After Vorcaro Case, Gilmar Proposes Taking Billion-Dollar Dispute with Sugar Mills to Plenary

Gilmar stated that the dispute between the Union and the sugar-ethanol sector should be evaluated by the plenary to unify the Court's understanding.

After Vorcaro Case, Gilmar Proposes Taking Billion-Dollar Dispute with Sugar Mills to Plenary

TL;DR

  • Minister Gilmar Mendes proposed a question of order to send the billion-dollar dispute between the Union and the sugar-ethanol sector to the STF plenary.
  • The aim is to standardize the Court's understanding on the requirement of individual expert evidence for compensation, as established in General repercussion theme 826.
  • The dispute involves claims that could reach R$ 145 billion, with payments allegedly being acquired by financial institutions for a fraction of their current value.
  • Mendes has publicly stated his opposition to these indemnities, citing cases like Raízen and Jalles Machado where he voted against payments and was overruled.
  • Controversy arose after Mendes met with Daniel Vorcaro, owner of Banco Master, who had acquired debentures from a sugar mill involved in a case before the STF.
  • Mendes insists that compensation is only due if a plant proves actual economic loss through expert evidence, not through generic sector studies.