How Much Does a Lawsuit Cost in Brazil

How Much Does a Lawsuit Cost in Brazil?

How much does a lawsuit cost in Brazil?

Understanding the Cost of Lawsuit in Brazil—including fees, court costs, and other expenditures—is crucial when deciding whether to pursue or defend a legal action. Although expenses can vary widely between states, São Paulo often serves as a useful reference due to its large caseload and established legal infrastructure. Below, you will find examples of attorney fees, court costs, and other expenditures involved in the overall Cost of Lawsuit in Brazil. These figures are approximations, and each case may involve unique factors.

Attorney Fees (Agreed Fee)

Many law firms in Brazil structure fees based on the value of the claim (or “cause”) and the complexity of the legal matter. For instance, in disputes involving a claim ranging from USD 20,000 to USD 100,000—such as contract issues, debt collection lawsuits, or cases where services or goods were never delivered—an agreed fee might fall between USD 2,000 and USD 10,000. These amounts typically cover the retainer plus ongoing work up to the first or second instance decision.

It is possible to find attorneys offering lower prices (e.g., USD 500 to USD 2,000), but such proposals may not be practical for medium-sized disputes. Some practitioners might charge cut-rate fees simply to get hired, yet they may not provide thorough representation. Unfortunately, there are stories of clients paying small amounts to lawyers who ultimately disappear or fail to provide adequate guidance. It’s generally wiser to hire a reputable attorney or firm with a track record of handling your type of case effectively.

Loser’s Attorney Fees (Honorários de Sucumbência)

Brazil follows a “loser pays” principle in most civil litigation. The losing party will often be required to pay the winner’s attorney fees—referred to as “honorários de sucumbência”—which can reach up to 20% of the judgment amount. However, judges may reduce this percentage to around 10% in the early stages or if the case is relatively straightforward.

If you lose a USD 20,000 dispute, the court might order you to pay anywhere from USD 2,000 to USD 4,000 to the opposing counsel. On the higher side, a USD 100,000 matter could generate an additional liability of USD 10,000 to USD 20,000 in favor of the other party’s lawyers.

Important to highlight that such Attorney fees usually do not go to the client! Instead, they will be paid to the attorneys themselves who will retain those fees in addition to what they were already paid by their clients.

Court Costs

Court fees in Brazil generally hover around 1.5% of the amount in dispute. In Sao Paulo, these costs are often collected at the time of filing and can add up. If you are filing a USD 20,000 lawsuit, for example, expect to pay in the ballpark of USD 300 as a filing fee. For a USD 100,000 case, court fees might escalate to around USD 1,500. Although such figures might not look intimidating on their own, you should always consider them when calculating the overall cost of litigation. Appeals may trigger additional percentage points of the disputed amount.

Additional Expenses for Foreign Parties

Foreign clients pursuing legal representation for lawsuits and disputes in Brazil face extra charges that local litigants typically do not. Documents drafted in other languages may require sworn translations, which can cost anywhere from USD 50 to several hundred dollars per document. Furthermore, legal documents originating abroad must be apostilled in accordance with the Hague Apostille Convention. An apostille service can run around USD 100 per document, plus any related courier or notary fees.

In some situations, foreign parties may also be required to post a security deposit (caução) to cover potential court costs and fees. Depending on the judge’s discretion, this amount can range from a few hundred to a few thousand dollars as well as a percentage of the disputed amount.

Practical Examples

Putting it all together, you might spend approximately USD 2,600 if you prevail in a USD 20,000 dispute (considering attorney fees, court expenses, etc.). On the losing end, the total might balloon to USD 6,600 because of the sucumbência fees owed to the winning side’s attorney. For a USD 100,000 case, those estimates could jump to around USD 14,500 if you win and up to USD 34,500 if you lose.

The best way to determine a more precise budget is to consult a trusted Brazilian lawyer who understands both the local court system and the procedural requirements for your specific type of claim. By weighing these approximate costs in advance, you can decide if pursuing or defending a lawsuit in Brazil aligns with your financial and legal objectives.

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