Palau

Enforcing Contracts in

Palau

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): Koror Supreme Court, Trial Division
  • City: Koror

About This Topic

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Indicator
Time (days) 810
Filing and service 45
Trial and judgment 400
Enforcement of judgment 365
Cost (% of claim) 35.3
Attorney cost (% of claim) 27
Court cost (% of claim) 7.6
Enforcement Cost (% of claim) 0.68
Procedures (number) 38
Filing and service
1      Plaintiff requests payment: Plaintiff or his lawyer asks Defendant orally or in writing to comply with the contract.
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.
*      Arrangements for physical delivery of summons and complaint: Plaintiff takes whatever steps are necessary to arrange for physical service of process on Defendant, such as instructing a court officer or a (private) bailiff.
4      First attempt at physical delivery: A first attempt to physically deliver summons and complaint to Defendant is successful in the majority of cases.
*      Proof of service: Plaintiff submits proof of service to court.
*      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
5      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)
6      Custody of assets attached prior to judgment: Defendant's attached assets are put under enforcement officer's or (private) bailiff's care. (see assumption 5)
7      Report on pre-judgment attachment: Court enforcement officer or (private) bailiff issues and delivers a report on the attachment of Defendant’s property to the judge. (see assumption 5)
8      Hearing on pre-judgment attachment: A hearing takes place to resolve the question of whether Defendant’s assets can be attached prior to judgment. This process may include the submission of separate summons and petitions. (see assumption 5)
Trial and judgment
9      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
10      Plaintiff’s written response to Defendant's defense or answer: Plaintiff responds to Defendant’s defense or answer with a written pleading. Plaintiff's answer may or may not include a witness statements or expert (witness) statements.
11      Filing of pleadings: Plaintiff and Defendant file written pleadings and submissions with the court and transmit copies of the written pleadings or submissions to one another. The pleadings may or may not include witness statements or expert (witness) statements.
12      Adjournments: Court procedure is delayed because one or both parties request and obtain an adjournment to submit written pleadings.
13      Framing of issues: Plaintiff and Defendant assist the court in framing issues on which evidence is to be presented.
*      Request for interlocutory order: Defendant raises preliminary issues, such as jurisdiction, statute of limitation, etc.
*      Court’s issuance of interlocutory order: Court decides the preliminary issues the Defendant raised by issuing an interlocutory order.
14      Plaintiff’s appeal of court's interlocutory order: Plaintiff appeals the court's interlocutory order, which suspends the court proceedings.
*      Discovery requests: Plaintiff and Defendant make requests for the disclosure of documents, attempting to force the other party to reveal potentially detrimental documents.
15      Discovery disputes: Following a request for discovery of documentary evidence, the other party disputes the request and calls upon the judge to decide the issue.
16      Request for oral hearing or trial: Plaintiff applies for the date(s) for the oral hearing or trial.
*      Setting of date(s) for oral hearing or trial: The judge sets the date(s) for the oral hearing or trial.
17      Pre-trial conference aimed at preparing for trial: The judge meets with parties to make practical arrangements for the trial (for example, the number of witnesses parties intend to call on during trial, how much time each party is given to present oral arguments etc.).
*      List of (expert) witnesses: The parties file a list of (expert) witnesses with the court. (see assumption 6-a)
18      Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment to prepare for the oral hearing or trial.
19      Trial (prevalent in common law): The parties argue the merits of the case at (an) oral session(s) before the court. Witnesses and expert witnesses are questioned and cross-examined during trial.
20      Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment during the oral hearing or trial, resulting in an additional or later trial or hearing date.
21      Closing of the evidence period: The court makes the formal decision to close the evidence period.
22      Order for submission of final arguments: The judge sets the deadline for the submission of final factual and legal arguments.
*      Final arguments: The parties present their final factual and legal arguments to the court either by oral presentation or by a written submission.
23      Writing of judgment: The judge produces a written copy of the judgment.
24      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.
25      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.
26      Plaintiff's approaching of court enforcement officer or (private) bailiff to enforce the judgment: To enforce the judgment, Plaintiff approaches a court enforcement officer such as a court bailiff or sheriff, or a private bailiff.
*      Plaintiff’s request for enforcement order: Plaintiff applies to the court to obtain the enforcement order ('seal' on judgment).
27      Plaintiff’s advancement of enforcement fees: Plaintiff pays the fees related to the enforcement of the judgment.
28      Attachment of enforcement order to judgment: The judge attaches the enforcement order (‘seal’) to the judgment.
*      Delivery of enforcement order: The court's enforcement order is delivered to a court enforcement officer or a (private) bailiff.
*      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.
29      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.
30      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.
31      Attachment: Defendant’s movable goods are attached (physically or by registering, marking or separating assets).
32      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.
33      Enforcement disputes before court: The enforcement of the judgment is delayed because Defendant opposes aspects of the enforcement process before the judge.
34      Call for public auction: The judge calls a public auction by, for example, advertising or publication in the newspapers.
35      Sale through public auction: The Defendant’s movable property is sold at public auction.
36      Distribution of proceeds: The proceeds of the public auction are distributed to various creditors (including Plaintiff), according to the rules of priority.
37      Reimbursement of Plaintiff’s enforcement fees: Defendant reimburses Plaintiff's enforcement fees which Plaintiff had advanced previously.
38      Payment: Court orders that the proceeds of the public auction or the direct sale be delivered to Plaintiff.
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