Brazil's STJ establishes new criteria for expropriation indemnities

The First Section of the Superior Tribunal de Justiça (STJ) has established specific criteria to determine the reference dates for property expropriation indemnities. The new rules set time limits for judicial evaluations based on the type of expropriation:

• General expropriations: The value should correspond to the market price at the time of the judicial expert report. • Public utility or social interest: The evaluation cannot consider a date later than one year from the filing of the lawsuit. • Agrarian reform: The evaluation is limited to 90 days from the filing of the lawsuit. • Indirect expropriation: The value must reflect the market price at the date of administrative seizure.

The court also ruled that if delays in conducting the expert report are caused by the government, the applicable time limits may be extended by the duration of the delay. However, delays caused by the property owner, the judiciary, or third parties do not justify such extensions. Experts must identify and discount any price variations caused by state actions from the final indemnity amount.