4/5/2021
In two recent decisions, the São Paulo State Court granted injunctions to authorize the replacement of the IGPM index (“General Price Index – Market”) by the IPCA index (“Broad Consumer Price Index”) to be applied in the adjustment of the monthly amount rent in a shopping center rental contracts, in view of the effects of the pandemic.
In one of the decisions, the judge Francisco Occhiuto Júnior highlighted the strong rise that the IGPM index accumulated in the last year, as well as the negative effects of the pandemic on commerce, which justified the substitution.
In addition, the mentioned decision determined the suspension of the demand for the 13th rent as long as the negative effects persist.
In another case, involving the same shopping center, the judge Rosangella Telles pointed out that the maintenance of the IGPM index makes the tenant’s default risk imminent, highlighting the negative effects of the pandemic on contracts.
In this second decision, the judge determined that the 13th rent paid to the mall should be calculated based on the average rent paid in the last year.
Coauthor: Ricardo Castro Ramos
