CROATIA Law and Practice Contributed by: Lada Ćustić and Marko Paulinović, Buterin & Partners
has been conclusively determined in arbitration, it may not be re-litigated in subsequent proceedings. 13.4 Procedure for Enforcing Domestic and Foreign Arbitration Croatia is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which facilitates the enforcement of foreign arbitral awards within its jurisdiction. Regarding domestic awards, there is no separate recognition process. The Croatian court will order enforcement of a domestic arbitral award unless it finds that the matter is not arbitrable under Croatian law, that the award violates public policy, or that a pre- vious request to set aside the award on these grounds has been denied. Examples of instances in which recognition and enforcement of foreign arbitral awards may be refused would be (i) if the award has been set aside or is not yet binding, or (ii) if its enforcement would violate Cro- atian public policy, which is narrowly interpreted and limited to breaches of fundamental mandatory rules. The enforcement of both domestic and foreign awards is carried out through the standard enforcement pro- cedure in Croatia, ensuring that the award is executed in accordance with the regular mechanisms for the enforcement of court judgments. 14. Outlook 14.1 Proposals for Dispute Resolution Reform Croatia’s approach to dispute resolution reform cen- tres on the promotion of Alternative Dispute Reso- lution mechanisms, such as mediation. Key reforms include the establishment of dedicated ADR centres
and the introduction of the Act on the Peaceful Res- olution of Disputes, which aims to make ADR more accessible, efficient, and widely known to the public and business communities. These reforms seek to encourage the use of peaceful settlement methods, positioning ADR as a favourable alternative to formal court procedures. In addition to ADR-focused initia- tives, there has been an ongoing effort to improve the efficiency of court procedures. It is worth noting that arbitration has gained significant traction in the market, particularly due to its efficiency, flexibility, and ability to offer a more streamlined pro- cess for resolving complex commercial disputes. This trend reflects a broader shift in favour of more flexible and less time-consuming mechanisms for dispute resolution. 14.2 Growth Areas The primary area of growth in commercial disputes in Croatia is arbitration, largely due to its significant ben- efits over traditional court proceedings. Arbitration is increasingly viewed as a preferred method for resolv- ing disputes, particularly in the context of international commercial transactions, owing to its efficiency, con- fidentiality, and ability to provide more flexible and enforceable outcomes. In addition to arbitration, third-party funding is also emerging as a significant trend across both the Euro- pean Union and globally. As this form of funding con- tinues to grow, there is an increasing need for regula- tory clarity and the establishment of a legal framework governing third-party funding in Croatia. The rise of this practice signals a shift towards more accessible and resource-efficient methods for litigants in com- mercial disputes, and it is an area that warrants fur- ther legal development to keep pace with international trends.
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