AUSTRIA Law and Practice Contributed by: Bettina Knoetzl, Katrin Hanschitz, Dr Kirstin McGoldrick and Natascha Tunkel, KNOETZL HAUGENEDER NETAL GmbH
8. Settlement 8.1 Court Approval Austrian law distinguishes between extrajudicial
scripts of the hearing (usually a summary by the judge) are not made public. 7.7 Level of Intervention by a Judge Active Role of the Judge The judge has the predominant and most active role throughout a hearing and will not only pre- side in the process of the hearing but will also take the lead in examining witnesses. The judge decides when to end the trial. The court may dis- regard open requests for taking evidence, such as hearing one of the witnesses, if it has been satisfied by the evidence already taken. Timing of Judgments While an immediate oral judgment at the end of the trial is possible, in practicse, judgments are generally rendered in writing at a later time. This process may take several months from the time the oral hearing is closed. 7.8 General Timeframes for Proceedings Average Duration Proceedings before Austrian courts are generally efficient. In civil proceedings, most procedural 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 appel- late level. Complex Duration Complex disputes may take longer. Especially in more complex cases, appellate court proceed- ings may reveal errors in the lower court pro- ceedings and the case will then be remanded to the lower court for repetition and/or completion of the taking of evidence. The judgment ren- dered in such a remand is also subject to appeal according to the general procedural rules. In such cases, it can take several years before a final, binding judgment is rendered.
and judicial settlements. Extrajudicial Settlements
Extrajudicial settlements are concluded without a court being involved and – in order for the law- suit to be stopped – the parties would need to agree to withdraw the claim or to an indefinite stay of proceedings. This is common in practice. Judicial Settlements Judicial settlements are concluded before the court and – unless they contain a specifically agreed revocation clause (see 8.4 Setting Aside Settlement Agreements ) – are immediately enforceable. The parties 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, some- thing that is fundamentally within the authority of the parties). Some courts also check whether the terms of the settlement are specific enough to be enforced. In practice, courts are open to recording a settlement in the form reached by the parties. Costs The conclusion of a settlement agreement trig- gers 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.
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