Workers Party v. President of the Republic - Preliminary Decision

Direct Action of Unconstitutionality no. 1398-0 (1996)

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Workers Party v. President of the Republic - Preliminary Decision

Brazil Supreme Federal Court
Direct Action of Unconstitutionality no. 1398-0 (1996)

Facts

The Workers Party (plaintiff) filed an action against the president of the republic (defendant) challenging the executive branch’s response to an economic crisis in Brazil. The Workers Party specifically challenged two National Monetary Council resolutions, which sought to create and regulate the Deposit Insurance Fund in Brazil. The president of the republic countered the suit, arguing that the measures were necessary to strengthen the economy under Article 192 of the Constitution. The Workers Party argued the resolutions were unconstitutional as Article 192 of the Constitution explicitly required Congress to pass a supplementary law, a law requiring an absolute majority for passage. The Workers Party argued the executive branch could not substitute resolutions by an executive-branch agency for a legislative enactment by Parliament. The National Monetary Council argued the council enacted these resolutions to supplement the supplementary law required under Article 192 VI of the Brazilian Constitution. In addition to its suit, the Workers Party sought an injunction suspending rules requiring the placement of public funds in the Deposit Insurance Fund until the final judgement of the case. The Supreme Federal Court specifically took up the issue of the injunction.

Rule of Law

Issue

Holding and Reasoning (Rezek, J.)

Concurrence (Aurélio, J.)

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