Successfully completed project “Analysis of Small Claims Disputes”
On October 28, 2019, the Judges’ Forum of Serbia marked the completion of the project “Analysis of Small Claims Disputes,” implemented with the support of the USAID Rule of Law Project. As a result of the project, guidelines for judges were developed, along with recommendations for courts and other institutions, proposals for amendments to the case management software used in courts, as well as a proposal for amendments to the Civil Procedure Law.
The question of whether judges are insufficiently efficient or whether citizens initiate too many lawsuits is as difficult to answer as the question: “Which came first, the chicken or the egg?” In any case, the answer lies in the numbers. Out of the total number of cases handled by judges in basic courts, statistics show that so-called “small claims disputes” are most prevalent in the Basic Court in Kragujevac, accounting for as much as 85%, followed by the First Basic Court in Belgrade with 70%, Niš with 65%, the Second Basic Court in Belgrade with 45%, Novi Sad with 38%, and Novi Pazar with only 6% of such cases. These figures are the result of an analysis conducted at the beginning of March this year and recently published within the framework of a project implemented by the Judges’ Forum of Serbia with financial support from the USAID Rule of Law Project (ROLPS). The analysis was carried out on a sample of six courts, and its aim is to increase efficiency in handling “small claims disputes” and contribute to improving the overall performance of the judiciary.
The analysis further shows that in over 80% of “small claims” cases where the claim value ranges between 1,000 and 5,000 dinars, the costs of proceedings exceed the value of the claim. A similar situation exists in cases with claim values between 5,000 and 10,000 dinars. As the value of the dispute increases, this percentage decreases, but it remains significant; even in one-third of all cases where the claim value is between 70,000 and 80,000 dinars, the costs of proceedings still exceed the value of the dispute.
In addition to the financial burden on citizens, the courts are also significantly overburdened. The analysis shows that only 29% of cases are concluded at a single hearing. Due to judges’ workload, the time between hearings can range from 3 to 6 months, meaning that final judgments are generally awaited for a very long time. Apart from “waiting for justice,” parties—regardless of the outcome of the dispute—must also “pay the price,” as the minimum costs in such proceedings exceed 150 euros. Adding to this, under the prescribed attorney tariff, lawyers charge at least 6,000 dinars for drafting a claim and 7,500 dinars for each court appearance, while court fees for initiating proceedings range from 2,300 to as much as 20,000 dinars, making the overall calculation straightforward.
Due to this situation, the Judges’ Forum of Serbia, as a professional association dedicated to improving the quality of judicial work and restoring the reputation and public trust in the judiciary, developed concrete proposals within the project to accelerate proceedings in small claims disputes, including proposed amendments to the Civil Procedure Law. In parallel, amendments were also proposed to the AVP software used by all courts in Serbia to track case processing, including small claims cases.
Among the numerous proposed changes, the most important include allowing judgments in small claims disputes to be rendered outside main hearings if all relevant evidence has been collected during the preparation phase; enabling electronic service of court documents related to such proceedings; strengthening mediation as a mechanism for resolving disputes outside court; introducing a unified court fee system and improving collection through software solutions that would reduce administrative burdens; as well as certain reforms aimed at increasing the efficiency of expert witnesses and notaries where their involvement is necessary, among others.
If these proposed changes are adopted, citizens could expect faster and more affordable court proceedings, while judges would benefit from reduced workload and increased efficiency in their work.
The documents can be downloaded from the following links:
Analysis of Small Claims Disputes:
https://forumsudija.org.rs/download.html?file=76
Annexes to the Analysis of Small Claims Disputes:
https://forumsudija.org.rs/download.html?file=77
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