(English) SETTLEMENT AGREEMENT NEGOTIATIONS AT CADE

The negotiation of a settlement agreement (TCC) with the Administrative Council for Economic Defense (Cade) is more complicated than it appears. This difficulty stems from the opinion of two commissioners who understand that the amount of a fine resulting from an administrative procedure should be calculated based on the amount earned (i.e. advantage gained) from the conduct instead of gross revenue from the year prior to the initiation of the procedure.

This divergence began its descent into paroxysm when a settlement agreement was negotiated by a member of this minority which defends a fine based on advantage gained, was refused by the disagreeing majority, being worth reminding that the majority today is 3×2. This means that when a settlement agreement is negotiated with a commissioner of the minority current, the interested parties should look for a commissioner of the majority current.

It is worth remembering that the party requesting a settlement agreement does not pick the reporting commissioner, which is defined by a draw, being that the reporting commissioner will negotiate in Cade’s name. A situation where a party will have to negotiate with both currents, one with the power to impose a calculation method of the pecuniary contribution and the other with the power to decide against it, will be very complicated.

2017/02/06