Collateral Estoppel in the Brazilian Civil Procedure: A Law and Economics Approach

This chapter delves into the extension of res judicata to incidental issues in the new Brazilian Civil Procedure Code, exploring its implications through a law and economics lens. It examines the role of collateral estoppel in enhancing legal certainty and efficiency in the judiciary, comparing Brazilian civil law with U.S. common law approaches. The text also discusses the economic impacts of legal decisions, the importance of legal capital, and the potential for institutional development in Brazil. Additionally, it highlights the challenges and benefits of legal transplants and the need for careful adaptation to local contexts. The chapter concludes by emphasizing the importance of predictable and correct legal decisions in fostering economic growth and development, while also addressing the risks of judicial error and opportunistic behavior.