SLOVENIA: An Introduction to Dispute Resolution

Dispute resolution in Slovenia has traditionally taken the form of judicial proceedings, with parties relying on court intervention. A high number of lawsuits and other legal procedures in the past led Slovenia to be among the countries with the most convictions by the European Court of Human Rights. In the majority of Slovenian cases, these convictions were primarily due to violations of the right to a trial within a reasonable timeframe. Alternative dispute resolution (ADR) gained popularity as a response to the backlog in the courts. Since then, the situation has significantly improved and is now more in line with other European countries, though there is still room for further improvement.

Duration of Proceedings and Alternative Dispute Resolution

In Slovenia, court proceedings remain lengthy. In civil and commercial litigation, the time required to obtain a non-final judgment ranges from 12 to 29 months, depending on the nature and complexity of non-documentary evidence, such as witness testimony and expert opinions. Administrative disputes against decisions of the state authorities and other public bodies typically take around 16 months at the first-instance level. Labour disputes generally last between 9 and 17 months before a first-instance decision is reached.

At the appellate level, civil and commercial litigation proceedings usually take about six months, though in complex cases, they can extend to a year and a half. Appeals in labour disputes are resolved more quickly, with decisions typically issued within four months.

Courts issue interim measures most quickly – usually within two weeks of a complete application being filed – and enforcement orders are granted immediately in most cases.

The duration of these proceedings has remained largely unchanged from the previous year, except at the Supreme Court level, where case processing times have significantly increased to approximately 12 months and, in some instances, to 17 months or more.

Due to the protracted nature of court proceedings, ADR remains highly popular, with parties frequently opting for arbitration and mediation. Exhausting out-of-court settlement options is advisable, particularly when the parties intend to continue their business relationship. However, when parties are too far apart in their positions – most commonly when further co-operation is no longer viable or one party is facing insolvency – ADR is typically not a suitable option, and court intervention becomes necessary.

Collective Actions

The legal landscape continues to be stirred by the surge in collective actions. As of the close of 2023, a notable tally of 23 collective actions had been set in motion, initiated since 2021 by three consumer protection organisations. Of the latter, one is responsible for instigating 14 collective actions, a remarkable achievement considering its inception just prior to its inaugural collective action filing.

While the aggregate count of collective actions may appear modest, it merits attention that this figure equates to 1.15 actions per 100,000 inhabitants. Presently, these collective actions remain in their nascent stages, with only three of them having traversed through the first-instance proceedings. Notably, one of these was appealed and promises to shape jurisprudence on the pivotal criteria concerning the requirement of representativeness of non-profit entities that may instigate collective actions.

Over the past year, we have seen increased collaboration and co-ordination among organisations that act as plaintiffs in collective actions and represent class members. New partnerships among the three organisations responsible for filing nearly all past class actions are already evident in their joint consumer outreach efforts and unified approach to ongoing collective actions.

Disputes Arising From Contractual Relationships and Debtor Collection

Over the past year, particularly towards the end of last year, there has been a noticeable increase in purely debt-related disputes, many of which involve a risk of debtor insolvency. Additionally, the number of disputes between contracting parties related to contract terminations or claims for damages due to defects in completed work or the products themselves is also on the rise. This trend is especially evident in the automotive industry and its suppliers.

Outlook

Looking ahead, companies and legal professionals must be prepared to navigate an evolving legal landscape, which includes an increase in disputes arising from the dissolution of contractual partnerships or the threat of insolvency, as well as insolvency-related disputes.

Amid challenges in the judicial system and court backlogs, ADR mechanisms, such as mediation, are gaining prominence. Lawyers must take a proactive approach in exploring these options to effectively resolve disputes and minimise delays. Moving forward, the legal profession in Slovenia will continue to evolve in response to legislative changes, judicial trends and the increasing demand for efficient dispute resolution.