Brazil Counsel

View Original

Do This Before You Sue

Not every business deal goes as planned. As much as you try, occasionally you’ll find yourself in the middle of a dispute that you just can’t resolve amicably. But before you sue, consider whether you should serve an extrajudicial notification first.

The US legal system has numerous alternative dispute resolution processes that help keep fighting parties out of court. The most common are mediation and arbitration. In fact, most judges require that parties mediate before hearing a case.

Brazil has similar mechanisms for resolving conflicts. In the past, we discussed PROCON, a consumer protection agency that helps facilitate agreements between businesses and their disgruntled consumers. It’s relatively fast, inexpensive, and in many cases, successful.

Yet not all disputes are ripe for settlement, and litigation may be inevitable. Before you file, however, consider sending an extrajudicial notification.

An extrajudicial notification puts the other parties on notice that there’s a dispute. Think of it as a last-ditch attempt at resolution before you file a lawsuit. It also serves to document your efforts at resolution in case you’re ever questioned by the judge.

Extrajudicial notifications are generally sent by mail with delivery confirmation or, better yet, served by a notary accompanied by an affidavit of service. Other delivery options exist, but you’ll want to ensure you can prove receipt.

The next time you’re contemplating litigation, take a step back and make sure you have all your ducks in a row. An extrajudicial notification may be your best first step to reaching a resolution.