Trustees can participate in carrying out the judgment of the renewal action without being part of the case’s initial phase, according to a ruling by the Third Class of the Superior Court of Justice (STJ).
This choice has significant effects on individuals renting commercial properties and those responsible for managing them.
We examine the interpretation by STJ, the decision’s basics, and the practical consequences for attorneys specializing in real estate law and commercial leases in this article. Take a look!
Sentence Completion
What was the STJ’s decision regarding the trustee’s involvement in the renovatory action?
The Supreme Court of Justice ruled that the trustee may be involved in enforcing the judgment if the tenant does not pay the debt, even if they did not participate in the initial phase of the legal action.
The trustee’s responsibility in a commercial lease is based on the contractual bail, as stated by Minister Nancy Andrighi, the rapporteur of the case. This responsibility can be activated directly during the execution phase, without the necessity of being involved in the process’s knowledge phase.
The court confirmed in the trial REsp 2.167.764 that the bailiff can be legally charged even if not initially summoned in the renovatory action.
Article 523 of the Civil Procedure Code on Sentence Enforcement
Implications of the ruling for renters, occupants, and administrators
For tenants
- The ruling strengthens the legal assurance of business lease agreements by holding creditors accountable for any breaches.
- It permits the bailiffs to directly collect at the execution phase, minimizing the potential financial losses for the lessor.
Tenants
- Understanding the STJ places a greater onus on tenants to ensure timely payment, as the trustee may be directly activated during the enforcement phase.
- The tenant may encounter challenges securing new guarantees in future agreements if they fail to meet their obligations.
For the trustees
- The ruling highlights the significance of thoroughly evaluating risks when acting as a trustee in business agreements.
- Trustees may receive unexpected legal charges without being notified initially during a renovation action.
- Contractual clauses are carefully considered, and efforts are made to incorporate restrictions in the bail offered whenever feasible.
How can attorneys behave in such situations?
Lawyers dealing with commercial leases and renovatory actions must implement more precise strategies to safeguard their clients’ interests, as per the ruling of the STJ. Some suggested actions include:
Analysis of the rental agreement in depth
- To check if there is a specific rule regarding responsibility for upcoming debts.
- To assess if the bail offered is sufficient for obligations arising from the renovation lawsuit.
Guidance for trustees to prevent issues
- To notify the bailiffs that they may face legal charges during the execution phase.
- Suggest adding clauses that restrict the bail’s liability.
Process supervision
- Monitor customer participation in renovation activities, ensuring all potential defense options are utilized.
- To request the omission of bail in the absence of a specific provision in the agreement.
Utilizing artificial intelligence tools to enhance requests and legal defenses.
- AI can assist lawyers in drafting challenges, objections to sentence enforcement, and petitions to limit trustee liability.
Changes following STJ ruling for trustees in renewal action.
The STJ’s ruling regarding the involvement of trustees in the granting of the renovatory action significantly affects the commercial lease market.
The bailiffs can face legal charges even if they do not take part in the initial phase of the process, given this comprehension.
Lawyers specializing in real estate law must adhere to this legal precedent and implement proactive measures to safeguard the rights of tenants, lessees, and trustees.
The utilization of tools like Legal AI can enhance the preparation of legal documents and strengthen arguments in disputes regarding the topic.
Keep an eye on the new interpretation of STJ if you are in Real Estate Law and adjust your actions to safeguard your clients’ interests.
Also, make sure to take a look at our Rental Renewal Contract Template.
