Marval Legal Pulse - Labor modernization: the new scope of “inexcusable overclaim”

In this edition of Marval Legal Pulse, we analyze one of the changes introduced by the labor modernization law, aimed at promoting greater reasonableness in claims and reducing distortions in labor litigation.

Throughout the episode, we address the changes related to the inexcusable overclaim doctrine, in a context where the quantification of labor claims and their impact on litigation dynamics have been subject to both legal and economic debate.

Among the main aspects, the following stand out:

• The introduction of a more objective standard to assess the overstatement of claimed amounts.
• The possibility of allocating legal costs not only to the claimant but also to the legal counsel involved when an inexcusable overclaim is identified.
• The aim of discouraging claims that exceed realistic expectations of success.
• The potential impact on reducing litigation and increasing predictability in judicial proceedings.

Additionally, the episode analyzes the practical implications of this change within a system historically shaped by the principle of gratuity and restrictive criteria regarding cost allocation, factors that have influenced claim formulation and litigation strategies.