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Processo vs. ação judicial

In Portuguese, processo and ação judicial can both mean lawsuit, but they look at it from different angles: processo refers to the physical or digital file and the bureaucratic steps, while ação judicial refers to the active exercise of a right or the specific type of claim being made.

Processo

B1
This word refers to the lawsuit as a whole entity, including the documents, the file number, and the ongoing procedure. It is the most common word used when discussing the status of a case or the paperwork involved.
O advogado precisa consultar o processo no tribunal.
(The lawyer needs to consult the lawsuit file at the court.)
Este processo está correndo dez anos.
(This lawsuit has been running for ten years.)
Você pode acompanhar o andamento do seu processo pela internet.
(You can follow the progress of your case on the internet.)
O juiz pediu para arquivar o processo.
(The judge asked to archive the file.)

Ação judicial

B2
This term focuses on the act of seeking justice or the specific nature of the legal claim. It is often used with verbs like mover (to move) or entrar com (to enter with) to indicate starting a legal battle.
Eles decidiram entrar com uma ação judicial contra o vizinho.
(They decided to file a lawsuit against the neighbor.)
Ação de despejo é um tipo comum de ação judicial.
(Eviction suit is a common type of lawsuit.)
Nós ganhamos a ação por danos morais.
(We won the action for moral damages.)
Uma ação coletiva beneficia todos os consumidores afetados.
(A class action benefits all affected consumers.)

Summary

Use processo when talking about the case as a file, a stack of papers, or a procedure with a number. Use ação judicial (or simply ação) when talking about the initiative to sue someone or the specific classification of the claim, such as an eviction or a collection action.