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The ongoing action filed by Soccerex against the State Government of Rio de Janeiro

By Marcelo Mazzola & Nathalia Ribeiro, Danneman Siemsen - 08/03/2019
The ongoing action filed by Soccerex against the State Government of Rio de Janeiro

In 2016, Soccerex, the leading company in soccer business’ events, filed a lawsuit against State of Rio de Janeiro, due to the cancellation of its Global Convention, which should have taken place in 2013.

In short, the Governor of Rio de Janeiro, under great popular pressure, decided to cancel the last edition of Soccerex’s Global Convention (that had happened in previous years – 2010, 2011 and 2012), breaching the agreement signed by the parties.  

Besides the material damages (actual damages and lost profits), the government issued an official statement blaming Soccerex for the cancellation, which also caused moral damage to the company.

On February 22nd, after almost three years of a judicial battle, the 8th Public Treasury Court of State Court of Rio de Janeiro rendered a ruling granting Soccerex’s claims and recognizing that the breach of Soccerex’s Global Convention Agreement had been the Government’s exclusive fault.
 
In addition, the Judge condemned the Government to pay damages to cover lost profits related to Soccerex’s Global Convention, especially damages related to unrealized sales of packages for participation in the Convention and to contracts already signed between Soccerex and its clients to participate in the Global Convention that have not been reallocated for following years.
 
The indemnification amount will be estimated by an Expert in execution proceedings, according to above criteria and information provided by Soccerex.
 
On the other hand, the first instance decision rejected the indemnification pleas regarding actual damages (airline tickets, hotel rates, loan interest, etc.) and moral damages. Regarding moral damages, the Judge considered that all the information published in the press linked the event’s cancellation to a political decision taken by State Government, without blaming or challenging Soccerex’s reliability.
 
The ruling can still be appealed and, if it is confirmed by the State Court, it will be an important precedent against the State of Rio de Janeiro regarding breach of contract. 

By Marcelo Mazzola & Nathalia Ribeiro, Danneman Siemsen - 08/03/2019
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