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Legislation

30 May 2013

On May 30, 2013 the Parliament of the Republic of Lithuania adopted the Law on amending and supplementing the Law on Administrative Proceedings (No. XII-348). The adopted Law provides the parties of an administrative dispute with a possibility to resolve the dispute by concluding a settlement agreement. Up to now the Law on Administrative Proceeding did not provide such opportunity.

The Law sets out that the court, having established that there is a possibility for concluding a settlement agreement in the case brought before the court, must invite the parties in the administrative dispute to consider this option.
 
Parties shall have the right to enter into the settlement agreement at any stage of the process. However, the settlement agreements must be consistent with the imperative rules of the law and other legislative acts, public interest, prejudice the rights and legitimate interests of third parties. The settlement agreement may not be concluded in cases where the legitimacy of administrative normative acts is questioned.
 
After conclusion of the settlement agreement the court will terminate the administrative proceedings and refund 50 percent of the stamp duty. The settlement agreement has to be approved by the court in all cases, which inhibits the conclusion of illegal agreements between the parties.
 
If the parties of the administrative dispute agree on the settlement agreement and submit it to the court for approval after the decision of the Regional Administrative Court has been passed, but before the appeal period has expired, the Regional Administrative Court would confirm the agreement, revoke the decision and dismiss the case.
 
It is anticipated that the adoption of this Law and establishment of the settlement agreement institute in administrative proceedings will contribute that the administrative cases be resolved more efficiently.
 
This Law will come into force as of 1st of August, 2013. The full text of the law draft can be found here.
 

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