ITALY: An Introduction to Dispute Resolution

How Litigating in Italy Could Be Advantageous for Businesses

Litigating in Italy offers several advantages for businesses, including strong legal protections, efficient procedures, and ADR mechanisms. Italian litigators also have a reputation for expertise in dealing with businesses’ needs.

Italy’s stable legal environment, strong enforcement mechanisms, and alignment with EU regulations make it an attractive jurisdiction for resolving business-related disputes. Whether through specialised commercial courts, mediation or arbitration, businesses can benefit from Italy’s well-developed legal infrastructure to achieve fair, predictable and efficient outcomes in disputes (albeit not always promptly).

What follows is a rundown of some of the key advantages of litigating in Italy that should be taken into account when considering how to resolve a business dispute.

Specialised commercial courts

The availability of specialised commercial courts (tribunali delle imprese) is one of the most significant advantages of litigating in Italy to solve business-related disputes. These courts handle a wide range of commercial disputes, including corporate governance issues, contract disputes, and IP matters. The judges in these courts are specifically trained in commercial law, meaning they have a deep understanding of business practices, economic principles, and industry-specific concerns.

This specialised focus can be particularly advantageous for businesses because the courts are more adept at handling complex business disputes efficiently and effectively. Unlike general civil courts, where judges may have less experience with commercial law, tribunali delle imprese offer expertise tailored to the needs of businesses.

Predictable legal framework

Italy’s legal system is relatively stable and predictable, offering businesses a clear understanding of the rules and procedures governing business disputes. Moreover, it is also heavily influenced by EU regulations, making it aligned with broader EU legal standards. For businesses operating in or with the EU, litigation in Italy can provide predictability and consistency in outcomes that align with EU principles, particularly in areas such as competition law, IP rights, and international contracts.

Efficient court system for business disputes

Although the Italian court system can be perceived as generally slow, tribunali delle imprese are generally efficient when it comes to business-related disputes. The courts are equipped with specialised staff and systems to handle commercial cases, which can often lead to quicker resolutions compared to general civil cases.

Access to ADR

Although litigation is one option, Italy also promotes ADR, including mediation and arbitration. This duality provides businesses with flexible options for resolving disputes in a way that best suits their needs, as follows.

• Mediation – Italian law strongly encourages mediation for civil and commercial disputes, and courts may even refer parties to mediation before proceeding to trial. Mediation offers a more cost-effective, expeditious and confidential resolution compared to litigation, and it is particularly useful in business disputes where maintaining relationships is important.
• Arbitration – arbitration is a popular mechanism in Italy for resolving business disputes, particularly in cross-border commercial matters. Italian arbitration procedures are governed by the Italian Arbitration Act (meaning the Civil Procedure Code, Part V), which is aligned with international standards such as the UNCITRAL Model Law.

Comprehensive legal protections for businesses

Italy’s legal system offers robust protections for businesses, especially in areas critical to commercial operations – of which the following are examples.

• Intellectual property – Italy is a member of international treaties such as the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement and the country offers strong protection for IP rights, including patents, trade marks, and copyrights. Tribunali delle imprese have specialised chambers to handle IP disputes, ensuring that businesses have access to a legal system that can protect their intangible assets effectively.
• Corporate law – Italy has a well-developed corporate legal framework, including laws governing shareholder disputes, board of director obligations, and corporate governance. The legal protections offered to companies, shareholders, and investors provide a high degree of security for businesses involved in corporate disputes.
• Competition and antitrust law – Italy is subject to EU antitrust laws and the country has a well-developed framework for handling competition-related disputes. For businesses facing unfair competition, anti-competitive practices, or cartel behaviour, Italy offers legal recourse both through domestic and EU channels.

Legal transparency and due process

Italy’s judicial system emphasises due process and transparency in business litigation. The procedural rules are clear and there are mechanisms in place to ensure fairness. Businesses can expect that judges will base their decisions on the evidence presented, the law, and the merits of the case.

The Italian judiciary’s adherence to transparency means that the process is generally predictable, which helps businesses make informed decisions when entering litigation. Additionally, the opportunity to appeal decisions through the appellate courts (corti d’appello) and, ultimately, the Supreme Court (Corte di Cassazione) offers a structured avenue for challenging decisions that may not align with the law or facts of the case.

Enforcement of judgments

Italy’s legal system allows for the enforcement of judgments within the country and, in certain cases, internationally. Once a final judgment is issued, businesses can request enforcement through Italian courts, which have procedures in place to seize assets, freeze accounts, and enforce payment of damages.

Additionally, Italy is a member of international agreements such as the Hague Convention on the Recognition and Enforcement of Foreign Judgments, which facilitates the enforcement of Italian court decisions in other countries. This is particularly important for businesses that engage in international trade and cross-border contracts.

Strong legal and business environment

Italy’s well-developed economy, prominent position in the EU, and active role in international trade make it an attractive jurisdiction for business litigation. The country has a strong industrial base, particularly in sectors such as fashion, automotive, luxury goods, food, and machinery. The presence of numerous multinational corporations also means that Italy has a legal environment that is capable of dealing with sophisticated commercial disputes.

Furthermore, businesses in Italy can leverage a network of legal professionals, including attorneys, accountants and experts specialising in various business sectors, who can assist in navigating the legal system effectively.

Regional focus and cross-border disputes

For companies engaged in cross-border business, Italy’s central position in Europe provides an additional advantage. Italy has a long history of international trade and its courts are well equipped to handle disputes involving foreign parties, particularly when one of the parties has substantial ties to Italy or the EU. This makes Italy an attractive jurisdiction for resolving disputes involving businesses from different countries, particularly within the EU.

Moreover, Italy is a member of various international treaties and conventions, such as the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the “New York Convention”). This means that arbitration awards from Italian courts or tribunals can be enforced globally.

Cultural and business familiarity

For businesses operating in or with Italy, litigation in Italy offers the benefit of being in a jurisdiction whose legal system is familiar with the local business culture and practices. Italian business law and the Italian judicial system are attuned to the nuances of local commercial behaviour, corporate structures, and industry-specific regulations. This can be particularly advantageous for companies that are looking to navigate disputes involving Italian or European businesses.