LAW ON LITIGATION PROCEDURE CONSOLIDATED TEXT

Transcription

1 Unofficial translation LAW ON LITIGATION PROCEDURE CONSOLIDATED TEXT Part One BASIC PROVISIONS Chapter one BASIC PROVISIONS Article 1 This Law shall regulate the rules of the procedure on basis of which the court contends and decides upon the basic rights and obligations of the person and citizen in the disputes within the field of personal and family relations, labor relations, as well as property and other civil relations of natural persons and legal entities, unless it is envisaged, by a special law, that the court decides upon some of the listed disputes according to the rules of another procedure. Article 2 (1) In a litigation procedure the court shall rule within the frames of the claims being filed in the procedure. (2) The court cannot decline ruling upon a claim being competent for. Article 3 (1) The parties can, without restraints dispose with the claims they have filed during the course of the procedure. (2) They can waive their claim, recognize the claim of the opponent and they can settle. (3) The court shall disregard the dispositions of the parties being: 1) against the coercive regulations; 2) against the provisions of international agreements ratified in accordance with the Constitution of the Republic of Macedonia and 3) contrary to the moral. Article 4 The court shall, as a general rule, decide on the petition on basis of an oral, direct and public contend. Article 5 (1) The court shall grant each party the possibility to declare itself regarding the claims and

2 the allegations of the opposing party. (2) The court shall be authorized to rule on a claim wherefore the opposing party has not been granted the possibility to declare, only when determined by this Law. Article 6 (1) The litigation procedure shall be conducted in Macedonian language and its Cyrillic letter. (2) Other official language and its letter spoken by at least 20 % of the citizens shall be used in the litigation procedure in accordance with this Law. (3) A representative of community who as a party or other participant in the procedure, does not understand or speak the Macedonian language and its Cyrillic letter, shall be entitled to an interpreter. (4) The costs for interpretation shall be covered by the court. (5) The court shall be obliged to instruct the party, i.e. the other participant in the procedure of the right anticipated in paragraphs (2) and (3) of this Article. The president of the council or the sole judge shall be obliged to enter to the minutes the instruction of the court and the statement of the party, i.e. of the other participant in the procedure. Article 7 (1) The parties shall be obliged to state all facts on grounds of which they their claims are based, and to propose evidence confirming such facts. (2) The court shall also be authorized to confirm the facts not being stated by the parties, and to exhibit the evidence not being proposed by the parties, if the outcome of the contention and the substantiation results in the parties being headed towards disposing with claims they cannot dispose with, but it cannot base its decision on facts and evidence wherefore the parties have not been granted the possibility to declare themselves. Article 8 According to its own belief the court shall decide which facts it will consider substantiated, based on a conscientious and thoughtful assessment of each proof separately and all of them together, as well as based on the results of the complete procedure. Article 9 The parties and intervenors shall be obliged in court to speak the truth and conscientiously exercise the rights being recognized to them by this Law. Article 10 (1) The court shall be obliged to insist the procedure to be conducted without delay, in a reasonable time frame, with the least possible costs, and to prevent any abuse of the rights of

3 the parties in the procedure. (2) A natural person (party, intervenor, responsible person in a legal entity) shall be fined with Euro 100 to 1000 in Denar counter-value, and a legal entity with a fine in the amount of Euro 500 to in Denar counter-value, if it abuses its rights in the procedure, unless otherwise determined by this Law. (3) The representative (attorney-in-fact or legal representative) shall as well be fined with the amount referred to in paragraph (2) of this Article, if he is liable for the abuse of rights. (4) The fine referred to in paragraphs (2) and (3) of this Article shall be imposed by the court of first instance. Out of the hearing for the main contention, the fine shall be imposed by a sole judge, i.e. the president of the council. (5) A special appeal shall not be allowed against the determination imposing a fine. (6) If the imposed fine is not voluntarily paid within the time frame determined by the court, it shall be coercively collected, ex-officio, as a monetary claim in accordance with the Law on Enforcement. Article 11 (1) When the decision of the court depends on a preceding decision upon the issue concerning the existence of certain right or legal relation, and the court or other competent body has not yet brought a decision thereon (preceding issue ), the court can decide upon that issue on its own, unless otherwise determined by special regulations. (2) The decision of the court regarding the preceding matter shall have legal effect only in the litigation where such matter has been decided upon. (3) In regard to the existence of a crime and criminal liability of the offender, the court in the litigation procedure shall be bound to the legally valid verdict of the criminal court pronouncing the defendant guilty. Article 12 (1) In a litigation procedure the courts rule in a council. (2) This Law shall determine the cases when a sole judge rules. Article 13 Unless a law determines the form wherefore certain activities can be undertaken, the parties shall undertake the litigation activities in writing when out of the hearing or orally at a hearing. Chapter Two COMPETENCE AND COMPOSITION OF THE COURT

4 1. Joint provisions Article 14 (1) Immediately after receiving the lawsuit the court shall ex-officio assess, whether and in what composition it is competent. (2) The assessment of the competence shall be made on basis of the allegations in the lawsuit and the facts familiar to the court (3) In case if during the course of the procedure the circumstances on which the competence of the court is based change, the court being competent in the time of filing the lawsuit remains competent further on, even if due to these changes other court would have been competent. Article 15 (1) During the entire course of the procedure the court shall ex-officio mind whether the resolution of the dispute falls under court competence and whether the resolution of the dispute falls under the competence of a court in the Republic of Macedonia. (2) When the court, during the course of the procedure, finds that a court is not competent for resolving the dispute, but instead another domestic body is, it shall pronounce itself incompetent, and shall abolish the conducted activities in the procedure and dismiss the lawsuit. (3) When the court, during the course of the procedure, finds that a court in the Republic of Macedonia is not competent for resolving the dispute, it shall ex-officio pronounce itself incompetent, abolish the conducted activities in the procedure and dismiss the lawsuit, except in cases when the competence of a court in the Republic of Macedonia depends on the defendant s consent, which consent has been provided. Article 16 (1) During the entire course of the procedure each court shall, ex-officio mind its actual competence. (2) If a pre-trial hearing has or has not been conducted, after the defendant has entered a contend on the main issue at the first hearing for the main contention, the court having commenced the procedure cannot, upon an objection nor ex-officio, pronounce itself incompetent for cases of another same instance court s competence. Article 17 (1) When the judicial council during the course of the procedure, or the president of the council at a pre-trial hearing, ex-officio or upon an objection of the parties, finds that the dispute should be tried by a sole judge of the same court, the procedure after the legal validity of this determination shall continue with a sole judge, preferably with the president of the council as a sole judge. The sole judge shall be bound to the legally valid decision by means

5 of which the case is ceded in his competence. (2) In the case referred to in paragraph (1) of this Article, the council can, according to the state of the procedure, decide not to cede the case to a sole judge but to conduct the procedure on its own. An appeal shall not be permitted against this decision of the council. (3) The provisions of paragraphs (1) and (2) of this Article shall also apply in case when, during the course of the procedure with the council, the circumstances change or the plaintiff reduces the petition, thus the dispute should be tried by a sole judge. (4) If the council has adopted a decision on a dispute that was supposed to be tried by a sole judge, such decision cannot be abnegated due to the fact that the decision regarding the dispute has not been adopted by a sole judge. (5) In case when, during the course of the procedure, ex-officio or upon an objection of a party, a sole judge finds that a council of the same court is competent to try, the procedure shall continue with a council. An appeal shall not be allowed against such determination of the sole judge. Article 18 (1) Until the adoption of the decision on the main issue, the court shall suspend the litigation procedure, should it determines that the procedure is to be conducted according to the rules of the non-contentious procedure. After the legal validity of the determination, the procedure shall continue with a competent court according to the rules of the non-contentious procedure. (2) The actions conducted by the litigation court (inspection, providing expert witnessing, hearing of witnesses and alike), as well as the decisions adopted by that court, shall not be invalid only because they have been undertaken in a litigation procedure. Article 19 (1) Upon an objection of the defendant the court can pronounce itself locally incompetent if the objection is filed at a pre-trial hearing at latest or, if the pre-trial hearing has not been held, before the defendant enters the dispute on the main issue at the first hearing for the main contention. (2) Only when an exclusive local competence of another court exists, the court can ex-officio pronounce itself locally incompetent at the pre-trial hearing at latest or, if such has not been held, before the defendant enters the dispute on the main issue at the first hearing on the main contention. Article 20 (1) After the legal validity of the determination pronouncing itself as incompetent (Article 19), the court shall cede the case to the competent court. (2) The court having been ceded the case as a competent court shall continue the procedure as if it had been initiated therein.

6 (3) If the decision on incompetence has been adopted at the main contention, the court having been ceded the case shall schedule a main contention and shall act as if the contention is being held with an altered council (Article 301 paragraph (3)). If the decision on incompetence has been adopted at a pre-trial hearing, a new pre-trial hearing shall not be scheduled if the president of the council finds it not necessary, considering the actions undertaken at the previous pre-trial hearing. (4) The litigation activities of the incompetent court (inspection, providing expert witnessing, hearing of witnesses and alike) shall not be invalid only because they have been undertaken by an incompetent court. Article 21 (1) If the court having been ceded the case as competent, finds that the court having ceded the case or another court is competent, it shall deliver the case to the court that should resolve this conflict of competence, unless it finds that the case had been ceded due to an obvious mistake, whereas it should have been ceded to another court, in which case it shall cede the case to the other court and shall notify the court having ceded the case thereof. (2) When upon the appeal against the decision of the court of first instance, whereby it has pronounced itself locally incompetent, a decision is adopted by a court of second instance, the court having been ceded the case shall be bound to the decision regarding the issue of competence, should the court of second instance, having adopted the decision, be competent for solving the conflict of competence between those courts. (3) The decision of the court of second instance concerning the actual incompetence of the court of first instance shall be binding for any court to which the same case will further on be ceded, if the court of second instance is competent to resolve the conflict of competence between those courts. Article 22 The conflict of competence between the courts shall be resolved by the mutual, immediate court of higher instance. Article 23 (1) The conflict of competence can be decided even when the parties have not previously declared upon the competence. (2) Until the conflict of competence is resolved, the court having been ceded the case shall be obliged to undertake those actions in the procedure for which there is risk of being delayed. (3) An appeal against the decision, by means of which the conflict of competence is decided, shall not be allowed. Article 24 Every court shall perform the activities in the procedure in its area, but if there is risk of delay, the court shall also undertake certain activities in the area of the neighboring court. The

7 court in the area where the activity is undertaken shall be notified thereof. Article 25 (1) The rules of international law shall apply to the competence of the courts in the Republic of Macedonia for trial of foreigners enjoying the right to immunity in the Republic of Macedonia and for trial of foreign countries and international organizations. (2) In case of suspecting the existence and scope of the right to immunity, clarification shall be provided by the Ministry of Justice 2. Competence of the courts in disputes with international element Article 26 A court in the Republic of Macedonia shall be competent to try in a dispute with an international element when its competence is explicitly determined by law or by an international agreement. If the law or the international agreement does not contain an explicit provision on the competence of a court in the Republic of Macedonia for certain types of disputes, a court in the Republic of Macedonia shall be competent to try that type of disputes when its competence derives from the provisions of the law regarding the local competence of a court in the Republic of Macedonia. 3. Actual competence Article 27 The courts in the litigation procedure shall try within the limits of their actual competence, determined by law. Determining the value of the subject of the dispute Article 28 (1) When the value of the subject in the dispute is relevant to determine the composition of the court, the right to announce revision and other cases envisaged by this Law, the value of the principal claim shall be considered as value of the subject in the dispute. (2) The interests, litigation costs, agreed fine and other secondary claims shall not be taken into account, if they are not part of the principal claim. Article 29 If the claim refers to future repeating expenditures, their sum shall be considered as the value of the subject of the dispute, not exceeding the amount corresponding to the sum of the expenditures in a time period of five years. Article 30 (1) If one lawsuit against the same defendant includes several claims founded on a same

8 factual and legal base, the value shall be determined according to the sum of the values of all claims. (2) If the claims in the lawsuit derive from different basis or if they are filed against several defendants, the value shall be determined according to the value of each separate claim. Article 31 When the dispute is regarding the existence of a lease or rent relation, or a relation of usage of residential or business premises, the value shall be calculated according to the annual lease, i.e. rent fee, unless it is a matter of leasing or renting relation being concluded for a shorter time period. Article 32 If only securing a claim or establishing a right to pledge is being requested by a lawsuit, the value of the subject of the dispute shall be determined according to the amount of the claim that should be secured. If the subject of the pledge has lower value than the claim that should be secured, the value of the subject of the pledge shall be considered as value of the subject of the dispute. Article 33 (1) If the petition does not refer to a monetary amount, yet the plaintiff has stated in the lawsuit that he agrees to receive certain monetary amount instead of realization of the claim, such amount shall be considered as value of the subject of the dispute. (2) In other cases, when the petition does not refer to a monetary amount, the value of the subject of the dispute that the plaintiff has determined in the lawsuit shall be considered relevant. (3) If in the case referred to in paragraph (2) of this Article, the value of the subject of the dispute has been evidently determined by the plaintiff as too high or too low, so that the composition of the court or the right to announce revision is at question, the court shall, at the pre-trial hearing at latest and if the pre-trial hearing has not been held, at the main contention prior to the beginning of the contention on the main issue, examine the accuracy of the marked value in a rapid and suitable way. 4. Composition of the court Article 34 (1) In the litigation procedure the courts try in a council, whereas the Supreme Court of the Republic of Macedonia shall try in a general session as well. (2) This Law shall determine in which cases a sole judge shall try. (3) The president of the council can undertake only those actions in the procedure and adopt only those decisions being authorized for by this Law.

9 (4) Unless otherwise determined by this Law, while resolving the cases in his competence, the sole judge shall have all the rights and duties belonging to the president of the court and the council. Article 35 (1) Disputes in first instance shall be tried by a council or a sole judge. (2) When trying in the first instance, the council shall be composed of a judge as president of the council and two lay judges. Article 36 (1) A sole judge shall try disputes on property claims when the value of the subject of the dispute does not exceed the amount of Denars. (2) During the course of the procedure the parties can agree a sole judge to try the property disputes, regardless of the value of the dispute. (3) A sole judge shall try disputes on hindering of possession. (4) A sole judge shall conduct the procedure and adopt a decision in the cases regarding legal aid. (5) Regardless of the value of the subject of the dispute, a council shall try in first instance in copyright and related rights disputes, as well as disputes relating to protection or use of the industrial property rights, or the right to use a business name or title, the disloyal competence or monopolistic conduct. Article 37 (1) When trying in second instance at a session, the court shall decide in a council composed of three judges. The court of higher instance shall resolve the conflict of competence (Article 22) and decide in all other cases, in the same composition, unless otherwise determined by this Law. (2) When trying in second instance at a contention, the council of the court of second instance shall be composed of two judges and three lay judges. (3) When deciding upon revision, the Supreme Court of the Republic of Macedonia shall try in a council composed of five judges. (4) If the legally valid decision is adopted by the Supreme Court of the Republic of Macedonia the same court shall decide up\on revision, in a council composed of five judges. 5. Local competence а) General local competence

10 Article 38 (1) If an exclusive local competence of another court is not determined by law, the court with general local competence for the plaintiff shall be competent to try. (2) Apart from the court of general local competence, another determined court shall also be competent to try in cases anticipated by this Law. Article 39 (1) The court in the area where the plaintiff has a place of permanent residence shall have general local competence to try. (2) If the plaintiff does not have a place of permanent residence in the Republic of Macedonia, the court in the area where the plaintiff has a place of temporary residence shall have general local competence to try. (3) If the plaintiff, beside the permanent place of residence has a temporary place of residence in another location as well, and according to the circumstances it can be assumed that he will reside there for a longer period of time, the court in the area of the temporary place of residence shall have general local competence as well. Article 40 (1) In trying in disputes against a unit of the local self-government, the court in the area where its head office is located shall have the general local competence. (2) In trying in disputes against legal entities, the court in the area where their head office is located shall have the general local competence. Article 41 In trying against a citizen of the Republic of Macedonia permanently residing abroad where he is posted to service or work by a state body or a legal entity, the court in his last place of permanent residence in the Republic of Macedonia shall have the general local competence. b) Special local competence Competence for co-litigants Article 42 If several persons are being sued with a single lawsuit (Article 186 paragraph (1) item 1), and there is no local competence of a same court for them, competent shall be the court being locally competent for one of the defendants, and if there are principal and secondary creditors among them, then it shall be the court being locally competent for some of the principal creditors. Competence in legal support disputes

11 Article 43 (1) In trying in legal support disputes, if person requesting support is a plaintiff, in addition to the court of general local competence, competent shall be the court in the area where the plaintiff has a permanent or temporary place of residence. (2) If a court in the Republic of Macedonia is competent in the legal support disputes with an international element since the plaintiff has a place of permanent residence in the Republic of Macedonia, locally competent shall be the court in the area where the plaintiff has a place of permanent residence. (3) If a court in the Republic of Macedonia is competent in a legal support dispute since the defendant has property in the Republic of Macedonia wherefrom the support can be collected, locally competent shall be the court in the area where the property is located. Competence in damage compensation disputes Article 44 (1) For trying in disputes on extra-contractual damage liability, beside the court of general local competence, competent shall also be the court in the area where the harmful activity has been performed or the court on the area where the harmful consequence has occurred. (2) If the damage has occurred as a result of death or serious bodily injuries, beside the court referred to in paragraph (1) of this Article, competent shall also be the court in the area where the plaintiff has a permanent, i.e. temporary place of residence. (3) The provisions of paragraphs (1) and (2) of this Article shall also apply in disputes against an insurance company for damage compensation towards third parties, based on the regulations for direct accountability of the insurance company, and the provision of paragraph (1) of this Article in disputes on regressive claims based on damage compensation against regressive debtors, as well. Competence in disputes for protection of the rights based on a producer s guarantee Article 45 For trying in disputes on protection of rights based on a written guarantee against the producer who has given the guarantee, in addition to the court of general local competence in regard to the defendant, competent shall as well be the court of general local competence in regard to the sales person who while selling the object has handed the producer s written guarantee to the buyer. Competence in marital disputes Article 46 (1) For trying in disputes for the purpose of determining the existence or non-existence of a marriage, marriage annulment or divorce (marital disputes), in addition to the court of general local competence, competent shall as well be the court in the area where the spouses have had

12 their last mutual place of permanent residence. (2) If a court in the Republic of Macedonia is competent in marital disputes since the spouses have had their last mutual place of permanent residence in the Republic of Macedonia, i.e. because the plaintiff has a place of permanent residence in the Republic of Macedonia, locally competent shall be the court in the area where the spouses have had their last mutual place of permanent residence, i.e. the court in the area where the plaintiff has a place of permanent residence. Article 47 If a court in the Republic of Macedonia is competent in property disputes of spouses since the property of the spouses is located in the Republic of Macedonia or since the plaintiff in the time of filing the lawsuit has had a permanent or temporary place of residence in the Republic of Macedonia, locally competent shall be the court in the area where, in the time of filing the lawsuit, the plaintiff has had a permanent or temporary place of residence. Competence in disputes on determining or contesting paternity or maternity Article 48 (1) In disputes for the purpose of determining or contesting paternity or maternity, a child can file a lawsuit either to the court of general local competence, or to the court in the area where the child has a permanent, i.e. temporary place of residence. (2) If a court in the Republic of Macedonia is competent in disputes for the purpose of determining or contesting paternity or maternity because the plaintiff has a place of permanent residence in the Republic of Macedonia, locally competent shall be the court in the area where the plaintiff has a place of permanent residence. Competence in disputes on immovables and hindering of possession Article 49 (1) For trying in disputes on ownership and other real rights on immovables, disputes due to hindering of possession of immovables, as well as disputes on lease or rent relations in regard to immovables, or on contracts for using an apartment or business premises, exclusively competent shall be the court in the area where the immovable is located. (2) If the immovable is located in the area of several courts, each of those courts shall be competent. (3) For disputes due to hindering of possession of movables, in addition to the court of general local competence, the court in the area where the hindering has occurred shall be competent as well. Competence in disputes on aircraft and ship Article 50

13 (1) When a court in the Republic of Macedonia is competent to try in disputes on ownership rights and other rights on ships i.e. aircrafts, as well as in disputes on lease relations on an aircraft and ship, exclusively locally competent shall be the court in the area where the register, where the aircraft i.e. ship is entered, is kept. (2) When a court in the Republic of Macedonia is competent for trying in disputes due to hindering of possession of ships i.e. aircrafts referred to in paragraph (1) of this Article, in addition to the court in the area where the register, where the ship i.e. aircraft is entered, is kept, the court in the area where the hindering occurred shall be competent as well. Competence for persons not having general local competence in the Republic of Macedonia Article 51 (1) A lawsuit for property claims against a person not having general local competence in the Republic of Macedonia can be filed to any court in the Republic of Macedonia, in which area any property of that person or the object being claimed with the lawsuit is located. (2) If competence of a court in the Republic of Macedonia exists due to the fact that the obligation occurred during the stay of the defendant in the Republic of Macedonia, locally competent shall be the court in the area where the obligation has occurred. (3) In disputes against a person who does not have general local competence in the Republic of Macedonia, a lawsuit, concerning the obligations he should fulfill, can be filed to the court in the area where the obligation should be fulfilled. Competence according to the place where the business unit of the legal entity is located Article 52 For trying in disputes against a legal entity having a business unit out of its head office, if the dispute originates from the legal relation of that unit, in addition to the court of general local competence, the court of the area where that business unit is located shall be competent as well. Competence according to the place where the representative office of a foreign entity in the Republic of Macedonia is located Article 53 In disputes against a natural or legal entity having head office abroad, in regard to the obligations established in the Republic of Macedonia or the obligations that must be fulfilled in the Republic of Macedonia, a lawsuit can be filed to a court in the Republic of Macedonia in which area its permanent representative office for the Republic of Macedonia or the head office of the body being entrusted to perform its activities is located. Competence in military units relations disputes

14 Article 54 In military units' relations disputes against the Republic of Macedonia, exclusively competent shall be the court in the area where the head office of the military unit command is located. Competence in inheritance relations disputes Article 55 Until the inheritance procedure is concluded in legally valid manner, for trying in inheritance relations disputes, as well as in disputes on claims of the creditor towards the decedent, in addition to the court of general local competence, the court in the area where the court that conducts the inheritance procedure is located, shall be locally competent as well. Competence in disputes in an enforcement and bankruptcy procedure Article 56 For trying in disputes occurring during the course and within a judicial or administrative enforcement procedure, i.e. during the course and within a bankruptcy procedure, exclusively locally competent shall be the court in the area where the court that conducts the enforcement i.e. bankruptcy procedure is located, i.e. the court in the area where the administrative enforcement is conducted. Competence according to the place of payment Article 57 For trying in disputes of holders of a bill of exchange or a cheque against the signers, in addition to the court of general local competence, the court in the place of payment shall be competent as well. Competence in labor relations disputes Article 58 If the plaintiff in a labor relation dispute is an employee, in addition to the court being generally locally competent for the defendant, competent shall as well be the court in the area where the work is or has been carried out i.e. the court in the area where the work would have to be carried out, as well as the court of the area where the labor relation is established. Mutual competence in lawsuits against foreign citizens Article 59 If a citizen of the Republic of Macedonia can be sued in a foreign country with a court, which according to the provisions of this Law would not be locally competent to try in such civil matter, the same competence shall apply for trying of a citizen of that foreign country in a court in the Republic of Macedonia.

15 c) Determining local competence by a court of higher instance Article 60 If the competent court cannot act, due to exemption of a judge, it shall thereof directly notify the court of higher instance, which shall determine another actually competent court within its district to act upon that case. Article 61 Upon a proposal of the party or of the competent court, the Supreme Court of the Republic of Macedonia can determine another actually competent court to act upon certain case, provided it is obvious that the procedure will be more easily conducted in that manner, or if other important reasons exist thereof. Article 62 If a court in the Republic of Macedonia is competent to try, but according to the provisions of this Law it cannot be determined which court is locally competent, the Supreme Court of the Republic of Macedonia shall determine, upon a proposal of the party, which actually competent court will be locally competent. d) Agreement on local competence Article 63 (1) If an exclusive local competence of a court is not determined by law, the parties can agree a court not being locally competent, provided that such court is actually competent, to try in first instance. (2) The parties cannot agree on the local competence when Article 45 of this Law is at question. (3) If it is determined by law that for trying in certain dispute, two or more courts are locally competent, and the parties can agree one of these courts or another actually competent court to try in first instance. (4) This agreement shall be valid only if composed in a written form and if it refers to a specific dispute or to several disputes originating from certain legal relation. (5) The plaintiff must enclose the document of the agreement to the lawsuit. Chapter three EXEMPTION Article 64 A judge or a lay judge cannot perform judicial duty if: 1) he is a party, legal representative or a party s attorney-in-fact, if he is in a relation of a co-

16 authorized person, co-obligor or regress obligor with the party, or if he has been heard as witness or expert witness in the same case; 2) he is permanently or temporary employed at an employer who is a party in the procedure; 3) the party or the legal representative or the party s attorney-in-fact, is his blood relative in direct line to any degree, and in indirect line up to the fourth degree, or is his spouse, unwed partner or an in-law up to the second degree, regardless if the marriage has ended or not; 4) he is a guardian, adoptive parent, adopted child, supporter or dependеnt of the party, of its legal representative or attorney-in-fact; 5) he has, in the same case, participated in adopting the decision of the court of lower instance or another body, and 6) there are other circumstances, putting his impartiality in doubt. Article 65 (1) As soon as a judge or lay judge finds out that any of the exemption reasons referred to in Article 64 paragraphs 1 through 5 of this Law exist, he shall be obliged to stop any work on that case and notify thereof the president of the court, who shall appoint a substitute. Should the matter be exemption of the president of the court who is acting upon certain case, he shall appoint a deputy from among the judges of that court, and if that is not possible, he shall act in accordance with Article 60 of this Law. (2) If the judge or lay judge finds out that other circumstances putting his impartiality in doubt exist (Article 64 item 6), he shall thereof notify the president of the court, who shall decide upon the exemption. (3) If the president of the court considers that other circumstances putting his impartiality in doubt exist (Article 64 item 6), he shall thereof notify the president of the immediate court of higher instance, who shall decide upon the exemption. (4) Until adopting the determination referred to in paragraphs (2) and (3) of this Article, the judge can only undertake those actions wherefore risk of postponement exist. Article 66 (1) The parties can only request exemption of the judge i.e. lay judge with whom the procedure is conducted, i.e. the president of the court who should decide upon the request for exemption. (2) A request for exemption shall not be allowed: - of all judges from a single court that could act upon that case, - if it is based on the same reasons i.e. circumstances wherefore it has already been decided, - if the reason, wherefore exemption is requested, has not been elaborated and - for the president of an immediate court of higher instance to decide upon a request for exemption of the president of a court of lower instance. (3) The sole judge or the president of the council, acting upon the case, shall immediately reject the request referred to in paragraph (2) of this Article. (4) A special appeal shall not be allowed against the determination referred to in paragraph

17 (3) of this Article. (5) When a party finds there is a reason for exemption of a judge, lay judge, i.e. president of the court it shall file a request for their exemption before concluding the main contention in the court of first instance at latest, and if a main contention has not been held, before adopting the decision. (6) The party can submit a request for exemption of a judge from a court of higher instance within the legal remedy or as a response to the legal remedy, and if a contention is being held with the court of higher instance then before the closing of the contention. Article 67 (1) The president of the court shall decide upon the party s request for exemption, unless otherwise determined by this Law. (2) If the party requests exemption of the president of the court, a decision on exemption shall be adopted by the president of the immediate court of higher instance. (3) The request of the parties for exemption of a judge of the Supreme Court of the Republic of Macedonia shall be decided by the president of that court, and the request for exemption of the President of the Supreme Court of the Republic of Macedonia shall be decided by the Supreme Court of the Republic of Macedonia at a general session of that court. (4) Prior to the adoption of the determination on exemption, a statement of the judge or the lay judge, whose exemption is requested, shall be taken, and if necessary other inspection shall be made as well. (5) An appeal shall not be allowed against the determination approving the request for exemption, and a special appeal shall not be allowed against the determination rejecting or refusing the request. Article 68 (1) When a judge or lay judge, president of the council, member of the council or the president of the court, finds out that a request for his exemption has been submitted, he shall be obliged to immediately stop the work on the relating case, and if an exemption as referred to in Article 64 paragraph 6 of this Law is at question, he can only undertake those activities for which there is a risk of delay before the adoption of the determination upon the request.. (2) The sole judge or the president of the council, as an exception to paragraph (1) of this Article, can by means of a determination, against which a special appeal is not allowed, decide and further continue the work should he assess that the request for exemption is obviously requested for the purpose of obstructing the court while undertaking certain activities, i.e. for the purpose of postponing the procedure. (3) If the request for exemption is approved, the sole judge or the president of the council taking over the conduct of the procedure shall abolish the actions being undertaken or the decision being adopted in accordance with paragraphs (1) and (2) of this Article.

18 (4) The court shall fine the party, intervenor, attorney-in-fact or legal representative, with the fine referred to in Article 10 paragraphs (2) and (3) of this Law, if it determines that the request for exemption has been submitted for the purpose of obviously obstructing the court while undertaking certain activities or for the purpose of postponing the procedure. (5) Upon a request of the opposing party, the court shall by means of a determination, without delay, decide on the compensation of procedure costs having been caused to the party by submitting the ungrounded request for exemption. A separate appeal shall not be allowed against that determination, and enforcement can be demanded even before it becomes legally valid. Аrticle 69 (1) The provisions for exemption of a judge and lay judge shall also apply to the minute taker. (2) The sole judge i.e. president of the council shall decide upon the exemption of the minute taker. Chapter four PARTIES AND THEIR LEGAL REPRESENTATIVES Article 70 (1) Any natural person or legal entity can be a party in a procedure. (2) It shall be determined by special regulations who can be a party in a procedure, beside the natural persons and legal entities. (3) As an exception the litigation court can, with a legal action in certain procedure, recognize the capacity of the party and of those forms of joining that lack the capacity of a party, in terms of the provisions of paragraphs (1) and (2) of this Article, should it be confirmed that, in regard to the subject of the dispute, they actually meet the conditions for acquiring the capacity of a party and should they have at their disposal property whereof enforcement can be conducted. (4) A special appeal shall be allowed against the determination referred to in paragraph (3) of this Article, by means of which the role of a party in the procedure is recognized. Article 71 (1) The party, having full capacity to contract, can perform the activities in the procedure by itself (litigation capacity). (2) An adult person whose capacity to contract has been partially limited shall have litigation capacity within the limits of his capacity to contract. (3) A minor not having obtained full capacity to contract, shall have litigation capacity within the limits of his recognized capacity to contract.

19 Article 72 (1) The party without litigation capacity shall be represented by its legal representative. (2) The legal representative shall be determined by law or an act of the competent state body. Article 73 (1) On behalf of the party, the legal representative can undertake all actions in the procedure, but if special regulation determined that for filing or withdrawing a lawsuit, accepting i.e. waiving a petition, concluding a settlement or undertaking other activities in the procedure the legal representative has to have a special authorization, he can only undertake such actions if he holds the proper authorization. (2) The person appearing as legal representative shall be obliged to prove, upon a court s request, that he is legal representative. When a special authorization is required for undertaking certain actions in the procedure, the legal representative shall be obliged to prove that he holds such an authorization. (3) When the court assesses that the legal representative of a person under guardianship does not pay due attention while representing, it shall thus inform the Social Service Center. If damage could be caused to the person under guardianship as a result of an omission by the representative, the court shall stop the procedure and propose appointing of another legal representative. Article 74 During the entire course of the procedure the court shall ex-officio mind whether the person appearing as party can in fact be a party in the procedure and whether it has the litigation capacity, whether the party lacking litigation capacity is represented by its legal representative and whether the legal representative holds special authorization when necessary. Article 75 (1) When the court confirms that the person appearing as a party cannot be a party in the procedure, and that this flaw can be eliminated, it shall call upon the plaintiff to perform the necessary corrections in the lawsuit, or it shall undertake other measures so that the procedure could continue with the person who can be a party in the procedure. (2) When the court determines that the party does not have a legal representative or that the legal representative does not hold a special authorization when necessary, it can require the Social Service Center to appoint a guardian to a person lacking the litigation capacity, i.e. call up the legal representative to obtain a special authorization or it shall undertake other measures necessary for the party lacking litigation capacity to be rightfully represented. (3) The court shall determine a deadline to the party for eliminating the flaws referred to in paragraphs (1) and (2) of this Article. (4) Until these flaws are eliminated, only those actions, the delay of which could result in

20 harmful consequences for the party, can be undertaken. (5) If the stipulated flaws cannot be eliminated or if the determined deadline expires without success, the court shall with a determination abolish the actions conducted in the procedure, if they have been affected by the referred flaws, and if the flaws are of such nature that they hinder the further conduct of the procedure, it shall dismiss the lawsuit. (6) An appeal against the determination specifying measures for eliminating the flaws shall not be allowed. Article 76 (1) If it is evident, during the course of the procedure with the court of first instance, that a regular procedure concerning the appointment of a legal representative to the defendant would last long, thus causing harmful consequences for one or both parties, the court shall appoint a temporary representative to the defendant. (2) The court shall appoint a temporary representative under the condition referred to in paragraph (1) of this Article, especially if: 1) the defendant lacks the litigation capacity or has no legal representative; 2) opposing interests of the defendant and his legal representative exist; 3) both parties have the same legal representative; 4) the temporary place of residence of the defendant is unknown, and the defendant does not have an attorney-in-fact and 5) the defendant or his legal representative, who have no attorney-in-fact in the Republic of Macedonia, are abroad and service of process could not have been performed. (3) The court shall without delay notify the Social Service Center, as well as the parties when possible, of the appointed temporary representative. Article 77 (1) The temporary representative shall have all rights and duties of a legal representative in the procedure being appointed for. (2) The temporary representative shall exercise those rights and duties as long as the defendant or his attorney-in-fact does not appear in court, i.e. as long as the Social Service Center does not notify the court that it has appointed a guardian. Article 78 (1) If a temporary representative has been appointed to the defendant pursuant to the reasons referred to in Article 76 paragraph (2) items 4 and 5 of this Law, the court shall issue an announcement which will be published in the Official Gazette of the Republic of Macedonia, posted on the court s notice board, and if necessary in another suitable way. (2) The announcement should contain: designation of the court having appointed the temporary representative, legal grounds, name of the defendant who is being appointed a representative, subject of the dispute, name of the temporary representative and his occupation and place of temporary residence, as well as a notice that the representative shall

21 represent the defendant in the procedure as long as the defendant or his attorney-in-fact does not appear in court, i.e. as long as the Social Service Center does not inform the court that it has appointed a guardian. Article 79 A foreign citizen, who according to the law of his country of citizenship does not have litigation capacity, but according to the law of the Republic of Macedonia has, can individually undertake actions in the procedure. The legal representative can undertake actions in the procedure only until the foreign citizen does not state that he individually takes over the conduct of the litigation. Chapter five ATTORNEYS-IN-FACT Article 80 (1) The parties can undertake actions in the procedure individually or by attorneys-in-fact, but the court can call up the party having attorney-in-fact to personally declare itself in court regarding the facts that need to be determined in the litigation. (2) The party being represented by an attorney-in-fact can, in spite of its attorney-in-fact, give statements to the court. Article 81 (1) The following can be a party s attorney-in-fact: - an attorney at law, - a person law graduate being in a labor relation with the party and - blood relative in direct line, sibling or spouse, provided he has full capacity to contract. (2) If a person appears as an attorney-in-fact contrary to the provisions referred to in paragraph (1) of this Article, the court shall adopt a determination disabling that person from further representation, and shall notify the party thereof. (3) A special appeal shall not be allowed against the determination referred to in paragraph (2) of this Article. Article 82 If the value of the subject of the dispute exceeds 1, Denars, an attorney-in-fact of a legal entity can be a person who is a law graduate with passed judicial exam and being in a labor relation with the legal entity. Article 83 (1) The actions undertaken by the attorney-in-fact within the limits of the letter of attorney shall have the same legal effect as if they were undertaken by the party itself.

22 (2) The state bodies, bodies of the state administration, units of the local self-government and persons performing public authorization, shall be obliged upon a request of the party or its attorney-in-fact, to submit documents and data being of interest to the conduct of the litigation procedure, within a time period of 30 days as of the day of receipt of the request. Article 84 (1) The party can alter or withdraw the statement of its attorney-in-fact at the hearing when that statement has been given. (2) If the attorney-in-fact has admitted a fact at the hearing where the party has not been present, or has admitted a fact in a submission, and subsequently the party alters or withdraws such admitting, the court shall assess both statements in terms of Article 207 paragraph (2) of this Law. Article 85 (1) The scope of the letter of attorney shall be determined by the party. (2)The party can authorize the attorney-in-fact to undertake certain actions only, or to undertake all the actions in the procedure. Article 86 (1) If the party has issued to the attorney at law a letter of attorney to conduct the litigation, and has not determined the authorizations in the letter of attorney in detail, the attorney at law, on basis of such letter of attorney shall be authorized to: 1) perform all actions in the procedure, and especially file a lawsuit, withdraw a lawsuit, accept or waive a petition, conclude a settlement, submit a legal remedy and withdraw it or waive it, as well as to request temporary measures for securing; 2) to submit requests for enforcing or securing, and to undertake necessary actions in the procedure due to such a request and 3) to accept the ruled costs from the opposing party. (2) The attorney at law shall need a special letter of attorney for submitting a proposal for repeating the procedure, if more than six months have lapsed as of the legal validity of the decision. (3) Only in court of first instance and in disputes the value of which does not exceed Denars, the attorney at law can be replaced by a paralegal being employed at its office. Article 87 If the party, in the letter of attorney, has not determined in detail the authorizations of the attorney-in-fact, the attorney-in-fact who is not an attorney at law on basis of such a letter of attorney can perform all the actions in the procedure, yet he shall always need explicit authorization to withdraw a lawsuit, accept or waive a petition, conclude a settlement, withdraw or waive a legal remedy and transfer the letter of attorney to another person, as well