1. What is the current legal landscape for your practice area in your jurisdiction?

In Austria, dispute resolution currently comes to the fore due to the present overall economic situation in Europe. In times of economic recession, both companies and private individuals are generally more inclined to assert their claims and pursue legal action to secure their monetary funds and legal rights. This results in an increased number of court proceedings, which is noticeable in the current legal landscape in Austria.

In addition, there is the insolvency of Austria’s largest real estate group, with proceedings involving the real estate group’s main companies representing the largest insolvency proceedings in Austrian history. This has brought contentious areas of law such as insolvency law, contestation law and issues relating to damages associated with the proceedings, such as the liability of managers or consulting firms, into focus. The latter, namely claims for damages against members of the decision-making bodies of companies and advisors and consulting firms, is a general trend that has been observed on the Austrian market in recent years.

The circumstances surrounding the increased number of legal claims and the proceedings relating to the insolvency of Austria’s largest real estate group are also leading to an increase in cross-border cases. For this reason, international procedural law is also gaining in importance, both in terms of jurisdiction and forum for the assertion of claims and for the enforcement of judgments following initial proceedings.

2. What three essential pieces of advice would you give to clients involved in your practice area matters?

First and foremost, it is of utmost importance to consider potential future disputes at the outset of every business and contractual relationship, especially the ones with cross border elements. In this context, contractual provisions are essential, as they usually cannot be remedied at a later date. Clients are therefore well advised to consider the applicable law, the place of jurisdiction, the type of dispute resolution (i.e. whether a state court or an arbitral tribunal should decide on a dispute or an alternative dispute resolution mechanism shall apply) and the enforcement of decisions when drawing up a contract and to agree on appropriate contractual provisions in this regard.

If, for example, an arbitration clause is chosen, it must be considered for its validity in Austria that pursuant to § 581 (1) Austrian Code of Civil Procedure (“ACCP”), an arbitration agreement requires at least the exact designation of the parties to the arbitration agreement, the specific legal relationship to which the arbitration agreement pertains and the parties’ unambiguous consent to have all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not, resolved by arbitration. Furthermore, the subject matter must be arbitrable. The formal requirements are addressed in § 583 (1) ACCP, according to which an arbitration agreement must be in writing and contained either in a written document signed by the parties or in letters, telefax, emails or other forms of communication exchanged between the parties which preserve evidence of the agreement. An arbitration agreement may also be part of general terms and conditions, provided that the contract referring to these terms is validly executed.

In addition, it is important to provide clients with information about alternative dispute resolution options to offer them faster and more amicable options for resolving contractual disputes. In this context, it is particularly important to mention dispute resolution clauses that enable disputes to be settled out of court. This can be achieved through negotiations between internal departments of the companies involved, but also with the involvement of external authorities or consultants. Mediation, which has become increasingly important in recent years, should also be considered in this context. Appropriate provisions can result in faster and more cost-effective decisions in connection with disputed legal relationships. In case contractually agreed out-of-court dispute resolution fails it is still possible to bring the dispute before state courts.

Finally, prior to any legal dispute, the client must always be advised that court proceedings tie up financial resources and time resources, and that the possibility of settling the dispute out of court should be considered. Clients are often not aware of how time-consuming and cost-intensive legal disputes can be, especially if one looks at the amount of court fees to be considered in Austria (one of the most expensive jurisdictions in Europe). To prevent subsequent disappointment on the part of the client, the option of a settlement should be discussed in detail with the client, considering and explaining the advantages and disadvantages as well as the chances of success of court proceedings. Litigation risk analysis and management should be a matter of course when advising in legal disputes.

3. What are the greatest threats and opportunities in your practice area law in the next 12 months?

The average duration of court proceedings in Austria is – compared to other European jurisdictions – generally low and thus must be looked at very positive in the international context. However, the duration largely depends on the workload of the courts, which is why a negative trend in this area can occur if more court cases are initiated, as it is currently the case. In this respect, access to justice depends on the workload of the courts and can therefore be impeded by the increased involvement of state courts.

Another disadvantage for Austria as a dispute resolution location is that Austrian state courts only accept German as the official language. This leads to high translation and interpreting costs in cases where, for example, English-language documents are submitted. There are no plans to introduce a commercial court, which would also accept English documents or English-speaking witnesses. Compared to other European jurisdictions, Austria will fall behind in this respect.

The digitalisation of the justice system is, at the other hand, a positive development, enabling courts to maintain a quick procedure despite an increased number of pending cases. In this context, it is worth mentioning the introduction of electronic court records and the possibility for parties’ representatives to access these records electronically, as well as the obligation to submit submissions to the court electronically.

Further, it is also worth mentioning the increased possibility of interviewing witnesses via electronic media, i.e. questioning them via video conference. The use of digital media may also lead to an acceleration of proceedings in the future. This reduces travel times and makes witnesses more available than if they had to travel from other countries to be interviewed and appear in court in person.

4. How do you ensure high client satisfaction levels are maintained by your practice?

A distinctive feature of Weber & Co. is the close, personal and partner orientated advice we provide to each client. Clients know their respective partners and may rely on them and their team as trusted advisor. Furthermore, we also understand the business, but also the human aspects of every legal dispute and take these into account when seeking the right solution for our clients.

Weber & Co. also emphasises on establishing long-term business relationships with clients. This results in specific knowledge advantages, as the respective partner and its team is familiar with the client, the client’s business and the requirements and can respond in a more focused and client-oriented manner also considering economic aspects of each decision that has to be taken on client`s side. This creates a flexible but, above all, close and personal advisory relationship with each client, which benefits both the law firm and the client.

5. What technological advancements are reshaping your practice area law and how can clients benefit from them?

A key advantage of technological progress and the use of AI is the preparation of facts through better and faster screening of documents and large quantities of data. An essential criterion for successful civil proceedings is the accurate presentation of the facts relevant to the case and the evidence supporting the arguments one party wants to present. The use of AI can generate a significant advantage in this respect and be used to the client’s benefit. Regarding the use of AI it is, however, essential to identify both – opportunities and risks arising from the use of AI in the collection and analysis of evidence. A particular focus is to be laid on the development of guidelines and best practices to ensure that the use of AI supports the integrity and fairness of proceedings.

The use of AI will and already has led to changes in connection with collective and mass proceedings. The use of AI in these fields of disputes results in significantly more efficient work and thus save times (and money) for filing complaints also with lower amounts in dispute by keeping a high standard of preparation of the facts and arguments.

Finally, it is worth mentioning developments in the field of legal research, which is becoming more accurate and faster due to the use of AI. When used efficiently, high-quality legal results can be achieved in a much shorter time. Our law firm also uses AI tools from the Austrian market leaders in the field of legal research, which enables us to reduce costs for our clients.