Inside Post-Socialist Courts: The Determinants of Adjudicatory Outcomes in Slovenian Commercial Disputes

47 Pages Posted: 14 Aug 2014

See all articles by Valentina P. Dimitrova-Grajzl

Valentina P. Dimitrova-Grajzl

Virginia Military Institute

Peter Grajzl

Washington and Lee University - Department of Economics; CESifo

Katarina Zajc

University of Ljubljana - Faculty of Law

Multiple version iconThere are 2 versions of this paper

Date Written: July 29, 2014

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 theory of litigation, we find that trial-based resolution is more likely when the case is complex and less likely when parties use mediation. Addressing sample selection and endogeneity concerns, we show that defendant’s legal representation, plaintiff’s profitability, and, importantly, court identity are robust predictors of plaintiff victory at trial. Thus, more than two decades after the start of transition in Slovenia, the judicial system is still a source of legal inconsistency and uncertainty.

Keywords: courts, post-socialist countries, commercial disputes, trial, settlement

JEL Classification: K400, K410, P370, D020

Suggested Citation

Dimitrova-Grajzl, Valentina P. and Grajzl, Peter and Zajc, Katarina, Inside Post-Socialist Courts: The Determinants of Adjudicatory Outcomes in Slovenian Commercial Disputes (July 29, 2014). CESifo Working Paper Series No. 4894. Available at SSRN: https://ssrn.com/abstract=2479815

Valentina P. Dimitrova-Grajzl

Virginia Military Institute ( email )

Department of Economics and Business
Scott Shipp Hall
Lexington, VA 24450
United States

Peter Grajzl (Contact Author)

Washington and Lee University - Department of Economics ( email )

Lexington, VA 24450
United States

HOME PAGE: http://home.wlu.edu/~grajzlp/

CESifo ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Katarina Zajc

University of Ljubljana - Faculty of Law ( email )

Dunajska 104
1000 Ljubljana, 1000
Slovenia

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