ROMANIA Law and Practice Contributed by: Cosmin Vasile and Alina Tugearu, Zamfirescu Racoți Vasile & Partners Attorneys At Law
2. Litigation Funding 2.1 Third-Party Litigation Funding
tract are free to set any combination of fixed or hourly fees and success fees, with the latter being due only if a certain result is reached. 2.7 Time Limit for Obtaining Third-Party Funding The legal provisions do not impose any time limits for a party to the litigation to obtain third-party funding.
Litigation funding by a third party is not officially pro- vided for within the Civil Procedure Code. Although permitted, third-party funding is not frequently used in Romania. Third-party funding will be governed by the agreement concluded between the funder and the beneficiary. 2.2 Third-Party Funding: Lawsuits There are no limitations on the types of lawsuits avail- able for third-party funding, unless the third party purchases the rights stemming from the claim and becomes a party in the trial, in which case certain interdictions related to the profession of the third party and the object of the claim might apply. For example, judges, prosecutors and other judicial participants in a civil trial may not acquire the litigious rights that fall under the jurisdiction of the court in which they exer- cise their profession. 2.3 Third-Party Funding for Plaintiff and Defendant Third-party funding is available to both the plaintiff and the defendant. 2.4 Minimum and Maximum Amounts of Third-Party Funding A third-party funding arrangement generates private law effects between the third party and the benefi- ciary, with the limits of the funded amounts being sub- ject to the agreement between the third party and the beneficiary, since there is no legal provision regulating these limits. 2.5 Types of Costs Considered Under Third- Party Funding The costs funded will be outlined in the agreement between the third party and the beneficiary, and will vary depending on the object matter, the value of the matter, etc. A third-party funder usually covers costs such as stamps and legal fees. 2.6 Contingency Fees The legal provisions regulating the relationship between lawyers and clients forbid a pactum de quota litis. However, the parties to the legal assistance con-
3. Initiating a Lawsuit 3.1 Rules on Pre-Action Conduct
In particular cases expressly established by the law, preliminary procedures are compulsory. Typically, these procedures will involve conciliation (for exam- ple, in administrative disputes) and an inquiry before a notary public (for example, in inheritance disputes), and proof of completion of these procedures will be required to accompany the court action. The potential defendant is not obliged to respond to an invitation to conciliation, so there are no penalties for failing to comply. In such a case, the mere invitation to con- ciliation will be proof of the fulfilment of the pre-trial conciliation procedure requirements. In addition, contracting parties may agree that pre- liminary procedures are to be followed in advance of any litigation. 3.2 Statutes of Limitations The purpose of a statute of limitations is to protect the material right of action. In general, claims with a pecuniary object are subject to a statute of limitations. In civil cases, the time limits for bringing a claim vary according to the nature of the claim and the subjec- tive right on which the claim is based. Generally, these limits are set for a period of six months to ten years, with a term of three years being the most common. Time limits are treated as a substantive law matter. The statute of limitations does not operate ex officio; rather, the objection of limitation can only be invoked within the applicable terms (which differ based on the category of the right) before the first court, no later than at the first court hearing. During the course of the limitation period, several judicial or factual events
954 CHAMBERS.COM
Powered by FlippingBook