Covid-19 impact on civil and insolvency matters

1 Covid-19 impact on civil proceedings

1.1 Time limits in civil proceedings

The Decree of March 13 of the President of the Supreme Court on the basis of a proposal by the Minister of Justice, determined that except in the urgent matters, procedural deadlines are suspended.

A Law on temporary measures in judicial, administrative and other public matters in order to damage control of the spreading of the SARS-CoV-2 (COVID-19) was adopted on 20 march 2020 and came into force on 29 March 2020. All the measures determined in this law and any other measures taken on the basis of this law are valid until it is established by the decision of the Government, that the reasons for these measures have ceased, but at the longest until 1 July 2020.

The Law introduced provisions for all time limits (material and procedural). Time limits to bring up a claim in judicial proceedings), which are determined by law, are suspended as from 29 March 2020. Deadlines in judicial proceedings (procedural deadlines) are also suspended as from 29 March 2020, except in judicial matters that are established as urgent.

In addition, the deadline to lodge the constitutional complaint is suspended.

Time limits will continue to run after the measures determined by the Law will expire.

The Act Amending the Provisional Measures Act in Relation to Judicial, Administrative and Other Public Law Matters to Control the Spread of the Infectious Disease SARS-CoV-2 (COVID-19) was adopted on 29 April.

Procedural and material deadlines are still not running, and the measures enable a gradual transition to further normal operations and at the same time protect the weakest.

1.2 Judicial organization and Judiciary

The Act Amending the Provisional Measures Act in Relation to Judicial, Administrative and Other Public Law Matters to Control the Spread of the Infectious Disease SARS-CoV-2 (COVID-19) presents a legal basis for judicial and administrative bodies and other public authorities to hold oral hearings, hearings, decide and serve in non-urgent matters, but still under conditions of uninterrupted security, work for employees and for clients.

Courts and other judicial bodies, which during this time also made many decisions in cases that were not defined as urgent, will send or serve these decisions to parties who are otherwise acquainted with them, but are not obliged and bound by the entry into force of this Act do nothing if they do not want to, as deadlines, both procedural and material, are still not running. However, if they wish, they can take individual actions that will enable the institutions to function smoothly and thus be able to obtain their rights sooner.

In the area of enforcement, enforcement is suspended. After the amendment enters into force, courts will also be able to issue enforcement and insurance orders and serve them on clients in non-urgent cases that began to run before the introduction of measures due to the epidemic. In these cases, the parties will not be obliged to respond immediately, as the deadlines in non-urgent cases do not run, and the legal solution according to which enforcement is still in force (except in urgent cases, such as the recovery of maintenance) will still be in force, for enforcement proceedings which were stopped or postponed during the epidemic. Of course, this does not mean that the party that would like to respond is limited in this.

In the classical civil or litigation field, the courts will be able to issue a judgment and also serve it on the parties if they are in a non-urgent lawsuit before the introduction of the measures before the main hearing. The parties will therefore be served with the judgment, but the time limits are not running. In this way, we will make an important contribution to the gradual elimination of the stalemate in the operation of the courts.

Also in the field of land registry matters, the Ministry's proposal enables the gradual release of cases. The decision on the land registry proposal can become final, although the deadlines do not run, but only if, for example, all parties waive the right to appeal. The same applies to entries in the land register. The parties have so far been able to submit a land registry proposal and thus ensure the protection of the order.

The new proposed regime, for the duration of the epidemic, allows insolvency parties to submit their application, statement or document after the deadline, the reason for the delay is the COVID 19 epidemic and the court has not yet ruled, such a late application is still considered and does not reject it after the deadline. Such an intervention legal basis, which loosens the severity and irreversibility of acts in insolvency proceedings, will also be an important circumstance in the eventual assessment of the President of the Supreme Court of the Republic of Slovenia to determine insolvency proceedings as urgent proceedings.

The Decree of 5 May of the President of the Supreme Court that supersedes the previous decrees:

The courts will continue to decide and hold hearings in urgent cases, in accordance with the provisions of Article 83 of the Courts Act and the order of the President of the Supreme Court. With the new order, the President of the Supreme Court has been expanding the range of urgent cases since 5 May 2020. The latter also include cases of compulsory settlement and bankruptcy, in which a decision on the commencement of proceedings was issued by 30 March 2020.

During the duration of the special measures, the parties, their proxies and other persons who want information related to a particular procedure and have not received a summons to appear in court, must be notified in advance during public hours via publicly published e-mail addresses and telephone numbers.

1.Decision-making of courts in urgent and non-urgent cases

Due to the occurrence of an extraordinary event, i.e. epidemic of infectious disease SARS-CoV-2 (COVID-19) - coronavirus, which can greatly impede the smooth or regular exercise of jurisdiction and to prevent the spread of viral infection epidemic of infectious disease SARS-CoV-2 (COVID-19) - coronavirus, protection health and life of people and ensuring the functioning of the judiciary, all courts from 5 May 2020 hold hearings, decide and serve court documents:

1. in cases which are not urgent in accordance with Article 83 of the Courts Act and which are not considered as urgent in accordance with this Order, if the courts may ensure the performance of these acts in accordance with the conditions laid down in this Order and in other measures ,determined on the basis of this order by the President of the Supreme Court of the Republic of Slovenia, and in such a way that the viral infection and the guaranteed health and life of people are not spread, and
2. in urgent matters, as provided for in Article 83 of the Courts Act, of which the following, however are not considered as urgent:

b.1. in matters of insurance, acts requiring the personal contacts of bailiffs, interested parties and other persons in these proceedings and the performance of such acts is not necessary in order to avert the danger to human life and health or to property of greater value,

b.2. bill of exchange and check protests and bill of exchange lawsuits,

b.3. inventory of the decedent's property,

b.4. compulsory settlement and bankruptcy cases in which no decision to initiate proceedings has been issued by 30.3.2020 inclusive,

2. Basic measures for the smooth exercise of judicial power in the matters refer:

2.1. Access to the court

The courts shall determine the point of entry into the court building for the parties, their proxies and other persons, and the point of entry into the court building for judges and court staff, where it is spatially possible. At the entry points, all necessary preventive measures shall be taken to prevent viral infection and a written notice shall be published for all entrants of the preventive measures in force in force on the court premises.

Except in cases of urgency during the duration of the special measures of a party, their proxies and other persons shall: 1. submit applications only by post or via the national e-Justice portal in procedures where this is possible, 2. use published e-mail addresses and telephone numbers during office hours to communicate with the courts.

During the duration of the special measures, the parties, their proxies and other persons who request information regarding the proceedings and are not summoned to court must notify the previously published e-mail addresses and telephone numbers during office hours.

2.2. Court sessions, sittings of the court and hearings

Court sessions, sittings and hearings shall, if the technical and spatial conditions are met, normally be conducted by videoconference.

At court sessions, sittings and hearings not held by videoconference, the distance to other persons hast to be at least two meters, all must wear protective equipment and the room must be disinfected.

2.3. Participation of public in the main hearing

In order to prevent the spread of viral infection, to protect human health and life and to ensure the functioning of the courts and to ensure the exercise of rights and obligations, a judge or the presiding judge may temporarily exclude the public from all or part of the main hearing.

2.4. Other measures

Other measures are additionally determined for all courts by the President of the Supreme Court of the Republic of Slovenia, and for an individual court by each President of the Court.

Validity of the order and other measures

This order and other measures determined on its basis shall remain in force until the publicly announced revocation of the President of the Supreme Court of the Republic of Slovenia.

1.3 EU Judicial Cooperation

The Central authority for Regulation (EC) No 1393/2007 and the Council Regulation (EC) No 1206/2001 (Ministry of Justice) established a system of teleworking. Therefore, communication should be transmitted as much as possible via e-mail instead of paper mail, to the following e-mail address: gp.mp@gov.si. Due to these special circumstances, transmitting of requests in paper mail to competent courts may be delayed.

The Ministry of Labour, Family, Social Affairs and Equal Opportunities, the Central Authority under the Council Regulation (EC) No 2201/2003 has established a system of remote working, reducing physical presence at workplaces to a minimum. In view of the current situation, and as long as this situation persists, the Central Authority cannot guarantee the normal processing of all incoming requests. Processing of incoming applications can only be guaranteed when received by e-mail to gp.mddsz@gov.si. They strongly encourage keeping all communications by electronic means. Outgoing requests will be sent exclusively by electronic means.

Public Scholarship, Development, Disability and Maintenance Fund of the Republic of Slovenia, the Central Authority under the Council Regulation (EC) No 4/2009 is currently operating remotely from home. Therefore, the Central Authority would appreciate if the communications were sent via e-mail to the following e-mail address: jpsklad@jps-rs.si. The Central Authority will also communicate and send requests via email.

2 Insolvency related measures adopted or planned for adoption in member states after the outbreak of the pandemic

2.1 Substantive insolvency measures and related contracts affecting measure

2.1.1 Insolvency suspension

2.1.1.1 Suspension of duty to file for insolvency (debtors)

Law passed on 02-04: deferral of the obligation to file for insolvency and initiate the compulsory settlement procedure, if the insolvency is due to the Covid crisis.

Rebuttable presumption of a covid-related insolvency if the Government or local authorities mention the company’s activity in a list. If no presumption, proof that the insolvency is due to the epidemic must be given.

2.1.1.2 Protection of debtors about insolvency filing from creditors

If the company is declared insolvent due to the epidemic and when requested by creditors, time limit to achieve restructuration (or to end the insolvency proceeding) is extended by 4 month.

2.1.2 Claim enforcement suspension and contract termination suspension

2.1.2.1 General / specific moratoria on claims enforcement / certain types of claims enforcement

In the area of enforcement, enforcement is suspended. After the amendment enters into force, courts will also be able to issue enforcement and insurance orders and serve them on clients in non-urgent cases that began to run before the introduction of measures due to the epidemic. In these cases, the parties will not be obliged to respond immediately, as the deadlines in non-urgent cases do not run, and the legal solution according to which enforcement is still in force (except in urgent cases, such as the recovery of maintenance) will still be in force, for enforcement proceedings which were stopped or postponed during the epidemic. Of course, this does not mean that the party that would like to respond is limited in this.

2.1.2.2 Suspension of contract termination (general / specific contracts)

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2.2 Civil, including insolvency courts suspension and procedural suspensions

Insolvency Cases (except for auctions) were first classified urgent (from 13-03) then non-urgent (from 31-03), meaning that hearings are cancelled.

During the epidemic, the Insolvency Court would not open an Insolvency case (some exception possible for workers with a terminated contract due to epidemic).

The new proposed regime with The Covid-19 Act passed on 29 April, for the duration of the epidemic, allows insolvency parties to submit their application, statement or document after the deadline, the reason for the delay is the COVID 19 epidemic and the court has not yet ruled, such a late application is still considered and does not reject it after the deadline. Such an intervention legal basis, which loosens the severity and irreversibility of acts in insolvency proceedings, will also be an important circumstance in the eventual assessment of the President of the Supreme Court of the Republic of Slovenia to determine insolvency proceedings as urgent proceedings.

2.3 Other insolvency measures (those relating to avoidance actions, reorganization plans, informal agreements, and others if appropriate)

An additional irrefutable presumption was introduced: if the employer profit from special Covid measures to protect workers’ salaries, it must be paid by 1 month the latest. If not, the employer is deemed insolvent. The measure is in force until 4 months after termination of special measures.

2.4 Related non-insolvency measures (payment deferrals, bank loans, social security, health insurance, business subsidies)

In credit, payment are deferred (specific provision).

All revenues obtained from special Covid legislation are excluded from fiscal and civil enforcement (including personal bankruptcy).