Litigation 2025

AUSTRIA Law and Practice Contributed by: Bettina Knoetzl, Katrin Hanschitz, Dr Kirstin McGoldrick and Natascha Tunkel, KNOETZL HAUGENEDER NETAL GmbH

8.2 Settlement of Lawsuits and Confidentiality Parties can agree to keep their settlements con- fidential. The confidentiality of settlements concluded during a trial is somewhat limited by the principle of public court hearings. In practice, however, there are suitable ways to maintain confidential- ity. For example: • a settlement may be negotiated by the parties outside of the public hearing; • a confidentiality clause can be included in the settlement 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 agreement 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 Regulation (EC) No 805/2004 of the European Parliament and of the Council of 21 April 2004, creating a European Enforcement Order for uncontested claims. To the extent that an extrajudicial settlement is drawn up in the form of an “authentic instru- ment”, such as a notarial deed by which con- tent and signature of the extrajudicial settlement are confirmed with public authority, certification as a European Enforcement Order is possible. Otherwise, an extrajudicial settlement is sim-

ply treated as a contract and cannot be directly enforced. Claims arising from a disputed extra- judicial settlement agreement must be pursued before a competent court. 8.4 Setting Aside Settlement Agreements Revocation Clauses It is general practice to conclude a judicial set- tlement subject to a revocation clause. Such clauses enable legal representatives to conclude a settlement and create the possibility of con- sulting their client, and it provides the parties with a period for reflection to take care of the necessary internal approvals, for instance by the supervisory board or by the insurer of that claim. Limitations to Challenges The substantive reasons to challenge settlement agreements are significantly fewer than those available to challenge other agreements, as they are limited to cases of severe mistake or deceit. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A successful litigant may obtain a judgment: • ordering performance; • enjoining a certain action; • creating or altering a legal status; or • ordering declaratory relief. A performance judgment may order, for exam- ple: • the payment of an amount of money; • the transfer of a certain object; or • the submission of a certain declaration.

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