In an article published on Folha de S.Paulo’s Que Imposto é Esse blog, Tatiana Del Giudice Cappa Chiaradia and Ednaldo Almeida discuss the risks associated with selling decisions in collective writs of mandamus, an instrument of protection used as a constitutional remedy to ensure a liquid and certain right not protected by habeas corpus or habeas-data, when the person responsible for the unlawful act or abuse of power is a public authority or agent of a legal entity exercising the powers of the Public Power.

Recently, decisions by the Federal Supreme Court (STF) and the Superior Court of Justice (STJ) have dispensed with the need for express authorisation from the represented parties to file collective writs of mandamus, which has led to an increase in the use of this remedy, especially in tax matters. This change has led to the emergence of a market where companies are approached to join unions or associations in exchange for favourable court rulings.

In the text, our lawyers warn that this practice can circumvent limitation periods in tax matters, allowing late members to claim tax credits relating to triggering events that occurred before their association. Although the use of collective injunctions is legitimate to defend rights, their use as a commercial means can result in legal and financial problems. The recommendation is for companies to be cautious and seek appropriate legal advice before joining organisations that promise immediate gains through court decisions. The idea is to avoid misleading promises and ensure that the actions taken are truly representative and secure.