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REPUBLIC OF SERBIA Ministry of Justice

CIVIL PROCEDURE CODE


Published in "Official Gazette of the Republic of Serbia" No. 125/04

Prepared by Jugoslovenski pregled / Yugoslav Survey Belgrade, 2008

Note: This is a true translation of the original Law

Original title: ZAKON O PARNINOM POSTUPLU Slubeni glasnik Republike Srbije br.125/04

Translation date: February 2008.

Prepared by: Javna ustanova / Public Agency Jugoslovenski pregled /Yugoslav Survey Deanska 8, Beograd; Phone/Fax: + 381 11 / 32 33 610, 32 32 295; 32 41 953, 32 40 291; P.O.B. 677 www.pregled-rs.com www.yusurvey.co.yu e-mail: info@yusurvey.co.yu

CIVIL PROCEDURE CODE


Part One GENERAL PROVISIONS
Chapter One BASIC PROVISIONS Article 1 This Law shall define the rules of proceedings for providing court legal protection in civil law disputes arising from personal, family, labour, business, property and other civil law relations, except for the disputes where other type of proceedings is provided pursuant to a particular law. Article 2 Parties are entitled to lawful, equal and fair protection of their rights. The court may not refuse to rule on a claim within its jurisdiction. Article 3 In civil proceedings the court rules on the extent of claims filed in the proceedings. Parties may freely dispose with claims filed during the proceedings. Parties may waive their claims, admit their opponents claim or reach settlement. The Court shall not accept disposals of parties that are contrary to enforceable statutes,
social order and rules of decency.

Article 4 The Court shall, as a rule, adjudicate in a lawsuit on the basis of oral, direct and public hearing. The court shall close the proceedings to the public only in cases stipulated by law. Article 5
The court shall afford each party leave to make declarations regarding claims, proposals and allegations of the other party. The court may rule on a claim in cases where the other party was not afforded leave to declare only when so provided under this Law.

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Article 6
Civil proceedings are conducted in Serbian language, with ekavian or jekavian dialect, using Cyrillic script, while Latin script shall be used in accordance with the Constitution and law. In regions where the law provides for official use of the language of a particular national minority, the proceedings shall be conducted in the language and script of such national minority. The parties and other participants to the proceedings are entitled to use their own language and script, pursuant to provisions of this Law. Article 7 The parties are required to present all facts on which they base their claims and propose evidence supporting such facts. It is incumbent upon the court to ascertain all the facts that are relevant to establish whether the claim is well founded or not. The Court may also ascertain facts and present evidence not presented by the parties if the result of the hearing and presentation of evidence indicate that parties are aiming to dispose of claims they are not allowed to (Article 3, paragraph 3), or if provided by other statutes. The court may not base its ruling on facts in respect of which the parties were not afforded the opportunity to declare, unless otherwise provided by law. Article 8 Which facts shall be accepted as proven shall be decided by the Court, on the basis of conscientious and meticulous assessment of each proof and all the evidence together, and pursuant to the results of the whole proceedings. Article 9 The parties shall conscientiously exercise the rights recognised by this Law. The parties, third interested parties and their legal representatives shall speak the truth before the court. The court shall prevent any abuse of the rights of the parties to the proceedings. Article 10

The parties have the right to have the ruling of the court on their claims and proposals
within reasonable time. It is incumbent upon the Court to conduct the proceedings without undue delay and economically. Article 11 Before and in the course of the proceedings, the parties and the court shall seek to settle civil disputes through mediation or in other amicable manner. Article 12 When the decision of the court rests on prior deliberation of the issue whether a particular right or legal relation exists, and the court or other competent authority has not ruled on such issue (interlocutory issue), the court itself may rule on the issue unless otherwise set out in special statutes. The courts ruling on interlocutory issue shall have legal effect only in the litigation where such issue has been resolved.

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Article 13 In civil actions the court shall be bound, with respect to the existence of a criminal offence and liability of the perpetrator, by a final judgement of the criminal court pronouncing the accused guilty. Article 14 If the law does not provide a particular form for undertaking certain actions, the parties may undertake procedural actions in writing outside of the hearing or orally during the hearing.

Chapter Two JURISDICTION AND COMPOSITION OF THE COURT

1. General Provisions
Article 15 The court decides ex officio, immediately upon filing of the complaint, on its jurisdiction and its competent composition. This decision is made on the basis of statements in the complaint and the facts known to the court. If any change occurs in circumstances on which the jurisdiction of the court is based during the proceedings, or if the plaintiff reduces the claim, the court of competent jurisdiction at the time of filing of the complaint shall continue to have jurisdiction despite the fact that another court of the same type should have jurisdiction due to these changes. Article 16

Throughout the proceedings the court shall observe ex officio whether the deliberation in the litigation falls under judicial competence. When the court determines during the proceedings that competence for adjudication in the action is not with the court but another national authority, it shall declare itself incompetent, revoke all actions undertaken in the proceedings and reject the complaint. When the court determines during the proceedings that a court of the Republic of Serbia (hereinafter referred to as national court) does not have jurisdiction in the action, it shall ex officio revoke all actions undertaken in the proceedings and reject the complaint, except in cases where jurisdiction of a national court depends on the agreement of the defendant and such agreement has been given. Article 17
Throughout the proceedings, the court shall observe ex officio its subject-matter jurisdiction. If pre-trial hearing has already been held, or if it has not been held since at the first hearing for the main trial the defendant commenced contesting the subject-matter, a higher court of first instance may not either following an objection or ex officio declare itself without subject-matter jurisdiction for cases within the jurisdiction of a lower court of first instance of the same type. A ruling of a higher first-instance court pronouncing itself to have subject-matter jurisdiction and a ruling of such court pronouncing itself without subject-matter jurisdiction and referring the case to a lower court of the same type, may not be appealed.

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Article 18 When a panel of judges or the judge president of the panel determine either ex officio or following the objection of the parties during the proceedings that the relevant lawsuit should be adjudicated by a judge of that court sitting alone, the proceedings shall continue before a judge sitting alone after the aforementioned decision becomes effective, and if possible before the judge president of that panel sitting alone. A judge sitting alone shall be bound by the final decision referring the case under his/her jurisdiction. In cases specified in paragraph 1 of this Article the panel of judges may, pursuant to the status of the case, determine not to refer the case to a judge sitting alone and to conduct the proceedings itself. This decision of the panel of judges cannot be appealed. Provisions of paragraphs 1 and 2 of this Article shall accordingly apply also when circumstances change during proceedings before a panel of judges, or the plaintiff reduces the claim, so that the lawsuit should be adjudicated by a judge sitting alone. If a panel has ruled in a lawsuit that should have been adjudicated by a judge sitting alone, this ruling may not be contested on grounds that the decision has not been passed by a judge sitting alone. When a judge sitting alone finds during the proceedings, either ex officio or following an objection of the parties that the litigation should be under the jurisdiction of a panel of judges of the same court, the litigation shall continue before the panel. This ruling of a judge sitting alone may not be appealed. Article 19 If before passing of the decision on the subject of litigation, the court determines that the proceedings should be conducted pursuant to rules governing non-contentious proceedings, it shall rule to dismiss the litigation proceedings. After the ruling becomes effective, the proceedings shall be continued according to rules of noncontentious proceedings before a competent court. Article 20 The court may, following an objection of the defendant, declare itself without territorial jurisdiction if the objection was filed at latest at the pre-trial hearing or, in the absence of such hearing, until the defendant commences to argue the subject matter of litigation on the first hearing of the trial. The court may declare itself ex officio without territorial jurisdiction only when there is exclusive territorial jurisdiction of another court, at latest at the pre-trial hearing or, in the absence of such hearing, until the defendant commences to argue the subject matter of litigation on the first hearing of the trial. Article 21 After the decision on lack of jurisdiction becomes effective (Article 17 and 20) the court shall refer the case to a court of competent jurisdiction. Prior to referring the case to a competent court, the court shall, if necessary, request information from the prosecutor. The court of competent jurisdiction to which the case has been referred shall continue the proceedings as if the action has been initially filed with such court. If the decision on lack of jurisdiction has been passed at the trial, the court to which the case has been referred shall set the date for the trial and shall proceed as if the hearing is held before a modified panel (Article 317). If the decision on lack of jurisdiction has been passed at the pre-trial hearing, a new pre-trial hearing shall not be held if the judge president of the panel considers this unnecessary due to actions undertaken at the earlier pre-trial hearing.

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Article 22 If in the opinion of the court to which the case was referred as the court of competent jurisdiction, the court which referred the case, or another court, has jurisdiction, then it shall refer the case to that court which must resolve the conflict of jurisdiction, unless it finds that the case was referred due to an obvious oversight, and that it should have been referred to another court, in which case it shall refer the case to the appropriate court and so inform the court which referred the case to it. When the ruling on an appeal against the decision of a first-instance court proclaiming itself lacking territorial jurisdiction has been passed by a second instance court, this ruling with respect to jurisdiction shall be binding upon the court to which the case is referred, if the adjudicating second instance court has jurisdiction to adjudicate conflict of jurisdiction between these courts. The ruling of the second instance court on lack of subject-matter jurisdiction of the first instance court shall be binding upon any court to which the case may be later referred, if the second instance court has jurisdiction to adjudicate in conflict of jurisdiction between these courts. Article 23 Conflict of jurisdiction between courts of the same type shall be resolved by the directly higher court to both courts. Conflict of jurisdiction between courts of different type in the territory of the Republic of Serbia shall be adjudicated by the Supreme Court. Article 24 Conflict of jurisdiction may be adjudicated even when the litigants have not moved for a ruling on jurisdiction. Until the conflict of jurisdiction is resolved, the court to which the case is referred shall undertake those actions in the proceedings in respect of which there is risk of postponement. The ruling on conflict of jurisdiction may not be appealed. Article 25 The court shall undertake actions within its territorial jurisdiction. However, if risk exists due to the postponement of undertaking such actions, the court shall undertake individual actions on the territory of the adjacent court. The court on whose territory actions are undertaken shall be informed accordingly. Article 26 Rules of international law shall apply to the jurisdiction of national courts to try foreign citizens enjoying immunity in Serbia and Montenegro and to try foreign countries and international organisations. Any doubt regarding the existence and degree of immunity shall be clarified by the authority in charge of judicial affairs.

2. Jurisdiction of Courts in Actions with International Element


Article 27 A national court shall have trial jurisdiction when such jurisdiction for actions with international element is explicitly provided under law or international agreement. If the law or international agreement does not contain explicit provisions on jurisdiction of a national court for a specific type of litigation, a national court shall have jurisdiction to try such type of litigation where its jurisdiction derives from the provisions of the law relating to territorial jurisdiction of the national court.

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3. Subject-matter Jurisdiction
Article 28 In civil action courts adjudicate within the limits of their subject-matter jurisdiction determined by the law.

Determination of the Value of the Subject of Litigation


Article 29 When subject-matter jurisdiction, composition of the court panel, right to review and in other cases provided under this Law is determined by the value of the subject of litigation, only the value of the main claim shall be considered as the value of the subject of litigation. Interests, contractual penalties and other secondary claims, as well as litigation costs shall not be considered unless comprising the main claim. Article 30 If the claim refers to future repetitive payments, the value of the subject of litigation shall be calculated as their aggregate value, but shall not exceed the amount equal to aggregate payments over a five-year period. Article 31 If one action against the same defendant includes several claims founded on the same factual and legal basis, the jurisdiction shall be determined pursuant to the aggregate value of all claims. If claims in the action derive from various bases or if claimed against several defendants, the jurisdiction shall be determined pursuant to the value of each individual claim. Article 32

The value in lease-related litigation is calculated according to annual lease, unless the lease
agreement is concluded for a shorter period of time. Article 33

If the complaint demands only issuance of surety for a certain claim or establishing of
pledge rights, the value of the subject of litigation is determined pursuant to the amount of the claim requiring surety. However, if the pledged item has lesser value than the claim requiring surety, the value of the pledged item shall be taken as the value of the subject of litigation. Article 34 If the complaint does not refer to a pecuniary amount and the plaintiff states in the complaint that he/she agrees to accept a certain pecuniary amount in lieu of fulfilment of the claim, such amount shall be taken as the value of the subject of litigation.

In other cases, where the complaint does not refer to a pecuniary amount, the value of the subject of litigation stated by the plaintiff in the complaint shall be deemed relevant. If in cases specified in paragraph 2 of this Article, the plaintiff has manifestly exaggerated or understated the value of the subject of litigation, the court shall, not later that the pre-trial hearing, and if the pre-trial hearing was not held, then at the trial but before commencing hearing on the subject-matter, expeditiously and pertinently verify the accuracy of the stated value.

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4. Composition of the Court


Article 35 In civil actions the court shall sit as a panel of judges or in general session. Cases adjudicated by a judge sitting alone are set out by law. The judge president of the panel may undertake only those actions in the proceedings and pass only those decisions as authorised under the law. Unless otherwise set out by law, a judge sitting alone shall have all rights and duties of a judge president of a panel and of the panel of judges in adjudicating matters under his/her jurisdiction. Article 36 A panel of judges or a judge sitting alone tries civil actions in the first instance. When sitting in the first instance, the panel comprises a judge president of the panel and two lay judges. Article 37 A judge sitting alone tries civil actions concerning property claims where the subject of action does not exceed 3,000,000 dinars. The parties may agree during the proceedings that a judge sitting alone try a property-related claim, regardless of the value of the subject of litigation, except where otherwise provided by other law. A judge sitting alone sits in actions for trespass. A judge sitting alone conducts proceedings and rules in cases related to legal aid. A panel of judges in the first instance, regardless of value, tries copyright litigations, litigations related to protection and application of inventions and technical improvements, samples, models, stamps or marks of geographical origine, right to use company name or title. Article 38 When sitting in the second instance, at a panel session or at a hearing, the court shall rule as a panel comprising three judges. The same composition of a higher court shall rule in conflict of jurisdiction (Article 23) and in all other case unless otherwise stipulated by this Law. The Supreme Court shall sit as a five-judge panel when ruling on the review of proceedings and motion for protection of legality against an effective ruling of the lower court. If the final decision has been passed by the Supreme Court, a seven-judge panel of the same court shall rule on the review of proceedings and motion for protection of legality.

5. Territorial Jurisdiction ) General Territorial Jurisdiction


Article 39 The court with general territorial jurisdiction for the defendant shall have trial jurisdiction unless the law specifies exclusive territorial jurisdiction of another court. In cases provided under this law, other specific courts shall have trial jurisdiction in addition to courts of general territorial jurisdiction.

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Article 40 A court on whose territory the defendant has permanent residence shall have general territorial jurisdiction for trial. If the defendant has no permanent residence in the Republic of Serbia or any other country, the court where the defendant has temporary residence shall have general territorial jurisdiction. If the defendant has, in addition to a permanent residence, a temporary residence elsewhere, and it may be assumed due to circumstances that he/she shall reside there over a longer period of time, the court of temporary residence of the defendant shall also have general territorial jurisdiction. Article 41 In actions brought against Serbia and Montenegro, the Republic of Serbia, local self-government units and other forms of territorial organisation, the court on whose territory its Assembly is located shall have general territorial jurisdiction for trial. In actions against a legal entity, the court on whose territory is the seat of such legal entity shall have general territorial jurisdiction for trial. In event of doubt, the place where their managing bodies are located shall be taken as the seat. Article 42 In actions against a citizen of Serbia and Montenegro with permanent address in a foreign country where he/she has been posted or transferred to work by a government authority or legal entity, the court of his/her previous residence shall have general territorial jurisdiction.

b) Special Territorial Jurisdiction


Jurisdiction for Two or More Persons as Defendants/Plaintiffs Article 43

If an action is brought against a number of persons (Article 199, paragraph 1, point 1), and the same court does not have territorial jurisdiction for all of them, the court with territorial jurisdiction for one of the defendants shall have jurisdiction. Where there are principal or secondary obligors, the court with territorial jurisdiction for one of the main obligors has territorial
jurisdiction. Jurisdiction in Civil Actions for Legal Support Article 44

Both the court with general territorial jurisdiction and the court on whose territory the
plaintiff has permanent and/or temporary residence shall have jurisdiction in civil actions related to legal support where the plaintiff is the party requesting support. Where a national court has jurisdiction in legal support litigation cases with international element because the plaintiff has permanent residence in the Republic of Serbia, the court on whose territory the plaintiff has permanent residence shall have territorial jurisdiction.

If a national court has jurisdiction in legal support litigation because the defendant has
property in the Republic of Serbia that support payment can be collected from, the court on whose territory such property is located shall have territorial jurisdiction.

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Jurisdiction in Damage Compensation Actions Article 45 A court on whose territory the damaging act was committed or where damaging results occurred shall have jurisdiction in actions for non-contractual damage liability, in addition to the court of general territorial jurisdiction. If damages resulted due to death or serious bodily harm, the court on whose territory the plaintiff has permanent and/or temporary residence shall also have jurisdiction in addition to the court specified in paragraph 1 of this Article. Provisions of paragraphs 1 and 2 of this Article shall apply also in actions brought against

insurance organisations for third party indemnification pursuant to regulations on direct liability of insurance organisations, and the provisions of paragraph 1 of this Article also in
recourse actions against recourse debtors. Jurisdiction in Actions for Protection of Rights Deriving from Manufacturers Warranty Article 46

In civil actions for protection of rights deriving from written manufacturers warranty, both the court with territorial jurisdiction for the defendant and the court with territorial jurisdiction for the seller who delivered the manufacturers written warranty to the purchaser at the time of sale shall have jurisdiction.
Jurisdiction in Marital Litigation Article 47 In addition to the court of general territorial jurisdiction, the court on whose territory the wedded couple had their last mutual permanent residence shall have jurisdiction in litigation to determine existence or non-existence of marriage, annulment of marriage or divorce (marital litigation). If a national court has jurisdiction in marital litigation because the wedded couple had their last mutual permanent residence in the Republic of Serbia and/or because the plaintiff has permanent residence in the Republic of Serbia, the court on whose territory the wedded couple had their last mutual permanent residence or the court on whose territory the plaintiff has permanent residence

shall have territorial jurisdiction.


Article 48 If a national court has jurisdiction in marital litigation related to property because the property of

the wedded couple is in the Republic of Serbia or because the plaintiff has permanent or temporary residence in the Republic of Serbia at the time of filing of the action, the court on whose territory the plaintiff has permanent or temporary residence at the time of filing of the
action shall have territorial jurisdiction. Jurisdiction in Paternity or Maternity Suits Article 49 A child may bring an action for determining or contesting of paternity or maternity before any court of general territorial jurisdiction or before the court where they have permanent or temporary residence.

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If a national court has jurisdiction in a paternity or maternity suit because the plaintiffs residence is in the Republic of Serbia, the court on whose territory the plaintiff has permanent residence shall have territorial jurisdiction. Jurisdiction in Civil Actions Related to Real Property and Trespass Article 50 Litigation regarding ownership rights and other real rights on real property, actions for trespass on real property, and litigation concerning property lease, shall be under exclusive jurisdiction of the court where the real property is located.

If the real property lies on the territory of several courts, each of the courts shall have
jurisdiction. Actions for trespass on chattels are under jurisdiction of the court where the trespass occurred in addition to the court of general territorial jurisdiction. Jurisdiction in Aircraft and Ship Litigation Article 51 Where a national court has jurisdiction for lawsuits concerning ownership rights and other real rights over an aircraft, ship and inland waterway vessel, and for lawsuits concerning lease of aircraft or ship, the court where the register in which the aircraft or ship/vessel is recorded shall have exclusive territorial jurisdiction. Where a national court has jurisdiction in trespass actions for ships and/or aircraft specified in paragraph 1 of this Article, the court on whose territory the trespass occurred shall have territorial jurisdiction in addition to the court on whose territory the ship and/or aircraft is entered in the records. Jurisdiction for Persons without General Territorial Jurisdiction in the Republic of Serbia Article 52 Property-related action against persons without general territorial jurisdiction in the Republic of Serbia may be filed with any national court on whose territory any property or objects of such person claimed by the action are located. If there is territorial jurisdiction of a national court because the obligation occurred during the sojourn of the defendant in the Republic of Serbia, the court on whose territory the obligation occurred shall have territorial jurisdiction. In actions against persons having no general territorial jurisdiction in the Republic of Serbia, a claim for obligations to be fulfilled in the RS may be filed with the court on whose territory such obligation is to be fulfilled. Jurisdiction by Virtue of Location of a Legal Entitys Operating Unit Article 53 In actions brought against a legal entity having an operating unit outside its headquarters, if the action derives from the legal relation of such unit, the court on whose territory such operating unit is located shall have jurisdiction in addition to the court of general territorial jurisdiction.

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Jurisdiction Pursuant to Representative Office of a Foreign Entity in the Republic of Serbia Article 54 In lawsuits against a natural or legal entity with headquarters abroad in regard to obligations established in the Republic of Serbia, or which have to be discharged here, a complaint may be filed with a court on whose territory is the entitys permanent representative office or the headquarters of the entity authorised to discharge its business. Jurisdiction for Lawsuits against Military Units or Institutions Article 55

In lawsuits against Serbia and Montenegro involving military units and/or institutions, the
court on whose territory is the command headquarters of the military unit and/or institutions shall have exclusive jurisdiction. Jurisdiction for Probate-related Civil Actions Article 56 Until the conclusion of a probate action, the court on whose territory is the court conducting inheritance proceedings shall have territorial jurisdiction in addition to the court of general territorial jurisdiction for lawsuits pertaining to inheritance relations and lawsuits concerning claims of creditors against the testator. Jurisdiction in Enforcement and Bankruptcy Proceedings Article 57 In lawsuits arising during and due to judicial or administrative enforcement proceedings, and/or during and due to bankruptcy proceedings, the court on whose territory is the court of competent jurisdiction conducting enforcement and/or bankruptcy proceedings or the court conducting administrative enforcement, shall have exclusive territorial jurisdiction. Jurisdiction Pursuant to Place of Payment Article 58 The court in place of payment shall have jurisdiction in addition to the court of general territorial jurisdiction for lawsuits of a bill or check holder against the signatory. Jurisdiction in Labour-related Civil Actions Article 59

If in a labour-related lawsuit the plaintiff is an employee, the court on whose territory work is or was performed, shall have concurrent jurisdiction with the court of general territorial
jurisdiction for the defendant. Reciprocal Jurisdiction for Complaints against Foreign Citizens Article 60 If in a foreign country civil action may be brought against a citizen of Serbia and Montenegro before a court that under this Law would not have territorial jurisdiction to try such civil matter, the

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same jurisdiction shall be valid for actions against a citizen of that foreign country before a national court.

c) Determining of Territorial Jurisdiction by a Higher Court


Article 61 If the court of competent jurisdiction due to exemption or disqualification of a judge or other reasons cannot adjudicate in a particular case, it shall so inform the directly higher court which shall designate another court of subject-matter jurisdiction from its territory to adjudicate in that case. Article 62 The highest court of particular type the Republic may, at the motion of a litigant or the court of competent jurisdiction, determine that another court of subject-matter jurisdiction from its territory adjudicate in a particular case if it is apparent that this would facilitate the conduct of proceedings or if other important reasons exist for doing so. Should a litigant repeat the motion to designate another court of subject matter jurisdiction, the court shall reject it. A judge of the first-instance sitting alone issues the decision referred to under paragraph 2 of this Article. This decision may not be appealed. Article 63

If a Serbian court has jurisdiction, but it cannot be determined under provisions of this Law which court has territorial jurisdiction, the Supreme Court shall, at the motion of a litigant, determine which court of subject-matter jurisdiction shall have territorial jurisdiction.

d) Agreement on Territorial Jurisdiction


Article 64 Unless exclusive jurisdiction of another court is provided under law, the parties may agree to try the case in the first instance before a court without territorial jurisdiction, providing that such court has subject-matter jurisdiction.

If the law provides territorial jurisdiction of two or more national courts in a particular
lawsuit, the parties may agree to try the case before one of these courts in the first instance or another court of subject-matter jurisdiction.

This agreement is valid only if concluded in writing and if relating to a particular civil
action or several actions arising from a particular legal relation. The plaintiff must attach the document on the agreement with the complaint, and the defendant must attach it with a plea of lack of jurisdiction or a reply to the complaint.

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Chapter Three

EXCLUSION AND DISQUALIFICATION

Article 65 A judge shall refrain from adjudicating if there are reasons for doubt about their impartiality. Article 66 A judge shall not perform judicial function (exclusion): 1) if they are a party to the proceedings, legal representative or attorney of a party, if under coattorneyship relations with the party, co-defendant or recourse defendant, or if questioned as witness or expert in the same case; 2) if a shareholder, member of a business company or co-operative business and one of the parties is his/her creditor or debtor;

3) if a party or a legal representative or attorney is his/her lineal relative to any degree, and lateral relative to fourth degree, or is a spouse or common-law spouse (current or former) or inlaw to second degree, regardless whether the marriage has ceased or not;
4) if he/she is a guardian, adoptive parent or adopted child of a party to the proceedings, their legal representative or attorney; if the judge and a party or their legal representative or attorney have a common household; 5) if the judge and a person specified under this paragraph are parties to the proceedings in another lawsuit or there is a conflict of interests between them;

6) if he/she participated in mediation, passing of the ruling of a lower instance court or other authority in the same case or if he/she participated in a court settlement which is
challenged in a civil action;

7) if he/she participated as a judge or member of bankruptcy council in bankruptcy


proceedings which are the subject of a dispute. A judge may be disqualified if there are circumstances which throw doubt on their impartiality (disqualification). Article 67 A judge shall, immediately upon becoming cognisant of the existence of any of the reasons for exclusion specified in Article 66, paragraph 1, points 1 through 7 hereof, cease any work on the case and so inform the president of the court who shall appoint a replacement. If in the opinion of a judge there are circumstances which make his/her impartiality questionable (Article 65 and 66 point 2), they shall stop the proceedings and so inform the president of the court who shall decide on disqualification. Until such decision is passed, the judge may undertake only such actions where risk of delay exists. Article 68

Parties to the proceedings may also request exclusion or disqualification of the judge. A party may only request exclusion or disqualification of the judge adjudicating particular case. A party shall submit a motion immediately upon becoming aware that reasons for exclusion or
disqualification exist, and not later than the conclusion of hearing before the first instance court. If there was no hearing, such motion must be submitted prior to passing of the ruling.

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A party may file a motion for exclusion or disqualification of a higher court judge in an appeal or a reply to an appeal, and where the proceedings are conducted before a higher court, before the conclusion of the hearing. A party is required to explain reasons and state circumstances on which their request is based. Article 69 A motion for exclusion or disqualification is inadmissible if: 1) such motion requests the disqualification of all the judges of particular court or all the judges who could participate in particular proceedings; 2) a decision on such motion has already been made; 3) it does not state legal basis for such motion. A judge adjudicating the case shall issue a decision to reject an inadmissible motion specified under paragraph 1 of this Article. The decision referred to in paragraph 2 of this Article may not be appealed. If the court rejects a motion, it may pass a special decision by which the opposite party is ordered to bear the costs incurred by the delay of the proceedings. The decision specified under paragraph 4 of this Article may not be appealed. Article 70 The president of the court shall rule on the motion for exclusion or disqualification. The president of a directly higher court shall rule on motion for exclusion or disqualification of the president of the court.

A motion for disqualification of the president of the Supreme Court of Serbia, shall be
decided by the general session of this court.

Prior to passing the ruling on disqualification, statements will be taken from the judge
whose disqualification is requested, and if necessary other investigation will be undertaken.

A ruling on exclusion or a ruling sustaining the motion for disqualification may not be
appealed, and no special appeal is allowed against a ruling rejecting a motion for disqualification. Article 71 When a judge becomes aware of the motion for their exclusion or disqualification, they shall immediately halt any work on the case in question, and in the event of disqualification specified in Articles 65 and 66, point 2 hereof, they may undertake only those activities, until the ruling on the motion is passed, where there is a risk of delay. Article 72 Provisions on exclusion and disqualification of judges shall accordingly apply to presidents of court, lay judges and court reporters. A lay judge shall not perform judicial function (exclusion) if they are permanently or temporarily employed with an entrepreneur or legal entity who is a party to the proceedings. The president of the panel, that is the panel and/or a judge sitting alone shall decide on the disqualification of court reporter.

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Chapter Four

PARTIES AND THEIR LEGAL REPRESENTATIVES


Article 73 Any natural person or legal entity may be a party to the proceedings. Separate regulations shall set out who, in addition to natural persons and legal entities, may be a party to the proceedings. A litigation court may exceptionally, and with legal effect in a particular case, recognise attributes of a party to the proceedings to such forms of association that do not have litigant competence in terms of provisions of paragraphs 1 and 2 of this Article if it determines that, due to the subject of litigation, they essentially fulfil the vital prerequisites for acquiring litigant competence, and especially if they dispose with property on which enforcement may be conducted. No special appeal shall be allowed against the ruling specified in paragraph 3 of this Article recognising litigant competence. Article 74 A party with complete legal competence may themselves undertake acts in the proceedings (litigation competence). A person of legal age with partially limited legal competence shall be competent for litigation within limits of his/her legal competence. A minor shall be competent for litigation within the limits of recognised legal competence. Article 75 A party without litigation competence shall be represented by their legal representative. Article 76 A legal representative may undertake all actions in the proceedings on behalf of the party. However, if other regulations provide that a legal representative must have special authorisation for

filing or withdrawing of the complaint; filing of a motion for recognising or refuting the claim; for conclusion of settlement; for filing, withdrawing or waiving an appeal, they may undertake
such actions only if so authorised. Article 77 Throughout the proceedings, the court shall ex officio check whether the person appearing as a party may be a party to the proceedings; whether such person has litigation competence; is a party lacking litigation competence represented by their legal representative and does the legal representative have special authorisation when such is required. A person appearing as a legal representative shall prove the capacity of representative when first appearing before the court. A legal representative shall submit special authorisation for particular actions in the proceedings where such authorisation is required. If the court finds that the legal representative of a person under guardianship does not show necessary interest in representing the party, it shall so inform the social welfare agency. If the neglect on the part of the legal representative can cause damage to the person under guardianship, the court shall halt the proceedings and propose to appoint a new representative.

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Article 78 When the court determines that a person appearing as a party cannot be a party to the proceedings, and such deficiency may be corrected, the court shall invite the plaintiff to make the necessary corrections in the complaint. If the court determines that a party does not have a legal representative or that the legal representative does not have special authorisation when such is required, it shall request that the social welfare agency appoint a guardian for the person without litigation competence, or shall undertake other measures required for proper representation of a person without litigation competence. The court may set a deadline for the party to correct the deficiencies specified in paragraph 1 and 2. of this Article. Until such deficiencies are corrected, only such activities may be undertaken in the proceedings whose delay could result in detrimental consequences.

If the mentioned deficiencies cannot be corrected or if the set deadline passes without correction of such deficiencies, the court shall rule to revoke actions undertaken in the
proceedings if affected by these deficiencies and shall reject the complaint if the deficiencies are of such nature that prevent further litigation. The ruling ordering measures for correction of deficiencies cannot be appealed. Article 79

If during the proceedings before a first-instance court it becomes apparent that regular
proceedings for appointment of legal representative for the defendant would be protracted, and hence with prejudicial consequences for one or both parties, the court shall appoint a temporary representative for the defendant. He/she is selected from the list of barristers submitted to the court by the Bar Association. Under conditions specified in paragraph 1 of this Article the court shall appoint a temporary representative for the defendant particularly in the following cases: 1) if the defendant lacks litigation competence, and has no legal representative; 2) if conflicting interests exist between the defendant and his/her legal representative; 3) if both parties have the same legal representative; 4) if permanent or temporary residence of the defendant is unknown, and the defendant has no attorney; 5) if the defendant or his/her legal representative, who have no attorney, are abroad and service could not be carried out. The court may also appoint a temporary legal representative for a legal entity or entrepreneur under the conditions and in the manner stipulated in paragraph 2 of this Article. The court passes a decision on the appointment of a temporary legal representative. The court shall without delay inform the social welfare agency about the appointment of temporary representative as well as the parties, when so possible. The decision specified in paragraph 4 of this Article may not be appealed. Article 80 A temporary representative shall have all rights and duties of a legal representative during the proceedings. A temporary representative undertakes all actions before the court until such time as a party, their legal representative or attorney appear before the court or until the social welfare agency notifies the court on the appointment of a guardian.

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Article 81 If a temporary representative has been appointed for the defendant due to reasons specified in Article 79, paragraphs 2, points 4 and 5 hereof, the court shall issue a notification which shall be published in the Republic Official Gazette and on the notice board of the court, and otherwise if necessary by other appropriate means. The notice should contain designation of the court appointing a temporary representative, name of the defendant for whom a representative is appointed, subject of litigation, name of representative, his/her occupation and address, as well as a caveat that the representative shall represent the defendant until such time as the defendant or his/her attorney appear before the court, and/or until the social welfare agency notifies the court on appointing of a guardian. Article 82 Litigation competence of a citizen of Serbia and Montenegro is assessed pursuant to the republic law, relevant for the determination of legal competence. A citizen of Serbia and Montenegro without litigation competence pursuant to the republic law which is relevant for assessment of his/her legal competence, whilst being competent pursuant to law of the republic before whose court the proceedings are conducted, may himself/herself undertake actions in the proceedings. His/her legal representative may undertake actions only until such time as the citizen declares that he/she shall undertake the conduct of the litigation. Article 83 A foreign citizen lacking litigation competence pursuant to the law of the country of their citizenship, and has competence pursuant to the national law, may themselves undertake actions in the proceedings. A legal representative may undertake actions only until such time as the foreign citizen declares that they shall undertake the conduct of the litigation.

Chapter Five

ATTORNEYS

Article 84 Parties may undertake actions in the proceedings personally or through an attorney. A party must have a legal counsel in the review proceedings or the proceedings initiated for the protection of legality. Representation of the state, member country and its bodies, units of territorial authonomy and local government is regulated by special regulations. The court may request from a party represented by an attorney to personally declare itself before the court regarding a fact to be determined in the litigation. A party represented by an attorney may always appear before the court and give statements in addition to their attorney and undertake actions in the litigation. Article 85

Any natural person with full legal competence may be an attorney, except persons engaged
in quasi notaryship.

If a person engaged in quasi notaryship appears as attorney, the court shall deny such
person further representation and shall so inform the party without delay.

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An appeal against the ruling denying representation shall not suspend enforcement thereof.
Article 86 Actions undertaken in the proceedings by an attorney within the limits of authorisation have the same legal effect as if undertaken by the party itself. Article 87 A party may change or revoke an action of their attorney. If an attorney acknowledges a fact at a hearing on which the party is not present, or acknowledges a fact in a filing, and the party subsequently changes or revokes such acknowledgement, the court shall deliberate both statements in terms of Article 222, paragraph 2 hereof. Article 88 The extent of authorisation is determined by a party.

A party may authorise the attorney to undertake only certain actions or to undertake all
actions in the proceedings.

An attorney who is a barrister may be substituted by a legal trainee who works in the same
office if a party states so in the power of attorney. Article 89 If a party issues a power of attorney to a legal counsel to conduct the litigation without specifying the scope of authorisation, the counsel, on basis of such power of attorney, is authorised to: 1) conduct all actions in the proceedings, and in particular to file the complaint, to withdraw it, to admit the claim or to renounce the claim, to conclude a settlement, to file legal remedy and to renounce or waive it, and to request an injunction for temporary security measures; 2) file a motion for enforcement or securing and to undertake necessary actions in proceedings relating thereto; 3 to transfer the power of attorney to another legal counsel or to authorise another legal counsel to undertake only particular actions in the proceedings. To file a motion for re-trial, the legal counsel requires a special power of attorney. Article 90 If a party does not specify in the power of attorney the authorisation of the attorney, the attorney who is not a lawyer may on basis of such power of attorney undertake all actions in the proceedings but will always require an express authorisation to withdraw the complaint, to acknowledge or reject the complaint, to conclude a settlement, to withdraw or waive an appeal and to transfer power of attorney to another. Article 91 A party gives the power of attorney in writing. If the court doubts the veracity of a written power of attorney, it may rule for submitting a certified power of attorney. This ruling may not be appealed. Article 92 An attorney is required to submit the power of attorney at the first act in the proceedings. The court is required to monitor throughout the proceedings whether the person appearing as an attorney is authorised for representation. If the court determines that the person appearing as an attorney is not authorised for representation, it shall revoke all litigation acts undertaken by such person, unless subsequently approved by the party.

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Article 93 A party may revoke the power of attorney at any time and the attorney may relinquish it at any time.

The court before which the proceedings are conducted must be informed of revocation
and/or relinquishing the power of attorney, in writing or orally on record.

Revoking and/or relinquishing the power of attorney shall be valid for the other party from the moment it is so notified. The attorney is required to act on behalf of the person giving him/her power of attorney for one month following the relinquishment of the power of attorney if necessary to prevent any damages for such person that could occur within this period.
Article 94 A power of attorney ceases to be valid due to the death of a natural person. If the attorney holds a power of attorney to undertake all acts in the proceedings and the party, and/or its legal representative dies or becomes legally incompetent, or if the legal representative is dismissed, the attorney remains authorised to undertake acts in the proceedings which may not be delayed. In cases mentioned in paragraph 2 of this Article, powers that have to be expressly stated in the power of attorney (Article 90) shall always cease for an attorney who is not a lawyer. Article 95 With the dissolution of a legal entity, the power of attorney issued by it shall cease. As an exception to provision of paragraph 1 of this Article, the attorney is required to continue undertaking actions in the proceedings which may not be delayed for another month.

Chapter 6

LANGUAGE OF THE PROCEEDINGS


Article 96

Parties and other participants to the proceedings are entitled to use their own language during
hearings and when orally undertaking other actions before the court. If such proceedings are not in the language of the parties or other participants to the proceedings, they will, upon request, be provided with an interpretation of the proceedings in their own language, including oral translations of all documents used as evidence during the proceedings. Parties and other participants in the proceedings are advised that they are entitled to have the proceedings interpreted into their own language by a sworn-in court translator. It is to be recorded in the transcript that they have been advised as well as the statements made by the parties or participants thereupon. Interpretation is done by sworn-in court translators. Article 97 Summonses, decisions and other documents relating to the case which are sent to the parties and other participants to the proceedings shall be in the Serbian language. If the language of a national minority is also in official use at the court, the court shall send its documents in this language to the parties and participants to the proceedings who are members of the minority and speak their own language before the court. 21

CIVIL PROCEDURE CODE

Article 98

Parties and other participants to the proceedings must submit their complaints, appeals and other filings with the court in a language which is in official use at the court. Parties and other participants to the proceedings may also write their filings in the language of a national minority which is not in official use at the court, provided it is in accordance with the law.
Article 99 The court bears the costs of interpretation into the language of a national minority incurred in accordance with the provisions of the Constitution and this Law governing the rights of members of national minorities to use their own language.

Chapter 7 FILINGS
Article 100 A complaint, counterclaim, reply, and legal remedy are submitted in writing. Filings must be clear and contain all the information which is necessary to allow the trial to proceed. In particular, they should identify the court, state a full name of a person, the name of a firm, permanent or current address or headquarters of the parties, their legal representatives and/or attorneys, if any, the subject of litigation, and the statement and signature of the plaintiff. If the statement contains a claim, a party should state the facts on which the claim is based and present evidence, when necessary. Article 101 All filings and attachments to filings to be sent to the other party must be filed with a sufficient number of copies so that they may be filed at the court and sent to the other parties to the proceedings. If there are two or more parties on the same side with the same legal representative or attorney, it is sufficient that the other party to the proceedings send only one copy of the filings and attachments to the court. Article 102 Documents attached with the filing may be submitted either as original documents or transcripts. The court shall keep an original document and allow the other party to the proceedings to examine the document. When there is no need for the court to retain the document, it will be returned to its owner upon request. The court may request the party who submitted the document to file a transcript with the court. If a transcript is filed the court may, upon request of the other parties to the proceedings, request that the party submitting the document produce the original to the court and allow it to be examined by the other parties to the proceedings. If necessary, the court shall determine a time limit for the filing and examination of the original document or transcript. These decisions may not be appealed.

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Article 103 If the filing is unclear or does not contain all the information necessary to allow the proceedings to continue, the court shall return the filing to a party who has no legal counsel to correct it, unless otherwise provided by law. When the court returns the filing to a party for correction or amendment.it sets a time limit to resubmit the filing. If the corrected or amended filing is submitted to the court within the set time limit, the date of original filing shall be considered as the date of filing. If the filing is not resubmitted within the set time limit, it shall be considered withdrawn, and in the event that it is resubmitted without being corrected or completed, it shall be rejected.

If there are not a sufficient number of copies of filings and attachments, the court will
photocopy them at the expense of the party who neglected the obligation. The provisions of this Article do not apply where a party has a legal counsel. If the counsel submits an unclear and incomplete filing, the court shall reject it. Article 104 A civil court shall impose a fine of 30,000 dinars on a person whose filing offend the court, the other party or participant to the proceedings. The fine referred to in paragraph 1 of this Article does not affect a penalty for a criminal offence. If the the fine could not be collected even under coercion, the fine, i.e. its remaining unpaid part shall be replaced with a term of imprisonment proportional to the fine, but not exceeding ten days. The provision in paragraph 3 of this Article shall apply whenever a fine is imposed by the court (Articles 247, 254 and 319).

Chapter 8

TIME LIMITS AND HEARINGS


Article 105 If time limits are not set by law, the court sets them based on the circumstances of the case. Article 106 Time limits are calculated in days, months and years. The first day of a time limit expressed as a number of days is the day after the day of service or notification of a decision or after the day of the occurrence of the event from which the time limit is calculated according to law. A time limit expressed as a number of months or years ends with the expiry of that date of the final month or year which is the same as the date when the time limit was set by the court, or the date of the occurrence of the event from which the time limit is calculated according to law. If the last day of a time limit is a public holiday or Sunday or other non-working day, the time limit ends upon the expiry of the next working day. The provisions of paragraph 4 of this Article also apply to time limits where a complaint must be filed in accordance with special regulations, as well as to the statute of limitations for a claim or other right.

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Article 107 If there is a time limit to submit a filing, it shall be considered that the filing is submitted in time if it is submitted before the end of such time limit. If a filing is sent to the court by registered mail or telegraph, the date of delivery to the post office shall be considered the date of filing it with the court. If a filing is sent by telegraph, it shall be considered timely only if a proper filing is submitted with the court or sent to the court by registered mail within 3 days of delivering the telegram to the post office. For conscripts in the Army of Serbia and Montenegro and other persons serving in military units or institutions, the day of submitting a filing to a military unit or institution is considered the day of filing with the court. For persons in places of detention, the day of submitting a filing to the penitentiary institution is considered the day of filing with the court. If a filing is submitted or mailed to a court which has no jurisdiction before the end of a time limit, and it reaches the court of jurisdiction after the end of the time limit, it shall be considered that it was filed in time if the failure to send it to the court of jurisdiction can be justified by the lack of knowledge or obvious mistake of the person who filed it. The provisions of paragraphs 1 and 6 of this Article also apply to time limits where a complaint must be filed in accordance with special regulations, as well as to the statute of limitations for a claim or other right.

Hearings
Article 108 Hearings are scheduled by the court in accordance with law or requirements of the proceedings. Decisions on scheduling a hearing may not be appealed. The court shall timely summon the parties and other persons whose presence is required during a hearing. The summons is served with a filing that was the cause for the hearing, and it identifies the relevant venue, room and time. If the summons is served without a filing, it must identify the parties, subject of litigation and act to be done at the hearing. The summons must also advise on the legal consequences of failing to appear at a hearing. Article 109 Hearings normally take place at the court. The court may decide to hold a hearing outside of the court premises if it is considered necessary, and/or will save time or reduce the costs of the proceedings. Such decisions may not be appealed. Article 110 The court may postpone a hearing if necessary to present evidence or for other justifiable reasons. If a hearing is postponed, the court shall, if possible, immediately inform the present about the time and venue of the next hearing. The decision on postponement of a hearing may not be appealed.

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Restitutio in integrum
Article 111 If a party fails to appear at a hearing or comply with a time limit for doing an act and therefore loses the right to do such act, the court shall allow the party, upon request, to subsequently do such act (restitutio in integrum), should it find that there was good cause for the failure. If restitutio in integrum is allowed, the proceedings is restored into the state it was prior to the failure and all the decisions of the court made on account of the failure are revoked. Article 112

A motion for restitutio in integrum is filed in the court where the act should have been done.
The motion must be filed within eight days, where the first day is that when the reason causing the failure ceased to exist, and if a party became aware of the failure only later, the first day of this period is the day they became aware of it. Restitutio in integrum may not be requested if more than sixty days passed after the day of failure. If restitutio in integrum is requested because of a failure to comply with a time limit, the requesting party shall do the act concurrently with requesting restitutio in integrum. Article 113

Restitutio in integrum will not be allowed if the time limit set under Article 112, paragraphs 2 and 3 was not met or if a party fails to appear at the hearing caused by such motion.
Article 114 A motion for restitutio in integrum does not affect the course of the proceedings. The court may decide to suspend the proceedings until a valid decision on this motion is made. Article 115 The court passes a decision to reject untimely or inadmissible motions for restitutio in integrum. The court shall reject a motion for restitutio in integrum as invalid, if the facts underlying such motion are not generally known and a party failed to propose or submit appropriate evidence. The court, as a rule, deliberates on a motion for restitutio in integrum, without a hearing. The court shall schedule a hearing if it finds that it is necessary to present evidence to establish the facts. Article 116 A decision allowing restitutio in integrum may not be appealed, unless the motion was untimely or illegal.

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Chapter 9

TRANSCRIPTS
Article 117 All acts done during a hearing are recorded in a transcript. Important statements or notes made by a party or other participant to the proceedings outside a hearing are also recorded in the transcript. Statements or notes of minor importance are not recorded in the transcript but annotated on a document. Transcript is made by a court reporter. Article 118 A transcript must include: the name of the court and composition of the court panel, the venue, day and time of the act, subject matter of litigation and the names of the present parties or third parties and their legal representatives or attorneys. A transcript must include main information about the act. The transcript of a hearing shall in particular state whether the hearing was open to public or not, statements of the parties, their proposals, evidence they proposed and evidence which was derived, statements of witnesses and expert witnesses, as well as the court decisions made at the hearing. Article 119 A transcript must be kept in an orderly manner, nothing must be deleted from the transcript, added or changed. Article 120 The presiding judge shall dictate to the court reporter the text for the transcript. The parties may read the transcript or request the transcript to be read to them and make their objections. Other persons whose statements have been recorded in the transcript may request the same, but only of that part of the transcript containing their statements. Corrections or additions to the transcript that should be made on account of the objections of the parties or other participants or ex officio are added to the end of the transcript. Overruled objections are also to be included in the transcript if the parties request so. Article 121 The presiding judge, court reporter, parties or their legal representatives or attorneys, and the sworn-in court translator sign the transcript. A witness or expert witness signs their statements in the transcript if they give their testimony before a judge requested to take testimony or presiding judge. An illiterate person or a person who is not able to sign shall fingerprint the transcript and the court reporter shall write his/her name under the fingerprint. Should a party or his/her legal representative or attorney, a witness or expert witness leave before the signature of the transcript or does not want to sign the transcript, this shall be recorded in the transcript along with the reason stated for doing so. Article 122 Deliberation and voting of the court panel are recorded in a separate transcript. If a higher court unanimously passes a decision on an appeal, a note on deliberation and voting shall be recorded on the original decision instead of a separate transcript.

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The transcript of deliberation and voting contain information about voting and the decision made. Separate opinions are included in the transcript of deliberation and voting if they have not been included in the transcript of the proceedings. All members of the panel and the court reporter sign the transcript or note on voting. The transcript of deliberation and voting is then sealed in an envelope. It may be examined only by a higher court in the appeal proceedings, after which the transcript is to be closed and sealed again

with a note on the envelope that it has been examined.

Chapter 10

JUDGEMENT
Article 123 The decisions of the court have either the form of judgements or decisions. The court passes a judgement, except in the event of trespassing where the court passes a decision. Whenever the court does not pass a judgement, it passes a decision. In case of a claim for payment order, the decision approving the claim shall have the form of payment order. The ruling of the court related to costs which is included in the judgement is considered a decision. Article 124 The court panel makes a decision after deliberation and voting. Only the members of the panel and the court reporter may be in the room where deliberation and voting take place. If simple issues are deliberated, the panel may make a decision without voting. Article 125 The presiding judge chairs the deliberation and voting and votes the last. He/she shall ensure that all issues are considered comprehensively and thoroughly. All decisions must be made by majority vote of the panel. The members of the panel may not refuse to vote on issues raised by the presiding judge. A member who was in the minority in a previous voting may not refrain from voting on an upcoming issue. If the panel have two or more opinions, none of which is supported by a majority of votes, the issues under deliberation will be separated and voting repeated until one of the opinions gets a majority of votes. Article 126 Prior to rendering a judgement on the main claim, the court must make a decision about possible extension of the proceedings and other issues. If deliberation on the main claim requires that decisions be made on several claims, there will be a separate vote on each of them.

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Chapter 11

SERVICE AND CONSIDERATION OF DOCUMENTS Service


Article 127

Documents related to the case are served, as a rule, by mail, but may also be served by a designated person of the court, by a competent municipal body, by a legal entity registered for delivery services, directly in the court premises or in another manner stipulated by a special statute.
Article 128 Service on public authorities, local self-government authorities and bodies of other territorial organisation is done by delivering a document to the responsible person in the office for the reception of documents. Service on the state or public prosecutor or public attorney is effected by filing a document in the registration room. The date of service is the date of delivery to the registration room. Service on legal entities is effected by delivering a document in the premises of the entity, to an employee authorised to receive deliveries. The service under paragraphs 1 and 3 of this Article is effected in the same way if the parties referred to in these paragraphs appointed one of their employees as their attorney. Article 129 For the persons in the military and police, as well as employees of road, river, maritime and air transportation, service of the summons may be effected through their command or direct superior, as well as the service of other documents related to the case. Article 130 If service is to be effected on persons or institutions abroad or foreigners enjoying immunity, it is effected through diplomatic channels, if not otherwise provided by an international agreement or this Law (Article 141). If service is to be effected on a citizen of Serbia and Montenegro who is abroad, it may be effected through the relevant consular or diplomatic representative of Serbia and Montenegro who is in charge of consular affairs in that country or an international legal entity registered for delivery services. Service is valid only if the person to be served agrees to receive the document. Service to legal entities with their seat abroad and an agency in Serbia and Montenegro may be effected to their agency. Article 131 Persons in places of detention shall be served through the administration of the penitentiary institution. Article 132 If a party is represented by legal representative or attorney, service is effected on the legal representative or attorney, if not otherwise provided by this Law. If a party has two or more legal representatives or attorneys, service may be effected on one of them.

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Article 133

Service on a legal counsel in the capacity of attorney may be effected by delivery of a


document to an employee in his/her office. Service on a legal counsel may be effected by delivering a document to an adult member of the counsels household if they have an office in the home. Article 134 Service is effected on any day at workplace or in the home from 7:00a.m. to 10:00p.m., or in the court when the person to be served is found there. Service may be effected at other time and place pursuant to a special court decision. The person effecting service must show such decision upon request. Article 135 If a party to be served with a document is not at home, the document is delivered to a grown-up member of the household who must receive the document. Should no one be at home, the document is delivered to a neighbour who agrees to receive the document. If service is to be effected at a workplace, and the party to be served is not there, the document may be delivered to a person who works there if they agree to receive it. A document may not be delivered to another person if that person takes part in the proceedings as an opponent of the party to be served. Article 136 A complaint, payment order, extraordinary legal remedy, judgement or decision that may be appealed shall be served on a party in person or his/her legal representative or attorney. Other documents related to the case shall be served in person if it is expressly determined by this Law or if the court finds that the documents to be delivered require special precaution. If a party to be served in person is not found where the document should be served, the person effecting service must inquire as to when and where he/she could find the person. The person effecting service shall also leave a notice with a person specified under Article 135, paragraphs 1 and 2 of this Law ordering the party to be served to be at home or workplace on a particular day and time. Should after that the person effecting service not find the party, the provisions of Article 135 hereof shall apply and it will be considered that service has been effected.

If the document referred to under paragraph 1 of this Article is to be served on public


authorities and legal entities, service shall be effected in accordance with the provisions of Article 128 hereof. Article 137 If a party to be served is absent and a person referred to under Article 135, paragraphs 1 and 2 is not able to deliver him/her the document in time, the document shall be returned to the court with a note on the whereabouts of the party.

Refusal of Service
Article 138 If a party to be served or a grown-up member of his/her household, or an authorised official or employee of a public authority or legal entity refuses service on no legal grounds, the person effecting service shall leave the document in the home or office of the party to be served or stick it on the door of the home or office. The person effecting service shall write the date, time and reason for refusing

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service on the note of delivery, as well as where the document was left, whereby service shall be considered effected.

Change of Address
Article 139 If a party or his/her legal representative changes address before a second-instance judgement concluding the proceedings is passed, he/she shall promptly inform the court. If they fail to do so, the court shall order that all further services of documents related to the case on that party are effected by fixing the documents on the notice-board in the court. Service is considered effected upon the expiry of 8 days after the day of putting the document on the notice board. If the attorney or a person designated to receive documents changes address before a secondinstance court passes a decision which concludes litigation and fails to notify the court, service shall be effected as if the attorney/designated person had not been appointed.

Ineffective Service
Article 140 Where service could not be effected, documents to be served are put on the notice board. Service is considered effected upon the expiry of 8 days after the day of putting the document on the notice board.

Person Authorised to Receive Documents


Article 141 The court shall invite a party or his/her legal representative who is abroad and does not have an attorney in Serbia and Montenegro, to authorise, within a reasonable period of time, a person to receive documents related to the case in Serbia and Montenegro. If a party or his/her legal representative fails to do so, the court shall appoint such person at the expense of the party and so inform the party or his/her legal representative or attorney. Article 142 If there is more than one plaintiff/defendant and they have no joint legal representative or attorney, the court may request them to designate, within a set period of time, a representative for the reception of documents related to the case. Also, the court shall inform the plaintiffs/defendants that it will designate one of them as their representative for the reception of documents if they fail to do so.

Agreement on Address for Service


Article 143 Parties to the proceedings may agree that service is made to particular address or through particular person in the Republic of Serbia. Service is effected if a document was delivered to the person specified in their agreement. If it is impossible to effect service in accordance with their agreement, the court shall order that service is effected by fixing a document on the notice board.

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Note of Delivery
Article 144 Note of delivery is signed both by the addressee and the person effecting service. The addressee shall write the date of delivery on the note of delivery. If the addressee is illiterate or unable to sign the note of delivery, the person effecting service shall write the addressee's name and date of delivery, with a note why the addressee did not sign. If the addressee refuses to sign the note of delivery, the person effecting service shall write so on the note, as well as the date of delivery, whereby service is considered effected. If service is effected in accordance with Article 136, paragraph 2 of this Law, in addition to proof of delivery it must be written on the note of delivery that a written notification preceded the delivery. If pursuant to law a document was delivered to a person other than the addressee, the person effecting service shall write a note on the relation of the two persons. If the date of delivery on the note of delivery is incorrect, the date of delivery is the date when the delivery was made.

Examination and Transcripts of Documents


Article 145 Parties may examine, photocopy and transcribe the briefs of the proceedings. Other persons who have a justified interest may also examine and transcribe certain briefs. The permission to do so is given by the presiding judge if the proceedings are underway, and the president of the court or an official designated by him/her if the proceedings have been completed.

Chapter 12

COSTS OF THE PROCEEDINGS Costs of Litigation


Article 146 The costs of litigation comprise costs incurred during or in connection with the proceedings.

The costs of litigation include remuneration for attorneys and other persons entitled to
remuneration in accordance with the law. Article 147 Each party bears the costs incurred in relation to the acts undertaken by them. Article 148 If a party proposes that evidence is presented during a hearing, they shall, upon the request of the court, deposit funds which are sufficient to cover the costs incurred by the presentation of such evidence. If both parties propose that evidence is presented during a hearing, the court shall request both parties to deposit equal funds which are sufficient to cover the costs. If the court ex officio orders

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presentation of evidence, the court shall order that the party in whose interest it is to present such evidence to deposit the necessary funds. If the parties agree to attempt mediation or the court directs the parties to mediation, the court shall order that both parties deposit equal funds necessary to cover the costs of such procedure. The court shall abandon the presentation of evidence if the necessary funds are not deposited within a set period of time. In that case, the court shall, taking into account all the circumstances, assess the implications of the party's failure to deposit the funds. By way of derogation from paragraph 4 of this Article, if the court ex officio orders that evidence is presented in order to establish facts related to the application of Article 3, paragraph 3 of this Law, and the parties fail to deposit sufficient funds, the costs of the presentation of evidence shall be covered from the court budget. Article 149 The party who loses litigation shall reimburse the costs of the other party.

If a party achieves partial success in litigation, the court may, taking into account such
success, order that each party bears their own costs, or that one party reimburses the other party a proportional amount of the costs. The court may order that one party reimburse all the costs of the other party, if the other party was unsuccessful as regards a comparatively small part of the claim which incurred insignificant costs. Depending on the result of the presentation of evidence, the court shall decide whether the costs referred to in Article 148, paragraph 5 of this Law shall be covered by one or both parties or whether they will be covered from the court budget. A third interested party is entitled to reimbursement of costs from the other party only for those actions that they undertake instead of the party they joined. Article 150 In deciding which costs are to be reimbursed to a party, the court shall take into account only such costs as were necessary to conduct the proceedings. The court decides which costs were necessary and in what amount, after careful consideration of all the circumstances. If there is a set fee for attorneys or other costs, the costs are calculated based on such fee. Article 151 Regardless of the outcome of litigation, a party shall reimburse the costs of the other party arising as a result of a fault by that party or an accident that happened to him/her. The court may order that the legal representative or attorney reimburse costs of the other party which were incurred through his/her own fault. Article 152 If the defendant did not give ground for the complaint and admitted a claim in the reply to the complaint, or at pre-trial hearing, and if there is no pre-trial hearing then in trial before entering the debate about the subject matter of litigation, the plaintiff shall reimburse the costs of litigation to the defendant. Article 153 A plaintiff who withdraws a complaint shall reimburse the costs of litigation to the defendant, unless the withdrawal ensued promptly after the defendant fulfilled the requests of the plaintiff. A party who withdraws an appeal shall reimburse the costs incurred by the other party in relation to the appeal.

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Article 154 Each party bears their own costs if the litigation results in court settlement or settlement after mediation, unless the parties agree otherwise. The costs of litigation include the costs of an ineffective settlement (Article 326) and the costs of ineffective mediation (article 148). Article 155 Where in a third party claim proceeding, the request of third party for exclusion of property is approved, and the court establishes that the defendant as a creditor reasonably thought that there was no third party's claim on the subject matter of litigation, the court shall order that each party bears their own costs. Article 156 If there is more than one defendant/plaintiff, they shall bear the costs in equal proportion. If there is significant difference between the shares of the parties in the subject of the litigation, the court shall determine the proportion of costs to be covered by each defendant/plaintiff. The defendants/ plaintiffs who are jointly liable as regards the subject of litigation shall also be

jointly liable for covering the costs of the other party to the proceedings.
Other defendants/plaintiffs shall not be liable for the costs incurred by separate acts undertaken by particular defendants/plaintiffs during the litigation. Article 157

If a public prosecutor is a party to the proceedings, he/she is entitled to reimbursement of costs in accordance with the provisions of this Law, but may not reimburse his/her fee. The costs that a public prosecutor should bear pursuant to the provisions of this Law shall be paid from the court budget. Each party shall bear their share of the costs incurred by the participation of a public prosecutor in the proceedings (Article 207). The costs of a public prosecutor related to his/her participation in the proceedings (Article 207) are borne by the public prosecutors office.
Article 158 The provisions referring to costs also apply to parties who are represented by the public attorney or public prosecutor. In this event, the costs of the proceedings also include the amount that would have been recognised as the attorneys fee. Article 159

The court decides on reimbursement of costs upon the request of a party and without a
hearing. A party shall explicitly state which costs they request to be reimbursed.

A party shall make the request for the reimbursement of costs before the conclusion of the hearing preceding deliberation on costs, and if the decision is to be made without prior hearing, a party shall include the request for reimbursement of costs in the motion for reimbursement of costs. The court decides on the request for reimbursement either in a judgement or decision by which the proceedings before the court are concluded. If the judgement or decision ordering reimbursement of costs is orally declared, the court may decide to determine the amount of costs in a written judgement or decision, if such decision is to be served to the parties.

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In the course of the proceedings, the court shall issue a separate decision on reimbursement of costs only if the entitlement to reimbursement of costs is not related to the decision on the subject of litigation. Where pursuant to Article 153 of this Law, a party does not withdraw the complaint or an appeal during the trial, then the request for reimbursement of costs may be made within 8 days of receiving the notice of withdrawal. Article 160 In the event that the court issues a partial or interim judgement, the court may decide to postpone the decision on costs until a final judgement. Article 161 When the court rejects or denies a request for an appeal, it will also make a decision on the costs arising in relation to such appeal. If the court reverses the decision against which an appeal has been filed or annuls the decision and rejects the appeal, it will make a decision on the costs of the entire procedure. If the decision against which an appeal has been lodged is annulled and the case retried, the decision on the costs of the proceedings arising in relation to the appeal will be made in the final judgement. The court may also apply the provision in paragraph 3 of this Article if the decision against which an appeal is lodged is only partially revoked. Article 162 The decision on the costs included in the judgement may be challenged by a complaint against the decision, provided that the decision concerning the main claim is not challenged. If one party challenges the judgement only in relation to the costs, whilst the other party challenges it in relation to the main claim, then a higher court shall pass a single decision on both appeals.

Costs of Presentation of Evidence


Article 163 The costs of the presentation of evidence are borne by the party who proposed presentation of evidence. This party shall also cover costs of the other party or his/her temporary representative. A party may later claim these costs as part of the costs of litigation, depending on their success in litigation.

Exemption from the Payment of the Costs of Proceedings


Article 164 The court shall exempt a party from the liability of paying the costs of the proceedings where that party's material situation does not allow them to bear such costs.

Exemption from the payment of the costs of proceedings includes exemption from the
payment of fees and the deposit for the costs of witnesses, expert witnesses, on-site inspections and court notices. The court may also release a party from the liability of paying court fees. Prior to the decision on exemption, the court shall carefully consider all the circumstances, in particular the value of the subject of litigation, the earnings, possessions and the number of persons supported by a party.

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Article 165 The decision on the exemption of payment of costs of litigation is made by the first-instance court upon the request of a party. The party shall also submit proof of means test issued by the relevant body. The certificate of means-test must state the amount of tax paid by the household and individual

members, as well as other sources of income and income scale of the party. If necessary, the court may ex officio obtain the required information on the income scale of the
party requesting exemption, and may also take testimony of the other party in connection with that. The decision of the court exempting a party from payment of costs may not be appealed. Article 166 When a party is exempted from the liability of paying the costs of litigation (Article 164, paragraph 2), the first-instance court shall recognise the right to free legal aid, if it is necessary to protect the rights of a party. The party shall be assigned a legal counsel from the list of barristers submitted to the court by the Bar Association. The president of the court shall assign and dismiss the counsel. The counsel may ask to be dismissed if there are justifiable reasons to do so. The decision of the court on the dismissal of the counsel may not be appealed. The decision of the court approving the request of a party to be assigned a legal counsel may not be appealed. Article 167 Where a party is exempted from the liability of paying the costs of litigation (Article 164, paragraph 2), advance payment shall be made from the court budget to cover the expenses for witnesses, expert witnesses, on-site inspection and court notices, as well as the real costs for the assigned counsel. Article 168 Should in the course of the proceedings, the first-instance court find out that the party is able to bear the costs of litigation, it may revoke the decision on the exemption of payment of costs and assignment of counsel. The court shall also decide whether a party shall fully or partially reimburse such costs and fees as they were released from, as well as the real costs and remuneration for the assigned counsel. The funds paid from the court budget are reimbursed first. Article 169 The fees and costs paid from the court budget as well as the real costs and remuneration for the assigned counsel are part of the costs of litigation.

The court shall make a decision whether these costs should be reimbursed by the other
party pursuant to the provisions governing reimbursement of costs. The first-instance court shall ex officio collect the fees and costs which were paid from the court budget from a party which is liable to reimburse such costs. If the opponent of the party who has been released from paying the costs of litigation is ordered to bear the costs of litigation, and it is established that this party cannot pay such costs, the court may order that the costs referred to under paragraph 1 of this Article be covered, completely or partially, by the party who has been released from paying the costs from what has been awarded to this party. This does not prejudice the right of this party to request compensation from the other party.

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Chapter 13

LEGAL AID
Article 170 The courts provide mutual legal aid in litigation.

If a court which has been requested to do a particular action is not the competent court for such action, it shall pass the request to the competent court or other government body and accordingly inform the requesting court, and if the requested court does not know which is the
competent court or government body, it shall return the request.

If there are two or more courts in the same town having subject-matter jurisdiction for
providing legal aid, the request for legal aid may be filed with any of such courts, unless otherwise provided by another law. Article 171 The courts communicate in their official languages. If a paper in the language of a national minority is sent to a court where the language of this minority is not in official use, the Serbian translation of the paper must be attached to the original. Article 172 The courts shall provide legal aid to foreign courts in cases determined by the international agreements and if there is reciprocity in providing legal aid. If there is doubt concerning reciprocity, the Ministry of Justice shall give an expert opinion. The court shall deny legal aid to a foreign court if an action contrary to the laws of Serbia and Montenegro is requested. In such case, the court competent for providing legal aid shall ex officio refer the case to the Supreme Court for final decision. The provisions of Article 170, paragraphs 2 and 3 of this Law also apply to the requests of foreign courts. Article 173 The courts provide legal aid to foreign courts in compliance with the national laws. An action requested by a foreign court may also be done as the foreign court requires, if this is not contrary to the laws of Serbia and Montenegro. Article 174 If not otherwise stipulated by an international agreement, the courts shall proceed upon the request of a foreign court for legal aid only if such requests are submitted through diplomatic channels and if the application and attachments are in the Serbian language or officially translated in Serbian. Article 175 Unless otherwise stipulated by an international agreement, requests of a domestic court for legal aid are submitted to foreign courts through diplomatic channels. The applications and attachments must be written in the language of the relevant country or officially translated in that language.

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Chapter 14

PROCEDURE FOR SOLVING OF CONTROVERSIAL LEGAL ISSUE


Article 176 In the first-instance proceedings, where interpretation is needed of a controversial point of law arising in a great number of cases, and such interpretation is of decisive importance for adjudicating cases before first-instance courts, the first-instance court shall, ex officio or upon the proposal of a party, file a request with the Supreme Court to solve the controversial legal issue. The court which filed the request shall suspend the proceedings until such time as the procedure before the Supreme Court is finished. Article 177 The request to the Supreme Court should contain a brief account of the facts established in a case, allegations of the parties related to the controversial issue and reasons why the first-instance court is requesting an interpretation. The first-instance court may also give its own opinion about the controversial point of law. The first-instance court shall also submit the case file to the Supreme Court together with the request. Article 178 The Supreme Court shall give its interpretation within 90 days of the receipt of the request. The Supreme Court shall refuse to give an interpretation if it is not of significance for a large number of cases. If the Supreme Court decides to solve the controversial legal issue, it shall publish its decision in the Supreme Court Journal or in another appropriate way. The Supreme Court rules on the request for an interpretation in accordance with the rules related to giving of interpretation. Article 179 In its interpretation of a point of law regarding the request for solving controversial legal issue, the Supreme Court considers the controversial issue and gives an explanation of reasons for its decision.

Interpretation is submitted to the requesting court and published in the Supreme Court
Journal. Article 180 The parties to the proceedings which gave rise to the legal interpretation of the Supreme Court may not request again that such issue is solved in the ongoing proceedings.

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Chapter 15

FINES FOR ABUSE OF PROCEDURES


Article 181 The court shall impose a fine of 30,000 dinars for a natural person and a fine of 100,000 dinars for a legal entity on a party, third interested party, legal representative, attorney or expert witness who abuses procedures. The court shall impose a fine referred to in paragraph 1. of this Article on a third person or undertake other measures against it in case of interference with litigious acts, out of the hearing. A decision imposing a fine or other measure is executed ex officio according to rules on executions. Article 182 If the abuse of procedure caused damage to a party, the court shall order compensation of costs to the injured party upon request. If a party files a claim for compensation due to the abuse of procedures, the court shall separate such claim from the proceedings. Article 183 The court shall impose a 30,000 dinar fine on a person authorised to receive documents related to the case who fails to inform the court about the change of address contrary to this Law.

The court shall, upon the request of a party, order that the person authorised to receive
documents compensate to the party the costs incurred by a failure to notify the court about the change of address. Article 184 The court shall impose a fine amounting to 30,000 dinars on a person who obstructs service of documents or intentionally prevents or hinders the application of the provisions related to service. The court shall, upon the request of a party, order that the person referred to in paragraph 1 of this Article compensate to the other party the costs incurred by their behaviour referred to in paragraph 1 of this Article. Article 185 An appeal against a decision passed due to non-observance of procedures does not result in a stay of execution.

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Part Two PROCEEDINGS A. Proceedings before first-instance court


Chapter 16 COMPLAINT
Article 186 A civil action is initiated by filing a complaint.

Contents of Complaint
Article 187

A complaint contains a claim concerning the subject matter of litigation and ancillary
claims, the facts on which the plaintiff bases the claim, proof of such facts, the value of the subject of litigation and other information necessary for any filing (Article 100). The plaintiff with a permanent or temporary residence or headquarters in a foreign country shall designate a person authorised to receive documents related to the case. If the plaintiff fails to do so, the court shall reject the complaint.

If the jurisdiction, composition of the court panel or the right to review depends on the
value of the subject of litigation, and this subject is not pecuniary value, the plaintiff must specify the value of the subject of litigation in the complaint. The court shall also proceed upon the complaint if the plaintiff fails to state the legal basis of the complaint, and if he/she did specify the legal basis for the complaint, the court is not bound by it.

Claim for Declaration


Article 188 A complaint may be filed for such purposes as to declare whether a party is or is not entitled to a right or whether there is or is not a particular legal relation or to prove the validity or invalidity of a document. This kind of complaint may be filed in accordance with special regulations, if the plaintiff has a legal interest that the court declare whether or not there is certain disputable right or legal relation before the effective date of an agreement, or whether a document is authentic or not, or if the plaintiff has other legal interest in bringing such action.

Request for declaration in course of litigation


Article 189 If the decision on the litigation depends on whether or not there is certain legal relation which became disputable in the course of litigation, the plaintiff may in addition to the existing claim request that the court determines whether or not there is such legal relation, if it is within the jurisdiction of this court.

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The request referred to in paragraph 1 of this Article shall not be considered as alteration of the complaint.

Various Claims in a Single Complaint


Article 190 The plaintiff who seeks a ruling which orders the defendant to perform a duty may propose that the defendant pays a sum of money or perform another duty instead. The court has no obligation to consider whether the pecuniary value that the plaintiff agrees to accept in lieu of such performance is corresponding to the non-pecuniary duty. Article 191

The plaintiff may have two or more claims against a single defendant if all the claims are based on the same facts and legal grounds. Where claims are not based on the same facts and legal grounds, they can be joined in a single complaint against the same defendant only if one court has subject-matter jurisdiction over all claims and if all the claims can be dealt with within the same proceedings. The plaintiff may make two or more related claims in a single complaint, of which the court may approve a claim despite the fact that the preceding claim is groundless. The claims referred to in paragraph 2 of this Article may be made in a single complaint only if the court has subject-matter jurisdiction over each of the claims and the same type of procedure apply to all of them. If some claims contained in the complaint are dealt with by a court panel and others by a judge sitting alone, all the claims shall be dealt with by the panel.

Counterclaim
Article 192 The defendant may, before the end of the trial, file a counterclaim with the same court, if the subject of the counterclaim is related to the subject of the complaint, or if these two claims can be compensated, or if the counterclaim requests from the court to declare whether or not there is certain right or legal relation upon the existence or non-existence of which the decision on the complaint depends. Counterclaim may not be filed if the subject of the counterclaim is within the subject-matter jurisdiction of a higher court or a court of different type. Counterclaim may also be filed if the subject of counterclaim has to be dealt with before the same court, but a different court panel.

Alteration of Complaint
Article 193 The plaintiff may alter the complaint before the end of litigation. Upon service, a complaint may be altered only with the consent of the defendant. The court may allow alteration of the complaint despite the opposition of the defendant if it finds that it would be useful for the final settlement of litigation and would not significantly prolong the proceedings. It shall be considered that the defendant agrees with the alteration of the complaint if he/she starts contesting the subject-matter of altered complaint without previously expressing opposition to alteration.

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If the civil court does not have subject-matter jurisdiction over the altered complaint, it shall refer the complaint to a competent court, which shall, if the defendant does not agree with alteration, decide whether the alteration is allowed. If the court allows the alteration of complaint, it shall allow enough time to the defendant to prepare for the trial based on the altered complaint, if he/she did not have enough time to do so. If a complaint has been altered at a hearing not attended by the defendant, the court shall postpone the hearing and deliver the defendant a transcript of the hearing. The decision approving or rejecting the alteration of the complaint may not be appealed. Article 194 Alteration of the complaint shall mean a modification or enhancement of the existing claim or addition of claims. Where the plaintiff alters the complaint so as to claim another subject or pecuniary value based on the circumstances arising after filing of the complaint, the defendant may not object to such alteration. The complaint is not considered altered if the plaintiff changes the legal basis of the claim, decreases the claim, changes, supplements or corrects certain statements in a manner which leaves the claim unchanged. Article 195

The plaintiff may change the complaint at any time before the end of the trial by suing
another person instead of the originally sued person. In order to change the complaint pursuant to paragraph 1 of this Article, it is necessary to have the agreement of the person who is to enter litigation instead of the originally sued person, and if the defendant already commenced contesting the subject matter, it is necessary to ensure the agreement of the defendant. If the defendant commenced contesting the subject-matter, new plaintiff may replace the original one only if the defendant agrees. The person entering litigation instead of the defendant must take over the litigation in its current state.

Withdrawal of Complaint
Article 196 The plaintiff may withdraw a complaint without the consent of the defendant before the defendant commences contesting the subject-matter. A complaint may also be withdrawn at any point before the conclusion of the trial if the defendant agrees so. If the defendant fails to state his/her opinion within 15 days of the notice on the withdrawal of the complaint, it shall be considered that he/she agrees with it. If a complaint is withdrawn, it shall be considered that it has not been filed at all and may be refiled.

Litigation
Article 197 Litigation starts by serving a defendant with the complaint. As regards a claim made by a party in the course of the proceedings, litigation starts as of the moment the other party is informed about such claim.

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During the litigation, a new litigation may not be initiated with the same claim and between the same parties, and if it is brought, the court shall dismiss it. The court ex officio observes if there is another litigation with the same subject and between the same parties. Article 198 If a party alienates the property or right which is the subject of litigation, it shall not be a cause not to complete the proceedings between the same parties. The person who acquired the property or right which is the subject of litigation may enter the

proceedings instead of the plaintiff or defendant only if both parties agree so.

Chapter 15

TWO OR MORE PARTIES ON THE SAME SIDE


Article 199

There can be more than one party on the same side in the same legal action provided:
1) the parties constitute a legal entity as regards the litigation subject, or if their rights or obligations arise from the same factual or legal basis; 2) the subject of litigation consists of claims and/or obligations of the same kind, based on a similar factual and legal basis, and if the same court has subject-matter and territorial jurisdiction over all parties to the proceedings and all claims; 3) other laws prescribe it. Provided the conditions of paragraph 1 of this Article are fulfilled, new plaintiffs can join the legal action and a claim can be expanded to new defendant under his approval, until the date when the trial is closed. A new plaintiff may not join the legal action without the agreement of the defendant if the defendant started contesting the subject-matter.

A party who joins the action and/or the party the action is expended to must accept the
litigation in its current state. Article 200

The plaintiff may file a single claim against two or more defendants and request that it is accepted towards the next defendant, should the first defendant be acquitted by a final court decision. The plaintiff can sue two or more defendants as referred to in paragraph 1 of this Article only if he/she has the same claim towards each of them, or if he has different, but related claims towards them and the same court has subject-matter and territorial jurisdiction for all such claims.
Article 201 A person claiming objects or rights, in full or in part, which are already subject to litigation between other persons, may file a single complaint against both parties with the court where such litigation is conducted, at any time before such proceedings are concluded with a final court decision. Article 202 The main debtor and guarantor can be jointly sued unless it is in contradiction with the contents of the Guarantee Agreement.

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Article 203 If there are two or more parties on the same side each of them is an independent party in a civil action and their acts or failure to act can neither benefit nor damage other parties to the proceedings. Article 204 If pursuant to law, or due to the nature of a legal relation, the only way to resolve a dispute is equally towards all the parties on the same side (the plaintiffs/the defendants), they are considered to be one party to the proceedings. If any of them fails to undertake a particular action in the proceedings, the effect of actions undertaken by other parties on the same side extends to them also. Article 205

If time limits for undertaking particular action in the proceedings by individual parties
expire at different times, such actions can be undertaken as long as the time limit for one of the parties on the same side is still running. Article 206 Any party on the same side has the right to put forward proposals concerning the proceedings.

Chapter 18

PARTICIPATION OF THIRD PARTIES Participation of the Public Prosecutor


Article 207

If there is suspicion that one or both parties are abusing their rights in order to prevent
application of mandatory regulations concerning natural resources, evade financial obligations or prevent application of mandatory obligations from an international agreement, the relevant public attorney is entitled to participate in a litigation between other persons. Where the public prosecutor participates in litigation between other persons, he/she has the power to propose establishing of facts and presentation of evidence other than that proposed by the parties, within the limits of the claim, and to file a motion for a legal remedy. The public prosecutor shall submit a form to the court to register for participation in such proceedings. If the court considers that legal conditions for the participation of a public prosecutor in a civil action are met, it shall inform the relevant public prosecutor and set a time limit for the prosecutor to register for participation. The court shall suspend the proceedings until the expiry of such time limit. However, the public prosecutor may exercise his/her right referred to in the paragraph 2 of this Article after the expiry of the time limit. The court shall summon the public prosecutor to hearings and submit to him/her all the decisions which may be appealed.

Participation of Third Interested Party


Article 208 If a person has legal interest in assisting a party to the proceedings to succeed in the litigation, they may join that party.

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A third interested party may join the litigation at any time during the proceedings, until a final judgement is passed, as well as during the proceedings initiated as an extraordinary legal remedy. A third interested party may make a statement about joining the proceedings either at a hearing or by submitting a statement to the court. The written statement of a third party is delivered to both parties to the proceedings, and if the statement was made at a hearing, the transcript of the relevant section of the official record will be delivered only to such party who was absent from the hearing. Article 209

Any party can challenge the right of a third party to participate in the proceedings and
propose to the court to reject a third party. The court can reject the participation of a third party even without obtaining the opinion of the parties if it finds that a legal interest of third party does not exist. Until the decision rejecting the participation of a third party becomes effective, the third party can participate in the proceedings and their acts in the litigation cannot be excluded. No appeal is allowed against the decision of the court accepting the participation of a third party. Article 210 A third party must accept the litigation in its current state. A third party may put forward proposals and undertake all other actions within the time limits which are binding for the party they have joined. If a third party joins the litigation before a final decision is passed, such party is also entitled to submit a motion for an extraordinary legal remedy. If a third party files a motion for a legal remedy, a copy of the motion shall be delivered to the party he has joined. The actions of a third party have a legal effect for the party they have joined if they are not in contradiction with the partys actions. If both parties to the proceedings agree, a third party may replace the party he/she has joined. Article 211 If the judgement should also have legal effect for a third party, they have the status of a defendant/plaintiff (Art. 204). A third party who has the status of co-defendant/co-plaintiff may file a motion for an

extraordinary remedy also in a litigation where they did not participate as a third party
until a final judgement is passed. They may also participate in the proceedings for the protection of legality.

Designation of Predecessors
Article 212 A party who is sued as a holder of some object or right, and they claim that they hold the object or right on behalf of another person, may at the pre-trial hearing at the latest, or if there is no pre-trial hearing then at the trial, prior to commencing contesting of the subject-matter, invite through the court that person (predecessor) to join the litigation as a party replacing them. The plaintiff's consent for the predecessor to join the litigation is required only if the plaintiff has claims against the defendant for which it is irrelevant whether the defendant is holding an object or right on behalf of the predecessor. If a predecessor who has been properly summoned fails to appear at a hearing or refuses to join the litigation, the defendant may not refuse to enter litigation.

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Notification of Third Parties about Litigation


Article 213 If the plaintiff or defendant need to notify a third party about a litigation that already started in order to give effect to certain civil law obligation/relation, they can do it by filing a notification with the court before the litigation is concluded with a final court decision. The notification should state the reason for notification and the state of the litigation.

Such notification does not allow the party who filed it to request the suspension of the
proceedings, extension of time limits or postponement of hearings.

Chapter 19

DISCONTINUANCE AND SUSPENSION OF THE PROCEEDINGS


Article 214 The proceedings are discontinued if:

1)
2) 3) 4) 5) 6) 7)

a party dies;
a party loses litigation capacity; the legal representative of a party dies or his authorisation for representation ceases; a party who is a legal entity dissolves, i.e. if a competent body issues a decision on banning its operation; due to legal consequences of bankruptcy proceedings or liquidation; the court stops working because of the war or other similar causes; in cases provided by another law. Article 215

In addition to cases provided by this Law, the court shall also discontinue the proceedings:

1)
2)

if the court has decided not to rule on interlocutory issue (Article 12);
if a party is situated in the area cut off by a natural disaster (flood or the like). Article 216

With the discontinuance of the proceedings all time limits stop running.

During the discontinuance of the proceedings the court may not undertake any action.
However, if the proceedings were discontinued after the conclusion of the trial, the court may issue a ruling based on the trial. Actions undertaken by one party during the discontinuance of the proceedings have no legal effect for the other party. They will have legal effect only after the proceedings continue. Article 217 The proceedings discontinued for the reasons specified in Art. 214, points 1 to 5 will resume when the heir or inheritance trustee, new legal representative, bankruptcy administrator or legal successors of a legal entity take over the proceedings or if the court requests them to do so upon a motion of the other party.

If the court discontinued the proceedings for reasons specified in Art. 215, point 1, the
proceedings will resume when the proceedings before the court or other competent body related to an

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interlocutory matter are effectively concluded, or when the court finds that no reasons exist to wait for the conclusion of such proceedings. In all other cases, discontinued proceedings will resume upon the proposal of a party, as soon as the reasons which caused discontinuance cease to exist. The discontinued time limits start running anew as of the date the court delivers the notification on the continuance of the proceedings to the interested party. The court shall notify the party which did not move for the continuance of the proceedings as prescribed by the provisions of Article 136 hereof. Article 218 A decision on the discontinuance of the proceedings (Articles 214 and 215) may be appealed. No appeal is allowed if the court dismissed the proposal to discontinue the proceedings in the hearing and decided to continue the proceedings. Article 219 The court shall suspend the proceedings if it is explicitly provided by law or at any point during the proceedings if the court finds it appropriate. The court shall issue a decision to suspend the proceedings ex officio if it decides to wait for the outcome of an action in the proceedings or to allow undertaking of such action. The decision of the court on the suspension of the proceedings shall also specify how long the suspension lasts. No appeal is allowed against the decision on the suspension of the proceedings. The court shall resume the proceedings ex officio as soon as the reasons which caused a suspension cease to exist. During the suspension, the court may undertake only such actions which may be seriously affected by delay. Suspension of the proceedings does not affect time limits for undertaking actions in the proceedings.

Chapter 20

EVIDENCE General Provisions


Article 220 Each party shall present facts and propose evidence supporting their claim or challenging the allegations and evidence of the other party. Article 221 Evidence includes all facts relevant for adjudicating a case. The court decides which evidence shall be presented in order to establish relevant facts. Article 222 Facts admitted by a party before the court do not need to be proved before the court. The court may order that such facts are proved also if it deems that the party who admitted the facts wants to dispose with a claim that it cannot dispose with (Art. 3, paragraph 3).

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Taking into consideration all the circumstances, the court shall decide whether to consider a fact as admitted or denied if a party admitted the fact first and then fully or partially denied it or qualified the admission by adding new facts. Generally known facts do not need to be proved. Generally known facts are also the facts that the court found out in performing its function and made them known in the hearing. Article 223 If the court cannot establish particular fact based on the evidence presented (Art. 8), the court shall apply the rule of burden of proof.

The burden of proof is on the party who claims to have certain right. Such party must prove a fact which is essential for the existence or exercise of a right, unless otherwise provided by
law. A party who denies that certain right exists needs to prove a fact which prevented the existence or exercise of such right or which caused the annulment of such right, unless otherwise provided by law. Article 224 If it has been established that a party is entitled to compensation for damages in money or replaceable objects, but the amount or quantity of such objects cannot be established, or they might be established with inappropriate difficulty, the court shall determine the amount of money or the quantity of replaceable things at its own discretion. Article 225 Evidence is presented at the trial. The court may decide that particular evidence is presented before another court (requested court). The transcript of evidence presented before the requested court shall be read at the trial. The request to another court contains facts about the case. The court shall indicate circumstances which need to be taken into account for the presentation of evidence. The parties shall be informed about the hearing before the requested court. The requested court has the same powers as regards the presentation of evidence as the court conducting the trial. A decision of the court to request that evidence is presented before another court may not be appealed. Article 226 In a decision requesting presentation of evidence before another court, the court shall set a time limit for presentation of evidence if the circumstances point that particular evidence cannot be presented or could not be presented within a reasonable time or has to be presented in a foreign country. Upon the expiry of such time limit, the hearing shall be held regardless of the failure to present evidence.

Inspection
Article 227 The court undertakes inspection where direct observation of the court is necessary to establish a fact or clarify particular circumstances. An expert witness may take part in inspection.

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Article 228 The court shall carry out an inspection if the object to be examined cannot be brought to court, or it would incur considerable costs. Article 229 If the object to be examined is in the possession of one of the parties or a third party, provisions of this law related to obtaining of documents shall accordingly apply (Art. 232 to 235).

Documents
Article 230 A document issued by a public authority, within its purview, and a document issued by an enterprise or other organisation performing a delegated public function in accordance with the law (public document) is proof of the fact which is confirmed or stated in such document. Other documents which are, pursuant to special regulations, equal to public documents have the same probative force. It is allowed to prove that a public document contains false facts or that it has improper form. If the court suspects that the document is false, it can request the statement of the body which could have issued the document. Article 231 Unless otherwise provided by international agreement, properly verified foreign public documents have, under the condition of reciprocity, the same probative force as domestic public documents. Article 232 A party shall submit a document which they use as proof for their arguments. A document in foreign language must be submitted with a certified translation. If a document is held by a public authority or enterprise or other organisation with delegated public function, and a party is unable to obtain the document, the court shall obtain such document upon the proposal of the party or ex officio. Article 233

If a party refers to a document but claims that it is in the possession of the other party, the court shall request the other party to present the document within a set period of time. A party may not refuse to presents a document if they referred to such document as proof for their allegations, or if they must submit or present such document pursuant to law, or if the document is considered common to both parties because of its content. With respect to the right of a party to withhold other documents, provisions of Art. 238 and 239 hereof shall accordingly apply. If a party who should present a document to the court denies that they are in the possession of the document, the court may order the party to prove such allegation. Taking into account all circumstances, the court shall assess the significance of the fact that the party holding the document does not comply with the order of the court to present such document or denies that the document is in their possession, contrary to the conviction of the court. No special appeal is allowed against the court decision referred to in paragraph 1 of this Article.

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Article 234 The court may order a third person to submit or present a document only when so provided by law or if the document is considered common to the party referring to the document and a third party. The court shall request the third party to declare itself before it orders the third party to present the document. Where a third party contests their obligation to present a document, the court shall decide whether the third party is obliged to present such document. If a third party denies that they are in the possession of a document, the court may order the party to prove such allegation. A third party is entitled to reimbursement of costs related to the presentation of a document. The provisions of Article 248 shall accordingly apply in this case. Article 235 The court may impose a fine of 30,000 dinars on a natural person or a fine of 100,000 dinars on a legal entity which failed to comply with the decision of the court referred to in Article 234. A fine of 50,000 dinars is imposed on the responsible person of a public authority, local selfgovernment body or other body of territorial organisation. An appeal against this decision does not allow a stay of execution.

Witnesses
Article 236 Any person summoned as a witness must comply with the summons of the court and testify, unless otherwise provided under this Law. Only persons who can give information about the facts to be proved may testify. Article 237 A person who might violate the duty to keep an official or military secret by testifying, may not be questioned until a competent authority releases them from such duty.

Article 238 A witness may withhold testimony: 1) about the facts that a party confided to the witness as their attorney; 2) about the facts that a party or other person confided to the witness as a confessor; 3) about the facts that the witness learned in the capacity of legal counsel,doctor or member
of other profession, where there is the duty to protect the confidentiality of information obtained through performing profession or activity.

The presiding judge of the panel shall warn these persons that they may withhold their
testimony Article 239 A witness may withhold an answer to particular question if there are important reasons for that, and especially if they would bring disgrace or significant material damage or criminal prosecution upon themselves or their lineal relatives to any degree and lateral relatives up to the third degree inclusive, their marital or extramarital partner or in-laws up to the second degree inclusive, even when marriage was divorced, as well as their guardian or protg, adoptive parent or adoptee. The court shall warn a witness that they may withhold the answers to such questions. 49

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Article 240 A witness may not, due to a property-related risk, withhold testimony about legal transactions that they witnessed; about the transactions that they undertook as a legal predecessor or representative of a party; about facts concerning property-rights relations deriving from family relation or marriage; about the facts related to birth, marriage or death; or where other statutes require that they file a report or make a statement. Article 241 The court which should take a testimony shall assess the reasons for withholding of testimony or answers to particular questions. If necessary, the court shall question the parties prior to making such assessment. A party may not appeal the decision referred to under paragraph 1 of this Article, and a witness may contest such decision in their appeal against the decision on fine or imprisonment due to withholding of testimony or answer to a specific question (Article 247, paragraph 2). Article 242 A party who proposes particular witness must indicate the subject of such testimony and state the name, occupation and address of such person. Article 243 A witness is summoned by service of subpoena. The subpoena identifies the name, and surname of a witness, time and venue of hearing, the case and contains notification that they are summoned as a witness. The subpoena must warn a witness about the consequences of non-attendance (Art. 247) and about the right to reimbursement of costs (Art. 248). Witnesses who cannot attend to the court due to old age, illness or disability shall be questioned in their home. Article 244 Witnesses are questioned individually and in the absence of witnesses who are to be questioned subsequently. A witness testifies orally. A witness shall be first warned that they are obliged to tell the truth and not suppress anything and then about the consequences of false testimony. After that a witness will be asked about their name and surname, their fathers name, occupation, address, place of birth, age and their relation with the parties. Article 245 After general questions, a witness is asked to state all they know about the facts they are testifying about, and then they may be questioned in order to check, supplement or explain their statement. Leading questions are not allowed. A witness is always asked how they came to know the facts about which they are testifying. Witnesses may be confronted if their testimonies differ about significant facts. Confronted witnesses will be questioned individually about every circumstance they disagree upon, and their answers will be taken on record. Article 246 A witness not speaking the language of the proceedings shall be questioned with the help of an interpreter.

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If a witness is deaf, questions will be asked in writing, and if they are mute, they will be asked to answer in writing. If questioning cannot be conducted in this way, a person able to communicate with the witness will be called as an interpreter. The court will warn the interpreter that he/she is obliged to translate truthfully the questions asked to the witness, as well as witness testimonies. Article 247

If a properly subpoenaed witness fails to appear and to justify their absence, or leaves without authorisation or justified reason the place where they are to be questioned, the court
may order that they are brought in by force and such witness will bear the expenses of being brought in by force. The court may also fine such witness with a sum up to 30,000 dinars. If a witness does appear and then, after being warned about the consequences, withholds the testimony or answers to specific questions, and the court finds that reasons for withholding are unjustified, the court may fine such witness with an amount of up to 30,000 dinars. If such witness refuses to testify even after that, the court may imprison him/her. Imprisonment may last until the witness agrees to testify or until such time as his/her testimony becomes unnecessary, but not longer than one month. An appeal against the decision about the fine or imprisonment does not result in a stay of execution, except when such appeal also challenges the decision of the court by which the witnesss reasons for withholding testimony or answers to specific questions were rejected. Acting upon the request made by a party, the court shall decide that a witness reimburse expenses caused by their unjustified absence, or unjustified refusal to testify. If a witness presents justification for his/her absence afterwards, the court will revoke its decision about the fine and partially or totally release such witness from expense reimbursement. The court may also revoke its decision about the fine if a witness subsequently agrees to testify. Military personnel and members of the police may not be imprisoned, but their superiors will be informed about their refusal to testify, so that they could sanction them. If it is necessary to bring such persons by force so they can testify, the court will address their superior who will then order their bringing to the court. Article 248 A witness is entitled to reimbursement of travel, food and lodging expenses and reimbursement for lost income. A witness should demand the reimbursement immediately after questioning, or otherwise the witness would forfeit any right to claim it. The court is obliged to warn the witness about this circumstance. In the decision defining the expenses of a witness, the court will order a portion of the sum to be paid from the deposited amount, and if no amount was deposited, the court will order a party to pay the set amount to the witness within eight days. An appeal against the decision referred to in paragraph 3 of this Article shall not stay enforcement thereof.

Experts
Article 249 The court will order presentation of evidence by expert testimony when expertise, which the court does not possess, is required in order to establish or explain certain fact.

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Article 250 The party who makes a proposal for expertise shall identify the subject and scope of expertise as well as an expert from the list of court experts. The other party shall give their opinion about the proposal referred to in paragraph 1 of this Article. If the parties do not agree about the selection of expert and the subject and scope of expertise, the court shall make a decision. The court may, regardless of the agreement between the parties, appoint another expert if the complexity of expertise requires so. Article 251 Expertise is given by one expert, and when the court decides that expertise is complex, the court may appoint two or more experts. Experts are chosen primarily from the list of permanent appointed court experts for specific expertise. Expertise may also be entrusted to expert institution (hospital, laboratory, university school et al.). If there are special institution for certain kinds of expertise (expertise for counterfeit money, handwriting, typewriting et al.), such expertise, especially in case of a complex one, will primarily be entrusted to such institutions. Article 252 The court will release an expert, upon their request, from the obligation to present expert testimony, for the same reasons valid for a witness to withhold their testimony or answer to specific question. The court may also release an expert, upon their request, from the obligation to present expert testimony for other justified reasons. The authorised official of the body or organisation where an expert is employed may also demand that they are released from the obligation of presenting expert testimony. Article 253 An expert may be excluded or disqualified for the same reasons valid for the disqualification of a judge or juror. A person who was previously questioned as a witness may also be appointed as expert witness. A party shall submit a request for disqualification of the expert immediately upon learning that reason for such disqualification exists, at latest prior to the beginning of evidence presentation by expert testimony. In the request for experts disqualification, a party is obliged to state the circumstances on which the party is basing such request for disqualification. The court shall make a decision on the request for exclusion and disqualification. The judge of the requested court and the presiding judge make a decision on disqualification when they are tasked

with evidence presentation by expert testimony.


No appeal is allowed against a ruling approving the request for disqualification, and no special appeal is allowed against a ruling rejecting such request.

If a party learns about a reason for exclusion or disqualification after expert testimony was given and such party objects to expert testimony on those grounds, the court shall act as if the
motion for disqualification was made before the expert testimony.

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Article 254 The court may fine an expert up to 30,000 dinars if such expert does not appear for the hearing although properly summoned and his/her absence was not justified, as well as the expert who rejects to give an expert testimony without a justified reason. The court may revoke the decision on the fine under the conditions specified in Art. 247, paragraph 5 hereof. Upon a request made by a party, the court may rule to order the expert to reimburse the expenses incurred due to his/her unjustified absence or unjustified refusal to give expert testimony. Article 255 An expert witness is entitled to reimbursement of travel expenses and expenses for food and lodging, lost income and costs of expert testimony, as well as to the award for expert testimony. Expenses are reimbursed and award given in accordance with provisions of Art. 248, paragraphs 2 and 3 hereof. Article 256 The court orders expert testimony by a decision which identifies the name and surname and profession of the expert, the subject of the dispute, the subject and scope of expertise and a deadline to submit the expert opinion in writing. A copy of the decision is delivered to the expert together with the subpoena. In the subpoena, the court shall warn the expert that they must give their expertise in accordance with their conscience and rules of the art and science. The court shall also warn the expert about the consequences of a failure to submit the expert findings and opinion within the set time limit or failure to appear in the hearing, as well as about the right to remuneration and reimbursement of costs. Article 257 The expert shall submit to the court his/her findings and opinion with an explanation before the hearing. The court shall deliver the expertise to the parties at least eight days before the trial. Article 258 In the event the expert does not submit the finding and opinion within the set deadline, the court shall appoint a new expert after the expiry of the time period for the parties to state their opinion about such failure. If the expert presents an expertise which is unclear, incomplete or in contradiction with itself or the facts, the court shall appoint an expert to complete or correct the findings and opinion and set a time limit for submitting the new expertise. Article 259 If several experts are appointed, they may submit their joint findings and opinion when they agree about such findings and opinion. If they do not agree about such findings and opinion, each expert

will present his/her findings and opinion separately.


If data given by experts about their findings differ significantly, or if findings of one or several experts are unclear, incomplete or in contradiction with themselves or facts reviewed, and such faults cannot be overcome by re-examination of the experts, expert testimony will be renewed with the service of the same experts, or others. If the opinion of one or several experts contains contradictions or other faults, or if there is a reasonable doubt concerning correctness of the opinion given and such faults or doubt cannot be overcome by re-examination of the experts, an opinion will be requested from other experts.

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Article 260 No appeal is allowed against the decision of the court specified in Art. 250, 251 and 259 hereof. Article 261 Provisions of this Law related to experts accordingly apply to sworn-in court translators.

Questioning of the Parties


Article 262 The court may also establish the facts significant for its decision by questioning the parties. The court may decide to present evidence by questioning the parties when no other evidence is available or when the court deems it necessary in order to establish important facts, regardless of already presented evidence. Article 263 If the court is convinced that a party, or a person to be questioned on behalf of such party, has no knowledge of the disputed facts, or if questioning of such party is not possible, the court may decide to question the other party only. Also, the court may decide to question one party only, if the other party withholds its statement or does not comply with the court summons. If during the proceedings the party dies or repeated questioning of the party is not possible for other reasons, the court shall read the record with this partys statement. Article 264 Presentation of evidence by questioning of the parties before a requested court is allowed only if a party cannot personally appear due to unavoidable obstacles or if their arrival would cause inappropriate expenses. Article 265 On behalf of a party without litigation competence, their legal representative will be questioned. The court may decide to question such party personally instead of, or together with its legal representative, if such questioning is possible. On behalf of a legal entity, a person designated to represent such legal entity by law or regulations will be questioned. If several persons are joined as one party to the litigation, the court shall decide whether to question all those persons or only some of them. Article 266 The summons for the hearing where evidence will be presented by questioning of the parties must be delivered personally to the parties, or to a person who is to be questioned on behalf of a party. The summons shall state that evidence is to be presented at the hearing by questioning of the parties and that the party who appears at the hearing may be questioned even if the other party is absent. Article 267 No enforcement may be applied against a party who fails to comply with courts subpoena for questioning purposes, and no party may be forced to make a statement.

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Considering all circumstances, the court will evaluate the significance of the fact that a party did not appear for questioning or that they withheld their statement. Article 268 The provisions on the presentation of evidence by testimony of witnesses shall also apply for the presentation of evidence by questioning of the parties, if regulations do not provide otherwise for questioning of the parties.

Chapter 21

OBTAINING OF EVIDENCE
Article 269

If there is a reasonable concern that certain evidence could not be presented or that its presentation at a later point would be difficult, a motion may be made to present such evidence
during and/or prior to commencement of litigation.

A motion for obtaining of evidence may be filed also after the final decision is passed, if it is necessary before or during the proceedings instituted pursuant to extraordinary remedies.
Obtaining of evidence is an urgent procedure. Article 270 If a motion for obtaining of evidence is filed in the course of the proceedings, the court conducting the proceedings shall act upon such motion. Where obtaining of evidence is requested prior to commencement of the proceedings, as well as in case of urgency if proceedings are already under way, the lower first instance court on whose territory the objects to be examined are located shall have jurisdiction, or the court on whose territory is the residence of the person to be questioned. The court conducting the proceedings rules on the motion referred to in paragraph 1. Article 271

The requesting partys motion for obtaining of evidence must state the facts that are to be proven, evidence to be presented and reasons why the party considers that evidence will not be
able to be presented later or that its presentation will be difficult. The filing should contain the full name of the other party, his/her residence or dwelling, unless circumstances show that identity of such party is unknown. Article 272 A motion for obtaining of evidence shall be delivered to the other party, if such party is known. If there is a risk of delaying the proceedings, the court will rule on the motion without previous declaring of the other party. In its decision accepting the motion, the court shall set the date of the hearing for presentation of evidence, state the facts about which evidence will be presented, as well as the evidence which will be presented, and appoint experts if necessary. If a motion for obtaining of evidence has not been delivered already to the other party, it will be delivered together with the decision of the court accepting a motion for obtaining of evidence.

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If the other party is unknown or their address is unknown, the court may appoint a temporary representative for the other party who is to take part in the hearing (Article 79). It is not necessary to publish a notice about such appointment. In case of urgency, the court may decide to start presentation of evidence even before the decision accepting the motion for obtaining of evidence is delivered to the other party. No appeal is allowed against the courts decision accepting a motion for obtaining of evidence or against the decision on the commencement of presentation of evidence before the decision is delivered to the other party. Article 273

If evidence is presented before the beginning of the proceedings, the transcript of such
presentation of evidence will be kept with the court where evidence was presented.

If the proceedings are under way, and evidence has not been obtained by the litigation court,
the transcript is to be delivered to the litigation court.

Chapter 22

PREPARATION FOR THE TRIAL


Article 274 The court starts preparations for the trial after filing of the complaint. These preparations include preliminary examination of the complaint, delivery of the complaint to the defendant for reply, pre-trial hearing and scheduling of trial. In the course of preparation for the trial, parties may send, in due time, written requests stating facts they intend to present at the trial, as well as evidence they intend to propose for presentation. Article 275 In the course of preparation for the trial, before the first hearing of the trial, the court shall make a decision on all issues related to the management of the proceedings. A party who has no attorney and do not exercise their rights in the proceedings due to the lack of knowledge about the same shall be advised by the court as to which actions they may undertake in the proceedings. No appeal is allowed against a decision of the court related to the management of the proceedings during the preparation for the trial. Article 276

During the preparation for the trial, the court may issue a judgement on the grounds of
admission, judgement on the grounds of waiver, default judgement, and may accept the settlement of the parties for the official courts records. The presiding judge may, during the preparation for the trial and after receiving the reply to the complaint, issue a judgement if he/she establishes that the parties agree about the facts and there are no other obstacles for issuing a judgement.

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Preliminary Examination of the Complaint


Article 277

After preliminary examination of the complaint, the court is entitled to take decisions
specified in Art. 279 hereof, unless issues in question are such that by their nature or pursuant to provisions hereof, appropriate decision may only be taken in the further course of the proceedings. Article 278 When the court finds that the complaint is unclear or incomplete; that there are shortcomings in respect of litigation competence of the plaintiff or defendant; shortcomings concerning legal representation of a party or shortcomings relating to letter of attorney of a representative to initiate litigation if such letter of attorney is required, the court will undertake measures required for elimination of such shortcomings set out in this law (Art. 78 and 103). Article 279 After preliminary examination of the complaint, the court shall make a decision to reject the claim if it determines that: 1) deliberation of the claim is not under courts jurisdiction; 2) a complaint was filed outside the time limit set for filing a complaint; 3) another litigation is being conducted about the same claim; 4) the complaint was adjudicated with a final court decision; 5) a court settlement was reached on the same complaint; 6) there is no legal interest of the plaintiff to file a complaint (Article 188); 7) the plaintiff failed to eliminate shortcomings referred to under Article 78 and 103 within a set period of time. Article 280

If the presiding judge deems that there are insufficient grounds to take a decision on a
particular issue arising in the preliminary examination of the complaint, he/she shall postpone taking of such decision until the delivery of the reply to the claim, or until the pre-trial hearing, that is, the first hearing for the trial, if a pre-trial hearing is not held.

Reply to the Complaint


Article 281 The court shall deliver the complaint and other related documents to the defendant for his/her reply within 30 days of filing of the complaint with the court. Article 282

The defendant shall submit his/her reply to the court within 30 days of the delivery of the complaint and other documents related to the case. The court shall advise the defendant about the contents of reply and the consequences of a failure to submit the reply within a set period of time.

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Article 283

Exceptionally, if the circumstances of particular case require so, and especially if it is


necessary in order to deliberate on a request for ordering provisional measures, the court may immediately schedule a hearing and order that a copy of the complaint is delivered to the defendant. Article 284 In his/her reply the defendant shall state objections and whether he/she admits or rejects the claim. The reply must contain other information necessary for any filing (Article 100). If the defendant rejects the claim, his/her reply must state facts on which the defendants allegations are based and proof for such facts. Article 285 Where the court finds that the reply to the complaint has deficiencies (Art. 100 and 284), it shall deem that the defendant did not submit the reply to the complaint.

Pre-trial Hearing
Article 286 The court, as a rule, schedules the pre-trial hearing after the delivery of the reply to the complaint. If the defendant fails to submit the reply, and the court cannot issue a default judgement, the court shall schedule and hold the pre-trial hearing within 30 days of the day the defendant was supposed to submit the reply. Article 287 The pre-trial hearing is mandatory, unless the court, upon the filing of the complaint and the reply, establishes that there are no disputable facts for the parties or that the dispute is simple or if provided by law. Article 288 In the summons for the pre-trial hearing the parties will be instructed to bring to the hearing all documents they will use as evidence, as well as all objects that should be examined in the court. If it is necessary to acquire filings, documents or objects for pre-trial hearing which are in the possession of the court or any other government authority or enterprise and other organisation having public authority, the court will order that these objects or documents are acquired in due time. The summons for the pre-trial hearing is delivered 8 days before the hearing at the latest. Article 289 If the plaintiff does not appear at the pre-trial hearing despite being properly summoned, it shall be considered that the complaint has been withdrawn, unless the defendant insists that the hearing is held. Article 290

Pre-trial hearing starts with presentation of the complaint, followed by the defendants
reply to the complaint. Where necessary, the court will demand from a party to elaborate allegations or proposals.

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Article 291 After the presentation of the complaint and the reply, the court shall discuss issues related to obstacles for further conducting of the proceedings. If necessary, evidence related to these issues may be presented. The court shall, upon the objection of a party or ex officio deliberate issues specified under Article 279 hereof, unless otherwise provided by this Law. The court shall pass the decision on an objection about procedural obstacles together with the decision about the main claim, unless the objection refers to territorial jurisdiction. The decision referred to in paragraph 3 of this Article may not be appealed. Article 292 In the further course of the proceedings, the court shall consider proposals and requests of the parties and facts by which they are supporting their proposals and requests. Article 293 The court decides which evidence is to be presented at the trial. The court shall dismiss a proposal which it considers irrelevant for adjudicating the case by an explained decision. The decision referred to in paragraph 2 of this Article may not be appealed. In the further course of the proceedings, the court is not bound by decisions made about the management of the proceedings.

Scheduling of the First Hearing for the Trial


Article 294 The court schedules the first hearing for the trial. The court shall summon the parties, witnesses and experts that it decided to summon to the trial at the pre-trial hearing. Provisions of Art. 288 of this Law also apply to scheduling of first hearing for the trial.

Chapter 23

TRIAL The Course of the Trial


Article 295 The court opens the trial and explains the subject of the hearing and then establishes whether all subpoenaed persons are present, checks whether they have been properly subpoenaed and whether they have justified their absence. Article 296 If the plaintiff or the defendant fails to appear in the first hearing, and they have been properly subpoenaed, the hearing will be held with the present party.

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If the plaintiff or the defendant fails to appear in the first hearing, without justification, the complaint shall be deemed withdrawn. Article 297 Upon the proposal of a party, the court shall postpone the first hearing if an ignorant party has no attorney and is unable to give clear and certain statement about the subject of dispute. Article 298

If the pre-trial hearing was not previously held, the first hearing for the trial will begin with explanation of the complaint, and after that the defendant will respond to allegations in the complaint. If the pre-trial hearing was held before the trial, the presiding judge will explain to the court panel the course and results of such hearing. Parties may supplement the explanation of the presiding judge. In the further course of the proceedings motions of the parties will be argued, as well as statements of facts by which the parties elaborate their motions or challenge motions and evidence of the other party, and evidence will be presented and results of evidence presentation examined. Parties may explain their legal considerations concerning the subject of dispute. Where provided under this Law that a party may make objection or motion or undertake other action in the proceedings until the defendant commences contesting of the subject of litigation, the plaintiff may make such objection or motion or undertake another litigation action before explanation of the claim has been completed, while the defendant may do so before he/she concludes the reply to the complaint.
Article 299 The court will take care that, by asking questions or by other appropriate means, all decisive facts are presented in the course of the proceedings, that incomplete allegations of the parties about significant facts are completed, that the means of evidence referring to allegations of the parties are designated or supplemented and, in general, that all explanations necessary for establishing of facts significant for decision-making are given. Article 300 Each party should present all the facts required for explanation of its proposals, offer evidence required for establishing their allegations and give their statement about allegations and evidence presented by the other party. Parties may present new facts and propose new evidence throughout the course of the trial. In the course of the trial, parties may also submit their motions stating the facts they intend to present at the hearing, as well as evidence they intend to propose. Article 301 The court issues a decision on the presentation of evidence which states the disputed fact and the means for the presentation of evidence. The court shall dismiss proposed evidence which it deems irrelevant for the judgement and give the reason for its dismissal in the decision. No special appeal is allowed against the decision determining or rejecting presentation of evidence. In the further course of the proceedings, the court is not bound by its earlier decision about presentation of evidence.

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Article 302

If a party objects that deliberation of the claim is not under court jurisdiction; that the court does not have subject-matter or territorial jurisdiction; that another litigation is being conducted about the same claim; that the complaint was adjudicated with a final court decision; that a court settlement was reached on the same complaint; or that the plaintiff withdrew the complaint before the court, the court will decide whether it will argue and deliberate such objection separately from the main claim or together with it.
If the court does not accept the objection specified in paragraph 1 of this Article argued together with the main claim, or if after separate argument the court does not sustain the objection and rules to continue with the trial immediately, the decision about the objection will be part of the decision about the main claim. No special appeal is allowed against the decision rejecting objections of the parties, if the panel decides to continue with the argument on the main claim immediately. Provisions of paragraphs 1 to 3 of this Article will accordingly apply if the court decides ex officio to rule separately from the main claim whether the issue falls under courts jurisdiction; whether the court has subject-matter jurisdiction; whether the litigation is already being conducted; whether the matter was adjudicated with a final court decision; whether the plaintiff withdrew the complaint before the court or whether court settlement was made. Article 303 When the presiding judge finishes questioning of a witness, expert or party, members of the panel, a party and their legal representative or attorney may directly question such person. The court will prevent a party to ask certain question or prevent the reply to a leading question or a question not related to the case. If the presiding judge prevents certain question to be asked or certain answer to be given, a party may demand that the panel should decide about that. Upon a party's request, a question rejected by the panel will be put on record, as well as a question to which the reply has been prevented. Article 304 Questioned witnesses and experts remain in the courtroom unless, after the statement of the parties, the court releases them or orders that they temporarily leave the courtroom. The court may rule that the questioned witnesses be questioned again in the presence or absence of other witnesses and experts. Article 305

When the panel deems that the case has been argued in such a way that judgement can be passed, the court shall announce that the trial is concluded. The court may also decide to conclude the trial where certain documents still need to be acquired and which contain evidence required for decision making or if records about evidence presented before the requested judge are being expected, and parties give up the argument about such evidence or the court deems that such argument is not necessary.
Article 306 The court may decide in the course of deliberation and voting that the already concluded trial should be re-opened if it is necessary to supplement the proceedings or give explanation of certain significant issues.

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Public Nature of the Trial


Article 307 The trial is public. Only adults may attend the trial. Persons attending the trial must not carry weapons or dangerous implements. The provision of paragraph 3 of this Art. does not apply to the guards of participants in the proceedings. Article 308 The court may exclude the public from the whole trial or its part if it is in the interest of keeping an official, business or personal secret, public order, or due to reasons of decency. The panel may also exclude the public in case where measures for maintaining of order provided under this Law would not secure undisturbed proceedings at the trial. Article 309 Exclusion of the public does not apply to the parties, their legal representatives, attorneys and interested third parties.

The court may allow certain officials as well as scientists and public workers to attend the trial where the public has been excluded, if in the interest of their official activity, scientific or
public work. Upon the request of a party, two persons at most, designated by such party, may attend the trial. The court shall warn persons attending the trial where public is excluded that they are obliged to keep confidential all they learn at the trial, and instruct them about the consequences of a breach of such confidentiality. Article 310 The court makes a decision about the exclusion of the public by an explained and publicly announced ruling. No special appeal is allowed against the ruling on exclusion of the public. Article 311 Provisions about publicity of the trial will accordingly apply to other hearings.

Trial Management
Article 312 The court manages the trial, questions the parties, presents evidence, and allows the parties, their legal representatives and attorneys to speak and announces decisions of the court panel. The court shall ensure that the case is thoroughly examined, without extending the proceedings and that the trial is, if possible, concluded within one hearing. If a participant at the hearing objects to a decision of the presiding judge concerning the management of the trial or a question asked by the presiding judge, a member of the panel or another participant in the proceedings, the panel makes a decision about such objection. The court is not bound by its decisions about trial management. No special appeal is allowed against a decision about trial management.

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Article 313 Outside the trial, the court makes a decision about correction of a motion, appointing of temporary attorney, proper form of the letter of attorney, deposit for expenses of undertaking certain procedural actions, release from payment of the costs of proceedings, securing of litigation expenses, delivery of court documents, obtaining of evidence, temporary security measures, measures for securing procedural discipline and punishment, discontinuance and suspension of the proceedings, costs of proceedings if the claim is withdrawn, scheduling and adjournment of hearings, joining of cases, and setting and extending of time limits. After receiving the transcript of the evidence presented before the requested court, the court is also authorised to order necessary corrections or supplements. Outside the trial, the court is authorised to, based on appropriate statement of the defendant and plaintiff, respectively, given in writing or on record with litigation court, render a default judgement, judgement on the grounds of admission or waiver, and to allow court settlement that will be put on courts record. Article 314 If several civil actions between the same parties are under way before the same court or if the same person is the opposing party to various plaintiffs or defendants, the court may decide to join all these civil actions for common argument if such decision would speed up the argument or reduce expenses. The court may render a single judgement for all such joint actions. The court may order separate argument about individual claims from the same complaint and may render separate decisions on such claims upon conclusion of such separate arguments. Article 315 When the panel decides to adjourn a hearing, it must ensure that all evidence to be presented at the next hearing is acquired and other preparations made in order to conclude the argument at such hearing. No appeal is allowed against a decision of the court adjourning the hearing or rejecting proposals of the parties to postpone a hearing. Article 316 If a hearing is adjourned, the new hearing will be held before the same panel, if possible. If a new hearing is held before the same panel, the trial will continue and the presiding judge will hold a briefing about the course of previous hearings, but in this case the panel may decide to recommence the arguments. Article 317 If a hearing is held before an altered panel, the trial must commence again from the beginning, but the panel may, after parties give their statements about that issue, decide not to question again witnesses and experts and not to undertake new investigation, but to read transcripts of the presentation of such evidence instead.

Maintaining of Order at the Trial


Article 318 The court shall maintain order in the courtroom and protect dignity of the court in the course of the trial.

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Article 319 If a participant in the proceedings or person attending the hearing as a member of the public offends the court or other participants in the proceedings, disturbs the work or does not obey orders of the court on maintaining order, the court shall caution such person. If the caution has no effect, the panel may remove such person from the courtroom or fine them up to 30,000 dinars, or both. If a party is removed from the courtroom, the hearing may be held in their absence.

If an attorney is removed from the courtroom, the court will adjourn the hearing at the
partys request, and if such party is absent from the hearing, the panel will always adjourn the hearing and inform such party that their attorney was removed from the hearing for causing disorder.

When the court fines or removes a lawyer or lawyers intern acting as attorney, it shall
inform the bar association accordingly. An appeal against the decision on the fine or removal from the courtroom does not result in stay of execution. Article 320 If the public prosecutor or public attorney or person acting on their behalf disturbs order, the court shall so inform the competent public prosecutor or public attorney. The court may adjourn the hearing and require from the competent public prosecutor or public attorney to appoint another person to act in the litigation. Article 321 The judge has the same powers for maintaining order at all other hearings.

Chapter 24

SETTLEMENT BEFORE THE COURT


Article 322 Parties may reach a settlement before the first instance court at any time throughout the proceedings. The settlement may refer to whole claim or part thereof. The court will advise the parties about the possibility of settlement before the court and help reach a settlement. No settlement can be made before the court concerning claims which are not under the parties competence for disposal (Art. 3, paragraph 3). Where the court takes a decision denying settlement between the parties, it will suspend the proceedings until such decision comes into effect. Article 323 Agreement of the parties about the settlement is entered in the transcript. A settlement is complete when parties sign the transcript of the settlement after they have read it. A certified copy of the transcript of the settlement is issued to parties. Such transcript has the effect of judgement.

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Article 324

In the entire course of the proceedings the court ex officio checks whether litigation is
already under way about the issue that was earlier the subject of settlement before the court. If the court finds out that litigation is under way about the issue that was earlier the subject of settlement before the court, it shall reject the claim. Article 325 A settlement before the court may only be challenged by filing a complaint. A settlement before the court is null and void if it has been reached about the claims that the parties cannot dispose with (Article 3, paragraph 3). If a settlement before the court is revoked, the proceedings shall continue as if it was not reached. Article 326

A person who intends to file a complaint may try to reach a settlement before the firstinstance court in whose territory the other party has residence. The court which receives such motion shall summon the other party and inform it about the motion for settlement. The costs of such proceedings are borne by the party who files a motion. Article 327 If the court assumes or the parties unanimously propose that the dispute can be solved through mediation, it shall direct the parties to mediation and suspend the proceedings. Mediation is closed to the public. The president of the court assigns mediators from among renowned professionals (judges, lawyers, etc.) who volunteer as mediators. Mediators are assigned according to the type of litigation from the list referred to in paragraph 2 of this Article which is made by the president of the court. Article 328 A party to mediation may have an attorney. An agreement reached through mediation represents out-of-court settlement. The mediator submits the agreement to the court in order to reach a settlement before the court. The proposals and statements of the parties and their attorneys given in the course of mediation may not be used in the proceedings before the court. The court shall schedule a trial if the parties fail to settle the dispute through mediation within 30 days. Article 329 Mediation is voluntary, confidential and urgent.

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Chapter 25

JUDGMENT
Article 330

The judgement of the court contains decisions on the main claim and ancillary claims.
If there are several claims, the court, as a rule, decides all such claims in one judgement. If several civil actions are joined for the purpose of common argument, and only one of them is ready for final adjudication, the judgement may be made only in respect of such action. Article 331 The court may order the defendant to perform a duty only if such duty has become due before the conclusion of the trial. If the court accepts a claim for support, or for damages in the form of annuity due to lost profit, or other income based on work or lost support, it may order the defendant to perform a duty which is not due. A judgement obliging the defendant to surrender or take objects given under lease may be rendered even before such relations cease to exist. Article 332 If the plaintiff requested in the claim that the judgement should assign certain object to him/her or order the defendant to perform a duty, and if he/she also stated in the claim or before concluding of the trial his willingness to accept performance of another duty or pecuniary value instead of such object, the court shall, provided the complaint is accepted, declare in its judgement that the defendant may be released from surrendering the object or performing the duty if he/she pays such amount of money or performs another duty. Article 333 When a party is ordered by judgement to perform certain duty, the judgement will also set a time limit for such action. If special regulations do not prescribe otherwise, the time limit for performance will be fifteen days. The court may set a longer time limit if the performance is not of pecuniary nature. In litigation concerning bills of exchange and checks this time limit is eight days. The time limit for performance starts to run with the first day after a transcript of the judgement is delivered to the party who is ordered to perform such action.

Partial Judgement
Article 334 In case of several claims, if only some of them are ready for final decision on the grounds of admission or waiver or argument, or if only one part of the claim is ready for final decision, the court may conclude the trial and render a judgement referring to claims that are ready, or to a part of the claim (partial judgement). The court may also pass a partial judgement where a counter-claim has been submitted and only the claim or the counter-claim is ready for decision-making. When evaluating whether to make a partial judgement, the court will especially take into account

the volume of the claim or a part of the claim ready for decision-making.
With regard to legal remedies and enforcement, partial judgement is an independent judgement.

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Interim Judgement
Article 335 If the defendant challenges both the grounds for and volume of a claim, and the claim is ready for decision-making regarding grounds, the court may, for reasons of appropriateness, first render a judgement only on the grounds for the complaint (interim judgement).

The court will suspend argument about the volume of a claim until interim judgement
comes into effect.

Judgement on the Grounds of Admission


Article 336 If the defendant admits a claim before the conclusion of the trial, the court will render a judgement without further argument, accepting the claim (judgement on the grounds of admission). The court will not render a judgement on the grounds of admission even when statutory conditions are met, if it finds that parties cannot dispose with a claim (Art. 3, paragraph 3). The court will defer rendering of judgement on the grounds of admission if it is necessary to first acquire information about circumstances specified in paragraph 2 of this Article.

The defendant may revoke their admission of a claim at the hearing or in writing, without the approval of the plaintiff, before a judgement is passed.

Translated by Council of Europe


Judgement on the Grounds of Waiver Article 337 If the plaintiff waives a claim before the closing of the trial, the court will render a judgement

rejecting the claim without further argument (judgement on the grounds of waiver).
No approval of the defendant is required for waiver of a claim. The court will not render a judgement on the grounds of waiver even when statutory conditions are met if it finds that parties cannot dispose with the claim (Art. 3, paragraph 3). The court will defer rendering of judgement on the grounds of waiver if it is necessary to first acquire information about circumstances specified in paragraph 3 of this Article. The plaintiff may revoke a waiver of a claim at the hearing or in writing, without the approval of the defendant, before a judgement is passed. Default Judgement Article 338 Where the defendant fails to submit a reply to the complaint within a set period of time, the court shall render a judgement accepting the claim (default judgement), if the following conditions are met: 1) if the defendant was properly served with the complaint and advised on the consequences of failure to give a reply; 2) if facts on which the claim is based are not in opposition to evidence presented by the

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plaintiff or to generally known facts; 3) if justification of the claim arises from the facts stated in the claim; 4) if there are no generally known facts indicating that the defendant was prevented by justified reasons to respond to the complaint. Default judgement will not be made even when conditions from paragraph 1 of this Art. are met if the court finds that parties cannot dispose with the claim (Art. 3, paragraph 3). If the facts stated in the claim do not justify the claim, the court shall schedule a pre-trial hearing, and if the claim is not altered at the hearing, the court shall pass a judgement dismissing the claim.

The court will defer rendering of a default judgement if it is necessary to first acquire
information about circumstances specified in paragraph 2 of this Article. The court will also postpone rendering of a default judgement in case where there is no evidence that the defendant was properly subpoenaed, although it is beyond doubt that subpoena was sent to him/her. In such case, the court will set a time limit that may not be longer than thirty days for delivery in the country, or longer than the time limit determined under Article 130, paragraph 2 of this law, in order to investigate whether the defendant was properly subpoenaed. If within such time limit it is established that the defendant has been properly subpoenaed, the court will render a default judgement. No special appeal is allowed against the decision of the court rejecting the proposal of the plaintiff to render a default judgement referred to in paragraph 2 of this Article. In cases referred to in paragraphs 4 and 5 of this Art., the court may render a default judgement without questioning of the parties. Rendering and Announcing of Judgement Article 339 A judgement is rendered and announced in the name of the people. Where trial is being held before a panel, a judgement is rendered by the presiding judge and members of the panel who have participated in the hearing which concluded the trial. Immediately after the trial is concluded, the court renders a judgement that is announced by the presiding judge. In more complex cases, the court may postpone rendering of judgement for eight days after the conclusion of the trial. In such cases, the judgement will not be announced and the court will send the transcript of the judgement to the parties. In a case specified in Art. 305, paragraph 2 of this law, a judgement is rendered, at the latest, within eight days after the documents or transcripts have been received. This judgement is not announced. Article 340 If a judgement is announced, the presiding judge will read the judgement in public and give a brief explanation thereof. Announcing a judgement, the court may state that it will decide about the issue of expenses subsequently. In such case, expenses will be evaluated by the presiding judge and the decision will be included in the written judgement. If the public was excluded from a trial, a judgement will always be read in public, and the court will decide whether and to which extent to exclude the public from announcing of the reasons for such judgement. All present shall rise to hear the reading of the judgement.

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Writing and Delivery of Judgement Article 341 A judgement must be made in writing within eight days of being rendered. In more complex cases, writing of a judgement may be delayed for 15 days. The presiding judge signs the first copy of a judgement. A certified transcript of a judgement is delivered to the parties with instructions on the right to file a motion for legal remedy against the judgement. Article 342 A judgement made in writing shall have introduction, judgement and explanation. An introduction contains statement that the judgement is made in the name of the people, the name of the court, name and surname of the presiding judge and court panel members, full name and permanent or temporary residence, ie, the seat of the parties, their representatives and attorneys, the value of litigation, brief description of the subject of litigation, the day when the trial was closed, indication of the parties, their proxies and attorneys who did attend the final hearing, as well as the day when the judgement was rendered. A judgement contains a decision of the court to accept or dismiss individual requests concerning the main claim and ancillary claims and a decision related to the existence or non-existence of a claim that the defendant made in a plea of set-off (Art. 346). In an explanation the court states claims of the parties and their allegations about the facts on which such claims are based, evidence and regulations on which the court founded its judgement, unless otherwise determined by law. Explanation of a default judgement, judgement on the grounds of admission or judgement on the grounds of waiver will only state reasons for rendering such judgement.

Supplemental Judgement Article 343 If the court failed to adjudicate all claims which should have been adjudicated by a judgement, or it failed to adjudicate part of the claim, a party, within fifteen days of receiving the judgement, may propose to the court, to supplement the judgement. The court shall dismiss a late or ill-founded proposal for supplemental judgement without a hearing. If a party fails to request a supplemental judgement within the time limit specified under paragraph 1 of this Article, it shall be deemed that particular part of the complaint was withdrawn. Article 344 When the court finds that the request for supplemental judgement is well-founded, it shall schedule a trial in order to render a judgement on the unresolved claim (supplemental judgement).

A supplemental judgement can also be made without re-opening of the trial if this
judgement is to be rendered by the same panel that rendered the original judgement and the claim

which is the subject of supplemental judgement was sufficiently argued.


If the court finds that a request for a supplemental judgement is late or ill-founded, it will dismiss i.e. reject such request by a decision. If a request for supplemental judgement refers only to the costs of the proceedings, the court shall adjudicate without a hearing.

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Article 345 If an appeal has been filed against a judgement, in addition to a motion for supplemental judgement, the first instance court will halt delivery of the appeal to the second instance court until a decision is made about the motion for supplemental judgement, and until the expiry of a time limit to appeal the decision on supplemental judgement. If an appeal has been filed against a decision about supplemental judgement, such appeal will be delivered to the second instance court together with the appeal against the original judgement. If the first instance judgement is appealed because of the fact that the first instance court failed to adjudicate all claims of the parties, the appeal will be considered as a motion for supplemental judgement. Final Judgement Article 346

A judgement that cannot be further appealed becomes enforceable if such judgement


adjudicates the claim or counter-claim. Throughout the proceedings, the court checks ex officio whether the cause was already adjudicated with a final court decision, and if the court establishes that the litigation was initiated about the cause that was already adjudicated, it shall dismiss the claim. If a judgement rules on a claim that the defendant made in a plea of set-off, the ruling determining existence or non-existence of such claim becomes enforceable. Article 347 A final judgement has effect only between the parties.

A final judgement also has effect for third parties based on the nature of disputed right or
legal relation, legal relation between the parties and third parties or if provided by law. Enforceability of a judgement is conditional upon the facts which are established before the end of the trial. Article 348 The court is bound by its judgement as soon as it is announced, and if the judgement has not been announced, as soon as it is sent. The judgement has effect towards the parties from the day it has been delivered to them.

Correction of Judgement Article 349 Mistakes in names and numbers, as well as other obvious mistakes in writing and counting, faults in form, and discrepancies between the transcript and the original judgement will be corrected by the presiding judge or judge sitting alone at any time. Correction will be made by a special decision and it will be written at the end of the original, and a transcript of such decision will be delivered to the parties. If there is a discrepancy between the original and a transcript of a judgement regarding certain decision contained in the judgement, a corrected transcript of the judgement will be delivered to parties with indication that such transcript is replacing the earlier transcript of the judgement. In such

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case, the time limit for filing a legal remedy with regard to the corrected part of the judgement starts running from the day when the corrected transcript of the judgement is delivered. The court may decide to correct the judgement without questioning of the parties.

Chapter 26

DECISION
Article 350

All decisions made at a hearing are announced by the presiding judge or judge sitting alone. A decision announced at the hearing will be delivered to the parties as a certified transcript, only if special appeal is allowed against such decision, or if immediate enforcement can be requested on the basis of such decision, or if the management of the proceedings requires so. The court is bound by its decisions, unless they refer to the management of the proceedings or unless this law provides otherwise. When a decision is not delivered in writing, its effect for the parties starts immediately upon its announcement.
Article 351 Decisions made by the court outside hearings are communicated to the parties in the form of certified transcripts. If a decision dismisses a request of one party without previous questioning of the other party, the decision is not delivered to the latter. Article 352 A decision must contain an explanation if it may be appealed.

A written decision must always contain introduction and the decision of the court, and an
explanation is required only if a decision must be explained pursuant to paragraph 1 of this Article. Article 353 Final decisions about sanctions which are pronounced in accordance with this law are enforced ex

officio.
Article 354 Provisions of Art. 333, 348 paragraph 2, Art. 359, paragraph 2, Art. 340, paragraph 2, Art. 341 to 345 and Art. 349 of this Law apply accordingly to decisions also.

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B. LEGAL REMEDIES
Chapter 27 ORDINARY LEGAL REMEDIES

1. Appeal against Judgement


Right to Appeal Article 355 Parties may file an appeal against the first instance judgement within fifteen days from the day when judgement transcript is delivered to them, unless otherwise stipulated under this Law. In litigation about bills of exchange and checks the time limit to file an appeal is eight days. A timely filed appeal prevents the judgement to become enforceable in the part challenged by the appeal. The second instance court rules on an appeal against a judgement. Article 356 A party may waive the right to appeal as soon as judgement has been announced, and if the judgement is not announced, from the moment when a transcript of the judgement has been delivered to a party. A party may withdraw an appeal at any time before the second instance court renders a decision. A party may not revoke a waiver of the right to file a legal remedy or withdrawal of an appeal.

Contents of an Appeal Article 357

An appeal must contain:


1) 2) 3) 4) designation of the judgement which is appealed; a statement that judgement is challenged completely or partially; the reasons for the appeal; appellants signature. Article 358 If from the information stated in an appeal it cannot be established which judgement is challenged, or if an appeal is not signed (incomplete appeal), the first instance court shall issue a decision, which may not be appealed, inviting the appellant to supplement or correct the appeal within a set deadline. The appellant must submit a filing which is written in accordance with the requirements specified under Article 103. of this Law. If the appellant fails to comply with the courts request within a set deadline, the court shall dismiss such appeal as incomplete. If an appeal has other deficiencies, the first instance court will deliver the appeal to the second instance court without requiring the appellant to supplement or correct such appeal.

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Article 359 New facts can be presented and new evidence proposed in an appeal provided the appellant satisfies the court that such facts or evidence were not presented before the end of the trial through no fault of his/hers. The court shall conduct investigation to check the allegations of the appellant if it considers it necessary. An appeal may not put forward a plea of prescription or a plea of set-off. The appellant who fails to satisfy the court that he/she justifiably failed to deposit the funds required to cover the expenses of presentation of the proposed evidence in the first instance procedure (Art. 148, paragraph 4), may not propose in the appeal that such evidence is presented. A plea of set-off that was not made before the first instance court may not be made in an appeal. If in the course of the appeal proceedings, costs are incurred due to the presentation of new facts or proposal of new evidence, such costs will be borne by the party presenting new facts or proposing the presentation of new evidence, regardless of the outcome of litigation. Grounds on Which to Challenge a Judgement Article 360 A judgement may be challenged: 1) due to a significant violation of civil procedure rules;

2) due to an incorrect or incomplete finding of fact; 3) due to incorrect application of material law.
A default judgement may not be challenged on the grounds of an incorrect or incomplete finding of fact. A judgement made on the grounds of admission or waiver of a claim may be challenged if there is a significant violation of civil procedure provisions or due to admission or waiver of a claim made in error or under the threat of force or fraud. Article 361 A significant violation of civil procedure provisions exists if the court does not apply, or improperly applies certain provision of this Law in the course of the proceedings, which affected or might have affected rendering of a lawful and proper judgement. Significant violations of civil procedure provisions occur: 1. if the court panel did not have a proper composition; if a judge who should have been excluded or disqualified was in the panel; if a judge who had not taken part in the trial participated in rendering a judgement; 2. if a decision was made about a claim that does not fall within courts jurisdiction (Art. 16); 3. if a decision was made about a claim filed after a deadline prescribed by the law; 4. if the court made a decision on a claim which is under the subject matter jurisdiction of the higher court of the same kind, or the court of another kind (Art. 16), or if the court, following a plea of a party, incorrectly decided that it had subject-matter jurisdiction; 5. if contrary to the provisions of this Law, the court made a decision on a claim that the

parties could not dispose with (Article 3, paragraph 3);


6. 7. 8. if contrary to the provisions of this Law, the court passed a default judgement, or judgement on the grounds of admission or waiver; if a party did not have the opportunity to argue before the court as a consequence of an unlawful act and in particular as a consequence of ineffective service; if contrary to this Law, the court rejected the request of a party to use their own language or alphabet;
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9.

if a person who may not be a party to the proceedings participated in the proceedings as the plaintiff or defendant; if a party which is a legal entity was not represented by an authorised person; if a party without litigation competence had no legal representative; if the legal representative or attorney of a party did not have authorisation to participate in litigation or only in certain actions, unless such participation was subsequently approved; if all said deficiencies refer to the party who filed an appeal; if a decision was made about a claim which is the subject of another litigation, or was already adjudicated with a final decision, or was the subject of settlement before the court; if the public was excluded from the trial contrary to the law; if there are faults in the judgement because of which it cannot be examined, and in particular if the wording of the judgement is incomprehensible; if it is contradictory to itself or reasons for the judgement; if the judgement has no reasons whatsoever or no reasons about significant facts; if such reasons are unclear or contradictory; if contradiction exists related to significant facts between what is quoted in the reasons for judgement about the contents of the documents or transcripts of statements given or evidence presented in the course of the proceedings on the one hand, and on the other the documents or transcripts themselves. Article 362

10. 11.

12.

There is an incorrect or incomplete finding of fact if the court establishes certain decisive fact incorrectly, or where it does not establish such fact at all. There is an incomplete finding of fact also if new facts or new evidence arise (Article 359). Article 363 There is an incorrect application of the material law if the court failed to apply the appropriate provision or applied it incorrectly. Appeal Proceedings Article 364 An appeal is submitted to the court which rendered the first instance judgement, in sufficient number of copies for the court and for the other party. Article 365 The first-instance court shall issue a decision to dismiss an untimely, incomplete (Article 358, paragraph 1) or inadmissible appeal. An appeal is untimely if it is filed after the expiry of the legal deadline for its submission. An appeal is inadmissible if it is filed by a person who has not been authorised to file an appeal; if it is filed by a person who waived the right to appeal or withdrew an appeal; if the person who filed the appeal had no legal interest to appeal. Article 366 The first instance court shall deliver a copy of a timely, complete and admissible appeal to the other party. The other party may file a reply to the appeal with the court within eight days. The first instance court shall submit a copy of the reply to the appellant. The second instance court shall not consider an untimely reply to the appeal. Article 367 Having received a reply to an appeal or after the expiry of the deadline to submit a reply, the first instance court will deliver the appeal and the reply, if any, and all other documents related to the case to the second instance court within eight days.

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If the appellant claims that civil procedure rules were violated in the first instance proceedings, the first-instance court will give an explanation regarding the allegations about such violations stated in the appeal, and, if necessary, conduct investigations to check such allegations. Article 368

When the second instance court receives an appeal and other documents, the reporting
judge shall prepare a report about the case for the appeal panel. The reporting judge may, if necessary, obtain a report about violations of the rules from the first instance court and require that investigation is conducted to establish such violations. Article 369 The second instance court shall, as a rule, adjudicate an appeal without a hearing. If the second instance court panel finds that it is necessary to repeat the presentation of evidence before the second instance court in order to establish facts correctly, it will schedule a hearing before the second instance court. The second-instance court schedules a hearing and decide on the appeal and the parties requests if the first-instance judgement has already been revoked once in accordance with this Law and the refuted judgement was based on a violation of civil procedure rules or on an incomplete or incorrect finding of fact. Article 370 Parties or their legal representatives or attorneys and witnesses and experts whom the court decided to question will be subpoenaed for the hearing. If one or both parties fail to appear at the hearing, the court will deliberate an appeal and make a decision particularly taking into consideration allegations from the appeal and the reply to the appeal. A hearing before the second instance court starts with the report of the reporting judge, who presents the state of affairs without giving his/her opinion about the grounds on which an appeal is based. After that, the judgement or the part of the judgement challenged in an appeal will be read, and if necessary, the transcript of the trial conducted before the first instance court will also be read. The appellant will then explain the appeal and the other party the reply to the appeal. A party may present facts and propose evidence as prescribed under Article 359. Article 371 Unless Art. 369 and 370 of this Law provide otherwise, provisions governing trial before the first instance court (Art. 295 to 321) as well as provisions of Articles 322 to 333, 343 to 345 and 349 of this Law shall accordingly apply to trial and proceedings before the second instance court. Limits for the Review of a First-instance Judgement Article 372 The second-instance court reviews a first-instance judgement in the part which is challenged by an appeal, and if an appeal does not make it clear which part is challenged, the second-instance court shall deem that a judgement is challenged in the part where the appellant lost litigation. The second-instance court reviews a first-instance judgement within the limits of the reasons stated in the appeal and ex officio checks whether there are violations of the provisions under Article 361, paragraph 2, item 1, 2, 5, 7 and 9 of this Law and of substantive law. The court shall examine whether the judgement went beyond the claim made by the plaintiff, only upon the request of a party.

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Decisions of Second-instance Court about an Appeal Article 373 The second instance court may, at a session of the appeal panel or upon a hearing: 1) dismiss an appeal as untimely, incomplete or inadmissible; 2) dismiss an appeal as ill-founded and confirm the first instance judgement; 3) set aside a judgement and return the case to the first instance court for a repeated trial; 4) set aside the first instance judgement and reject the complaint; 5) alter a first instance judgement and decide on the parties requests. The second instance court may also set aside a judgement in respect of the amount being claimed only, if it finds that, in respect of the decision on the amount of the claim, there are no other violations which give ground to challenge a judgement or those that the court observes ex officio. The second-instance court is not bound by requests which are put forward in an appeal. Article 374 The second instance court shall dismiss an untimely, incomplete or inadmissible appeal by a decision, unless it was done by the first instance court (Art. 365). Article 375 The second instance court will dismiss an appeal as ill-founded and confirm the first instance judgement if it finds that the grounds on which the judgement may be challenged do not exist, or that there are no other violations that the court establishes ex officio. Article 376 The second instance court shall annul a first instance judgement by a decision if it finds that there is significant violation of civil procedure provisions (Article 361) and return the case to the same first instance court or refer it to a competent first instance court for new trial. In the decision, the second instance court will determine which actions, affected by the violation of civil procedure provisions, will be annulled. If there was a violation referred to under Art. 361, paragraph 2, points 2, 3 and 10 of this Law in the proceedings before the first instance court, the second instance court will revoke the first instance judgement and reject the complaint. If there was a violation referred to under Art. 361, paragraph 2, point 9 of this Law in the proceedings before the first instance court, the second instance court will, taking into account the nature of such violation, revoke the first instance judgement and return the case to the first instance court which has jurisdiction, or revoke the first instance judgement and reject the complaint. Article 377 The second instance court shall issue a decision which sets aside a judgement of the first instance court and return the case to the same court for repeated trial if it deems that new trial should be held before the first instance court due to new facts and evidence (Art. 359) which require that facts are established correctly. The second instance court shall issue a decision which sets aside a judgement of the first instance court and return the case to the same court for repeated trial if the facts were established incompletely due to incorrect application of substantive law. Article 378 When the second instance court sets aside a judgement of the first instance court and returns the case to the same court for re-trial, it may order that the new trial be held before a different court panel or judge. 76

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Article 379 If a first-instance judgement exceeded a claim by awarding more than the plaintiff's claim, the second-instance court shall set aside the judgement in respect of the part which exceeded the claim. If a first-instance judgement exceeded a claim by adjudicating something else instead of the subject-matter of the claim, the second-instance court shall set aside the judgement and return the case for retrial. Article 380

The second instance court shall reverse a first instance judgement by its own decision:
1) 2) if, after a hearing, it establishes different facts from those established in the first instance judgement; if the first instance court incorrectly evaluated documents or indirectly presented evidence, and the decision of the first instance court was based solely on such evidence; if the first instance court, based on the established facts wrongly concluded that there were other facts on which the judgement was based; if it deems that the facts in the first instance judgement were established correctly, but the first instance court applied substantive law improperly. Article 381 The second instance court cannot reverse a judgement to the detriment of the party who filed an appeal if this party is the only one who appealed. Article 382 In its explanation of a judgement or decision, the second instance court considers relevant allegations in an appeal and states reasons that the court considers ex officio. When a first instance judgement is set aside due to a significant violation of civil procedure provisions, the explanation should state which provisions have been violated, nature of violations and all shortcomings relevant for rendering a proper decision. If a first instance judgement is set aside and case returned to the first instance court for repeated trial, due to an incorrect or incomplete finding of fact, the explanation should state the omissions and the reasons why new facts and evidence are important for the right decision. If a first instance judgement is set aside and the case returned to the first-instance court for re-trial due to incompletely established facts as a consequence of incorrect application of substantive law, the second-instance court shall explain why new facts and evidence are important for the right decision. Article 383 The second instance court shall return all documents related to the case to the first instance court within 30 days of rendering a decision. Article 384 The first-instance court shall promptly upon reception of decision of the second-instance court schedule trial which must be held within 30 days of receiving a second-instance decision. The first instance court shall carry out all actions and consider all disputed issues identified by the second instance court in its decision. Parties may present new facts and propose new evidence in the new trial. If a judgement is set aside because a court without jurisdiction passed the decision, a new trial will be held before the first instance court. This trial is conducted pursuant to the provisions governing trial before a new court panel (Art. 317).

3) 4)

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2. APPEAL AGAINST A DECISION


Article 385 A decision of the first instance court may be appealed unless otherwise provided in this Law. If this Law specifically provides that no special appeal is allowed, a decision of the first instance court can be challenged only in the appeal against the final decision. Article 386

A timely submitted appeal results in a stay of execution, unless otherwise provided in this
Law. A decision which may not be appealed becomes enforceable immediately. Article 387 The second instance court may: 1) dismiss an appeal as untimely, incomplete or inadmissible (Art. 365, paragraphs 1 to 3, and Art. 385, paragraph 1); 2) dismiss an appeal as ill-founded and confirm the decision of the first instance court; 3) reverse or set aside the first-instance decision, and, if appropriate, return the case for re-trial. Article 388 In the appeal proceedings against decisions, provisions governing appeals against judgements accordingly apply, with the exception of provisions relating to the reply to an appeal and hearing before the second instance court.

Chapter 28

EXTRAORDINARY LEGAL REMEDIES 1. An Appeal with Alternative Request for Review (Direct Review)
Article 389 Parties may file an appeal against a first-instance judgement, which may be reviewed, to the Supreme Court of Serbia within 15 days of the delivery, if a party requests that the Supreme Court adjudicates the appeal and the other party agrees. This legal remedy may be invoked in civil actions where review is allowed only due to an incorrect application of substantive law and a significant violation of civil procedure rules specified under Article 361, paragraph 2, item 5. Article 390 An appeal is filed to the court which rendered the first-instance decision, in a sufficient number of copies for the court and the other party. The first-instance court shall deliver the appeal referred to in paragraph 1 of this Article to the other party who must give a reply. The other party shall be advised that, in the reply, it may agree that the Supreme Court adjudicates the appeal.

If the other party agrees that a motion for this legal remedy is decided by the Supreme
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controversial point of law and contribute to the uniform interpretation of the law, it shall be deemed that an appeal against the first-instance judgement has been withdrawn. The attorney of a party who is a legal entity must be a lawyer. If a party, in its reply to the appeal, does not agree that the Supreme Court of Serbia adjudicates or a party does not have a lawyer for the attorney in this type of proceedings, the second-instance court shall adjudicate an appeal to the first-instance judgement as prescribed by general rules. Article 391

Having received a reply to an appeal, and there are no conditions to apply Article 365, the first-instance court shall submit the appeal and the reply thereto with all other documents related to the case to the second-instance court. If the second-instance court does not dismiss an appeal, it shall refer it to the Supreme
Court of Serbia. Article 392

A three-judge panel of the Supreme Court of Serbia shall rule on the admissibility of a
motion for the legal remedy specified in Article 389. A five-judge panel shall rule on the merits of this legal remedy. The Supreme Court of Serbia examines a challenged judgement within the reasons stated in the motion for this legal remedy. The court shall render a decision within three months of the day when the Supreme Court of Serbia received a case. Article 393 The Supreme Court may reject a motion for the legal remedy specified under Article 389 and confirm the first-instance decision or reverse the first-instance decision.

2. Review
Article 394 Parties may file a request for review of a final second-instance judgement in all civil action proceedings within 30 days of the delivery of a transcript of the judgement. Review is not allowed in property-related litigation where the claim is related to pecuniary value or handing over of things or performance of another obligation, if the value of the subject of litigation in regard to the challenged part of a final judgement does not exceed 500,000 dinars. Review is not allowed in property-related litigation where the claim is not related to pecuniary value or handing over of things or performance of another obligation, if the value of the subject of litigation does not exceed 500,000 dinars. Exceptionally, review is permitted in cases referred to under paragraphs 2 and 3 of this Article: 1) in civil actions for support or revocation of support; 2) in civil actions for compensation for lost support due to the death of a supporter; 3) in property-related civil actions that arise from unconstitutional and illegal individual acts and actions by which legal entities and natural persons, depending on their seat or residence, are put in an unequal position in a single market or if the unity of the market is disturbed in another way, including civil actions for compensation of damage caused by this. 4) in civil actions due to infringement of copyright, protection and use of patents and technical improvements, samples, models and brand names, firm or name, as well as actions due to disloyal competition and monopolistic behaviour if they are not propertyrelated actions.
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Article 395 Review of the final second instance court judgement, that can not be reviewed according to the provisions of the Article 394, is exceptionally allowed, if appellate court rules that it is necessary to interpret a legal issue of general interest or ensure uniform case law or when new interpretation of the law is necessary. Article 396 The Supreme Court of Serbia rules on a motion for review. Article 397 A motion for review does not grant stay of execution of the final judgement against which it was filed. Article 398 A motion for review may be filed due to: significant violation of civil procedure provisions of Art. 361 paragraph 2, except item 4; 2) significant violation of civil procedure provisions of Art. 361, paragraph 1 of this Law that was done in the proceedings before the second instance court; 3) incorrect application of substantive law; 4) exceeding of the claim, only if such violation was done in second-instance proceedings. A review may not be requested due to incorrectly or incompletely established facts. Article 399 The court examines a judgement only in that part which is challenged in the motion for a review and within the limits of reasons stated in the motion, checking ex officio whether there is a significant violation of the civil procedure provisions under Art. 361, paragraph 2, point 9, and whether substantive law is correctly applied. Article 400 1)

A motion for review is filed with the court which passed the first instance judgement.
Article 401 The presiding judge of the first-instance court panel shall issue a decision to dismiss an untimely, incomplete or inadmissible motion for review, except from the Article 389 of this Law, without a hearing. Review is not allowed: 1) if a motion was filed by a person who is not authorised to do so; 2) if a motion was filed by a person who is not a lawyer; 3) if a motion was filed by a person who waived the right to review; 4) if a motion was filed by a person who has no legal interest in requesting review; 5) if a motion was filed against a judgement which may not be subject to review pursuant to law, except Article 393 of this Law.

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Article 402 The presiding judge of the first-instance court panel shall deliver a copy of a timely, complete and admissible motion for review to the other party and the public prosecutor who is responsible for filing a request for the protection of legality (Art. 416) within eight days. A transcript of the judgement against which a review is requested, together with the motion are delivered to the public prosecutor. The other party may submit his/her reply to the motion for review to the court within 15 days. Having received a reply, or after the expiry of the deadline for reply, the presiding judge of the first instance court panel shall deliver a motion for review and a reply, with all documents related to the case, to the review court through the second instance court within 15 days. Article 403 The court makes a decision about a motion for review without a hearing. Article 404 The court shall reject an untimely, incomplete or inadmissible motion for review by a decision, if the first instance court failed to do so (Art. 401). Article 405 The court shall pass a judgement to reject a motion for review as ill-founded if it establishes that the reasons for which the review was requested do not exist, or reasons which the court considers ex

officio.
The court shall not explain a judgement which rejects a motion for review as ill-founded if it finds it unnecessary because the reasons in the motion for review are the same as those in the appeal, or if an explanation of the judgement rejecting review would not represent a new interpretation of a point of law or contribute to uniform interpretation of law. Article 406 If the court establishes that there is a significant violation of the civil procedure provisions under Art. 361, paragraphs 1 and 2 of this Law, due to which a review may be requested, it will issue a decision to completely or partially set aside the judgements of the second instance and first instance court or only the judgement of the second instance court, and return the case for re-trial to the same or another court panel of the first instance or second instance court, or another court with jurisdiction. If there was a violation referred to under Art. 361, paragraph 2, points 2, 3 and 10 in the proceedings before the first instance or second instance court, the court shall issue a decisions to set aside the judgement of the first instance or second instance court and reject the complaint. If in the course of the proceedings before the first instance or second instance court there was a violation referred to under Art. 361, paragraph 2, point 9 of this Law, the court shall act pursuant to the provisions of paragraph 1 or 2 of this Article, taking into consideration nature of the violation. Article 407 If review court finds that substantive law was applied incorrectly, it shall pass a judgement approving the motion for review and reverse the challenged judgement. If the court finds that facts were established incompletely due to incorrect application of substantive law, and consequently there are no grounds for the challenged judgement to be reversed, it will issue a decision to approve a motion for review and fully or partially repeal the judgements of the first instance and second instance court, or only of the second instance court, and return the case for re-trial to the same or another court panel of the first instance or second instance court. 81

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Article 408 If the court finds that the second instance judgement exceeded the claim by awarding more that it was claimed, it shall set aside the second-instance judgement in that part where the claim was exceeded. If the court finds that the second instance judgement exceeded the claim by adjudicating on a subject other than that of the claim, it shall set aside the second-instance decision and return the case for re-trial. Article 409 If in deliberation of a motion for review of the proceedings specified under Art. 394, paragraph 4, point 3 of this Law, the court has reasonable doubt that the facts on which a challenged decision is based were improperly established, it shall pass a decision to set aside the challenged decision and also, if necessary, the decisions of lower instance courts, and return the case for re-trial to the same or another court panel of the first instance or second instance court, or another court having jurisdiction. Article 410 The decision of the review court is delivered to the first instance court through the second instance court. A copy of the decision is also delivered to the relevant public prosecutor (Article 416). Article 411 Unless Articles 394 to 410 of this Law do not provide otherwise, Art. 342, 356, paragraph 2 and 3, Art. 357, 358, 363, 366, paragraph 2 and 3, Art. 367, paragraph 2, Art. 368, 373, 378 and Art. 381 to 384 related to appeal proceedings accordingly apply to review proceedings. Article 412 Parties may also file a motion for the review of a final decision of the second-instance court.

Review of the decision referred to in paragraph 1 of this Article is not allowed in civil
actions where review of a final judgement would not be allowed (Art. 394, paragraphs 2 and 3). Review is always allowed against a decision by which a second instance court rejected an appeal, or a decision which confirmed the first instance court's decision to reject a review. Review is always allowed against a final decision of the second-instance court on a motion for repeated trial. The provisions of this Law governing the review of judgements shall accordingly apply to the review of decisions.

3. Motion for the Protection of Legality


Article 413 The public prosecutor may file a motion for the protection of legality against a final court decision ex officio or upon the proposal of a party within three months. The time limit for the motion referred to under paragraph 1 of this Article starts to run: 1) in case of a first instance decision which has not been appealed as of the day when such decision may not be appealed any more; 2) in case of a second instance decision against which a motion for review has not been filed as of the day when such decision is delivered to the party who last received such decision. The public prosecutor may file a motion for the protection of legality against the decision referred to in paragraph 1 of this Article that was made in second instance, strictly within 30 days of the day

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he/she was delivered the motion for review from the party whose motion was delivered first (Article 402, paragraph 1). A motion for the protection of legality may not be filed against a decision that was made about a motion for review or protection of legality by the court having jurisdiction to decide about such legal remedies (Article 396). Article 414

The public prosecutor may, within one year, file a motion for the protection of legality
against a final decision in civil actions related to a real estate purchase agreement, if such agreement is, in its contents or purpose, contrary to mandatory regulations, public order or rules of decency. The time limit starts to run from the day the decision comes into effect, and if a motion for review was filed against the decision from the day of the review court issued a decision which concluded the proceedings. Article 415 The Supreme Court deliberates on a motion for the protection of legality. Article 416 A motion for the protection of legality against the decision referred to under Art. 413 of this Law is filed by the public prosecutor determined by law. Article 417 The public prosecutor may file a motion for the protection of legality due to significant violation of the civil procedure rules referred to under Art. 361, paragraph 2, item 5 of this Law. Article 418 If the public prosecutor does not file a motion for the protection of legality within a time limit prescribed by law, the party who filed a motion may, within 30 days of receiving the notification that the public prosecutor will not file a motion for the protection of legality, file such motion itself. Article 419 If both a motion for review and a motion for the protection of legality were filed against the same decision, the Supreme Court shall issue a single decision on both of them. Article 420 The party who filed a motion for the protection of legality shall be notified about the session of the court which will deliberate the motion. The party who did not file a motion for the protection of legality shall not be notified about the session of the court which will deliberate the motion. Should the party who filed a motion fail to appear at the session, the court shall deliberate and issue a decision about the motion. The session begins with the report of the reporting judge who presents the state of affairs without giving his/her own opinion whether the motion is founded or not. After that, the judgement or the part of the judgement which is challenged will be read, and if necessary, transcripts from the case file. The party who filed the motion will then give his/her explanation of the motion.

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Article 421 When deliberating on a motion for the protection of legality, the Supreme Court shall examine only those violations indicated by the party who filed the motion. Unless Articles 413 to 420 hereof prescribe otherwise, provisions of Articles 397, 400 to 406, 410 and 411 shall apply accordingly to the proceedings initiated by a motion for the protection of legality.

4. Repeated Trial
Article 422 A trial completed by a final court decision may be repeated upon the request of a party: 1) if a party did not have an opportunity to argue before the court due to an illegal action, and in particular due to the failure of the court to effect service; 2) if a person who cannot be a party to the proceedings took part in the proceedings as the plaintiff or defendant; if a party who is a legal entity was not represented by an authorised person; if a party incompetent for litigation was not represented by a legal representative; if a legal representative or attorney of a party was not properly authorised to participate in the proceedings or as regards certain actions in the proceedings, unless their participation in the proceedings or certain actions was later approved; 3) if a decision of the court was founded on a false testimony of a witness or expert witness; 4) if a decision of the court was based on a counterfeited document or document certifying false contents; 5) if a decision of the court was made through a criminal offence of the judge, or layjudge, legal representative or attorney of a party, the other party or third party; 6) if a party gains a possibility to use a final decision of the court made earlier between the same parties about the same claim; 7) if a decision of the court is based on another decision of the court or another body, and such decision is subsequently reversed, set aside or annulled; 8) if an interlocutory issue (Article 12) was subsequently decided before the competent body and the decision was based on the decision about such issue; 9) if a party learns about new facts or finds or obtains a possibility to use new evidence, which could have resulted in a more favourable decision for such party had it been used in the previous proceedings. 10) if European Court for Human Rights, after final decision of the national court, passed a decision about the same or similar legal relation against Serbia and Montenegro. Article 423 Repeated trial may not be requested due to reasons referred to in Art. 422, points 1 to 3 of this Law if such reasons were presented unsuccessfully in the course of the previous proceedings. Trial may be repeated due to circumstances stipulated in Art. 422, points 1, 7, 8 and 9 of this Law only if a party was unable, through no fault of his/her own, to present such circumstances before the previous proceedings were finished by a final court decision. Article 424 A request for repeated trial is submitted within thirty days: 1) in case referred to under Art. 422, point 1 of this Law of the day a party becomes cognisant of such reason; 84

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2)

in case referred to under Art. 422, point 2 of this Law, if a person who cannot be

a party to the proceedings did participate in the proceedings as the plaintiff or defendant of the day the decision is delivered to such person; in case a party who is a legal entity was not represented by an authorised person or a party incompetent for litigation was not represented by a legal representative of the day when the decision is delivered to the party or their legal representative; in case a legal representative or attorney was not properly authorised to take part in the proceedings or certain actions of the proceedings of the day the party becomes cognisant of this reason 3) in case referred to under Art. 422, points 3-5 of this Law, of the day a party was informed about a final judgement in a criminal procedure, and if criminal procedure may not be conducted of the day the party finds out about the suspension of such procedure or about the circumstances due to which procedure could not be initiated; 4) in cases referred to in Art. 422, points 6 and 7of this Law of the day when a party is able to use the final judgement which is the reason for repeating the procedure; 5) in cases under Art. 422, point 8 of this Law, of the day the final decision of the competent body, deciding upon an interlocutory issue the decision was based on, is delivered to the party 6) in cases under Art. 422, point 9 of this Law of the day when a party can present new facts or evidence to the court. If the time limit set in paragraph 1 of this Article starts to run before the decision comes into effect, the time limit will be counted as of the day when the decision comes into effect, unless a legal remedy is requested against it, or as of the day of service of a final judgement of the higher court passed in the last instance. A motion for repeated trial may not be submitted after the expiry of five years from the day the judgement came into effect, unless such motion is filed due to reasons stipulated in Art. 422, points 1, 2 and 10 of this Law. Article 425

A motion for repeated trial is always filed with the court which made the first-instance
decision. The motion must indicate the legal basis for requesting repeated trial, circumstances showing that the motion is being submitted within a legal time limit and evidence supporting the allegations of the movant. Article 426 An untimely (Art. 424), incomplete (Art. 425, paragraph 2) or inadmissible (Art. 424) motion for repeated trial will be rejected by a decision of the presiding judge of the court panel without a hearing. If the presiding judge of the court panel does not reject the motion, he/she shall deliver a copy of the motion to the other party in accordance with provisions of Art. 136 of this Law, and the other party may submit a reply within fifteen days. When the court receives the reply or the time limit to give a reply expires, the presiding judge of the court panel shall schedule a hearing to discuss the motion. If repeated trial is requested because of the reasons stipulated in Art. 422, point 9 of this Law, the presiding judge of the court panel may join the argument about the request for repeated trial and argument about the main claim. Article 427

The hearing for argument about a motion for repeated trial is held before the presiding judge of the court panel of the first instance court, unless such argument and argument about
the main claim have been joined.

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Article 428 After the hearing for argument about a motion for repeated trial, the presiding judge of the court panel of the first instance court makes a decision about the motion, unless the reason for repeated trial concerns exclusively the proceedings before the higher court (Art. 429). A decision allowing repeated trial shall state that a decision made in previous proceedings is annulled. The presiding judge shall schedule the trial only after the decision allowing repeated trial comes into effect, but he/she may decide to immediately start argument about the main claim. Parties may

present new facts and propose new evidence in the new trial. No special appeal is allowed against a decision allowing repeated trial if the presiding judge
decides that argument about the main claim should start immediately. If the presiding judge of the court panel allows repeated trial and decides to immediately start argument about the main claim, or if the motion for repeated trial is considered along with the main claim, the decision allowing repeated trial and revoking the decision made in the previous proceedings shall be entered in the decision about the main claim. Article 429 If the reason for repeated trial is exclusively concerned with the proceedings before a higher court, the presiding judge of the court panel of the first instance court shall refer the case to the higher court after the hearing for the argument about the request for repeated trial has been held. When the case is delivered to the higher court, the presiding judge of the court panel shall act in accordance with the provisions of Art. 368 of this Law. The higher court deliberates about the motion for repeated trial without a hearing. If the higher court finds that a motion for repeated trial is justified and that no new hearing is necessary, it shall annul its own decision, as well as the decision of the higher court, if any, and make a new decision about the main claim.

5. Relation Between the Motion for Repeated Trial and other Extraordinary Legal Remedies
Article 430 If, within the deadline for filing a motion for review, a party submits a motion for repeated trial, and such motion is based on the reasons valid for review, it shall be considered that such party is applying for review. If a party files a motion for review due to reasons referred to under Art. 361, paragraph 2, point 10 of this Law and simultaneously or subsequently files a motion for repeated trial due to any of the reasons referred to under Art. 422 of this Law, the court will stop the proceedings initiated by the motion for repeated trial until such time as the review proceedings have been completed. If a party files a motion for review for any reason, except for the reason referred to under Art. 361, paragraph 2, point 10 of this Law, and simultaneously or subsequently files a motion for repeated trial due to reasons referred to under Art. 422, points 3 to 5 of this Law which are supported by a final judgement passed in a criminal procedure, the court will stop the review proceedings until such time as the proceedings initiated by the motion for repeated trial have been completed.

In all other cases where a party applies for review and simultaneously or subsequently for repeated trial, the court shall decide which proceedings should continue and which should stop,
taking into account all the circumstances and especially the reasons for which each remedy is requested as well as evidence proposed by the parties.

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Article 431 Provisions of Art. 430, paragraph 1 and 3 of this Law shall also apply where a party files a motion for repeated trial first and then a motion for review. In all other cases where a party files a motion for repeated trial first and then a motion for review, the court shall, as a rule, stop the review proceedings until the proceedings initiated by the motion for repeated trial have been finished, unless it finds that there are major reasons to do otherwise. Article 432 The presiding judge of the court panel of the first instance court issues the decision referred to in Art. 430 of this Law if a motion for repeated trial reaches the first instance court before the case for review is sent to the review court. If a motion for repeated trial arrives after the case for review is sent to the review court, the decision referred to in Art. 430 of this Law is made by the review court. The presiding judge of the court panel of the first instance court issues the decision referred to under Art. 431 of this Law, unless at the time when the case for review is delivered to the first instance court, the case for repeated trial has already been sent to the higher court (Art. 429, paragraph 1), in which case the decision is made by the higher court. No appeal is allowed against the decision of the court referred to in paragraph 1 and 2 of this Article. Article 433 The provisions of Art. 430 to 432 of this Law accordingly apply also where the public prosecutor files a motion for the protection of legality, and before, simultaneously or after that, a party files a motion for repeated trial.

Part Three SPECIAL PROCEDURES


Chapter 29 LABOUR-RELATED CIVIL ACTIONS
Article 434 Unless this Chapter contains special provisions, other provisions of this Law apply to labourrelated civil actions. Article 435 In labour-related civil actions, and in particular before setting time limits and scheduling hearings, the court shall always pay special attention to the need for urgent solving of labour disputes. Article 436 During the proceedings, the court may also ex officio order temporary measures, which apply in enforcement procedure, in order to prevent violent actions or unrecoverable damage. The court shall issue a decision on temporary measure upon the request of a party within eight days of submitting the request. No special appeal is allowed against the courts decision on temporary measure.

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Article 437 In a judgement ordering the performance of some obligation, the court shall set an eight-day time limit for such performance. Article 438 The time limit to appeal is eight days. Article 439 Review is allowed in civil actions related to entering into employment, current status of employment and termination of employment.

Chapter 30

CIVIL ACTIONS RELATED TO COLLECTIVE AGREEMENT


Article 440 Unless this Chapter contains special provisions, other provisions of this Law apply to civil actions related to collective agreements. Article 441 In a civil action related to collective agreement, the signatories of collective agreement claim legal protection of rights determined by a collective agreement in case of dispute about signing or amending of a collective agreement, if such dispute is not settled amicably or through arbitration which is agreed between the signatories of a collective agreement pursuant to a special law. According to the rules of procedure for this sort of civil action, the court also adjudicates disputes about the representative quality of a trade union or a union of employers pursuant to a special law. In civil actions related to collective agreements, one of the parties is the representative trade union. Article 442 In this type of proceedings, when setting time limits and scheduling hearings, the court shall always pay special attention to the need for urgent solving of disputes. Article 443

In a judgement ordering the performance of some obligation, the court shall set a time limit
for such performance. Article 444 The time limit to appeal is eight days.

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Article 445 Review is allowed in civil actions related to collective agreements.

Chapter 31

CIVIL ACTION FOR TRESPASSING


Article 446 Unless this chapter contains special provisions, other provisions of this Law shall apply to civil actions related to trespassing. Article 447 In actions related to trespassing, the court shall always pay special attention to the need for urgent solving of disputes, taking into account the circumstances of each case. Article 448 Argumentation in the proceedings related to trespassing shall be limited only to examination and proving of facts about the last state of possession before trespassing and the state after trespassing. The right to possession, legal title, good will or malevolence concerning possession or a claim for damages shall not be considered. The decision about the claim shall be made within 90 days. Article 449 During the proceedings, the court may also ex officio and without hearing the other party order temporary measures, which apply in executions, in order to prevent the risk of illegal damage or violence or unrecoverable damage. The court shall issue a decision on temporary measure upon the request of a party within eight days of submitting the request. No special appeal is allowed against such decision of the court. Article 450 The court shall set a time limit for the parties to perform an obligation in accordance with the circumstances of each case. The time limit to appeal is eight days. Due to reasons of great importance the court may decide that an appeal does not result in a stay of execution. In appellate procedure against first instance decision made in the litigation related to trespassing, provisions of the article 369. paragraph 3. and article 370 and 371 of this Law are applied accordingly. No review is allowed against decisions made in civil actions related to trespassing.

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Article 451 The plaintiff will lose his/her right to request, in executive action, the enforcement of a decision ordering the defendant to perform certain action, if he/she failed to request execution within 30 days

of the expiry of the deadline set in the decision of the court.


Article 452 Repeated trial after a valid court decision has been passed is allowed only due to reasons stipulated in Article 422, point 1 and 2 of this Law, within 30 days after the decision on a case of trespassing comes into effect.

Chapter 32

PAYMENT ORDER
Article 453 Where the complaint is related to a money claim which is due and such claim is supported by a valid document filed with the complaint either as an original document or a certified transcript, the court will order the defendant to settle the claim (payment order). The following shall be considered valid documents: 1) official documents; 2) private documents where the signature of the debtor is certified by a competent body; 3) draft protest and cheque protest with return bills if necessary to support a claim; 4) excerpts from certified business books; 5) invoices; 6) documents which are considered official documents pursuant to special provisions. The court shall issue a payment order regardless of whether the plaintiff requested so in the complaint, if all conditions required for issuing of such payment order are met. If there is a valid document on the basis of which execution may be requested pursuant to the Law on Enforcement procedure, the court shall issue a payment order only if the plaintiff satisfies the court that there is a legal interest to do so. If the plaintiff does not satisfy the court that there is a legal interest to issue a payment order, the court will reject the complaint. Article 454

Where the complaint is related to a money claim which is due and does not exceed the
amount of 100,000 dinars, the court shall issue a payment order to the defendant although no valid documents were filed with the complaint, but the complaint indicates the basis and amount of debt and evidence which can prove the truthfulness of such allegations. The payment order referred to in paragraph 1 of this Article may be issued only against the main debtor. Article 455 The presiding judge of the court panel issues a payment order without a hearing. A payment order should state that the defendant is obliged to fulfil the request from the complaint as well as pay the costs evaluated by the court within eight days of receiving the order, and in litigation concerning drafts and checks, within three days, or file an objection against the payment

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order within the same deadlines. The court shall advise the defendant in such payment order that late objections will be rejected. A payment order is delivered to both parties. A copy of the complaint and a copy of other documents are delivered to the defendant with the payment order. Article 456 If the court does not accept a request to issue a payment order, it will continue the proceedings according to the complaint pursuant to the provisions governing the general civil procedure. No appeal is allowed against a decision of the court not to accept a proposal to issue a payment order. Article 457 The defendant may challenge the payment order only by an objection. If a payment order is challenged only as regards the decision on costs, such decision may be challenged only by an appeal. The part of the payment order which has not been challenged by an objection becomes enforceable. Article 458 The court shall reject untimely, incomplete or inadmissible objections without a hearing. If an objection is submitted in time, the court shall promptly schedule a hearing for trial. In the course trial, parties may present new facts and propose new evidence, and the defendant may make new objections concerning the challenged part of a payment order. In its decision about the main claim, the court decides whether a payment order should remain valid fully or partially or be cancelled. Article 459 If the defendant objects that there was no legal basis for payment order to be issued (Art. 453 and 454) or that there are obstacles for further proceedings, the court shall first make a decision about such objection. If it finds the objection justified, it shall cancel the payment order by a decision and, after such decision comes into effect, the court shall start argument about the main claim, if appropriate. If the court does not accept such objection, it shall proceed with argument about the main claim, and the decision about the objection shall be included in the decision about the main claim. If, upon an objection that the debt is not due, the court finds that the claim became due after a payment order was issued and before the trial was concluded, the court shall cancel the payment order by the judgement and make a decision about the main claim (Art. 331, paragraph 1). Article 460

The court may ex officio declare that it has no territorial jurisdiction, but only before a
payment order is issued. The defendant may make an objection about of the lack of territorial jurisdiction only in an objection against a payment order. Article 461 If after a payment order has been issued, the court declares that it has no subject-matter jurisdiction, it shall cancel the payment order and send the case to the court with jurisdiction after the final decision on the lack of jurisdiction is passed. If after a payment order has been issued, the court finds that it has no territorial jurisdiction, it shall not cancel the payment order, but transfer the case to the court with jurisdiction after the final decision on the lack of jurisdiction is passed. 91

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Article 462 If the court issues a decision rejecting the complaint in cases set out in this Law, it also cancels a payment order. Article 463 The plaintiff may withdraw the complaint without the consent of the defendant only before the defendant makes an objection. If the complaint has been withdrawn, the court will suspend the payment order by its decision. If the defendant withdraws all objections before the trial is closed, the payment order remains in force. Article 464 In the procedure for issuing payment order in Commercial courts, the document on the basis of which the payment order is issued does not have to be submitted in the original or certified transcript. The transcript of such document can be certified by a legal entitys authorised clerk.

Chapter 33

SMALL CLAIMS
Article 465 Unless this chapter contains special provisions, other provisions of this Law shall apply to small claims. Article 466 The defendant will be served with the complaint together with the summons for trial, unless the complaint was earlier served. Article 467 Small claims, pursuant to the provisions of this Chapter, shall mean money claims not exceeding the amount of 100,000 dinars.

Small claims shall also include complaints where the main claim is not a money claim, but the plaintiff stated that he/she would accept to be paid an amount of money not exceeding the amount specified in paragraph 1 of this Article instead of the settlement of the original claim (Art. 34, paragraph 1).

Small claims shall also include complaints where the main claim is not a money claim but the surrender of an object whose value, as stated in the complaint, does not exceed the amount
specified in paragraph 1 of this Article (Article 34, paragraph 2). Article 468 Pursuant to the provisions of this Chapter, claims related to real estate, labour relations and trespassing are not considered small claims.

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Article 469 Small claim proceedings are also conducted where there is an objection against a payment order, if the value of the disputed part of the payment order does not exceed the amount of 100,000 dinars. Article 470 Small claim proceedings are conducted before the lower first instance courts, unless this Law provides otherwise. Article 471 In small claims proceedings, the complaint is not delivered to the defendant for his/her reply. Also, there is no preliminary hearing in this sort of proceedings. Article 472 In small claim proceedings, an appeal is allowed only against the decision which concludes the proceedings. Other decisions which may be appealed pursuant to this Law may be challenged only by an appeal against the decision concluding the proceedings.

Decisions referred to in paragraph 2 of this Article are not delivered to the parties, but
announced at a hearing and entered into the written part of the decision. Article 473 Apart from the information specified under Art. 118, paragraph 1 of this Law, the transcript of the trial shall contain: 1) relevant statements made by the parties, and especially those statements which admit the claim in whole or in part, and/or those statements waiving, altering or withdrawing the claim or appeal; 2) relevant evidence that was presented; 3) decisions which may be appealed and which were pronounced at the trial; 4) whether the parties were present when the judgement was pronounced and, if they were present, whether they were advised about the requirements to file an appeal. Article 474

If the plaintiff alters the claim so that the value of the subject of litigation exceeds the
amount of 100,000 dinars, the proceedings will be completed in accordance with the provisions of this Law governing regular proceedings. If the plaintiff decreases the claim before closing of the trial which is conducted pursuant to the provisions of this Law governing regular proceedings, so that it does not exceed the amount of 100,000 dinars, the proceedings are continued pursuant to the provisions of this Law governing small claim proceedings. Article 475 If the plaintiff does not appear at the first or a later hearing of the trial and was properly summoned, it shall be deemed that he/she has withdrawn the complaint. If both parties fail to appear at any subsequent hearing, the complaint will be considered withdrawn. The summons for the trial shall also inform the parties that it will be deemed that the plaintiff has withdrawn the complaint if he/she does not appear at the first hearing; that the parties should present all facts and evidence before the closing of the trial, because new facts and evidence may not be presented in an appeal against the judgement; that the judgement may be challenged only due to a significant violation of civil procedure provisions and improper application of material law.

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Article 476 If the defendant fails to appear at the opening hearing for the trial, and was properly summoned, the court shall issue a judgement sustaining the claim (default judgement). The court shall reject a claim by the decision specified in paragraph 1 of this Article if the facts stated in the claim are contradictory to the evidence that the plaintiff presented or to generally known facts. The court shall reject a claim by the decision specified in paragraph 1 of this Article if the parties cannot dispose with such claim (Article 3, paragraph 3). Article 477

The judgement in small claim proceedings is announced immediately after the closing of
the trial. A transcript of the judgement is always delivered to the party who was not present, while it may be delivered to the party who was present only upon his/her request. The party may make such request at the hearing in which the judgement is announced, at the latest. After announcing of the judgement, the court shall advise an ignorant party about the conditions to file an appeal (Art. 478). Article 478

A judgement or decision which concludes small claim proceedings may be challenged only due to significant violations of the civil procedure provisions in Art. 361, paragraph 2 of this Law and due to improper application of material law. Provisions from Art. 377 of this Law do not apply to appeal procedure for small claims. Parties may file an appeal against the first instance judgement or decision referred to in paragraph 1 of this Article within eight days. The time limit for an appeal starts to run from the day when the judgement (decision) is announced, and if the judgement (decision) was delivered to a party, the time limit starts to run from the day of its delivery. In small claim proceedings, the time limit specified in Art. 333, paragraph 2 and Art. 343, paragraph 1 of this Law is eight days. No review is allowed against a decision of the second instance court.

Chapter 34

COMMERCIAL DISPUTES
Article 479 Unless this Chapter stipulates otherwise, the provisions of this Law apply to commercial disputes.

Jurisdiction and Composition of the Court


Article 480 In civil actions initiated in order to establish whether there is a contract or not or to execute or terminate a contract, as well as in actions for damages arising from failure to execute a contract, the court in the town where the defendant must perform his/her contractual obligations shall have jurisdiction in addition to the court with general territorial jurisdiction. 94

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In status-related civil actions arising from entering or deleting from the court register, in addition to the court of general territorial jurisdiction, the court into whose register an entry was made shall also have jurisdiction. In disputes arising from an entry into the court register or deletion from the court register, the court of the register shall have territorial jurisdiction. Article 481 A judge sitting alone adjudicates in first-instance proceedings. In second-instance proceedings, the court panel consists of three judges. Article 482

The representative of a party is a person entered into the registry as authorised person
(statutory representative). Article 483 A party may not reverse or revoke an action carried out by their statutory representative. Article 484

In case of bankruptcy or liquidation proceedings against a legal entity or entrepreneur the power of attorney issued by the legal representative of a legal entity cease to be valid. Upon opening bankruptcy proceedings or liquidation proceedings resulting from bankruptcy proceedings, as well as in the proceedings which preceded bankruptcy proceedings and resumed after commencement of bankruptcy or liquidation proceedings, attorneys must have a power of attorney issued by bankruptcy administrator.
Article 485 In commercial disputes, parties may present new facts and propose new evidence in an appeal only if the appellant satisfies the court that he/she failed to do so before the conclusion of the trial trough no fault of his/her own. The presiding judge of the first-instance court shall, if necessary, at own initiative or upon the request of the reporting judge of the second-instance court carry out investigation in order to check the allegations of the appellant.

Legal Remedies
Article 486 Review is not allowed in property-related civil actions if the value of the challenged part of a final judgement does not exceed 2,500,000 dinars. Review is always allowed in property-related civil actions specified under Art. 394, paragraph 4, point 3 and 4 of this Law.

Other provisions
Article 487 If both parties unanimously propose mediation pursuant to Article 327 of this Law, the court shall postpone a hearing and suspend the proceedings.

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Article 488 If the court decides to hold a hearing, it should ensure that a new hearing is held within 30 days. Article 489 The following time limits apply to commercial disputes:

1)
2) 3)

30-day time limit for filing a motion for restitutio in integrum specified under Art. 112, paragraph 3 of this Law; 8-day time limit for an appeal against a judgement or decision, and a three-day time limit for filing a reply to an appeal; 8-day time limit for the performance of an obligation, and a longer time limit for performance of non-pecuniary obligations. Article 490

In commercial disputes, small claims shall be claims not exceeding the amount of 300,000 dinars.

Small claims also include disputes where the main claim is not a money claim, but the
plaintiff stated in the complaint that he/she would accept to be paid an amount of money not exceeding the amount specified in paragraph 1 of this Article instead of the fulfilment of a request (Art. 34, paragraph 1). Small claims shall also be disputes where the main claim is not a money claim but surrender of movable property of a value, as stated in the complaint, not exceeding the amount specified in paragraph 1 of this Article (Art. 34, paragraph 2). In commercial disputes of small value the complaint is not sent to the defendant for his/her response.

Part Four TRANSITIONAL AND FINAL PROVISIONS

Article 491 If a first instance judgement or decision concluding the proceedings before the first-instance court has been passed before this Law comes into force, further proceedings will be conducted in accordance with the previous regulations. After this Law comes into force, the proceedings which were suspended shall continued pursuant to the provisions of this Law. If the first instance judgement referred to in paragraph 1 of this Article is set aside after this Law comes into effect, further proceedings will be conducted in accordance with this Law. A motion for review of a final decision of the second-instance court in an action initiated before the application of this Law shall be adjudicated pursuant to civil procedure rules which were applicable prior to entering into force of this Law. A motion for the protection of legality which was filed with the competent court before this Law came into effect in accordance with previous regulations, shall be adjudicated pursuant to previous regulations.

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Article 492 Coming into force of this Law revokes the Civil Procedure Code (Official Gazette of SFRY Nos. 4/77, 36/77, 6/80, 36/80, 43/82, 72/82, 69/82, 58/84, 74/87, 57/89, 20/90, 27/90, 35/91 and Official Gazette of FRY, Nos. 27/92, 31/93, 24/94, 12/98, 15/98, 3/2002 except the provisions of Chapter 31 (Articles 468a - 487). Article 493 Until the Law on Enforcement Procedure is passed, the provisions of this Law (Art. 413 - 421) shall accordingly apply to court jurisdiction over motions for the protection of legality filed by a competent public prosecutor against final court decisions in enforcement procedures; conditions for filing a motion, and the proceedings. Article 494

This Law comes into force after the expiry of three months from the day it is published in the Official Gazette of the RS, and the provision of the Article 395. shall be applied when Appellate court starts operating.

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