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SUKOBLJEVIC v. CROATIA - 5129/03 [2006] ECHR 930 (12 October 2006)
URL: http://www.bailii.org/eu/cases/ECHR/2006/930.html
Cite as:
[2006] ECHR 930
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FIRST
SECTION
CASE OF SUKOBLJEVIĆ v. CROATIA
(Application
no. 5129/03)
JUDGMENT
STRASBOURG
2 November 2006
This
judgment will become final in the circumstances set out in Article 44
§ 2 of the Convention. It may be subject to editorial
revision.
In the case of Sukobljević v. Croatia,
The
European Court of Human Rights (First Section), sitting as a Chamber
composed of:
Mr C.L. Rozakis, President,
Mr L.
Loucaides,
Mrs F. Tulkens,
Mrs N. Vajić,
Mr A.
Kovler,
Mr D. Spielmann,
Mr S.E. Jebens, judges,
and
Mr S. Nielsen, Section Registrar,
Having
deliberated in private on 12 October 2006
Delivers
the following judgment, which was adopted on that date:
PROCEDURE
The
case originated in an application
(no. 5129/03) against the
Republic of Croatia lodged with the Court
under Article 34 of the Convention for the Protection
of Human Rights and Fundamental Freedoms (“the Convention”)
by a Croatian national, Mr Đuro
Sukobljević (“the applicant”), on 28 January 2003.
The
applicant was represented by Mr B. Spiz, a lawyer practising in
Zagreb. The Croatian Government (“the
Government”) were represented by their Agent, Mrs Š.
Stažnik.
On
28 February 2005 the
Court decided to communicate the complaint concerning the length of
the proceedings to the Government. Applying Article 29 § 3 of
the Convention, it decided to rule on the admissibility and merits of
the application at the same time.
THE FACTS
I. THE CIRCUMSTANCES OF THE CASE
The
applicant was born in 1944 and lives in Zagreb.
A. Civil and bankruptcy proceedings
On
24 March 1993 the applicant brought a civil action against the
company T. (“the employer”) in the Zagreb Municipal Court
(Općinski sud u Zagrebu) seeking damages for a
work-related injury.
On
3 February 1995 the Municipal Court gave judgment awarding damages to
the applicant in the amount of 31,780 Croatian kunas (HRK) and the
litigation costs.
On
21 May 1996 the employer appealed to the Zagreb County Court
(Županijski sud u Zagrebu).
On
23 March 1999 the County Court quashed the first-instance judgment
and remitted the case.
In
the resumed proceedings, the Municipal Court held a hearing on
7 December 1999 at which it requested the applicant to provide
the minutes drawn up by the labour inspectorate concerning the
incident resulting in his injury or to indicate a person or authority
who possessed that document. On 12 June 2000 the court repeated its
request.
On
16 June 2000 and 3 January 2001 the applicant requested the court to
invite the employer to produce the above evidence. On 26 June 2001
the court did so.
At
the hearing held on 14 December 2001 the court decided to effect an
in situ inspection (očevid) on 15 February
2002 with the assistance of an expert, and invited the applicant to
advance the costs. Since the applicant did so only on 19 February
2002, the inspection did not take place.
On
3 January 2002 the Zagreb Commercial Court (Trgovački sud u
Zagrebu) decided to open bankruptcy proceedings against the
employer. It invited the creditors to report their claims by
28 February 2002 and scheduled a hearing, at which the reported
claims were to be examined, for 20 March 2002. In accordance with the
Bankruptcy Act, the decision was published in the “Official
Gazette” no. 6/02 of 21 January 2002.
On
8 May 2002 the Zagreb Municipal Court invited the applicant to inform
it whether the bankruptcy proceedings had been opened against the
employer. On 8 June 2002 the applicant replied in the affirmative and
requested that any future communication with the employer be
conducted through its bankruptcy manager (stečajni
upravitelj).
On
12 June 2002 the Municipal Court stayed the proceedings on account of
the pending bankruptcy proceedings.
On
13 June 2002 the applicant reported his claim to the Zagreb
Commercial Court. On 8 January 2004 and 30 June 2005 he filed
two rush notes with that court urging the delivery of a decision on
his claim.
On
20 March 2006 the Commercial Court, without issuing a formal
decision, replied that in the bankruptcy proceedings against the
employer the applicant’s claim had never been examined.
It
would appear that both the civil and the bankruptcy proceedings are
formally still pending.
B. Proceedings before the Constitutional Court
Meanwhile,
on 18 June 2002 the applicant lodged a constitutional complaint with
the Constitutional Court (Ustavni sud Republike Hrvatske)
complaining about the length of the civil proceedings.
On
16 December 2002 the Constitutional Court dismissed the applicant’s
complaint. It examined the length of the proceedings in their part
following the Convention’s entry into force with respect to
Croatia. The Constitutional Court held that the delay was
attributable to the complexity of the case and the applicant’s
conduct. It found that the applicant had contributed to the length of
the proceedings in that he had not responded to the Municipal Court’s
request of 7 December 1999 for more than six months, that he had
failed to advance the inspection costs in due time and that he had
failed to request the Municipal Court to invite the bankruptcy
manager to take over the civil proceedings which would have resulted
in their resumption.
II. RELEVANT DOMESTIC LAW
A. The Constitutional Court Act
The
relevant part of section 63 of the Constitutional Act on the
Constitutional Court (Ustavni zakon o Ustavnom sudu Republike
Hrvatske, Official Gazette no. 49/2002 of 3 May 2002 – “the
Constitutional Court Act”) reads as follows:
“(1) The Constitutional Court shall examine a
constitutional complaint whether or not all legal remedies have been
exhausted if the competent court fails to decide a claim concerning
the applicant’s rights and obligations or a criminal charge
against him or her within a reasonable time ...
(2) If a constitutional complaint ... under paragraph 1
of this section is upheld, the Constitutional Court shall set a
time-limit within which the competent court must decide the case on
the merits...
(3) In a decision issued under paragraph 2 of this
section, the Constitutional Court shall assess appropriate
compensation for the applicant for the violation of his or her
constitutional rights ... The compensation shall be paid out of the
State budget within three months from the date a request for payment
is lodged.”
B. The Civil Procedure Act
The
Civil Procedure Act (Zakon o parničnom postupku, Official
Gazette nos. 53/91, 91/92, 58/93, 112/99, 88/01 and 117/03) in the
relevant part provides as follows:
Section
212(1) provides that proceedings shall be stayed, inter alia,
if bankruptcy proceedings are opened (against one or both of the
parties).
Section
215(1) provides that proceedings shall resume when the bankruptcy
manager takes over the proceedings or when the court, of its own
motion or at the initiative of the opposite party, invites the
bankruptcy manager to do so.
C. The Bankruptcy Act
The
Bankruptcy Act (Stečajni zakon, Official Gazette nos.
44/96, 29/99, 129/00, 123/03, 197/03, 187/04 and 82/06) in the
relevant part provides as follows:
Section
7(2) provides that bankruptcy proceedings are urgent.
Section
55(1) provides that in its decision to open the bankruptcy
proceedings the court shall set a date for the examination hearing
(ispitno ročište) which shall be scheduled within
two months after the lapse of the time-limit left to the creditors to
report their claims to the bankruptcy manager.
Section
96 provides that creditors shall realise their claims against the
bankrupt only in bankruptcy proceedings.
Section
173(1) provides that creditors shall report their claims against the
bankrupt to the bankruptcy manager in writing, stating the basis and
the amount thereof.
Section
175 provides for an examination hearing before the competent
commercial court at which the bankruptcy manager shall either accept
or oppose each of the reported claims. Likewise, a creditor can
oppose the claim reported by another creditor.
Section
176(2) provides that the claims reported within three months after
the first examination hearing may be examined at one or more separate
examination hearings. Those hearings shall be scheduled by the court
at the proposal of the creditors who failed to report their claims in
due time, and under the condition that they advance the costs. If the
costs are not advanced, the separate hearing shall not be held and
the belated reports shall be declared inadmissible.
Section
176(4-6) provides that the court shall declare inadmissible the
reports submitted after the expiry of the time-limit set forth in
paragraph 2. The creditor which submitted the report shall have
a right to appeal against that decision.
Section
177 provides that the claim is deemed to have been accepted if no
objection has been raised by either the bankruptcy manager or another
creditor. The commercial court shall prepare a schedule of examined
claims on the basis of which it shall issue a decision (rješenje)
showing which claims have been accepted and which were opposed, while
setting out the amount and priority of each claim.
Section
179(1) provides that civil proceedings that concern a claim reported
to the bankruptcy manager and that were pending at the moment of the
opening of bankruptcy proceedings, shall be resumed by taking over of
these proceedings (by an authorised person in the name of the
bankrupt). The motion to resume the civil proceedings can be made by
the plaintiff whose claim has been opposed in bankruptcy or, in the
name of the bankrupt, the bankruptcy manager or another creditor that
opposed the plaintiff’s claim.
Section
181(1) provides that a final decision establishing the claim and its
priority, or establishing that a claim does not exist, shall be
effective against the bankrupt and all its creditors.
THE LAW
I. ALLEGED VIOLATION OF ARTICLE 6 § 1 OF THE
CONVENTION
The
applicant complained that the length of the proceedings had been
incompatible with the “reasonable time” requirement, laid
down in Article 6 § 1 of the Convention, which reads as follows:
“In the determination of his civil rights and
obligations ..., everyone is entitled to a ... hearing within a
reasonable time by [a] ... tribunal...”
The
Government contested that argument.
The
Court firstly notes that under Croatian law if the bankruptcy
proceedings are opened against a certain company its creditors are
entitled to realise their claims against it only in the bankruptcy
proceedings. Therefore, all civil proceedings against that company
are stayed until the bankruptcy manager, at the examination hearing
in the bankruptcy proceedings, either accepts or opposes the claims
reported by the creditors. If the bankruptcy manager accepts a claim
which was under examination in civil proceedings, the claim is
considered finally determined and the civil proceedings consequently
become obsolete. If he opposes such a claim, he has to take over the
pending civil proceedings, which shall accordingly be resumed, and
the claim determined therein (see paragraphs 21-34 above).
The
Court therefore considers that in the present case the determination
of the applicant’s “civil rights”, within the
meaning of Article 6 § 1 of the Convention, began in the civil
proceedings and continued in the bankruptcy proceedings.
The
period to be taken into consideration began on 6 November 1997,
the day after the entry into force of the Convention in respect of
Croatia. However, in assessing the reasonableness of the time that
elapsed after that date, account must be taken of the state of
proceedings at the time. In this connection the Court notes that the
proceedings commenced on 24 March 1993, when the applicant
brought his civil action against the employer. Consequently, they
were already pending for more than four and a half years before the
ratification.
The
case was still pending on 16 December 2002 when the Constitutional
Court gave its decision. On that date the proceedings had lasted
about five years and one month.
The
proceedings have not yet ended. They have lasted another three years
and ten months after the decision of the Constitutional Court. Thus,
in total, the case has so far been pending for some eight years and
eleven months after the ratification.
A. Admissibility
The
Government invited the Court to reject the application on the ground
that the applicant had failed to exhaust domestic remedies as
required under Article 35 § 1 of the Convention. They
maintained that the applicant had not lodged a second constitutional
complaint to the Constitutional Court. The Government observed that
he had already lodged such a complaint on 18 June 2002, and that the
Constitutional Court dismissed it on 16 December 2002. However, in
doing so, that court had examined only the period between the date of
the entry into force of the Convention in respect of Croatia and the
date on which the constitutional complaint had been lodged. Having
regard to the fact that after the filing of the constitutional
complaint on 18 June 2002, the proceedings had continued and that
they were still pending, to lodge a second constitutional complaint
would have had reasonable prospects of success since it would have
enabled the Constitutional Court to examine the overall length of the
proceedings, taking into consideration their duration after its
previous decision.
The
applicant contested that argument. He argued that it was not
justified to require him to lodge another constitutional complaint
when his previous complaint had been dismissed.
The
Court finds that the question of exhaustion of domestic remedies is
inextricably linked to the merits of this complaint. Therefore, to
avoid prejudging the latter, both questions should be examined
together. Accordingly, the Court holds that the question of
exhaustion of domestic remedies should be joined to the merits.
The
Court further notes that this complaint is not manifestly ill-founded
within the meaning of Article 35 § 3 of the Convention. It also
notes that it is not inadmissible on any other grounds. It must
therefore be declared admissible.
B. Merits
The
Court observes at the outset that the applicant availed himself of an
effective domestic remedy in respect of the length of the proceedings
– a constitutional complaint (see Slaviček v. Croatia
(dec.), no. 20862/02, ECHR 2002-VII) – and that the
Constitutional Court dismissed his complaint. In these circumstances,
the Court is required to verify whether the way in which the
Constitutional Court interpreted and applied the relevant provisions
of the domestic law, produces consequences that are consistent with
the principles of the Convention, as interpreted in the light of the
Court’s case-law (see, mutatis mutandis, Cocchiarella
v. Italy [GC], no. 64886/01, § 82, to be published
in ECHR 2006). In doing so, the Court has to examine the period
between the date of the entry into force of the Convention in respect
of Croatia and the date of the Constitutional Court’s decision
(see, by analogy, Cocchiarella v. Italy [GC], cited above,
§ 103). If the Constitutional Court’s decision is
consistent with Convention principles, the Court will, when examining
the question of exhaustion of domestic remedies, refrain from dealing
with the length of the proceedings subsequent to that decision.
Otherwise, a genuine examination of the total length after the
ratification is warranted.
The
Court reiterates that the reasonableness of the length of proceedings
must be assessed in the light of the circumstances of the case and
with reference to the following criteria: the complexity of the case,
the conduct of the applicant and the relevant authorities and what
was at stake for the applicant in the dispute (see, among many other
authorities, Cocchiarella v. Italy [GC], cited above, § 68;
and Frydlender v. France [GC], no. 30979/96, § 43, ECHR
2000-VII).
The
Government emphasised that the applicant reported his claim in
bankruptcy only on 13 June 2002, that is, more than three months
after the expiry of the time-limit set forth by the Commercial Court
i.e. 28 February 2002 (see paragraphs 12 and 15 above). As to
the preceding period, they repeated, in substance, the findings of
the Constitutional Court (see paragraph 19 above). In addition, they
submitted that the case had not mandated particular urgency as the
applicant had been seeking damages for a light bodily injury.
The
applicant replied that he could not have requested the Municipal
Court to resume the civil proceedings before his claim would be
examined in the bankruptcy proceedings. Moreover, his injury had been
rather serious.
The
Court notes that in the present case the period examined by the
Constitutional Court amounts to five years and one month (see
paragraph 39 above). It observes that during that period the delays
in the civil proceedings between 7 December 1999 and 16 June
2000 and between 14 December 2001 and 15 February 2002 are
attributable to the applicant. On the other hand, there existed two
substantial periods of inactivity solely attributable to the
authorities, namely, between 6 November 1997 and 23 March
1999, and between 16 June 2000 and 26 June 2001, amounting
altogether to two years and five months.
As
to the subsequent bankruptcy proceedings, the Court takes note of the
Government’s argument that the applicant failed to report his
claim in the bankruptcy proceedings in due time. However, it also
notes that under the Bankruptcy Act belated reports are either to be
declared inadmissible, or, if submitted within the additional period
of three months after the first examination hearing, to be examined
at a separate examination hearing (see paragraphs 30-31). In the
present case the first examination hearing had been held on 20 March
2002, whereas the applicant reported his claim on 13 June 2002.
Therefore, it would appear that he did so within the above mentioned
additional period. However, no separate examination hearing has ever
been held nor has the applicant’s report been declared
inadmissible. The delay resulting thereof cannot be attributed to the
applicant alone, and has not been explained by the Government. In the
Court’s view, it is mainly attributable to the authorities.
Lastly,
as his claim has not been examined in the bankruptcy proceedings, the
applicant could not have requested the Zagreb Municipal Court to
resume the civil proceedings.
Having
examined all the material submitted to it, and having regard to its
case-law on the subject, the foregoing considerations are sufficient
to enable the Court to conclude that already in the period which was
susceptible to the Constitutional Court’s scrutiny the length
of the proceedings was excessive and failed to meet the “reasonable
time” requirement. It has necessarily kept such character
throughout the subsequent period. In these circumstances, to ask the
applicant to lodge a second constitutional complaint, would
overstretch his duties under Article 35 § 1 of the
Convention (see, for example, Antonić-Tomasović v.
Croatia, no. 5208/03, §§ 25-34, 10 November
2005).
In
conclusion, the Court rejects the Government’s objection as to
the exhaustion of domestic remedies and finds that there has been a
breach of Article 6 § 1 of the Convention in the present
case.
II. ALLEGED VIOLATION OF ARTICLE 13 OF THE CONVENTION
The
applicant further complained under Article 13 of the Convention taken
in conjunction with Article 6 § 1 that he had not had an
effective remedy in regard to the excessive length of the
proceedings. Article 13 reads as follows:
“Everyone whose rights and freedoms as set forth
in [the] Convention are violated shall have an effective remedy
before a national authority notwithstanding that the violation has
been committed by persons acting in an official capacity.”
Admissibility
The
Court notes that the applicant had at his disposal an effective
domestic remedy to complain about the length of the proceedings –
a constitutional complaint – of which he availed himself. The
mere fact that the outcome of the Constitutional Court proceedings
was not favourable to him does not render the remedy ineffective.
It
follows that this complaint is inadmissible under Article 35 §
3 as manifestly ill-founded and must be rejected pursuant to
Article 35 § 4 of the Convention.
III. APPLICATION OF ARTICLE 41 OF THE CONVENTION
Article
41 of the Convention provides:
“If the Court finds that there has been a
violation of the Convention or the Protocols thereto, and if the
internal law of the High Contracting Party concerned allows only
partial reparation to be made, the Court shall, if necessary, afford
just satisfaction to the injured party.”
A. Damage
The
applicant claimed 100,000 Croatian kunas (HRK) in respect of
pecuniary and non-pecuniary damage.
The
Government contested the claim.
As
to the non-pecuniary damage sought, it reiterates the principle
enunciated above (see paragraph 45) that if the Constitutional
Court’s decision produces consequences that are inconsistent
with the principles of the Convention, the Court has to examine the
total length of the proceedings after the ratification. In the light
of its above findings (see paragraphs 40 and 52), the Court, ruling
on an equitable basis, awards the applicant 4,800 euros (EUR) in
respect of non-pecuniary damage, plus any tax that may be chargeable
on that amount.
B. Costs and expenses
The
applicant also claimed EUR 2,000 for the costs and expenses incurred
before the Court.
The
Government contested the claim.
According
to the Court’s case-law, an applicant is entitled to
reimbursement of his costs and expenses only in so far as it has been
shown that these have been actually and necessarily incurred and were
reasonable as to quantum. In the present case, regard being had to
the information in its possession and the above criteria, the Court
considers it reasonable to award the sum of EUR 900 for the
proceedings before the Court, plus any tax that may be chargeable on
that amount.
C. Default interest
The
Court considers it appropriate that the default interest should be
based on the marginal lending rate of the European Central Bank, to
which should be added three percentage points.
FOR THESE REASONS, THE COURT UNANIMOUSLY
Joins to the merits the Government’s
objection as to the exhaustion of domestic remedies and rejects it;
2. Declares the complaint concerning the excessive length of
the proceedings admissible and the remainder of the application
inadmissible;
Holds that there has been a violation of Article
6 § 1 of the Convention;
4. Holds
(a) that
the respondent State is to pay the applicant,
within three months from the date on which the judgment
becomes final according to Article 44 § 2 of the
Convention, the following amounts which are to be converted
into the national currency of the respondent State at a rate
applicable at the date of settlement:
(i)
EUR 4,800 (four thousand eight hundred euros) in respect of
non-pecuniary damage;
(ii) EUR
900 (nine hundred euros) in respect of costs and expenses;
(iii) any
tax that may be chargeable on the above amounts;
(b) that
from the expiry of the above-mentioned three months until settlement
simple interest shall be payable on the above amounts at a rate equal
to the marginal lending rate of the European Central Bank during the
default period plus three percentage points;
Dismisses the remainder of the applicant’s
claim for just satisfaction.
Done in English, and notified in writing on 2 November 2006, pursuant
to Rule 77 §§ 2 and 3 of the Rules of Court.
Søren Nielsen Christos Rozakis
Registrar President