Embassy of the United States of America

Transforming Commercial Law

USAID training helps judges improve efficiency at Croatia's largest commercial court.

Challenge

In Croatia , commercial courts not only handle case work in bankruptcy, copyright law, and inter-company litigation, they also review business-related documents, including new business registrations. In Zagreb, where economic growth has been strongest, commercial court judges struggle to keep up with the administrative paperwork of nearly 70,000 companies, leaving little time to adjudicate the growing backlog of cases.

Initiative

USAID and the U.S. National Conference of Bankruptcy Judges organized study tours for commercial court judges to Nashville, Tennessee's Bankruptcy Court.

The study tours, hosted by Chief Judge George Paine, U.S. Bankruptcy Court of Middle District of Tennessee, who donated his time, provided the judges with an up-close view of the U.S. system - specifically, how commercial courts use technology to expedite cases; how courts uphold companies' rights, but force the burden of proof onto litigant companies in disputes; how companies are registered by the state and not the courts; and how property is legally transferred.

Results

Upon their return, judges at the Zagreb Commercial Court, took the lead on developing new enforcement codes that will help separate the judicial and administrative work and streamline the bankruptcy process. In addition, the court set out to improve its information technology (IT) system. They upgraded computers, created a case database and digitized much of their paperwork. USAID also helped them purchase a projector and print judges' manuals on new legal codes.

With these new tools, the court can now quickly train judges and clerks on code changes and reforms. Judges have quick access to print and electronic information and group training is now possible. The court's IT and training capacities are now the model for other Croatian commercial courts.

Following a return trip to Nashville, the court has again taken a leading role, this time in the field of Alternative Dispute Resolution (ADR), used widely in the U.S. and E.U. to improve the efficiency of the Croatian economy and judiciary.

Story provided by: World Learning

 

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