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Inside post-socialist courts: the determinants of adjudicatory outcomes in Slovenian commercial disputes

Author

Listed:
  • Peter Grajzl

  • Valentina Dimitrova-Grajzl

  • Katarina Zajc

Abstract

Despite the judiciary’s central role in the capitalist market system, micro-level empirical analyses of courts in post-socialist countries are remarkably rare. This paper draws on a unique hand-collected dataset of commercial claims filed at Slovenian courts to examine the determinants of two salient adjudicatory outcomes: whether a case was resolved via trial or settlement and if the case was tried, whether the plaintiff was awarded the initial claim. Consistent with the divergent expectations theories of litigation, we find that trial-based resolution is less likely when parties use mediation and more likely when the case is complex as proxied by appointment of an expert. In contrast, stakes do not predict the prospects of trial. Addressing sample selection concerns, we show that defendants’ legal representation, plaintiffs’ profitability, and court identity are robust predictors of plaintiff victory at trial. We discuss possible explanations for these data patterns. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Peter Grajzl & Valentina Dimitrova-Grajzl & Katarina Zajc, 2016. "Inside post-socialist courts: the determinants of adjudicatory outcomes in Slovenian commercial disputes," European Journal of Law and Economics, Springer, vol. 41(1), pages 85-115, February.
    • Handle: RePEc:kap:ejlwec:v:41:y:2016:i:1:p:85-115
    DOI: 10.1007/s10657-015-9506-z
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    Cited by:

    1. repec:hal:cepnwp:hal-05045412 is not listed on IDEAS
    2. Peter Grajzl, 2014. "Behind the Courts’ Walls: Empirical Insights from Slovenia," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(03), pages 39-44, October.
    3. Peter Grajzl & Katarina Zajc, 2017. "Litigation and the timing of settlement: evidence from commercial disputes," European Journal of Law and Economics, Springer, vol. 44(2), pages 287-319, October.
    4. Peter Grajzl, 2014. "Behind the Courts’ Walls: Empirical Insights from Slovenia," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(3), pages 39-44, October.
    5. Dimitrova-Grajzl, Valentina & Grajzl, Peter & Slavov, Atanas & Zajc, Katarina, 2016. "Courts in a transition economy: Case disposition and the quantity–quality tradeoff in Bulgaria," Economic Systems, Elsevier, vol. 40(1), pages 18-38.
    6. Bielen, Samantha & Peeters, Ludo & Marneffe, Wim & Vereeck, Lode, 2018. "Backlogs and litigation rates: Testing congestion equilibrium across European judiciaries," International Review of Law and Economics, Elsevier, vol. 53(C), pages 9-22.
    7. repec:ces:ifodic:v:12:y:2014:i:3:p:19131886 is not listed on IDEAS
    8. Alessandro Melcarne, 2017. "Careerism and judicial behavior," European Journal of Law and Economics, Springer, vol. 44(2), pages 241-264, October.
    9. Earnhart, Dietrich & Rousseau, Sandra, 2019. "Are lawyers worth the cost? Legal counsel in environmental criminal court cases," International Review of Law and Economics, Elsevier, vol. 60(C).

    More about this item

    Keywords

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    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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