LIECHTENSTEIN Law and Practice Contributed by: Moritz Blasy, Nicolai Binkert, Simon Ott and Kathrin Binder, Schurti Partners Attorneys at Law Ltd
9. Damages and Judgment 9.1 Awards Available to the Successful Litigant The Liechtenstein courts can render judgments: • ordering performance of a certain action (eg, pay- ment of a certain sum of money or handing-over of a specific asset); • forbidding a certain action; • creating or altering legal status (eg, divorces, annulments of corporate resolutions); or • of a declaratory nature. In principle, courts are bound by the relief sought (and may not order more or something different to Liechtenstein civil procedural law does not provide for special rules regarding damages. In most cases, awards granted for damages are monetary judgments. Declaratory judgments for future damages (interrupt- ing limitation periods) are another important form of award for damages. While as a matter of substantive Liechtenstein law, the maximum amount of damage is generally not restrict- ed, a damaged party may, in principle, only claim the amount of the actual damage, whereas punitive dam- ages are alien to substantive Liechtenstein law. 9.3 Pre-Judgment and Post-Judgment Interest that requested by the applicant). 9.2 Rules Regarding Damages Under Liechtenstein law, the question as to whether interest can be collected is a matter of substantive law rather than procedural law. Therefore, whether and to what extent interest can be claimed depends on the underlying legal relationship between the claim- ant and the defendant. If interest is due based on the respective underlying legal relationship, pre- and/or post-judgment interest can be claimed. According to substantive Liechtenstein law, the gen- eral statutory interest rate is 5% per annum. Between entrepreneurs, the general interest rate is 8% per annum above the base interest rate of the Swiss Cen- tral Bank. In addition, a debtor may be ordered to
However, if the appellate courts order the taking of further evidence due to procedural errors, or if the case is remitted to the District Court for further hear- ing, the proceedings will typically last considerably longer since any new decisions will again be subject to further appeal. The same holds true if a party files a constitutional complaint with the Constitutional Court. If a judgment is lifted due to a violation of constitution- al rights by the Constitutional Court, the case must be re-heard by the ordinary courts, which in turn opens the possibility to appeal the new decisions. The settlement of a pending lawsuit (either within or outside of a court hearing) does not require the approval of the court, except for matters concerning child support and custody of children. Judges are encouraged by law to make litigants set- tle amicably at any stage of the proceedings and, in practice, judges go to great efforts to get disputes settled in the early stages of the proceedings in order to avoid unnecessary, costly and lengthy proceedings. 8.2 Settlement of Lawsuits and Confidentiality Parties can, and often do, agree on a confidentiality clause in a settlement. 8. Settlement 8.1 Court Approval 8.3 Enforcement of Settlement Agreements A settlement taken on record in court, which was con- cluded irrevocably, constitutes an enforceable title (ie, a judicial settlement is equal to a judgment). An extra- judicial settlement does not constitute an executory title, and new proceedings must be initiated in order to enforce a claim arising from an out-of-court set- tlement. 8.4 Setting Aside Settlement Agreements Parties can agree to include a revocation clause in the settlement enabling them to withdraw within a certain timeframe. Apart from that, settlement agreements can only be challenged on the grounds of a severe mistake or of deliberate deceit and duress.
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