CROATIA Law and Practice Contributed by: Lada Ćustić and Marko Paulinović, Buterin & Partners
proceedings. However, ADR is not formally integrated into the judicial process, and is instead conducted through independent and voluntary proceedings, facil- itated by registered mediators who have completed professional training. Settlements reached through mediation may become enforceable legal instru- ments if they contain a valid enforcement clause in accordance with Article 20 of the Law on Peaceful Dispute Resolution. Additionally, the Consumer ADR Act exemplifies Croatia’s legislative commitment to enhancing access to ADR, particularly in consumer matters, thereby encouraging parties to resolve dis- putes outside of lengthy and costly court proceedings. 12.3 ADR Institutions Institutions offering and promoting ADR in Croatia are organised within a framework that is functional but still evolving. The Centre for Peaceful Dispute Resolution, established by the state, maintains a national regis- ter of certified mediators and sets minimum training standards to ensure quality and consistency. Along- side this, private mediation centres, such as the Cen- tre for Mediation at the Croatian Mediation Associa- tion, offer a range of services and contribute to the visibility and accessibility of ADR. Sector-specific bodies, including the Croatian Cham- ber of Commerce and the Croatian Chamber of Trades and Crafts, have also integrated mediation into their respective institutional frameworks, further broaden- ing the reach of ADR. Moreover, the enactment of the Consumer ADR Act demonstrates the state’s intention to widen access to alternative mechanisms for dispute resolution. While the current system is not yet fully consolidated, it lays a solid foundation for the future professionalisation and expansion of ADR practices in Croatia.
in alignment with Croatia’s international obligations under the 1958 New York Convention on the Recogni- tion and Enforcement of Foreign Arbitral Awards (the Convention). 13.2 Subject Matters Not Referred to Arbitration The Arbitration Act sets forth the limits of arbitrability in Croatia, establishing that arbitration is permissible only for disputes in which the parties have the autono- my to dispose of their rights. However, certain subject matters are categorically excluded from arbitration. These include disputes related to status and family law, such as those affecting personal status or rights that cannot be freely transferred. Additionally, criminal matters are not arbitrable, as they are inherently public in nature and fall under the exclusive jurisdiction of state authorities. The Arbitration Act provides the criteria for determin- ing arbitrability, requiring an examination of several key factors, including the nature of the dispute and the identities of the parties involved. Only those dis- putes that involve freely disposable rights and are not contrary to public policy may be referred to arbitration. 13.3 Circumstances to Challenge an Arbitral Award A party seeking to challenge an arbitral award in Croa- tia must file a lawsuit to set aside the award before the competent Croatian court. Grounds for setting aside an award are narrowly defined under the Arbitration Act, and generally align with international standards. Such grounds include: • breach of the fundamental principles of the Croa- tian legal system, such as violations of due process or fairness; and • fraud, corruption, or any severe violation of proce- dural rights that would render the award invalid. Arbitral awards are, in principle, final and binding, and the grounds for challenging an award are strictly lim- ited. As such, challenges are an exceptional remedy, available only in instances of substantial procedural defects or violations of the principles of justice. Fur- thermore, as a matter of res judicata, once an issue
13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration
In Croatia, the regulation of arbitral procedures is gov- erned by the Arbitration Act, which establishes the legal framework for both domestic and international arbitration. The recognition and enforcement of arbi- tral awards are also governed by this Act, which is
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