Original scientific paper
https://doi.org/10.3935/zpfz.70.1.01
Cost Reimbursement in Disputes Resolved by a Court Settlement
Mihajlo Dika
; Faculty of Law, University of Zagreb, Zagreb, Croatia
Abstract
The provision of the Croatian Code of Civil Procedure (CCP) stipulating that, unless otherwise agreed, each party in disputes resolved by a court bears its own costs (Article 159, paragraph 1 of the CCP), was not affected by the 2019 amendments to the CCP. The same is true for Article 324, which provides that the costs of the parties who attempted but failed to reach a so-called non-contentious (praetorian, preventive) settlement constitute litigation costs (Article 159 (2) CCP). Likewise, Article 324 (3), stipulating that the costs of a non-contentious settlement are borne by the initiating party, also remained unchanged. The 2019 amendments did, however, indirectly change cost-related provisions in court settlements by permitting the penalization of the party refusing the court’s invitation to take part in a mediation procedure, which may also lead to a court settlement (Article 186d). The paper takes a comparative diachronic approach to the matter of costs in court settlements, focusing on court settlements reached in the course of litigation. In addition, the issue of costs in non-contentious court settlements is also dealt with, including out-of-court settlements concerning the matter in dispute, the costs of interveners in court settlements, and the loss of the right to claim further costs of a first-instance procedure for refusing to take part in mediation. Finally, the author concludes that the latest provisions fail to comprehensively regulate the above issues, leaving many questions unanswered, which could cause discrepancies in the interpretation and application of the pertinent provisions. For this reason, the author believes it is crucial for parties reaching a settlement to agree on the manner of resolving costs-related issues, be it reached in the course of litigation or in a non-contentious procedure, particularly in the event of a interim or partial settlement. The author also contends that the court should act here as a facilitator and draw the parties’ attention to these matters and possible consequences of failing to resolve them.
Keywords
settlement; litigation costs; civil procedure
Hrčak ID:
238486
URI
Publication date:
25.5.2020.
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