LIECHTENSTEIN Trends and Developments Contributed by: Michael Nueber and Philipp Konzett, Nueber Konzett Attorneys-at-Law
clear and reliable procedures to emerge from this new model. The Bar Association has proposed maintain- ing the current three-tier system, preserving the Supreme Court while enhancing judicial efficien- cy by creating a shared pool of judges for both the Court of Appeal and the Supreme Court. This would allow for better resource allocation and reduce case backlogs. The Bar Association also advocates increasing the number of full-time judges while continuing to involve international experts to maintain decision quality. Rather than abolishing the Supreme Court, the Bar Association suggests focusing on improv- ing the efficiency of the Court of First Instance, where delays are most common. These reforms would modernise the system without disman - tling the well-established legal framework that ensures fairness and legal certainty. Current status On 1 October 2024, a revised version of the judicial reform was announced. The original plan to abolish the third judicial instance may be abandoned. The government and the Bar Association seemed to have reached a compro- mise that balances the reform’s goals with the preservation of legal certainty. Although not all of the Bar Association’s suggestions are to be adopted, the organisation supports the revised reform, viewing it as a reasonable compromise that addresses key issues while maintaining the integrity of the legal system. The proposal is yet to be heard by the Liechtenstein parliament. Other Changes to the Legal Landscape In addition to the contentious proposal to abol- ish the Supreme Court, the government of Liech- tenstein also proposed other significant changes to the legal system, which were generally well
received. One of the most important reforms is the establishment of specialised senates within the Court of First Instance, particularly in the are- as of trust law and foundation law. These areas are crucial to Liechtenstein’s economy, given its strong reliance on asset management and fidu- ciary services. • Trust Law Senate: This new body will focus on disputes related to trusts, ensuring that these cases are handled with high expertise. The introduction of this specialised senate aims to streamline the process of resolving trust-related issues efficiently. This would allow foreign trust experts to sit as judges in the senate, thus improving the quality of the decisions. • Foundation Law Senate: A similar senate will be created for foundation law disputes, which will include supervisory court disputes. Like trust law, foundation law is a cornerstone of the country’s legal framework governing asset management. The establishment of this sen- ate will ensure that cases in this area are han- dled by judges with specialised knowledge. Both of these specialised senates will consist of one full-time judge and two part-time judg- es, reflecting the government’s commitment to maintaining a high level of expertise. These changes are expected to bolster legal certainty and efficiency in dealing with these critical areas of law. Additionally, at the appellate level, a similar struc- ture will be introduced to ensure that trust and foundation law is consistently applied through- out the judiciary. This approach is intended to prevent discrepancies in rulings between differ- ent levels of the court system.
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