Civil Proceedings in Bulgaria
Interim measures play a vital role in the Bulgarian legal system, ensuring the effective administration of justice and the protection of rights and interests pending the resolution of legal disputes. One of the primary objectives of interim measures is to prevent the dissipation of assets or the deterioration of circumstances that could negatively impact the outcome of the case. The Civil Procedure Code of Bulgaria provides a comprehensive framework for the issuance and enforcement of interim measures.
1.The Procedure
An application for interim measures may be made by the plaintiff either (i) during the pendency of a court proceeding, or (ii) prior to the filing of a statement of claim to institute court proceedings.
In the first case, the application should be filed with the court before which the case is pending. The interim measures may be requested at the first instance as well as prior to the conclusion of the collection of any new evidence during the appellate proceedings. Moreover, securing of the claim is permitted for all types of claims.
In the second case, security for a future claim, the application is submitted to the court at the plaintiff’s permanent address for natural persons/ registered seat for entities or where the property that will serve for securing the claim is located. When there is a request for permitting an interim measure for the “stay of enforcement”, the application must be submitted before the court of competent jurisdiction as per the place of enforcement. In case the plaintiff is a foreign natural or legal person, the application should be filed with Sofia City Court. The court sets out a time limit for submission of the claim, which cannot be longer than one month.
The proceedings are one-sided – only the plaintiff participates in it, and the defendant is not informed. A copy of the application is not required since such a copy is not served on to the opposing party because the interim relief proceedings are ex parte proceedings: the other party does not participate (whose property will be affected by the measure granted). This is the purpose of the proceeding – surprise and speed. Moreover, the application should include the requested interim measure and the value of the claim.
The court should rule on the application for interim measures on the same day it is submitted. However, it is very likely that in practice a court, especially a very busy one, will delay the issuance of the ruling longer than the statutory period.
2.Types of interim measures and prerequisites for granting the interim reliefs
As per the Civil Procedure Code of Bulgaria the interim measures are the following:
- Attachment of immovable property.
- Attachment of movable assets and receivables of the debtor, including attachments over bank accounts, attachment of shares in a company, etc.
- any other measures that the court determines as appropriate including suspension of a motor vehicle registration, stay of enforcement.
Prerequisites for granting the abovementioned interim reliefs:
- the claim to be admissible: the plaintiff shall have a legal interest in filing a claim against the defendant.
- probable merits of the claim according to the convincing written evidence submitted with the claim.
- need to secure the claim: the realization of the rights of the plaintiff under the final decision would be impossible or quite difficult if no interim relief was granted.
The court may require the plaintiff to provide a guarantee, typically a monetary one amounting to 10% to 15% of the claim, to secure potential damages to the defendant in case the claim is dismissed. The court retains the discretion to demand this guarantee, even if the interim relief request is supported by ample written evidence.
3.Imposition of an interim measure, modification, and appeal
The attachment shall be imposed forthwith by the bailiff at the request of the plaintiff based on the court’s order as well as by the Registry Agency in the event of attachment of immovable property or by the court in cases specified by law.
The parties may ask the court to modify interim measures that have been imposed. Modification can be initiated by either the plaintiff or the defendant, or both. The court, acting at the request of one of the parties, may, after notifying the other party and taking into consideration its objections submitted within three days after the notification, permit the modification of one type of interim measures by another. In the event of security for a monetary claim, except for disputes regarding property rights, the defendant is entitled to request the substitution of the interim measure with a monetary pledge, pledge of securities or mortgage over real estate property. The substitution in this case does not require the consent of the plaintiff.
The court’s order regarding the securing of a claim may be appealed by means of a private complaint within one week. For the plaintiff, this period starts when the order is submitted to them, while for the defendant (the person against whom the interim measures have been granted) it starts from the day on which the notification of the interim relief is submitted to them by the bailiff, by the Registry Agency or by the court. A copy of the private complaint must be submitted to the other party. In the event that the court of first instance does not grant the interim relief or if it is granted on different terms from those requested, the plaintiff has the right to appeal to the Court of Appeal, a copy of the appeal not being served on the defendant. Third parties, whose patrimony is affected by the measures, are recognized to have legal interest in bringing an appeal.
Revocation of the interim measure shall be granted at the request of the interested party. A copy of the application shall be served on the person at whose request the attachment was imposed. He may lodge objections within three days of receipt of the copy.
4.Conclusion
It is essential to note that interim measures are not intended to substitute for final judgments but rather to complement the legal process by preserving rights and preventing injustice during the interim period. As such, they are subject to review and modification based on the evolving circumstances of the case.
In cases where deemed essential, our Law Firm Mikov & Attorneys takes proactive measures by initiating interim proceedings in Bulgaria. This strategic approach aims to protect our clients from potential asset disposals initiated by the opposing party.
