LIECHTENSTEIN Trends and Developments Contributed by: Michael Nueber and Philipp Konzett, Nueber Konzett Attorneys-at-Law
Background and the role of the Supreme Court GRECO’s recommendations focused on ensur- ing judicial independence and preventing cor- ruption. In its latest report on Liechtenstein, GRECO criticised the fact that some part-time judges in Liechtenstein hold secondary jobs as lawyers, potentially leading to conflicts of inter- est. However, GRECO did not suggest abolish- ing the Supreme Court. Instead, it recommended appointing more full-time judges and establish- ing clearer rules to prevent conflicts of interest. GRECO did not consider the fact that most Supreme Court judges hold secondary jobs in Austria or Switzerland, not in Liechtenstein. The government claims that abolishing the Supreme Court aligns with GRECO’s sugges- tions. However, legal experts argue that this would weaken judicial independence. They rec- ommend introducing new rules for appointing judges and stress the importance of maintaining an independent judiciary, especially in a small country like Liechtenstein, where personal and professional relationships frequently overlap. Criticism of the proposed reform The proposed reform disregards established tra- ditions in Liechtenstein. For over 200 years, the Supreme Court has been a cornerstone of the judicial system. Unlike other courts that focus on the facts of a case, the Supreme Court han- dles only legal questions. This three-tier system – Court of First Instance, Court of Appeal and Supreme Court – ensures the careful review of complex legal issues, adhering to European standards and common practices in many coun- tries. Given that Liechtenstein adopts many of its laws from neighbouring Austria and Switzerland, the Supreme Court plays a crucial role in interpreting
first place. The deposit is refundable if the claim- ant wins but will be used to cover the defend-
ant’s costs if the claimant loses. Reform of the Judicial System
In February 2023, the Liechtenstein government initiated discussions on reforming the judicial system, leading to an official proposal submit- ted to the Liechtenstein parliament. While this proposal includes significant structural changes to the court system, it leaves the issue of rec- ognition and enforceability of foreign judgments unaddressed. The reform’s central feature is the abolition of two of the country’s highest courts – the Supreme Court ( Oberster Gerichtshof ) and the Administrative Court ( Verwaltungsgerichtshof ). These courts are to be merged with the Court of Appeal, thus creating a new Obergerichtshof (“High Court”). The reform is intended to stream- line legal processes and address recommenda- tions from GRECO (Group of States against Corruption). For administrative matters, three instances will remain, but in civil and criminal cases, only two will exist: the Court of First Instance and the new High Court. The reform has sparked widespread criticism, both nationally and internationally, even before implementation. Lawyers, judges and academ- ics have voiced concerns, particularly regarding the abolition of the Supreme Court, warning that without this independent court, legal certainty may be at risk. Many experts argue that the government misinterpreted GRECO’s recom- mendations and that the reform is excessively far-reaching.
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