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NEW CLASS ACTIONS ACT IN SLOVENIA BRINGS SOME NOVELTIES

At the end of April 2018, a new Class Actions Act will enter into force, systematically regulating class actions, that are already known in Slovenian legal system, however never fully brought to life.

The ClassActionsActregulatesareasinwhichclassactioncanbefiledincaseswhenrightsare violatedorhaveanegativeimpactonalargenumberofentities. Provisions governing procedural aspectsingreaterdetail, introduceintolegalorderoftheRepublicofSlovenia somenovelties thathavenotbeenknownbefore.

AttheendofApril,morespecifically21April2018,theClassActionsAct(ZKolT,Ur.l.RS,No. 55/2017),adopted26September2017,willenterintoforce.Thereasons fortheadoptionofthe lawstemmainlyfromtherecommendationsandorientationsoftheEuropeanUnionandthe requirementsofitssecondarylegislation. Although classactionshave alreadybeenregulatedin Slovenianlegalsystem,namelyinconsumerdisputes,they have notbeenfullyimplementedinto practiceforvariousreasons.Additional systematicapproachwasneeded,and accordingtothe legislator itisnowcoveredwith solutionsgovernedby ClassActionsAct.Thesesolutionsarenot intendedsolelytofacilitatecollectiveprotection of rightsofindividualssufferingdamageincourt proceedings,butalso to createadeterrenteffectonthe behaviourofpotentialinfringers.They are,asarule,economicallyorotherwisesignificantlystrongerthanindividualvictims,whowill nowhavetheopportunitytoacttogether. ClassActionsAct anticipatestwotypesoflawsuits: collectiveinjunctions andcollective compensatoryactions.Whiletheformerwasalreadypartof theSlovenianlegalsystem- itwasregulatedwiththeprovisionsoftheConsumerProtectionAct – thelatterrepresentsacompletenovelty. Itsaimistoobtaincompensations forthedamage suffered,forwhich,within thecurrentindividualsystemofjudicialprotection,thebeneficiaries rarelydecidedtolodge actions.Classactionsshouldbeincomparisonwithindividuallawsuits, lesserburdenforindividuals.

Inaccordancewiththenewlyadoptedlaw,itwillbe possibletolodge classactionsforviolations of following legal areas:

  • consumerprotection;
  • competition – concerning infringementofprovisionsprohibitingrestrictivepractices;
  • financialinstruments- regarding violationsoftherulesoftradingonregulatedmarketsand inrelationtoprohibitedpracticesofmarketabuse;
  • workers’ protection;
  • liabilityfordamagescausedbyenvironmentaldisasters.

Thelawintroducesasystemofrepresentative action,whichinpractice meansthatclassactions couldbelodgedbyprivatelaw legalentities , engagedinanon-profit-makingactivityrelatedto thecontentofaclassactionandalsoby seniorstateattorneys.Undercertainconditions,entities fromotherEUMemberStateswillalsobeabletofile class actions. SincethepurposeofClass Actions Actisnotonlytofacilitatejudicialprotectionforindividualsandtoenablethemtoobtain compensations,butalsotopreventunfairlitigation,itgovernsseveral proceduralguarantees intendedmainlyforprotectionof interestsofbusinessentitiesintheserelationships.Theseare:

  • preliminary processoftheexaminationandapprovalofacompensatorycollectiveaction,
  • prohibitionof punitivedamages,
  • intermsofreimbursementofproceduralcostsprincipleofsuccessisused(thepartythat losesbearsthecostsoflitigation),
  • prohibition onfinancingclassactionsbyfundproviderthatisacompetitorofthe defendant.

Potentialplaintiffswillbeinformedaboutthepossibilityofjoiningaclassactionthrougha registerkeptbyHighCourtofRepublicofSlovenia,publiclyavailableonthewebsitesofjudiciary.

Asfiduciaries ofawarded collectivedamages are exclusively predicted notariespublic, and the partieswillbepriortoappointmentofthenotarypublic,providedwithanoptiontonominate chosennotarypublic. AccesstothefulltextofClassActions ActinSlovenelanguageisavailable onthelinkbelow:

https://www.uradni-list.si/glasilo-uradni-list-rs/

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