Nicaragua

Enforcing Contracts in

Nicaragua

Listed below is a detailed summary of the efficiency of contract enforcement. It follows the evolution of a sale of goods dispute, tracking the time, cost and number of procedures involved from the moment the plaintiff files the lawsuit until actual payment.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Court Name (English): Managua Local Civil Court
  • City: Managua

About This Topic

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Indicator
Time (days) 409
Filing and service 89
Trial and judgment 230
Enforcement of judgment 90
Cost (% of claim) 26.8
Attorney cost (% of claim) 16.3
Court cost (% of claim) 5.5
Enforcement Cost (% of claim) 5
Procedures (number) 37
Filing and service
1      A third person formally notifies Defendant: A person other than the Plaintiff or his lawyer, such as a notary public, formally notifies Defendant of Plaintiff’s request for payment.
2      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to represent him before the court.
*      Plaintiff’s filing of summons and complaint: Plaintiff files his summons and complaint with the court, orally or in writing.
*      Plaintiff’s payment of court fees: Plaintiff pays court duties, stamp duties, or any other type of court fee.
3      Registration of court case: The court administration registers the lawsuit or court case. This includes assigning a reference number to the lawsuit or court case.
*      Assignment of court case to a judge: The court case is assigned to a specific judge through a random procedure, automated system, ruling of an administrative judge, court officer, etc.
*      Judge admits summons and complaint: After verifying the formal requirements, the judge decides to admit Plaintiff’s summons and complaint.
4      Delivery of summons and complaint to person authorized to perform service of process on Defendant: The judge or a court officer delivers the summons to a summoning office, officer, or authorized person (including Plaintiff), for service of process on Defendant.
5      First attempt at physical delivery: A first attempt to physically deliver summons and complaint to Defendant is successful in the majority of cases.
6      Second attempt at physical delivery: If a first attempt was not successful, a second attempt to physically deliver the summons and complaint to Defendant is required by law or standard practice.
7      Application for substituted service: Because physical delivery is not successful in the majority of cases, Plaintiff applies for substituted service. Substituted service can include, but is not limited to, service by publication in newspapers or affixing of a notice in court or on public bul
8      Court order regarding substituted service: The judge in a court order defines acceptable means for substituted service.
9      Substituted service: Substituted service is accomplished by publication in newspapers, by affixing a notice in court or on public bulletin boards, etc.
*      Application for pre-judgment attachment: Plaintiff submits an application in writing for the attachment of Defendant's property prior to judgment. (see assumption 5)
*      Decision on pre-judgment attachment: The judge decides whether to grant Plaintiff’s request for pre-judgment attachment of Defendant’s property and notifies Plaintiff and Defendant of the decision. This step may include requesting that Plaintiff submit guarantees or bonds to secure Defendant
10      Pre-judgment attachment.: Defendant's property is attached prior to judgment. Attachment is either physical or achieved by registering, marking, debiting or separating assets. (see assumption 5)
Trial and judgment
*      Defendant’s filing of preliminary exemptions: Defendant presents preliminary exemptions to the court. Preliminary exemptions differ from answers on the merits of the claim. Examples of preliminary exemptions are statute of limitations, jurisdictions, etc.
*      Plaintiff’s answer to preliminary exemptions: Plaintiff responds to the preliminary exemptions raised by Defendant.
11      Judge’s resolution on preliminary exemptions: Judge decides on preliminary exemptions separately from the merits of the case.
12      Defendant’s filing of defense or answer to Plaintiff’s claim: Defendant files a written pleading which includes his defense or answer on the merits of the case. Defendant's written answer may or may not include witness statements, expert statements, the documents Defendant relies on as evidence and the legal authori
*      Court appointment of independent expert: Judge appoints, either at the parties' request or at his own initiative, an independent expert to decide whether the quality of the goods Plaintiff delivered to Defendant is adequate. (see assumption 6-b of this case)
13      Notification of court-appointment of independent expert: The court notifies both parties that the court is appointing an independent expert. (see assumption 6-b of this case)
*      Delivery of expert report by court-appointed expert: The independent expert appointed by the court delivers his or her expert report to the court. (see assumption 6-b of this case)
*      Setting of date for mediation hearing: The judge sets a date for a mediation hearing, sometimes also called a 'pre-trial conference,' and notifies the parties of the hearing date.
14      Mediation hearing: The judge during this informal meeting with the parties encourages them to settle the case. The judge acts as mediator. If the case cannot be settled, the judge may draft a pre-trial conference report, after which the case may be allocated to another judg
*      List of (expert) witnesses: The parties file a list of (expert) witnesses with the court. (see assumption 6-a)
15      Summoning of (expert) witnesses: The court summons (expert) witnesses to appear in court for the oral hearing or trial. (see assumption 6-a)
16      Oral hearing (prevalent in civil law): The parties argue the merits of the case at an oral hearing before the judge. Witnesses and a court-appointed independent expert may be heard and questioned at the oral hearing.
17      Judgment date: The judge sets a date for delivery of the judgment.
18      Writing of judgment: The judge produces a written copy of the judgment.
19      Registration of judgment: The court office registers the judgment after receiving a written copy of the judgment.
20      Court notification of availability of the written judgment: The court notifies the parties that the written judgment is available at the courthouse.
21      Notification of Defendant of judgment: Plaintiff or court formally notifies the Defendant of the judgment. The appeal period starts to run the day the Defendant is formally notified of the judgment.
22      Appeal period: By law, Defendant has the opportunity to appeal the judgment during a period specified in the law. Defendant decides not to appeal. Judgment becomes final the day the appeal period ends.
23      Reimbursement by Defendant of Plaintiff's court fees: The judgment obliges Defendant to reimburse Plaintiff for the court fees Plaintiff has advanced, because Defendant has lost the case.
Enforcement of judgment
*      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to enforce the judgment or continues to be represented by a lawyer during the enforcement of judgment phase.
24      Plaintiff’s advancement of enforcement fees: Plaintiff pays the fees related to the enforcement of the judgment.
*      Plaintiff’s request for physical enforcement: As Plaintiff fears that Defendant might physically resist the attachment of its movable goods, Plaintiff addresses a request to the judge or to the police authorities to obtain police assistance during the attachment of Defendant's movable goods.
25      Judge's order for physical enforcement: The judge orders the police to assist with the physical enforcement of the attachment of Defendant's movable goods.
26      Identification of Defendant's assets for attachment by court official or Defendant: Judge, a court enforcement officer, a (private) bailiff or the Defendant himself identifies Defendant's movable assets for attachment.
27      Plaintiff’s identification of Defendant's assets for attachment: Plaintiff identifies Defendant's assets for attachment.
28      Attachment: Defendant’s movable goods are attached (physically or by registering, marking or separating assets).
29      Report on execution of attachment: A court enforcement officer or private process server delivers a report on the attachment of Defendant's movable goods to the judge.
30      Valuation or appraisal of attached movable goods: The court or court appointed valuation expert evaluates the attached goods.
31      Enforcement disputes before court: The enforcement of the judgment is delayed because Defendant opposes aspects of the enforcement process before the judge.
32      Call for public auction: The judge calls a public auction by, for example, advertising or publication in the newspapers.
33      Sale through public auction: The Defendant’s movable property is sold at public auction.
34      Judge's decision on bids: The judge determines the adequacy of the bids presented at public auction.
35      Distribution of proceeds: The proceeds of the public auction are distributed to various creditors (including Plaintiff), according to the rules of priority.
36      Reimbursement of Plaintiff’s enforcement fees: Defendant reimburses Plaintiff's enforcement fees which Plaintiff had advanced previously.
37      Payment: Court orders that the proceeds of the public auction or the direct sale be delivered to Plaintiff.
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