Litigation Dispute Resolution Comparative Guide -

1 Legal framework

1.1 What system of jurisprudence applies in your jurisdiction? What implications does this have for litigation?

The judicial system of North Macedonia is based on continental law jurisprudence. The main implication of this is that the courts will base their decisions on the Constitution, and on laws and international agreements ratified in accordance with the Constitution. Also, according to the Constitution, the Supreme Court is the highest court in North Macedonia and ensures uniformity in the application of the law by the courts. The Supreme Court exercises this function by issuing general views and general legal opinions about issues of significance, to ensure the uniform application of the laws by the courts. The general views and legal opinions issued by the Supreme Court in a general session are binding on all councils of the Supreme Court. The Supreme Court also publishes these views and opinions on its website.

1.2 What rules govern litigation in your jurisdiction?

Litigation in North Macedonia is governed by sets of legal norms found in various acts, such as:

the Law on Civil Court Procedure (Official Gazette of the Republic of Macedonia 79/2005, 110/2008, 83/2009, 116/2010 and 124/2015);
the provisions of the Law on the Family that regulate the court process in family disputes (Official Gazette of the Republic of Macedonia 80/1992, 9/1996, 38/2004, 33/2006, 84/2008, 67/2010, 156/2010, 39/2012, 44/2012, 38/2014, 115/2014, 104/2015 and 150/2015);
the provisions of the Law on Enforcement that relate to the enforcement of court judgments (Official Gazette of the Republic of Macedonia 72/2016, 142/2016, 233/2018 and 14/2020);
the provisions of the Law on Notaries relating to the issuance of notary payment orders (Official Gazette of the Republic of Macedonia 72/2016, 142/2016 and 233/2018);
the Law for Securing Claims regarding the Procedure for Interim Measures (Official Gazette of the Republic of Macedonia 87/2007 and 31/2016); and
the Bankruptcy Law (Official Gazette of the Republic of Macedonia 34/2006, 126/2006, 84/2007, 47/2011, 79/2013, 164/2013, 29/2014, 98/2015 and 192/2015).

1.3 Do any special regimes apply to specific claims?

Specific regimes apply to:

labour disputes;
disputes involving the hindering of possession to property;
disputes involving payment orders;
disputes of minor value;
commercial disputes; and
family disputes.

1.4 Which bilateral and multilateral instruments have relevance to litigation in your jurisdiction?

As regulated in the Law on Courts, the courts shall issue their decisions based on the Constitution and on laws and international agreements ratified in accordance with the Constitution. Thus, any bilateral and multilateral instruments which have been ratified in accordance with the Constitution have mandatory application for the courts.

The most significant multilateral treaties that have been ratified by North Macedonia (or to which North Macedonia succeeded from former Yugoslavia) include:

the Hague Convention of 1 March 1954 on Civil Procedure;
the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention);
the 1961 European Convention on International Commercial Arbitration; and
the 1950 European Convention on Human Rights.

2 Judicial structure

2.1 What courts exist in your jurisdiction and how are they structured?

The judicial system in North Macedonia is divided into three levels:

first level – basic courts (27 in total);
second level – appellate courts (four in total); and
third level – the Supreme Court.

The basic courts are established for one or more municipalities whose territory is determined by the Law on Courts.

In the basic courts, a single judge decides on interim measures and civil claims with a value of up to MKD 1.8 million. In cases where the claim exceeds this amount, as well as in certain types of disputes stipulated by law (eg, labour disputes, IP disputes, certain family law disputes), the court acts as a council composed of one professional judge and two lay judges.

The appellate courts decide on appeals of first-instance judgments and decisions of the basic courts. In certain cases, and under the terms and conditions stipulated by law, the parties have the right to challenge appellate court judgments before the Supreme Court.

2.2 What specialist courts or tribunals exist in your jurisdiction?

The system does not recognise specialised courts, but each civil court has the following departments that handle the relevant subject matter:

a civil dispute department;
a labour dispute department;
a commercial dispute department; and
a payment order department.

Administrative disputes are resolved by the administrative courts at first instance and by the higher administrative courts at second instance. Thus, the system does not recognise any specialist commercial or financial courts.

3 Pre-litigation

3.1 What formalities apply before litigation can be commenced in your jurisdiction?

Macedonian law does not prescribe any particular formalities before litigation can be commenced, apart from those set out in question 3.2.

3.2 Do any pre-action protocols or similar rules apply prior to the commencement of litigation? What are the consequences of non-compliance?

In general, there are no pre-action considerations that the parties must take into account before initiating civil proceedings, except in certain cases provided by law (eg, in the event of a material or legal defect, the claimant must inform the other party about the defect within eight days at the latest. If not, the claimant will lose the right to seek court protection).

Also, if the plaintiff intends to present an expert opinion as evidence in court proceedings, that expert opinion should be prepared before the lawsuit is filed and should be delivered to the court along with the lawsuit. The same rule applies for the defendant: if the defendant intends to present an expert opinion as evidence in the court proceeding, that expert opinion, if possible, should be prepared before the response to the lawsuit is filed and should be delivered to the court along with the response to the lawsuit.

In commercial disputes for a monetary claim whose value does not exceed MKD 1 million and which should be resolved through a lawsuit before a court, the parties are first obliged to try to resolve the dispute through mediation before filing the lawsuit.

3.3 What other factors should a party consider before commencing litigation in your jurisdiction?

Under the Law on Court Procedure, where there is a justified fear that it might not be possible to present certain evidence or that its presentation at a later date might be hindered, a party can propose that such evidence be presented either during the proceedings or before initiating the proceedings. The party submitting this proposal must state:

the facts to be substantiated;
the evidence to be presented; and
the reasons why it considers that the evidence could not be presented later or why its presentation at a later date might be hindered.

The name and surname of the opposing party must also be stated in the submission, unless it is unknown due to the circumstances. The submission containing the proposal on providing evidence will be served on the opposing party, if known.

If there is a risk of postponement, the court will decide on the proposal without a statement from the opposing party. In the determination adopting the proposal, the court will:

schedule the hearing at which the evidence will be presented;
state the reasons why the evidence is being presented, as well as the specific evidence being presented; and
assign expert witnesses where necessary.

If the evidence is presented before proceedings are initiated, the minutes (ie, an audio recording of the presentation of evidence) shall be kept at the court where the evidence was presented.

4 Commencing litigation

4.1 What rules on limitations periods apply in your jurisdiction?

Civil claims between individuals and between individuals and legal entities become time barred after five years, except for claims relating to compensation for damages, rent and other cases specified by law, where the statute of limitations is three years. A one-year statute of limitations applies in case of payments relating to water supply, electricity bills and similar.

Claims between legal entities that arise from commercial agreements are time barred after three years.

The parties cannot agree to suspend the statute of limitations. However, the debtor may acknowledge the claim and thereby cease the limitation period, which will start to run again from the date of acknowledgment.

4.2 What rules on jurisdiction and how this is determined apply in your jurisdiction?

The courts of North Macedonia have jurisdiction where the defendant has its domicile or seat in North Macedonia.

The courts of North Macedonia have exclusive competence:

where this is explicitly provided for by law;
for disputes over the establishment, termination or change in status of a trading company, another legal entity or an association of natural or legal persons, and for disputes relating to the validity of decisions of their bodies, where the company, legal entity or association has its registered office in North Macedonia;
for disputes relating to the registration and validity of IP rights, where the application is filed in North Macedonia; and
for disputes relating to ownership and other real estate rights, disputes relating to the obstruction of possession of real estate and disputes arising from rented or leased real estate, or from contracts for the use of an apartment or business premises, where the real estate is located in the territory of North Macedonia.

4.3 Are class actions permitted in your jurisdiction?

The law does not specifically regulate class actions. However, several claimants may file a lawsuit together based on the same legal and factual grounds (eg, in cases involving collective redundancy or compensation for damages). There have been no recent developments in North Macedonia regarding class actions.

4.4 What are the formal requirements for commencing litigation?

The manner in which civil proceedings are commenced depends on the type of document on which the plaintiff bases its claim towards the defendant.

The proceedings should be initiated by the plaintiff filing a proposal against the defendant with a competent notary public (notary payment order) where the plaintiff's claim is based on:

invoices;
promissory notes;
bills of exchange;
public deeds or excerpts from the plaintiff's verified book-keeping records; or
private deeds verified according to the law, including lists for the calculation of interest (trustee deeds).

Based on this proposal, the notary public will reach a decision on enforcement and deliver this to the defendant. The defendant is entitled to file an objection against the decision within eight days of receipt. If the defendant files an objection, the procedure will continue before the court as a procedure initiated through a lawsuit; otherwise, the notary decision becomes final and enforceable. As an exception, if the petition refers to a monetary claim which is proved by trustee deeds and if the obligation must be enforced abroad, the court – rather than a notary – shall issue an order for the defendant to fulfil the petition (court payment order).

If the plaintiff's claim is not based on trustee deeds, civil proceedings are commenced by the filing of a lawsuit by the claimant.

4.5 What are the procedural and substantive requirements for commencing litigation?

There are very strict rules in law on what a lawsuit must contain. If these are not fulfilled, the court may remove the lawsuit due to this deficiency or reject the lawsuit if it was filed by a professional lawyer (ie, an attorney at law).

The filing must be clear and contain everything that is necessary in order to be able to act upon it. In particular, it must include:

the name of the court;
the name and surname of the plaintiff, together with personal identification as proof;
the plaintiff's place of permanent residence (ie, the head office of a company or other legal entity entered in the Central Register of the North Macedonia or another register, with proof from the corresponding register);
the plaintiff's legal representatives and attorneys in fact, if any;
the subject matter of the dispute;
the value of the dispute;
the content of the statement; and
the signature of the party submitting the filing (including electronic signature, email address and contact phone number).

The proceedings commence from the moment the defendant is served with the lawsuit. The service of lawsuits is within the competence of the basic courts. The latest changes to the Law on Civil Procedure, which came into force on 31 January 2016, provide that in commercial disputes for monetary claims whose value does not exceed MKD 1 million and that should be initiated by way of a lawsuit before a court, the parties must first attempt to resolve the dispute through mediation before filing the lawsuit.

4.6 Are interim remedies available in your jurisdiction? If so, how are they obtained?

Interim remedies are available.

For monetary claims, the law provides for the following measures:

a prohibition on the debtor having movables at its disposal and an order for the detention of such items;
a prohibition on the debtor alienating or encumbering its immovables or having other proprietary rights registered on property on its behalf, together with an order for the inclusion of details of the prohibition in a public register;
a prohibition on the debtor selling securities and shares;
a prohibition on a debtor of the debtor paying a claim or surrendering objects to the debtor, and a prohibition on the debtor receiving items, collecting claims and having items at its disposal; and
an order for the finance officer of the debtor or a third party not to approve payment from the debtor's accounts.

For non-monetary claims, the law provides for the following measures:

a prohibition on the alienation or encumbrance of movables that are subject to security;
a prohibition on the alienation or encumbrance of an immoveable that is subject to security, including the inclusion of details of the prohibition in a public register;
a prohibition on the debtor undertaking activities that could cause damage to the creditor;
a prohibition on a debtor of the debtor surrendering items that are subject to security to the debtor; and
payment of salary to an employee during a dispute involving unfair dismissal, if that is necessary to support him or her and his dependants by law while the proceedings are ongoing.

4.7 Under what circumstances must security for costs be provided?

Security is not available as a solution to cover all or part of a party's legal costs. If one of the parties is a foreign legal entity, a domestic party may ask the court to order cautio judicatum solvi if the conditions set out in law are fulfilled.

Under the Macedonian Law on International Private Law, a defendant is not entitled to seek security for costs:

if, in the country of the plaintiff's residence, Macedonian citizens are not required to provide such security;
if the plaintiff has been granted asylum in North Macedonia;
if the plaintiff's claim arises from an employment relationship in North Macedonia;
in case of marital disputes or disputes involving the establishment of or opposition to paternity or maternity, and in case of alimony claims; and
in cases involving claims arising from promissory notes, in case of a countersuit or in case of the issue of a payment order.

5 Disclosure

5.1 What rules apply to disclosure in your jurisdiction? Do any exceptions apply to certain types of documents?

The procedural law includes no obligation to preserve documents or other evidence pending trial.

The law sets out a general obligation for the parties to provide relevant documents supporting the facts declared by them. The parties cannot share these documents between themselves directly – only through the court.

The law does not oblige a party to provide its opponent with a document that is unhelpful to its own case. However, if one of the parties refers to a document that is held by the other party, the court shall order the latter to submit the document within a certain timeframe. The other party cannot refuse to submit the document if:

it has itself referred to that document as evidence in its allegations;
it refers to a document that, according to law, that party is obliged to submit; or
the document, with regard to its content, is considered mutual to both parties.

A party may refuse to provide certain documents for important reasons – especially if:

this would expose the party to shame, significant material damage, personal criminal prosecution or criminal prosecution of his or her relatives; or
the party obtained the document in the performance of his or her professional duties as an attorney, doctor or another profession that is obliged to maintain confidentiality.

If the party ordered by the court to submit a document denies that the document is in its possession, the court can examine evidence to confirm this fact.

5.2 What rules on third-party disclosure apply in your jurisdiction?

The court can order a third party to submit a document only where:

the third party is obliged to submit the document under the law; or
the document, with regard to its content, is considered mutual to the third party and the litigant.

The court will hear the third party before deciding whether it should submit the document. If the third party denies that the document is in its possession, the court can examine evidence to confirm this fact. A decision to provide a document by a third party will be made under the Law on Enforcement.

As an exception, a party or a third party that is required to submit a document need not submit it if:

it contains a business secret or other confidential trade or financial information;
it is protected by an IP right (ie, a patent, industrial design, brand, mark of origin or geographical mark);
it is protected by particular professional authorisations or it is a business secret in accordance with the Law on Law Practice, the Law on Notary Practice or the Law on Health Protection;
it contains a state secret;
there is a reasonable possibility that it may be lost or destroyed;
access is restricted or prohibited by law; or
the privacy of the relevant party or another natural person might be violated by access to the document.

5.3 What rules on privilege apply in your jurisdiction? Does attorney-client privilege extend to in-house counsel?

Macedonian procedural law contains no rules on privilege. The parties are free to present any document that they deem relevant to support their legal position in the litigation. The law provides for general privilege that allows a person who is or was an attorney at law to refuse to give testimony or present a document that was entrusted to him or her by a relevant party as a client (see question 8). If an in-house lawyer is not engaged as a professional attorney at law of the party, but is rather its employee, his or her advice will not be treated as privileged.

5.4 How have technological advances affected the disclosure process in your jurisdiction?

Technology has had no significant impact on the disclosure process.

5.5 What specific considerations should be borne in mind during the disclosure process, for both plaintiff and defendant?

The parties cannot directly exchange written evidence from witnesses and experts prior to trial.

The parties should submit written evidence and expert opinions as enclosures to the lawsuit or to the response to the lawsuit; but in any case, all evidence – including proposals of witnesses to be heard by the court – must be revealed at the preliminary hearing at the latest. All evidence that the court finds relevant must be produced at the main hearing, except for expert opinions, which if possible must be delivered and proposed as evidence along with the lawsuit and the response to the lawsuit. If a party can prove that, due to objective circumstances (eg, lack of documents, lack of time), an expert opinion could not be obtained before the lawsuit (ie, or the response to the lawsuit) was filed, that party may also propose an expert opinion as evidence at the preliminary hearing.

6 Evidence

6.1 What types of evidence are permissible in your jurisdiction?

According to the Law on Litigation Procedure, the following types of evidence are permitted: documents; party testimony; witness testimony; expert opinions; and insight on spot.

6.2 What rules apply to expert evidence in your jurisdiction? What specific considerations should be borne in mind when preparing and presenting expert evidence?

The parties should submit expert opinions as enclosures to the lawsuit or the response to the lawsuit. If a party can prove that, due to objective circumstances (eg, lack of documents, lack of time), an expert opinion could not be obtained before the lawsuit or the response to the lawsuit was filed, that party may also propose an expert opinion as evidence at the preliminary hearing.

Experts provide written opinions and, if necessary, may also be heard by the court and the parties after delivering their opinion. The court may appoint a third expert to provide an opinion where conflicting expert opinions are submitted by each party.

6.3 What other factors should be borne in mind when preparing and presenting evidence in your jurisdiction?

The parties should submit written evidence and expert opinions as enclosures to the lawsuit or to the response to the lawsuit; but in any case, all evidence – including proposals of witnesses to be heard by the court – must be revealed at the preliminary hearing at the latest. All evidence that the court finds relevant must be produced at the main hearing, except for expert opinions, which if possible must be delivered and proposed as evidence along with the lawsuit and the response to the lawsuit. If a party can prove that, due to objective circumstances (eg, lack of documents, lack of time), an expert opinion could not be obtained before the lawsuit or the response to the lawsuit was filed, that party may also propose an expert opinion as evidence at the preliminary hearing.

7 Court proceedings

7.1 What case management powers do the courts have in your jurisdiction?

During the litigation, the court acts according to its status as an entity that is obliged to implement and resolve the dispute between the parties, under established rules determined in accordance with the Constitution, and with laws and international agreements ratified in accordance with the Constitution.

Professional judges are career judges appointed by the Judiciary Council. Lay judges are not professional judges.

In civil proceedings, the judge has a rather passive role: he or she controls the process from the procedural perspective and decides which evidence presented by the parties will be examined during the proceeding. The judge does not collect evidence at his or her discretion.

The lay judges are part of the court council when certain thresholds with regard to the value of the claim or type of a dispute are met. The lay judges have the right to ask questions of the parties or witnesses, to vote for a procedural decision where required and to vote for a judgment. The votes of the lay judges are equal in value to the vote of the professional judge.

7.2 Are court proceedings in your jurisdiction public or private? If the former, are any options available to the parties to keep the proceedings or related information confidential?

Court hearings are public, unless the dispute is a family law dispute or there is a special reason for the court not to allow the public to be present at the hearing. Court documents (eg, pleadings, witness statements and orders) are not available to the public. The court, after the announcement and finalisation of the written filing, will publish its judgment or decision on its website, subject to the protection of the parties' personal data (ie, the names and other relevant data of the parties are not published).

7.3 How is the applicable law determined? What happens in the event of a conflict of laws?

According to the basis of the claim, the court will decide which law is applicable in a particular situation. As a rule, the laws should be in mutual agreement and there should be no conflict of laws. The rules that may be followed in case of a conflict between two laws include the following:

If the court deems that the application of the law in a particular case is contrary to the provisions of an international agreement ratified in accordance with the Constitution, it shall apply the provisions of the international agreement, provided that they may be directly applied;
Lex specialis supersedes lex generalis; and
In case of relations with a foreign element, the Law on International Private Law (Official Gazette of the Republic of Macedonia 87/2008 and 156/2010) shall apply, which regulates certain rules that determine which law is applicable, among other things.

7.4 What rules apply to the joinder of third parties?

In case of the joinder of third parties, those third parties may influence the litigation only from the point at which they intervene in the litigation and must accept the litigation as they find it. During the litigation, they are authorised to make proposals and undertake all other activities that are available to the party to which they are affiliated, within the same timeframes as would apply to that party.

If the joinder of third parties is effected before the legal validity of the decision on the petition has been confirmed, they will be authorised to file an extraordinary legal remedy. In such case, a copy of their submission will also be delivered to the party to which they are affiliated.

The activities of the third parties on behalf of the party to which they are affiliated shall have legal effect, unless they contravene its activities.

With the consent of both litigants, third parties can enter into the litigation on behalf of the party to which they are affiliated.

7.5 How do the court proceedings unfold in your jurisdiction? What specific considerations should be borne in mind at each stage of the process, for both plaintiff and defendant?

Litigation commences with the filing of a lawsuit. The lawsuit, including the enclosures, must be served on the defendant for response within eight days of the date of receipt. In its response to the lawsuit, the defendant must address the requests and claims in the lawsuit and propose evidence to support its responses.

After receiving the response to the lawsuit or after the expiry of the timeframe for submission of the response, within eight days at the latest, the court will schedule a pre-trial hearing, which will be held within 15 days of the date of scheduling at the latest. At the pre-trial hearing at the latest, the parties must state all facts and evidence on which they base their allegations, and submit all documents and items that they intend to present as evidence. At the pre-trial hearing, the court will schedule the main hearing. During the main hearing, the parties' claims and the allegations on which they are based will be heard. After all evidence has been presented, each party – starting with the plaintiff – has the right to briefly address the court with its closing statement, summing up the legal and factual aspects of the case.

7.6 What is the typical timeframe for the court proceedings?

Pursuant to the law, after a lawsuit has been filed, the court will serve notice on the defendant and ask it to file its response within a period specified by the court. This period cannot be longer than 30 calendar days in complex cases or less than 15 calendar days. The parties are obliged to submit relevant evidence as enclosures to the lawsuit or to the response to the lawsuit, and to provide proposals for other evidence to be presented during the proceedings. Upon receipt of the response to the lawsuit, the court will schedule a preliminary hearing for the collection or proposal of evidence. The preliminary hearing may be converted into a main hearing; however, usually the main hearing takes place after the preliminary hearing. At the main hearing, the testimony of witnesses and the findings of experts, where appropriate, will be presented; and the parties will be heard and other evidence examined. First-instance proceedings usually take between six and 12 months.

8 Judgment and remedies

8.1 What types of judgments, orders and other remedies are available in your jurisdiction?

Court decisions are passed in the form of judgments and in the form of resolutions. By way of judgment, the court will decide on the merits of the case. By way of resolution, the court will decide on a procedural issue that is not directly related to the merits of the case.

Depending on the claim in the lawsuit, the court may pass a declaratory, constitutive or condemnatory judgment.

Depending on whether the court decides on all claims or only some of them, the following judgments may be passed: partial judgment, supplementary judgment and inter-judgment.

The court can also adopt a summary judgment based on the explicit or conclusive procedural actions of the parties. Thus, the court may pass a judgment due to:

the defendant's non-submission of a response to the lawsuit;
the defendant's absence;
the plaintiff's cancellation of the claim; or
the defendant's confession.

The court may also pass a judgment without holding a hearing where the defendant, in its response to the lawsuit, admits the decisive facts, but not the claim itself.

Furthermore, where the plaintiff's claim is based on trustee deeds (eg, invoices, certified agreements – see question 4.4), the court may issue a payment order obliging the defendant to pay the plaintiff the amount of the lawsuit claim.

9 Appeals

9.1 On what grounds may a judgment be appealed in your jurisdiction?

A judgment can be appealed on the following grounds:

an actual violation of the provisions on litigation procedure;
incorrect or incompletely determined factual conditions; or
misapplication of the material law.

9.2 What is the appeals process? Is the judgment stayed while the appeal is pending?

A first-instance court decision may always be appealed, unless the party entitled to lodge an appeal has waived this right. The general term for appeal is 15 calendar days from the date of receipt of the decision. In certain cases, such as labour disputes and commercial disputes, the term for appeal is eight calendar days. In certain cases stipulated by law, the parties have the right to challenge the appellate court judgment at the Supreme Court (eg, if the value of the claim is more than MKD 1 million in civil disputes and more than MKD 1.5 million in commercial disputes; in certain family cases; in IP cases) by filing a revision, which is an extraordinary legal remedy. The term for filing this remedy is 30 calendar days from the date on which the second-instance court decision was received.

A timely appeal prevents that part of the judgment which is refuted by the appeal from taking effect (suspensive action).

In proceedings involving interim measures, an appeal against the decision does not delay execution of the decision. Also, an appeal to the Supreme Court does not delay execution of the decision.

9.3 What specific considerations should be borne in mind during the appeals process, for both plaintiff and defendant?

If, during the first-instance proceedings, a party does not raise an objection that the claim is time barred or for the set-off of mutual rights and obligations between the parties, that party cannot raise such objection on appeal.

Also, no new evidence may be filed with an appeal against a first-instance decision.

If a party that has won the dispute in its entirety appeals the decision, the court will dismiss this appeal as inadmissible without holding a hearing, because the party has no legal interest in lodging an appeal.

If the appellate court finds that the judgment being appealed was based on an actual violation of the provisions on litigation procedure or on an incorrect and incompletely confirmed factual condition, and the judgment has thus been abolished, the appellate court shall schedule a hearing to decide on the merits.

An appeal filed in bankruptcy cases must be accompanied by proof of payment of the court fee; otherwise, it will be dismissed.

10 Enforcement

10.1 How are domestic judgments enforced in your jurisdiction?

The enforcement procedure is regulated in the Law on Enforcement and is conducted by enforcement agents licensed by the Ministry for Justice of North Macedonia.

A court decision becomes enforceable if:

it has become final (ie, an appeal has been rejected or not allowed, or has not been filed within the mandatory deadline); and
the timeframe for voluntary fulfilment of the debtor's obligations has expired. This timeframe begins to run from the date on which the decision is delivered to the debtor.

A request for execution of the enforcement deed is submitted by the creditor to the competent enforcement agent in writing, enclosing the original enforcement document with an enforcement seal on the judgment.

Upon service of the enforcement deed, the enforcement agent is authorised to select the means of enforcement and to collect the creditor's claim from any assets of the debtor that may be the subject of enforcement.

Any action undertaken by the enforcement agent may be challenged before the basic court at the place where the enforcement agent is registered. The basic court's decision may be appealed to the competent appellate court.

10.2 How are foreign judgments enforced in your jurisdiction?

A foreign court decision is equated to a local court decision and has legal effect in North Macedonia only if it has been recognised by a court of North Macedonia.

Foreign judgments will be recognised by the Macedonian courts if the following conditions are met:

The party has provided the original or a duly verified copy of the judgment;
The award is confirmed as final by the relevant authority;
The judgment is confirmed as enforceable by the relevant authority;
There was no violation of due process in the foreign procedure against the opposite party;
A Macedonian court does not have exclusive jurisdiction over the subject matter of the dispute;
There was no agreement between the parties that the Macedonian courts were competent to resolve the dispute;
There is no res judicata in the substantive case; and
The judgment is not contrary to Macedonian public order.

10.3 What specific considerations should be borne in mind during the enforcement process, for both plaintiff and defendant?

The enforcement of a judgment is handled by enforcement agents. Enforcement may be addressed to movable and immovable property of the debtor, as well as claims against third parties.

In case of non-compliance with enforcement over the debtor's share in a trading company, the court will issue a monetary fine against the company and the manager. A fine will also be issued in the case of obstruction of enforcement of a non-monetary claim.

The Criminal Code provides for the criminal liability of a responsible person in a legal entity that refuses to execute a final and enforceable court decision. The punishment is a monetary fine or imprisonment for up to three years.

11 Costs, fees and funding

11.1 What costs and fees are incurred when litigating in your jurisdiction?

Litigation costs encompass all expenditures incurred during the course of the proceedings or as a result thereof. They may include court fees, experts' fees, translation costs for evidence, the administrative costs for obtaining documents and so on.

The litigation costs shall also comprise the fees of the attorneys at law engaged by the parties.

Each party must cover its costs in advance.

A party which completely loses the case shall be obliged to compensate the costs of the winning party and its attorneys.

If a party only partially succeeds in the case, the court can, in light of the degree of success achieved, order that each party cover its own costs or that the partially successful party be reimbursed a proportional part of its costs and those of its attorneys.

11.2 Are contingency fees and similar arrangements permitted in your jurisdiction?

The Advocacy Tariff allows a client and its attorneys to enter into an agreement about fees, notwithstanding the official tariffs; but in such case the amount of the agreed fees cannot be lower than the amount of the fees regulated under the Advocacy Tariff. Therefore, contingency fees and similar agreements between lawyers and their clients are not permitted.

11.3 Is third-party funding permitted in your jurisdiction?

The Law on Civil Court Procedure does not expressly permit third-party funding.

11.4 What other strategies should parties consider to mitigate the costs of litigation?

The main strategy for parties to mitigate the costs of litigation is to structure the litigation in such a way as incurs the lowest possible litigation costs. This may be done by reducing the number of written filings and ensuring the timely delivery of all necessary evidence to the court. Also, the parties may conclude a court settlement in the court of the litigation under which each will bear its own costs on completion of the proceedings, unless otherwise agreed in the settlement.

12 Trends and predictions

12.1 How would you describe the current litigation landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

In the past few years, certain changes to the relevant laws have been introduced to increase the courts' efficiency.

As a result of the adoption of the Law on Civil Court Procedure in 2005 and subsequent amendments thereto in 2010 and 2015, the duration of proceedings has been significantly reduced and the backlog at the courts has been addressed by exempting payment orders and inheritance proceedings from the jurisdiction of the courts, which for many years had increased the burden on the judicial system.

The latest amendment to the Law on Civil Court Procedure was made in 2015. A working group of the Ministry of Justice has been established to prepare new amendments to the law, which may be introduced during 2021 and which are expected to address certain weaknesses in the application of the Law on Civil Court Procedure.

13 Tips and traps

13.1 What would be your recommendations to parties facing litigation in your jurisdiction and what potential pitfalls would you highlight?

The main goal of each party is to secure a favourable judgment which enforces or safeguards its subjective rights. In order to increase the chances of obtaining such a verdict, litigants should engage legal counsel with sufficient professional knowledge and experience to achieve this, and should share all relevant documents and evidence with counsel.

Parties should also disclose to their legal counsel all relevant information with the necessary supporting evidence prior to undertaking any procedural action, because failure to present evidence within the terms prescribed in the Law on Civil Court Procedure may result in the evidence becoming inadmissible.

Moreover, at the beginning of the litigation, the party and its legal counsel should analyse all relevant documents to identify all potential outcomes and ensure that the relevant facts and law are understood. This will allow them to make informed decisions as to how best to proceed.

Furthermore, a party should not undertake any action following a proposal from the opposite party without consulting its legal counsel.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

North Macedonia: Litigation Dispute Resolution Comparative Guide