COURTS AND ARBITRATION
Courts
The Court system of Estonia consists of three levels. The courts of first instance are the city, county and administrative courts. The first appelate courts are called the district courts, and the highest court is the Supreme Court.
City and county courts are permitted to examine civil, criminal and administrative cases. Administrative judges of the regular city and county courts ordinarily handle administrative cases, but the law also provides the possibility of establishing separate administrative courts in certain circumstances. Currently there is an administrative court in Tallinn. The President, at the proposal of the Supreme Court, appoints the judges of these courts.
The judges of the courts of first instance handle either civil and criminal law cases or administrative cases. The administrative cases include smaller violations not serious enough to belong to the field of criminal law and also disputes arising from public law. Issues of public law include disputes and complaints regarding administrative acts.
Decisions made by courts of first instance are reached by a single judge or by one judge and two assessors. Estonian citizens who are between 25 and 65 years of age, who live permanently in Estonia, may act as assessors. Persons who have been punished for an intentional crime, are of poor health, have lived in their current municipality for less than one year, or who work in the court system, prosecutor’s office, police or defense forces may not be assessors. Assessors are elected to five-year terms by secret ballot of the relevant municipal government. Assessors receive immunity from legal prosecution that can be lifted only by the municipal government which elected them to the position.
Estonian civil procedure requires that parties pay a so-called “state-fee” in order to file for their claim before the court. In most cases the amount in question is equal to approximatly 3% of the value of the relevant claim.
District courts act as courts of appeal. Their principal function is to review the decisions of the courts of first instance.
The Supreme Court is the highest court in Estonia. The Chief Justice of the Supreme Court is appointed by the Riigikogu (Parliament) at the proposal of the President of the Republic. Based on the proposal of the Chief Justice of the Supreme Court the Parliament appoints the other judges of the Supreme Court. The Supreme Court consists of the Supreme Court en banc, as well as the civil, criminal and adminstrative chambers and the chamber for constitutional review.
The Supreme Court en banc consists of all 17 members of the court and is competent to act when at least 11 members are present. Decisions are made by majority vote and ties are decided by the Chief Justice of the court. The main functions of the Supreme Court en banc include handling disciplinary matters related to judges, developing procedures for the nomination of judges, developing regulations for the Supreme Court and handling other court procedures.
Similarily to the US Supreme Court, the Supreme Court of the Republic of Estonia is not required to take every case of significance; the court may choose which cases that it wishes to review. More specifically an Appeals Selection Committe consisting of the judges of the Supreme Court decides whether or not the court shall consider a case. This board has a rotating membership of three. The court shall consider cases which any of these three members consider important.
Arbitration
Arbitration is widely accepted and Estonia is a member of the New York Convention of 1958 on the Recognition of Arbitral Awards. Generally speaking, Estonian courts respect arbitration cases handled outside Estonia. However, an arbitration clause must be specifically provided in the agreement, which means that the consent of both parties is required to solve a dispute through arbitration.
Estonia also has its own arbitration court that is operated by the Estonian Chamber of Trade and Industry.
(To be continued)
Estonian Business Law: A comprehensive summary (15)
Archived Articles | 22 Oct 2002 | EL (Estonian Life)EWR
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