In a recent decision of the Vienna Higher Regional Court
(Oberlandesgericht
Wien), a significant obstacle to claims made
by US-based plaintiffs has been removed.
Securing litigation costs in Austria
In order to secure the plaintiff's obligation to reimburse
the procedural costs in case of losing the proceeding, Section 57
of the Austrian Civil Procedure Code ("ZPO") provides
that a foreign plaintiff that does not have a habitual residence or
is seated in Austria must be ordered to provide sufficient security
at the request of the defendant (aktorische Kaution –
cautio iudicatum solvi).
If the plaintiff fails to provide the required security within a
period allotted by the court of first instance, the defendant may,
in principle, apply for the court to declare the civil action to be
withdrawn (Section 60 para 3 ZPO).
