the eviction of urban property (residential and commercial) in eviction actions filed from March 20, 2020, the date of publication of Decree No. 6 of 2020, until October 30, 2020.
Usucapion
The deadlines for acquiring property by adverse possession, in all forms, are also suspended from the entry into force of the Law until October 30, 2020.
Building Condominiums
In addition to the powers granted to the trustee by article 1,348 of the Civil Code, PL 1,179/2020, on an emergency basis, also establishes:
- Restriction on the use of common areas to prevent COVID-19 contamination, respecting access to the exclusive property of condominium owners;
- Restriction or prohibition of holding meetings, festivities and use of garages by third parties, even in areas owned by the condominium owners, prohibiting restrictions on use by the condominium owner or by the direct owner of the unit;
Restrictions and prohibitions exceed the scope of medical care, structural works or necessary improvements.
Condominium meetings and voting by virtual means are also authorized until October 30, 2020, and the expression of will of the condominium owners will be equivalent to the in-person signature. The impossibility of holding a meeting under these terms will imply the extension of the terms of office of the condominium manager until October 30, 2020, provided that they expired on or after March 20, 2020.
The exceptional nature of the measures does not relieve the trustee of his obligation to provide regular accounts of his administrative acts.
Competition Regime
The effectiveness of items XV and XVII of § 3 of article 36 of Law 12,529/11 is also suspended for the period from March 20 to October 30, 2020, which correspond to acts of violation of the economic order.
As for other acts of violation of the economic order, provided for in article 36 of Law 12,529/11, committed between March 20 and October 30, 2020, it will be up to the competent body to assess the extraordinary circumstances resulting from the COVID-19 pandemic.
The effectiveness of section IV of article 90 of Law 12,529/11, which corresponds to an act of concentration, was also suspended, with the exception of the possibility of subsequent analysis of agreements that are not necessary to combat or mitigate the consequences of the COVID-19 pandemic, for possible application of the appropriate measures.
Family and Succession
Civil imprisonment for alimony debt, provided for in article 528, § 3 and following of the Code of Civil Procedure, will be exclusively served in the form of house arrest.
As for successions, the deadline for initiating the inventory and division process, provided for in article 611 of the Code of Civil Procedure, will have a new initial term of October 30, 2020 for successions opened from February 1, 2020.
Furthermore, for processes initiated before February 1, 2020, the twelve-day period for completion of the process will be suspended from the entry into force of the Law until October 30, 2020.
Transport and Logistics
The National Traffic Council (Contran) is responsible for issuing rules that may be necessary to relax the prohibitions set out in articles 99 and 100 of the Brazilian Traffic Code, in order to optimize the logistics of transporting goods and supplies necessary to combat the COVID-19 pandemic.
General Data Protection Law
Once again, the LGPD is undergoing changes regarding the start of its validity. Law 13,709/18, which had already been extended, will have a new change in its vacancy period.
Bill 1,179/2020 establishes that, only regarding the application of LGPD sanctions (articles 52 to 54), the start date of validity is extended to August 1, 2021.
The text initially approved by the Senate also provided for the extension of the start date of the other provisions, which, with the exception of sanctions, would come into effect on January 1, 2020. However, with the publication of MP 959/2020, on April 29, which already extended the validity of the LGPD to May 3, 2021, the Chamber of Deputies chose to approve only the change regarding sanctions, in order to avoid a conflict of rules.
With the presentation of the substitute by the Chamber of Deputies, PL 1179/2020 must undergo new approval by the Senate, for subsequent consideration by the President of the Republic.