The National Council of Justice (CNJ) recently made headlines with a unanimous ruling in favor of Tijucas, a municipality in Santa Catarina, impacting the management of precatórios—court-mandated payments owed to creditors. On March 25, 2025, during its 4th Ordinary Session, the CNJ declared null a contentious requirement from the Court of Justice of Santa Catarina (TJSC), which had denied Tijucas the option to install payments for its precatórios.
This decision stemmed from a long-standing issue regarding the stipulations outlined in the 2021 Resolution No. 9/2021 by the TJSC. The resolution stated that to qualify for installment payments under Article 100 of the Federal Constitution, the total debt owed must exceed 1% of the municipality's net current revenue. However, Marcello Terto, the councilor and rapporteur for the case, argued vigorously against this stipulation.
In his defense, Terto pointed out that this requirement represented a significant deviation from the established legal framework, stating, "It's a requirement that innovates the legal order, as it does not follow the criteria of paragraph 2 of Article 100 of the Constitution of the Federative Republic of Brazil and even less those laid down nationally by CNJ Resolution No. 303, authorized by the Supreme Federal Court." He emphasized that the decision was a necessary move for ensuring municipalities could effectively manage their debts, particularly in the face of mounting fiscal pressures.
Tijucas has taken steps to comply with its financial obligations by depositing 15% of each precatório, which has allowed the administration to seek installment payments as set forth by both constitutional provisions and CNJ regulations. This proactive financial management aims to prevent potential overreach that could jeopardize vital public services, particularly in education and health.
In a related yet distinct development, the TJSC has also introduced a program for creditors of precatórios owed by the municipality of Brusque. This initiative opens up the possibility for creditors to negotiate direct agreements with discounts ranging from 15% to 40%. The announcements regarding this opportunity were made in recent public notices, inviting creditors to come forward before the deadline of April 9, 2025.
These agreements can be particularly enticing for creditors, as opting for a discount allows them to receive their due amounts ahead of schedule. The Brusque municipality has set aside an initial sum of R$ 915,910.71 for these agreements, which is supplemented by any additional contributions made during the validity of the offer.
The process mandates that creditors submit their proposals entirely through electronic forms, discouraging any alternative submission methods. The unique arrangement is aimed at expediting the repayment process, ensuring that those willing to provide larger discounts can benefit from quicker payments—often within a month after the proposal's acceptance.
Experts note that the CNJ rulings reflect an evolving landscape of municipal governance in Brazil, addressing the complexities and challenges of managing public finances amid pressing economic realities. These decisions not only reshape how municipalities like Tijucas and Brusque handle their precatórios but also serve as precedents for other regions navigating similar fiscal landscapes.
The implications of these rulings are profound. They signal a shift towards a more flexible regulatory environment that seeks to prioritize the timely fulfillment of debts while enabling municipalities to maintain critical public service funding. As the legal framework surrounding precatórios continues to adapt, local governments are gaining necessary tools to navigate fiscal challenges effectively.
In conclusion, the recent decisions by the CNJ not only influence immediate fiscal responsibilities for Tijucas and Brusque but also set a critical tenor for how municipalities across Brazil might approach debt management and creditor relations moving forward. The outcomes of these rulings can pave the way for enhanced fiscal stability and responsiveness in governance, ultimately serving the communities better.
