When Million-Dollar Lawsuits Are Worth Pennies in Brazil

If you studied law in the United States, you probably remember the classic example from tort law: a funeral home delivers the wrong body, and the grieving family sues for emotional distress. For most Americans, cases like this bring to mind big payouts.

But if the same thing happens in Brazil, the financial outcome looks very different.

Take a recent case in Ceará. A family was preparing for a final farewell, but when they opened the casket, they were shocked to find a stranger inside. The hospital and funeral home had mixed up the bodies, and their loved one had been sent to the wrong family.

The court awarded the family just BRL$10,000 - less than US$2,000.

Now compare that to a similar case in the US, where a funeral home accidentally placed two babies in the wrong coffins. That case reportedly settled for US$1 million - half to each family.

Or consider a more recent example: a DC family sued a crematorium and funeral home for US$10 million each after receiving their son’s ashes, only to later discover his body was still at the crematorium.

The facts of these cases aren’t so different, but the payouts are. In Brazil, emotional distress falls under the concept of moral damages. And despite the seriousness of the facts, Brazilian judges typically award much smaller payouts than US courts.

If you’re litigating in Brazil, manage your expectations. The case may still be worth pursuing, but don’t expect a US-style outcome.