Trustees can participate in the implementation of the judgment of the renewal action without having been involved in the case’s initial phase, according to a ruling by the STJ’s Third Class.
This choice has significant effects on individuals renting commercial properties.
We examine the interpretation of STJ, the decision’s basics, and the practical effects for attorneys specializing in real estate law and commercial leases in this article. Take a look!
Sentence Completion Period
What was the STJ’s ruling on including the trustee in the renovatory action?
The STJ 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 renovation action.
The trustee’s responsibility in a commercial lease is based on the contractual bail, as stated by Minister Nancy Andrighi, the case’s rapporteur. This responsibility can be enforced directly during the execution phase without requiring involvement in the knowledge phase of the process.
The court decision in the case REsp 2.167.764 reiterated that the bailiff can face legal charges even if not initially summoned in the renovatory action process.
Article 523 of the Civil Procedure Code regarding Adherence to Judgments
Effects of the ruling on renters, lessees, and administrators
Renters are eligible.
- The ruling upholds the legal certainty of business rental agreements by holding creditors accountable for any breaches.
- It enables bailiffs to collect directly during the execution phase, minimizing the leaser’s financial loss risk.
Tenants
- The tenant’s responsibility to make timely payments is heightened with a better comprehension of the STJ, as the trustee can be directly involved in ensuring the sentence is carried out.
- The tenant may encounter challenges securing new guarantees in future agreements if they fail to meet their obligations.
For the Board of Trustees
- The decision emphasizes the need to thoroughly evaluate risks when acting as a trustee in business agreements.
- Trustees may face legal charges unexpectedly even if they are not initially mentioned in the renovation action.
- Contractual clauses receive special focus, aiming to incorporate bail limits whenever feasible.
How can attorneys behave in such situations?
Lawyers dealing with commercial leases and renovatory actions need to use more precise strategies to safeguard their clients’ interests, as per the ruling by STJ. Some suggested actions include:
Examination of the lease agreement in depth
- To check if there is a specific clause outlining responsibility for upcoming obligations.
- To assess if the bail offered is sufficient for the obligations arising from the renovation process.
Guidance for trustees to prevent issues.
- Bailiffs should be informed that they may face legal charges during the execution process.
- Suggest adding clauses that restrict the bail’s liability.
Process supervision
- Monitor customer participation in renovation activities to ensure all defense options are utilized.
- To request bail exclusion in the absence of an explicit provision in the agreement.
Utilization of artificial intelligence tools for enhancing requests and legal defenses.
- Artificial Intelligence can assist lawyers in drafting legal documents such as contests, objections to court decisions, and requests to limit the liability of a trustee.
Trustees in Renewal Action: What is altered following the STJ ruling?
The STJ’s ruling regarding trustees being involved in the awarding of renovatory action significantly affects the commercial lease market.
Bailiffs can face legal charges even if they did not take part in the beginning of the process, based on this interpretation.
Lawyers in real estate must adhere to this case law 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 ensure strong arguments in disputes.
Keep an eye on this new interpretation by 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 Template for Renewing Rental Contracts.