Minister André Mendonça of the Supreme Federal Court (STF) ordered on Wednesday (26) the suspension of legal actions questioning the legality of the law regulating the purchase of rural properties by foreigners.
In his decision, Mendonça understood that the ongoing actions in court must await the judgment of two cases currently under analysis by the Supreme.
The issue was brought to the Supreme Federal Court by agribusiness entities. According to the allegations made in 2015, Law 5.709 of 1971 harms national companies with foreign capital by limiting land purchases in the country.
Legal certainty
The suspension of the processes was requested by the Brazilian Bar Association (OAB), which was also admitted by the minister to act in the process. The entity argued that the legal certainty of the issue must be preserved.
“The OAB believes it is necessary to suspend all legal actions and legal transactions that have as their object the application of the aforementioned legal provision, until the final judgment of ACO 2463 and ADPF 342, in order to preserve legal certainty on the matter,” it justified.
The Brazilian Rural Society (SRB), which questions the restrictions of the law, expressed its opposition in the Supreme against the suspension of the processes.
“Even more striking is the unreasonableness of the request for a preliminary injunction. The suspension of all legal proceedings and transactions that have as their object the application of the legal provision whose constitutionality is under discussion would cause a halt in investments in sectors so relevant to the national economy,” argued the entity.
The date for the final judgment of the case has not yet been set.
Source: Agência Brasil