By Peter Bury, Editor at Crodiaspora and Politicorp
A nation is built by its people and stabilized by its institutions. Croatia is a nation still under construction, and while Croatians abroad and in the homeland alike seek to reform and refine the systems that govern our country, there is still much to be done. As part of this year’s virtual Crodiaspora Summit, prominent lawyers and members of the Crodiaspora executive team, Don Markušić and Monika Maretić provide a comprehensive overview of the legal system in Croatia especially as it pertains to the business and investment environment.
One major flaw with the Croatian legal system is the often-obstructive intersection between the realms of law and politics. Marion Duzich, a returnee businessman from Texas has allegedly encountered firsthand the troubles that diaspora investors face in dealing with local political barriers, and has hired Markušić and Maretić to support his and the people of Croatia’s interests.
An expanding resort faces problems with the municipality
About twenty years ago, Duzich returned to Croatia and purchased the then-government-owned Supetrus Hoteli in Supetar on the island of Brač. In 2005, Duzich acquired a football pitch adjacent to his hotel complex, hoping to build a public parking garage to alleviate the issues the city has with parking during the tourist seasons. Understanding that this would leave Supetar without a football pitch, Duzich offered out of good will to build a state of the art pitch about three kilometres away which would include brand new bleachers, changing rooms, a snack and coffee bar, and accommodating parking.
Despite his best intentions for the people of Supetar, the city’s mayor has allegedly continuously blocked and stifled Duzich’s attempts to bring significant investment into the city in direct partnership with the local people. For Croatia to prosper, it is important that Croatians, domestic and abroad, recognize that a cooperative and united business environment is needed. Alleged legal issues like this are precisely the reason why Croatia continues to be held back from social and economic growth, and it is the responsibility of the Croatian people to elect representatives who strive to see local communities succeed.
Represented by Don Markušić and Cherie Blair, wife of former British Prime Minister, Tony Blair, Mr. Duzich is suing the Republic of Croatia in Washington D.C.’s arbitration courts due to the alleged actions of Supetar’s mayor for violating the Croatia Bilateral Investment Protection Treaty with the United States.
Lawyers comment on the legal system
With legal institutions in Croatia still not entirely refined, the system as a whole faces several major challenges. Maretić explains that the majority of shortcomings associated with Croatia’s legal system stem from unreasonable delays for proceedings, a judiciary lacking specialization, and inconsistencies in court judgements. Citing a popular legal maxim, Maretić points to the fact that “justice delayed is justice denied”. In this, she underlines the importance of having court rulings and legal judgements take place within a reasonable period of time, respecting the rule of law and the democratic rights of individuals which are guaranteed by the Croatian constitution.
In many cases, the court delays are a consequence of the fact that there either are not enough judges to take on the vast number of cases on a timely basis, or that there are not enough specialized judges to take on specific cases. Although recent years have seen extensive efforts to curtail this problem, reinforcing institutions as complex as judiciaries takes significant time and resources, meaning that this particular institutional reform will be a slow process over a number of years.
Because of the lack of attention paid to the needs of the courts, Croatia’s legal system has suffered inefficiencies and deficiencies for much of its history. One such issue is that there are too many courts across which judges and legal clerks are spread too thin. Consolidating courts and their respective staff would alleviate much of the strain of the federal Ministry of Justice, allowing for more thorough legal reviews and audits.
In Summation
While it is clear that Croatia still faces an uphill battle to refine its legal system, recent years have shown promise in this endeavor. For example, the last few years have seen the backlog of cases reduce by over thirty percent as well as a drop in the average length of court proceedings. Additionally, since 2019, court judgements and legal submissions can be downloaded, adding to the transparency of the legal environment in Croatia.
Going forward, responsibility must be taken up by all participants in Croatia’s legal and business environments to push for positive reform and development of Croatia’s legal sector. A strong legal environment is one of the most crucial selling points in attracting foreign investment, which is a direct pathway to build bridges between Croatia’s diaspora and the homeland.
