Post by account_disabled on Mar 6, 2024 2:34:25 GMT -5
The Superior Court of Justice upheld the conviction of Banco do Brasil S/A for bad faith, due to the collection of debt that had already been paid off. The bank executed a construction company due to obligations that had already been paid through credit insurance that covered losses related to work in Libya. The decision is from the rd Panel of the STJ.
When it proposed execution, BB had already received more than US$ million of the total net losses, fully guaranteed by insurance, in the amount of US$ million. The information was not provided by the bank, only appearing in embargoes by the construction company. The remainder was paid by the insurance itself while the execution was still being processed, a fact also not reported by the bank. Hence the conviction for bad faith imposed by the São Paulo Court of Justice.
At the STJ, the bank challenged this decision, pointing BTC Number Data out an alleged violation of almost articles of procedural and material laws. But minister Nancy Andrighi completely contested the financial institution's claim. For her, procedural law guarantees not only the parties, but society itself.
According to the minister, the violation of this loyal conduct within the process — which is one of the necessary requirements for the effective existence of the procedural procedure — in its various possibilities, weakens the legal security necessary for the delivery of judicial provision.
“Bad faith litigation arises from the violation of the general duty of loyalty in procedural conduct, a fact established by the judicial search for satisfaction of a claim that had already been partially fulfilled through an attached insurance contract and the continuation of execution, even after full receipt of the contracted amounts, upon recognition by the insurer of the occurrence of the loss (contractual default by the original obligors) and payment of the relative policy”, added the rapporteur.
The bank also contested the fine for double charging, as the TJ-SP stated that the executive titles were time-barred. But the minister clarified that the TJ-SP did not analyze the prescription, among other reasons, because there was not even an expiration date on the promissory notes signed in English, some of which were not even translated.
According to the rapporteur, the TJ-SP also expressly pointed out several reprehensible conducts by the bank: filing for execution when it had already received part of the amount; lack of communication to the court of the partial settlement prior to the action and the full settlement during its progress, and persistence in execution even after full payment of the debt.
When it proposed execution, BB had already received more than US$ million of the total net losses, fully guaranteed by insurance, in the amount of US$ million. The information was not provided by the bank, only appearing in embargoes by the construction company. The remainder was paid by the insurance itself while the execution was still being processed, a fact also not reported by the bank. Hence the conviction for bad faith imposed by the São Paulo Court of Justice.
At the STJ, the bank challenged this decision, pointing BTC Number Data out an alleged violation of almost articles of procedural and material laws. But minister Nancy Andrighi completely contested the financial institution's claim. For her, procedural law guarantees not only the parties, but society itself.
According to the minister, the violation of this loyal conduct within the process — which is one of the necessary requirements for the effective existence of the procedural procedure — in its various possibilities, weakens the legal security necessary for the delivery of judicial provision.
“Bad faith litigation arises from the violation of the general duty of loyalty in procedural conduct, a fact established by the judicial search for satisfaction of a claim that had already been partially fulfilled through an attached insurance contract and the continuation of execution, even after full receipt of the contracted amounts, upon recognition by the insurer of the occurrence of the loss (contractual default by the original obligors) and payment of the relative policy”, added the rapporteur.
The bank also contested the fine for double charging, as the TJ-SP stated that the executive titles were time-barred. But the minister clarified that the TJ-SP did not analyze the prescription, among other reasons, because there was not even an expiration date on the promissory notes signed in English, some of which were not even translated.
According to the rapporteur, the TJ-SP also expressly pointed out several reprehensible conducts by the bank: filing for execution when it had already received part of the amount; lack of communication to the court of the partial settlement prior to the action and the full settlement during its progress, and persistence in execution even after full payment of the debt.