TAIWAN Law and Practice Contributed by: Peng-Kwang Chen, Pamela Huang, Claudia Huang and Ching-Tzu (Katie) Chang, Formosa Transnational Attorneys At Law
14. Outlook 14.1 Proposals for Dispute Resolution Reform Proposals for dispute resolution reform in Taiwan in recent years include the following. Establishing a Pyramid Litigation System To find truth in a timely manner and appropri- ately allocate judicial resources, the Judicial Yuan has already established several commit- tees to research and propose dispute resolution reforms. It is anticipated that the Code of Civil Procedure and Administrative Litigation Act will be amended, and measures supporting the first- instance trial, which is at the bottom of the “liti- gation pyramid”, will be strengthened. Through these efforts, the aim is to reduce unnecessary appeals and thereby establish a pyramid litiga- tion system. Proposed amendments include: • in addition to the existing court-appointed expert system, other types of experts such as professional advisers will be introduced into civil litigation to enhance the correctness of judgments. The Legislative Yuan completed its initial review of the relevant provisions in 2021; and • several provisions were introduced to the Administrative Litigation Act and came into effect in August 2023. For example, a media- tion mechanism has been established to reduce litigation at the source. Furthermore, the range of mandatory representation has been extended to protect the litigation rights of the parties. In cases such as environmental and land dispute cases, parties are required to be represented by a lawyer.
Promoting Alternative Dispute Resolution (ADR) Systems To reduce the number of civil actions, the Judi- cial Yuan actively promotes the use of media- tion as a means of dispute resolution and is cur- rently drafting the “Basic Law on Mediation” to improve the mediation process. Promoting Judicial Openness and Transparency To enhance public trust and confidence in the judiciary and allow public access to the court proceedings, a system for live broadcasting of court proceedings is currently under considera- tion. 14.2 Growth Areas Since the implementation of the Commercial Case Adjudication Act in July 2021, the num- ber of major commercial cases filed under that Act increased steadily in 2022 and 2023. Among various types of commercial disputes, the most common ones are disputes over the dismissal of company directors or supervisors, the validity of resolutions made by shareholder meetings or the board of directors, and the exercise of appraisal rights.
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