OAB-SP legal battle against Enter over unauthorized legal services

The São Paulo section of the Brazilian Bar Association (OAB-SP) has submitted new evidence in a civil public action against the legaltech startup Enter. The entity alleges that Enter is performing services exclusive to the legal profession, such as reviewing case files, recommending strategies, and drafting defense documents.

New documents provided to the court include a “Software Management and Licensing Contract” which allegedly outlines the distribution of legal cases to law firms and the transfer of 50% of the net value received from case management. The OAB-SP argues this model interposes a corporation between the client and the lawyer on a large scale, constituting the illegal practice of law and the commercialization of the profession.

A São Paulo court recently denied OAB-SP’s request for an injunction to prevent Enter from signing new corporate contracts while the merits of the case are debated. However, the court ruled that the proceedings will not be under judicial secrecy and ordered Enter to preserve all current contracts. Enter, valued at US$ 1.2 billion, currently serves major clients including Nubank, Mercado Livre, and Latam.