LIECHTENSTEIN Trends and Developments Contributed by: Michael Nueber and Philipp Konzett, Nueber Konzett Attorneys-at-Law
Nueber Konzett Attorneys-at-Law Städtle 31 9490 Vaduz Liechtenstein Tel: +423 239 90 90 Email: office@n-k.legal Web: www.n-k.legal
Litigation in Liechtenstein and the Pitfalls to Avoid The Liechtenstein judicial system is based on a three-instance model, mirroring the Austrian system. The Court of First Instance in Vaduz is the sole first-instance court in Liechtenstein, responsible for all contentious and non-conten- tious civil matters falling within Liechtenstein’s international jurisdiction. The losing party may appeal its decisions to the Court of Appeal in Vaduz, which has full jurisdiction and is the high- est court where full-time judges preside. Unless the Court of Appeal fully confirms the decision of the Court of First Instance, and unless the disputed value is less than CHF50,000, parties may appeal against the Court of Appeal’s deci- sions to the Liechtenstein Supreme Court. The Supreme Court currently consists of esteemed part-time judges, mostly professors or experts in civil proceedings from Liechtenstein, Austria or Switzerland. Decisions of the Court of Appeal that cannot be appealed to the Supreme Court, as well deci- sions of the Supreme Court in general – with some minor exceptions – are subject to an extraordinary appeal to the Constitutional Court on the grounds of constitutional rights violations. This route is frequently used, not only because it is relatively inexpensive, but also as a means to delay the finalisation of a verdict.
Due to its size, Liechtenstein lacks an extensive network of recognition and enforcement agree- ments with other countries. Only Austrian and Swiss judgments are, in most cases – but not always – recognised and enforceable in Liech- tenstein based on bilateral agreements. Liech- tenstein is not a party to the Lugano Conven- tion, nor is the Brussels Ia Regulation applicable. Therefore, foreign judgments can be difficult to enforce in Liechtenstein, making it necessary to carefully consider not only whether it is worth suing someone with a Liechtenstein connection, but also where is the best venue to bring such a lawsuit in order to be able to enforce it later on. In contrast, parties are free to choose arbitration as a means of dispute resolution. As a signa- tory to the New York Convention, most foreign arbitral awards are recognised and enforceable in Liechtenstein. The difficulty in enforcing foreign court judg- ments has led to another common peculiarity in Liechtenstein. Upon the defendant’s request, foreign claimants may be required to pay a pro- cedural costs deposit (known as an aktorische Kaution ) in civil proceedings. The amount is set by the court based on the legal tariff, the amount in dispute, the number of witnesses, and the length of the evidence procedure. Defendants often use deposit requests to prolong proceed- ings or discourage claimants from suing in the
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