Legislation updates

The Government of the Republic of Lithuania has approved a proposal to amend the Administrative Proceedings Law regarding the rules on settlement agreements.

Mediation is a comparably new and less popular dispute resolution method in Lithuania, especially in cases concerning public matters (administrative cases). In civil cases the court is obliged to take all possible measures to settle the case. The parties have the right to conclude a settlement agreement in any stage of the proceedings. However, until now Administrative Proceedings Law does not recognize this institute. Sometimes in practice the settlement agreements in administrative disputes are made on the basis of the Civil Code and Civil Procedure Code.

Therefore, the Ministry of Justice has prepared and the Government has approved the proposal to amend the Administrative Proceedings Law by supplementing with certain articles regarding the judicial confirmation of the settlement agreements.

According to the new law, the parties may conclude the settlement agreement in any stage of the proceedings, but execution of this agreement is limited by reference to the nature of the dispute. Settlement agreements must be consistent with the imperatives of laws and other legal acts, public interest, without prejudice to interested parties' rights or legitimate interests. The settlement agreement cannot be made in cases concerning the legitimacy of administrative normative acts.

If the Parliament adopts the new law and the President approves it by signing, the new rules in relation to the settlement proceedings in administrative cases will come into force. For more information click here.
 

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