CROATIA Law and Practice Contributed by: Lada Ćustić and Marko Paulinović, Buterin & Partners
One of the most high-profile representative actions in recent Croatian legal history involves claims against banks over loans denominated in Swiss francs, illus- trating the tangible impact of these legal instruments in protecting collective rights. 3.8 Requirements for Cost Estimate Croatian procedural law does not impose any statu- tory obligation on parties to provide a formal cost esti- mate of potential litigation at the commencement of proceedings. While cost predictability is desirable, the inherent complexity of litigation, the possibility of appeals, and the court’s discretion in awarding costs contribute to a degree of uncertainty. Therefore, although not legally mandated, early cost assessment remains a critical element of litigation strategy and risk management. In the Croatian legal system, interim applications or motions are primarily understood within the frame- work of securing a claim or safeguarding specific rights before the conclusion of a dispute. Such appli- cations are not confined to procedural or case man- agement matters alone, but can lead to substantive – albeit temporary – remedies granted by the court. These remedies are typically aimed at preserving the status quo and preventing irreparable harm pending the final adjudication of the case. For instance, a party may request that the court issue an order prohibiting a defendant from alienating or encumbering certain property, to instruct a financial institution to freeze assets held in a bank account, or to seize movable property to ensure satisfaction of a pecuniary claim. Interim measures of this kind are regulated by the provisions of the Enforcement Act and the Civil Procedure Act which, together, provide a procedural mechanism for the protection of rights at an early stage. 4. Pre-Trial Proceedings 4.1 Interim Applications/Motions However, it should be noted that Croatia does not recognise pre-trial proceedings in the same manner as Anglo-Saxon jurisdictions; thus, interim motions are
inherently limited to the scope of securing claims and to protecting existing rights rather than resolving the substantive dispute before trial. 4.2 Early Judgment Applications Croatian procedural law does not provide for early judgment applications equivalent to summary judg- ment or default judgment as known in common law jurisdictions. Instead, the Croatian system relies on the preparatory hearing as a key procedural stage designed to narrow the issues in dispute and encour- age settlement. 4.3 Dispositive Motions The Croatian legal system does not recognise disposi- tive motions similar to those available in common law jurisdictions, such as motions to dismiss or motions for summary judgment. 4.4 Requirements for Interested Parties to Join a Lawsuit Under Croatian law, a person who has a legal interest in the outcome of litigation between other parties may intervene in that proceeding to protect their rights, but only after initiating litigation. This intervention is permitted where the court’s decision could directly or indirectly affect the intervener’s legal position. A mere economic or social interest is insufficient; the interest must be legal in nature. An intervener may join the proceedings at any stage after submission of a claim and before the judgment becomes final, and may perform procedural actions in support of one party. The court may reject the inter- vention if no legal interest exists. 4.5 Applications for Security for Defendant’s Costs A claimant who is not a citizen of Croatia, any EU member state, or a state party to the EEA Agreement or another treaty granting exemption from securing lit- igation costs, and who resides in a non-member state, must, at the defendant’s request, provide security for litigation costs unless the claimant’s country recog- nises Croatian court decisions on such costs. This benefit, however, may be exercised only after initiating a litigation and submitting the claim before the court.
221 CHAMBERS.COM
Powered by FlippingBook