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Viewing cable 05BRASILIA24, BRAZIL ENACTS FIRST WAVE OF SWEEPING JUDICIAL
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
05BRASILIA24 | 2005-01-04 11:35 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia |
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 04 BRASILIA 000024
SIPDIS
SENSITIVE
DEPT FOR WHA/BSC
DEPT PLEASE PASS USTR
E.O. 12958: N/A
TAGS: PGOV PHUM KJUS SOCI EINV BR
SUBJECT: BRAZIL ENACTS FIRST WAVE OF SWEEPING JUDICIAL
REFORMS
REF: 04 BRASILIA 1076
¶1. (SBU) SUMMARY. Brazil's justice system does not enjoy the
confidence of society, being widely-perceived as slow,
inefficient and accessible only to the wealthy and powerful.
But the failures of the courts are increasingly viewed as an
impediment to social and economic development. In December
2004, Constitutional Amendment 45 --supported by President
Lula, congressional leaders, and top judges-- became law. It
will streamline procedures in the Supreme Court and some
lower courts, it strengthens human rights protections,
introduces structural and professional reforms, and --most
controversially-- it authorizes the creation of oversight
bodies for judges and prosecutors. Perhaps the greatest
impact will come from the introduction of the principle of
judicial precedent for the first time in Brazil (a civil code
country). A second bill to amend the Constitution and follow
up on Amendment 45 is expected to pass in early 2005, and a
third tranche of reform bills is not far behind. These three
measures are detailed below. It is far too early to tell if
the reforms will move the Brazilian judiciary towards
efficiency, impartiality, and transparency, but judging by
the political and public pressure, great attention will
accompany them as they are put into practice. END SUMMARY.
TARNISHED REPUTATION
--------------------
¶2. (SBU) A November 2003 survey by the Brazilian Bar
Association found that the Brazilian judiciary is among the
least trusted of the country's institutions: only 39% of
respondents have confidence in the courts (by contrast, the
press got 60% and Congress 34%). Some 74% of respondents
said they fully or partly agree with the common saying,
"There is no justice for the poor, the black, or the
prostitute". One need only read the headlines to see why:
high profile cases charging judges with corruption and
influence peddling are common, and impunity seems widespread.
At the end of 2004, some 115 senior judges throughout the
country were under investigation. But the problem goes
beyond corruption. For years, Brazilian judges have been
notoriously resistant to reform, criticism, and oversight,
leading one government official to dub them the "black-robed
mafia". Judges are frequently in the press criticizing
government policy, requesting raises, or avoiding jail.
JUDGE JOBIM'S REFORM AGENDA
---------------------------
¶3. (SBU) The public's perception is colored by the slowness
of the legal system, caused less by incompetence than by
suffocating bureaucracy and outdated procedures. A 2004
study ordered by Judge Nelson Jobim, Chief Justice of the
Supreme Federal Court (STF), found that at the end of 2003
six million cases were in the federal courts alone (the
volume in the state courts is five times greater), including
2.7 million in the 3rd Federal District that includes Sao
Paulo state. The "congestion rate" in the federal courts was
84%, meaning that for every 100 cases that entered the courts
in 2003, whether newly-presented or carried over from the
previous year, only 16 reached a resolution. Judge Jobim
took over as Brazil's highest judge in May 2004, replacing a
bitterly anti-reform predecessor (ref A), and he has
consulted closely with Congress and the administration as the
various reform bills have been drafted and debated. Jobim
has criticized Brazil's law schools for turning out
"philosopher judges" incapable of managing their courts
efficiently, and he points out that the judiciary's legendary
slowness has created a parallel gray-market justice system
where parties may agree to settle for a fraction of damages
rather than spend years tied up in various courts to reach an
unpredictable conclusion. For investors, foreign and
domestic, the uncertainties created by this lack of
transparency and predictability contribute greatly to the
cost of doing business in Brazil. The economic effects of
this system are insidious, contributing, for example, to
notoriously high loan spreads that Brazilian banks charge in
order to cover the risk that courts will not enforce
collection efforts.
¶4. (U) A 2004 World Bank study using data from 2000 showed
that (taking into account differences in purchasing power)
Brazil's judicial system is the world's second most expensive
(trailing only Italy) at US$33 per citizen per year, and that
Brazilian judges are the second highest-paid in the world,
trailing only the Canadians (U.S. judges are third). The
study also shows that as a percentage of government spending,
Brazil's judiciary is the world's costliest at 3.66% of the
total public budget.
REFORMS -- TWELVE YEARS TO PASSAGE
----------------------------------
¶5. (U) Soon after its passage in 1988, it became clear that
Brazil's Constitution needed to be amended in order to
modernize a lethargic and insular judiciary that had been
left essentially unchanged for decades. In 1992, a bill to
amend the Constitution was introduced in the Chamber of
Deputies, where it wallowed in various committees before
finally passing a floor vote in 2000 and going to the upper
house. Its passage in the Senate was nearly as languid, and
when it reached the floor in early 2003, President Lula da
Silva, newly-elected and with his own reform ideas, sent it
back to committee for changes. In early 2004, a logjam broke
as the Chief Justices of the two highest courts (STF and
STJ), both of whom were bitterly opposed to the reforms, were
coincidentally replaced by pro-reform Chief Justices. On 8
December 2004, the Senate formally approved two bills: one
with all the measures already approved in the Chamber that
came into force immediately as Amendment 45 to the
Constitution; and a second that includes new elements and
must go back for a final Chamber vote in 2005.
CONSTITUTIONAL AMENDMENT 45
---------------------------
¶6. (U) Amendment 45 is now in force. It includes reforms of
the overburdened Supreme Court and certain lower courts. It
strengthens human rights protections and introduces
structural and professional reforms, and --most
controversially-- it authorizes the creation of oversight
councils for judges and prosecutors. Among its measures:
SUPREME COURT REFORMS:
- Limited Binding Precedent ("sumula vinculante"). Brazil
has never used a precedent system, so its courts decide the
same legal issues over and over, making the administration of
justice both inefficient and unpredictable. Chief Justice
Jobim of the Supreme Federal Court (STF) once noted that this
caused the high court to AVERAGE 85 decisions per day.
Henceforth, STF decisions approved by at least eight of the
11 justices must be followed by lower courts. A study by the
Getulio Vargas Foundation showed that in 2003, 17.3 million
cases entered the judicial system (federal and state),
meaning that each of Brazil's 13,000 judges averaged 1,300
cases that year. In the lower courts, some judges issue 300
decisions per month. These numbers could be significantly
reduced as the precedent system take effect.
- Supreme Court Discretion. The STF must, by law, hear a
wide range of cases, overwhelming its docket with procedural
rulings. Under the reform, the STF is accorded greater
discretion to refuse to hear certain cases that lack "general
significance".
OTHER COURT REFORMS:
- Special Land Courts. Each court must create a special
panel to hear land disputes.
- Labor Courts. The Superior Labor Court (TST) will gain ten
new judges, for a total of 27. At the lower level, if a
locality does not have a Labor Judge, then an ordinary judge
will be allowed to hear labor cases.
- Circuit Riders. Establishes circuit judges to address the
grave problem of localities that go years without a judge.
HUMAN RIGHTS REFORMS:
- Federalization. The Federal Prosecutor can step in and
take over human rights cases from the states. This is
designed to overcome the not infrequent conflicts created
when human rights violators are important local-level figures.
- Treaties. International human rights accords will have the
weight of "constitutional law". Amendment 45 also states
that Brazil "submits itself to the International Criminal
Court, whose creation it supported".
STRUCTURAL REFORMS:
- "Ombudsmen". Each court will establish an independent
ombuds office to hear complaints.
- Procedural Rapidity. Blocks promotion of judges who fail
to decide cases in a timely manner.
- Independent State Public Defenders. State public defenders
will have their own budgets and administrative autonomy. In
the past they were dependent on the state judiciary for
resources and oversight, creating conflicts of interest.
PROFESSIONAL REFORMS:
- "Professional Quarantine". Former judges and prosecutors
are prohibited for three years from acting as lawyers in the
courts where they previously worked.
- Career Reforms. Promotion decisions for judges and
prosecutors will take into account their productivity. At
least three years' prior legal experience will be required of
new judges.
- "Collective Leave". Courts must begin working as soon as
the official recesses are over, ending the practice of the
entire court taking personal leave to extend the recess.
OVERSIGHT COUNCILS:
- Within six months, two national-level oversight councils
will be established over judges and prosecutors. These
so-called "external controls" were bitterly opposed by many
of those affected and their professional associations. The
new National Justice Council (CNJ) will hear complaints and
apply sanctions against judges and court employees. It will
have 15 members: 11 judges and prosecutors, two lawyers, and
two members named by Congress. The similar National
Prosecutors' Council (CNMP) will be a 14-member body with
oversight over federal and state prosecutors.
SECOND BILL TO BE APPROVED BY CHAMBER IN 2005
--------------------------------------------
¶7. (U) A second set of reforms --also enshrined in a bill to
amend the constitution-- passed the Senate in December and
now goes back to the Chamber for a final vote. It will
follow up on Amendment 45 and is expected to become law in
the first half of 2005. It includes:
- Blocking Appeals. A sort of reverse precedent mechanism to
combat wasteful appeals and to complement the precedent
authority given to the STF in Amendment 45. If lower courts
issue rulings that coincide with prior decisions by the
second and third highest courts --the Supreme Justice (STJ)
and Superior Labor (TST) courts-- and if those higher court
decisions are by two-thirds' majorities, then appeals are
prohibited.
- Independent Federal Public Defenders. Comparable to the
autonomy given to state defenders in Amendment 45.
- Arbitration. Brazil has few mechanisms for alternative
dispute resolution (ADR). The bill will allow parties to
submit cases to an arbiter for a speedier decision. It also
creates new types of ADR including conciliation, mediation,
and non-judicial arbitration.
- Privileged Forum. Currently, elected officials and cabinet
members have the right to a "privileged forum", i.e., charges
brought against them are heard by a high court rather than a
common court. Congress, not surprisingly, wishes to extend
this benefit to former, as well as current, elected
officials.
- Nepotism. Prohibits judges from hiring close relatives to
positions under their authority.
SUB-CONSTITUTIONAL REFORMS TO COME LATER
----------------------------------------
¶8. (SBU) President Lula is already thinking about next steps.
On December 15, even as they celebrated the passage of
Amendment 45, the heads of the three branches of government
discussed so-called "infra-constitutional" (or
"sub-constitutional") reforms. This is a package of 23 bills
--some new and some that have sat unmolested in Congress for
years-- that the administration hopes to pass in the next
year. It is designed to increase efficiencies through
changes in civil, penal, and labor law procedures. It
includes greater use of the principle of binding precedent,
limitations on wasteful appeals, stricter adherence to court
deadlines, and simplification of some family law procedures.
Chief Justice Jobim is hopeful that the bills can be passed
in early 2005, promising that "if that happens, by the end of
the year some results will already begin to be felt".
COMMENT - A LOT OF EYES ARE WATCHING
------------------------------------
¶9. (SBU) It is far too early to tell if these reforms will
have the desired effect, but judging by the ambition
reflected in their broad scope, by the solid support from
President Lula, Congressional leaders, and key judges, and by
the sense that Brazil's ossified judiciary has become a
serious impediment to social and economic growth, there is
reason to be encouraged that the reforms are at least a good
first step. But there remain resolutely anti-reformist
pockets in the judiciary and others whose interests are
threatened by a modern judicial system. President Lula told
the press in December that, "Society demands rapid,
accessible, and adequate justice. The broad constitutional
reform that finally passed is a necessary condition for this
to take place. But it won't work on its own. Now we need to
put into practice the advances made in the reforms".
Brazil's books are full of unenforced laws, but a combination
of political pressure and support from the business community
and the public suggest that many eyes are watching to see how
these reforms are implemented --and to ensure that the
judiciary becomes part of Brazil's solution rather than part
of the problem.
DANILOVICH