Sustainability Report 2004

Sustainability

Management | Lawsuits

The company filed five lawsuits in 2004. Four of them sought reinstatement of the possession of land it owned that had been illegally occupied in the municipalities of Aracruz, Linhares and São Mateus, in Espírito Santo, and in the municipality of Prado, in the state of Bahia. Furthermore, a writ of mandamus was requested to suspend payment of an environmental control and inspection fee created by Municipal Law No. 57/2001 in the municipality of Prado and to halt the listing of the corresponding amount as a tax debt of the company. The respective court orders were all granted in favor of the company.

During the year, three lawsuits were filed against the company: one sought compensating damages, one requested demarcation of land and one was filed on behalf of land occupiers seeking property titles in the municipalities of Mucuri and Caravelas, Bahia; and the municipality of São Mateus, Espírito Santo, respectively. All the lawsuits are currently under judgment.

  • The damages suit alleged that Aracruz Celulose destroyed improvements made on a piece of property and replaced it with a eucalyptus plantation. In its defense the company argues that the suit has no legal basis due to the fact that the company owns the property in question.
  • The land demarcation suit, which also seeks damages, is likewise baseless, in the company’s view, since the properties acquired by the company are duly registered in its name, having been recorded in the appropriate land registry office after a topographic study carried out with the approval of the parties to the suit.
  • In the land title suit, Aracruz’s defense is that the area in question has not pertained to the company for over 20 years.