CROATIA Law and Practice Contributed by: Lada Ćustić and Marko Paulinović, Buterin & Partners
8.2 Settlement of Lawsuits and Confidentiality In Croatia, settlements are neither expressly confiden- tial nor public. The law does not specifically regulate confidentiality in settlement agreements. As a result, while court settlements form part of the case record and are accessible to the parties and relevant judi- cial authorities, they are not automatically treated as confidential. 8.3 Enforcement of Settlement Agreements The enforcement of court settlements is carried out through the procedure regulated by the Enforce- ment Act. Only settlements concluded before a court possess the character of an enforceable instrument, allowing direct initiation of enforcement proceedings in the event of breach. Private settlements made outside of court are contractually binding but lack immediate enforceability, requiring a separate court proceed- ing to obtain an enforcement title unless executed in proper form before a notary public. 8.4 Setting Aside Settlement Agreements A settlement agreement may be set aside or declared void if it contravenes public policy, contains an illegal or impossible obligation, or was entered into under duress, misrepresentation, or fraud. The legal grounds largely mirror those applicable to invalid contracts under Croatian contract law. Because settlements are final and binding, setting them aside requires initiat- ing a specific judicial action to challenge their validity. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant In Croatian civil proceedings, the successful litigant is generally entitled to recover the costs of litigation, including court fees and attorney’s expenses. The extent of such awards is assessed according to statu- tory provisions. Beyond reimbursement of legal costs, Croatia does not provide additional financial “awards” for being successful in litigation, as might be observed in certain other jurisdictions. 9.2 Rules Regarding Damages Croatian jurisdiction does not recognise punitive damages as such. Compensation is limited to mate-
rial damages, covering quantifiable financial losses, and non-material damages, such as pain, suffering, or emotional distress. In cases of wrongful death, com- pensation is typically limited to non-material damages suffered by family members. The primary aim of the Croatian system is to restore the injured party to the position they would have occupied but for the wrong- ful act, rather than to punish the defendant. 9.3 Pre-Judgment and Post-Judgment Interest Under Croatian law a creditor may claim contractual and default (pre-judgment) interest on any monetary obligation that is not paid when due and thereafter continue to claim interest until the debt is satisfied. The statutory default rate is adjusted semi-annually, reflecting the prevailing European Central Bank refi- nancing rate at the start of each half-year period. For commercial obligations and contracts involving legal persons, the default rate is the ECB rate plus eight percentage points. For all other obligations, it is three percentage points above the ECB rate. Finally, no interest runs on unpaid default interest except on accrued but unpaid default interest from the date on which the creditor filed suit for that interest. 9.4 Enforcement Mechanisms of a Domestic Judgment Enforcement of a domestic judgment is carried out through the enforcement procedure which may be initiated by the creditor. The subject of enforcement may comprise both assets of the debtor – such as money, immovable and mov- able property, securities, company shares and cer- tain non-property rights, such as delivery or transfer obligations. The creditor may choose the enforcement subject within the scope permitted by law. 9.5 Enforcement of a Judgment From a Foreign Country Since 1 July 2013, judgments issued in European Union Member States may be enforced in Croatia without special enforcement procedures, pursuant to EU regulations on the recognition and enforcement of judgments. For judgments originating outside the EU, enforcement is governed by applicable interna- tional conventions to which Croatia is a party, such
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