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Brazilian Federal Supreme Court recognizes imprescriptibility of reimbursement action due to a malicious act of corruption

By majority vote, the Plenary of the  Brazilian Federal Supreme Court (STF) recognized the imprescriptibility of actions for reimbursement of damages to the Treasury resulting from a malicious act of administrative corruption. The decision was taken on Wednesday afternoon (8) in the judgment of the Extraordinary Appeal (RE) 852475, with acknowledged general repercussions. With the judgment, the decision should be applied to approximately 1 thousand similar cases in lower instances.

In the concrete case, the Court of Justice of São Paulo (TJ-SP) ruled that a public civil action filed against employees of the City of Palmares Paulista (SP) involved in a bidding process considered irregular had been challenged, resulting in the extinguishment of the action. In partially providing the appeal, the STF determined that the case should be returned to the court of origin so that, once the prescription has been withdrawn, it examines the claim for reimbursement of the treasury based on the conditions established by the Plenary.


The following thesis was approved by Justice Edson Fachin, by aims of general repercussion: "The actions of compensation to the treasury based on the practice of malicious acts typified in the Law of Administrative corruption" are imprescriptible.

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