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Transparency in the Cost of Justice - Statistics Project Example

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The paper "Transparency in the Cost of Justice" discusses that the basic conditions for forming a binding agreement are acceptance, offer and consideration. To be enforceable, a contract has to be created by competent parties, who provide their approval, to a lawful agreement. …
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Transparency in the Cost of Justice
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Transparency in the Cost of Justice Introduction: This study envisages an analysis of litigation cost data, collected from lawyers based in differentEuropean countries. The data involved comprises four types of costs in respect of four case studies for data acquired from 28 European countries. EU seeks to establish a “European area of Justice” to facilitate the access of individuals as well as business to justice by reducing hindrances that discourage or prevent them from using their privileges. Expensive and composite administrative and legal systems act as hindrances availing of justice by the citizens. One of the major impediments with EU legal system is the hefty fee for lawyers and the reason for this is four-fold. Secondly, significant differences in sources and levels of costs from one member state to the other also constitute a barrier. Thirdly, the high costs in relation to the quantity of litigations frequently act as an obstacle. Fourthly, significant differences among the member states legal systems entail enhanced costs to initiate cases as the litigant has to pay for translators and lawyers apart from bearing the expenditure on travel and notifications. This study contains an analysis of data on four types of costs for four case studies based on the data acquired from 28 European countries. Cost data has been taken under four heads, such as court costs, lawyer costs, bailiff costs and appeal costs. Court cases of four types have been considered and the costs are calculated for all cases. The categories of cases include CA1A: National situation, in which a couple gets married and subsequently they separate and agree for a divorce, CA1B: Transnational situation. That is two nationals from a similar member state get married and afterward file for a divorce, CA4A: National situation, which includes commercial and contract law and CA4B: Comprising transnational situation in Commercial Law and Contract. 1.1 Case Study number 1 – Family Act – Divorce (excluding division of matrimonial property) Case A – National Situation: Costs/Country Court Cost Lawyer Cost Bailiff Cost Appeal Cost Germany 247 391 0 489 Austria 210 2049 0 278 Belgium 52 1500 0 121 Bulgaria 18 82 0 18 Cyprus 397 1200 930 395 Croatia 0 200 0 15 Denmark 89 1500 0 123 Spain 0 1500 150 0 Estonia 20 2237 460 20 Finland 116 975 110 2 France 0 975 256 150 Greece 12 1500 0 22 Hungary 48 200 48 32 Ireland 0 3000 25 0 Italy 0 4000 0 0 Latvia 71 711 0 71 Lithuania 29 1000 29 29 Luxembourg 0 2500 0 0 Malta 150 400 14 150 Netherlands 196 1200 81 248 Poland 225 2860 0 155 Portugal 336 1500 10 19 Czech Republic 46 364 0 36 Romania 8 500 32 5 UK 501 1847 120 147 Slovakia 90 300 0 90 Slovenia 36 587 0 36 Sweden 48 427 0 0 Interpretation: The above graph represents CA1A: National situation where a couple gets married. Later they separate and agree to a divorce in different European countries. It can be seen that the lawyer cost in the instant case is common in all countries. Italy has a high lawyer cost in CA1A. Ireland, Poland, Luxembourg, Estonia, Austria, UK are comparatively cheaper in lawyer fee. Lawyers, as legal experts deal with legal costs that have a bearing on the restoration of the privileges of litigants to carry out the litigation costs. The costs are better in UK probably because of transparent court procedures. Lawyers’ fees form the most significant part of the expenses of civil litigation, which are controlled by the rule of law. However, there appears to exist no specific rules to quantify the amount of fee payable to lawyers. Bailiff cost shows second position in this graph. It is the amount paid to managers and intermediaries in court formalities. Cyprus shows the highest rates in Bailiff Cost, which indicates that the intermediaries have to be considered with equal importance as the lawyers. Bailiff costs are incurred mostly in three cases that include the announcement of litigants which is done by Court Bailiff. Again, payment is made for the announcement after decision is made. Such types of announcement take place by the service of Court Bailiff of the issued order with the party of litigant and for the implementation of the choice when the losing group denies or is not capable to comply with the orders. Such implementation takes place by the seizure report drawn up by the Bailiff’s Court. On the basis of report to the litigant and the rights and sale actions will be taken. Court cost and appeal costs are relatively low but present in all countries. In UK, the family process regulations are a single procedure governing the process and the practice in family actions in the high court, magistrates courts and county courts. On the other hand, Bailiff Cost is not present in countries such as Germany, Austria, Belgium, Bulgaria, Croatia, Denmark, Greece, Italy and Latvia due to which litigation cost in these countries are comparatively less. This tends to suggest a more transparent legal system. Case B – Transnational Situation: Costs/Country Court Cost Lawyer Cost Bailiff Cost Appeal Cost Germany 247 391 0 489 Austria 21 2,049 0 278 Belgium 52 15 0 121 Bulgaria 18 82 0 18 Cyprus 397 225 1,325 395 Croatia 0 200 0 15 Denmark 89 1,500 0 123 Spain 0 1,500 150 0 Estonia 20 4,793 460 20 Finland 116 975 110 2 France 21 975 256 150 Greece 12 1,500 0 22 Hungary 48 400 48 32 Ireland 0 3,000 25 0 Italy 0 4,000 0 0 Latvia 71 711 0 71 Lithuania 29 1,000 29 29 Luxembourg 0 2,500 150 0 Malta 150 400 14 150 Netherlands 196 1,200 81 248 Poland 485 2,860 0 155 Portugal 912 1,500 10 48 Czech Republic 46 364 0 36 Romania 8 500 32 5 UK 501 1,847 120 147 Slovakia 90 800 0 90 Slovenia 36 587 0 36 Sweden 48 427 0 0 Interpretation: The above graph represents the CA1B: Transnational situation: Two nationals from a same Member State get married and later file for a divorce. Lawyer cost is present in all countries. Comparatively, Estonia has a higher lawyer cost, which indicates the presence of efficient lawyer’s in these types of case. Italy, Ireland and Poland also have higher amount of lawyer cost. In this case, Cyprus is costlier in terms of Bailiff Cost. The presence of Bailiff Cost indicates that settlement of CA1B extends equal significance to the officials other than lawyers. The process involves the legal system of two countries and their laws and regulations, which may be different in nature. It can be solved by efficient officials who need to be highly paid. Court cost and Appeal costs are comparatively low, which shows the participation of out of court settlement agents. Portugal has the highest court cost. Appeal cost is present in Cyprus and Germany at higher amounts. Austria, Estonia, Ireland, Italy and Luxembourg have higher lawyers’ costs ranging from 2000 to 4800. Thus, the prospective litigants in these countries may tend to be dissuaded from initiating legal action. On the flip side, other costs are comparatively less in these nations. Comparative analysis of CA1A and CA1B: The settlement of CA1A involves lesser amount of proceeding as well as time as the litigation occurs within a country. This requires the adherence only to the laws and regulations of one court. CA1B’s settlement consumes large amount of procedures as it take place between persons of two different countries. Therefore, it involves a series of out of court procedures and the presence of many agencies, which increases the lawyer costs and the Bailiff costs. Bailiff’s operating costs need to be paid when an announcement by the writ of a Bailiff is essential. Throughout the process, some additional notifications served by a bailiff or by a letter of the clerk of the court become essential. A well articulated memorandum can make a difference in the final decisions made by a court. The costs remain unchanged except in countries such as Austria, Belgium, Cyprus, Denmark, Spain, Estonia, France, Hungary, Luxembourg, Poland and Portugal. Bailiffs cost for service of the procedure may be for a claim in the quantity of 2,000 ECU on the basis of page count and the indemnification for the transporting space, etc. Mandatory translation costs are to be paid in addition. In civil proceedings, petition can be blocked immediately after the decision has been provided. At the time of judgment, notification to a party is done by a bailiff, and appeal is entertainment in this one month from the date of the announcement. The expenses may rise, if the enforcement is not directly done and the order to hold the debtors property adds similar expenses. These include the legal cost or duties to be paid and various extra legal operating cost, such as the payment of notaries, attorneys, experts Bailiffs etc. besides other fixed cost such as technical consultants and witnesses’ costs. Payments for the lawyers are focused on constitutional regulations relating to their lowest boundary of about 2% of the worth and additions based on the depth of the case. In firm circumstances, fees have to be deposited before trials through bar associations. Attorney’s payment is often set by an agreement with the client. Dependent charge preparations are allowable and customary in some areas such as actions with regard to privileges in immovable properties and are valued at 10% to 20% of the amount finally provided. The filing fees are paid when official actions are registered before the court and the proceeding fees are paid for the inquiry of the case. Case A and Case B requires Stamps amounting about “€10”1 to be attached on the appeal and on the copies thereof and for the filing of the case. In the case of appeal cost in a consensual divorce, the parties generally surrender of their right to appeal the decision. If they do not do so and one chooses to appeal the decision Court fees are about twice the stamp amount. Lawyer fee is compulsory in both cases. 1.2 Case Study 4 – Commercial Law - Contract Case A – National Situation: Costs/Country Court Cost Lawyer Cost Bailiff Cost Appeal Cost Germany 869 839 98 1,157 Austria 607 8,870 0 934 Belgium 35 2,000 420 186 Bulgaria 803 570 1,400 400 Cyprus 397 1,200 930 395 Croatia 15 700 200 15 Denmark 509 2,600 100 509 Spain 200 4,000 0 350 Estonia 20 4,793 2,029 20 Finland 164 6,000 418 164 France 50 5,000 130 150 Greece 633 1,800 80 505 Hungary 1,200 1,500 3,000 1,200 Ireland 70 4,000 100 100 Italy 178 6,000 150 0 Latvia 561 2,489 28 280 Lithuania 600 2,300 300 600 Luxembourg 0 3,000 1,050 0 Malta 654 1,020 14 1,050 Netherlands 440 7,500 81 600 Poland 1,174 3,332 400 1,000 Portugal 691 1,500 1,152 960 Czech Republic 800 1,607 107 800 Romania 8 2,000 2,000 5 UK 589 5,897 800 885 Slovakia 1,200 600 4,000 1,200 Slovenia 303 500 0 402 Sweden 48 2,140 0 0 Interpretation: The Above graph represents CA4A: National situation: Commercial Law and Contract. In this case the Bailiff Cost at comparatively higher amount in Slovakia, Hungary, Estonia and Romania, whereas the lawyer cost is stable in all countries. Contract Law decides when assurances are enforceable. The basic conditions for forming a binding agreement are an acceptance, offer and consideration. To be enforceable, a contract has to be created by competent parties, who provide their approval, to a lawful agreement. Poland, Slovakia and Hungary are seen to possess efficient force for the settlement of these types of cases. Case B – Transnational Situation: Costs/Country Court Cost Lawyer Cost Bailiff Cost Appeal cost Germany 869 839 98 1,157 Austria 607 8,870 0 934 Belgium 35 2,000 420 186 Bulgaria 803 570 1,400 400 Cyprus 397 2,250 1,325 395 Croatia 15 700 400 15 Denmark 509 2,600 100 509 Spain 200 4,000 0 350 Estonia 20 4,793 2,029 20 Finland 164 6,000 418 164 France 50 5,000 130 150 Greece 633 1,800 80 505 Hungary 1,200 1,500 3,000 1,200 Ireland 70 4,000 100 100 Italy 178 6,000 150 0 Latvia 561 2,489 28 280 Lithuania 600 2,300 300 600 Luxembourg 0 3,000 1,050 0 Malta 654 1,020 14 1,050 Netherlands 440 7,500 81 600 Poland 1,174 3,332 400 1,000 Portugal 691 1,500 1,152 960 Czech Republic 800 2,727 107 800 Romania 8 2,000 2,000 5 UK 589 5,897 800 885 Slovakia 1,200 1,000 4,000 1,200 Slovenia 303 990 0 402 Sweden 48 2,600 0 0 Interpretation: The Above graph represents CA4B: National situation: Commercial Law and Contract. Appeal cost and Court cost are involved in this case at relatively lower amount in all countries. Involvement of Bailiff Cost is at a higher amount in all countries as the settlement of this case seeks the participation of agencies other than courts. Lawyer Cost is also better amount as in all cases. Austria and Netherland is seen to have comparatively higher lawyer cost, whereas Finland, Italy and UK have moderate amount of lawyer cost. Comparative analysis of CA4A and CA4B: By comparing two cases (CA4A and CA4B) the countries such as Cyprus, Croatia, Czech Republic, Slovakia, Slovenia and Sweden have differences regarding Appeal, Bailiff, Court and Lawyer Cost. CA4A and CA4B initial court fees Stamps and lawsuit fees registration fees on the copies come under main court expenditure. In the appeal cost Stamps in the appeal mark and in the copies and registration with the court will be coming as additional in all cases. Lawyer cost is compulsory in both cases. Bailiff cost are compulsory in both cases because the lawsuit must be officially served with the seller and furthermore the decision must also be served. Conclusion: This study makes an analysis of litigation cost data collected from lawyers based in various European countries. Through this analysis it can be concluded that it would be extremely useful if data about the sources and the costs of justice could be found over the internet during one website converted in every European country. Ideally, visitors will have access to such data following a series of choices that is kind of procedure, for example, commercial disputes, choice of member-state, sub-categories such as unpaid invoices or debt collection and thus forth allowing them to obtain consistent data about the costs connected with initiating civil court case in that member state. This will thus help people in their process of decision making. Ideally, the receipt of the EU rules of civil process or as a minimum the coordination of the costs of justice among Member States will considerably enhance the stage of transparency. This study also gives an idea about the presence of Lawyer Cost, Appeal Cost, Court Cost and Bailiff Cost under different EU countries. Some countries having high lawyer cost, which indicates the efficiency of lawyers in those countries. This Transparency in the Cost of Justice study will help in providing litigation Cost for legal activities. Reference List ‘Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions’, The EU Justice Agenda for 2020 – Strengthening Trust, Mobility and Growth within the Union: European Commission, 2014, p. 2. Kyriakides, J. C., ‘Study on the Transparency of Costs of Civil Judicial Proceedings in the European Union’, Commission Europenne, 2007, p. 76. Read More
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