AUSTRIA Law and Practice Contributed by: Bettina Knoetzl, Katrin Hanschitz, Kirstin McGoldrick and Natascha Tunkel, KNOETZL
7.8 General Timeframes for Proceedings Average Duration Proceedings before Austrian courts are generally effi- cient. In civil proceedings, most steps are taken within two to four weeks of each other. The average duration of proceedings is one to one and a half years at the first stage and from nine months to one year at the appellate level. Complex Duration Complex disputes may take longer. Especially in more complex cases, appellate court proceedings may reveal errors in the lower court proceedings and the case will then be remanded to the lower court for fur- ther determination and/or completion of the taking of evidence. The judgment rendered in such a remand is also subject to appeal according to the general pro- cedural rules. In such cases, it can take several years before a final, binding, judgment is rendered. 8. Settlement 8.1 Court Approval Austrian law distinguishes between extrajudicial and judicial settlements. Extrajudicial Settlements Extrajudicial settlements are concluded without a court being involved and – for the lawsuit to be stopped – the parties would need to agree to withdraw the claim or to an indefinite stay of proceedings. This Judicial settlements are concluded before the court and – unless they contain a specifically agreed rev- ocation clause (see 8.4 Setting Aside Settlement Agreements ) – are immediately enforceable. The par- ties are not limited by the pending dispute and may also agree on matters that have yet to be a part of the dispute. This, however, could trigger additional court fees. The court will only review if the subject matter in dispute is capable of being settled (eg, something that is fundamentally within the authority of the par- ties). Some courts also check whether the terms of the settlement are specific enough to be enforced. In is common in practice. Judicial Settlements
practice, courts are open to recording a settlement in the form reached by the parties. Costs The conclusion of a settlement agreement triggers a specific settlement tax duty, a concept unknown in many other jurisdictions. Parties should consult with their local lawyer before concluding a settlement under Austrian law. If the legal dispute is settled at the first hearing, the court fees are halved. 8.2 Settlement of Lawsuits and Confidentiality Parties can agree to keep their settlements confiden- tial. The confidentiality of settlements concluded during a trial is somewhat limited by the principle of public court hearings. In practice, however, there are ways to maintain confidentiality. For example: • a settlement may be negotiated by the parties out- side of the public hearing; • a confidentiality clause can be included in the set- tlement agreement; and • during the hearing, the judge may exchange the text of the settlement for approval by the parties, but only in writing. The parties and their counsel sign the court agree- ment, and the judge makes it part of the court records. Third parties can access the court records only if they can establish a legal interest. 8.3 Enforcement of Settlement Agreements Judicial settlements (concluded before the court) are enforceable in the same manner as judgments. Within the European Union, judicial settlements can, upon application, be certified as a European Enforcement Order which can be directly enforced under Regu- lation (EC) No 805/2004 of the European Parliament and of the Council of 21 April 2004, creating a Euro- pean Enforcement Order for uncontested claims. To the extent that an extrajudicial settlement is drawn up in the form of an “authentic instrument”, such as a notarial deed by which content and signature of the extrajudicial settlement are confirmed with pub-
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