Class actions in North Macedonia

  1.  Do you have a specific procedure or procedures for bringing “opt-in” class actions?  If so, please outline such procedure(s) and their key features.
  2. Do you have a specific procedure or procedures for bringing “opt-out” class actions?  If so, please outline such procedure(s) and their key features.
  3. Are there specific rules on standing for bringing claims under these procedures (e.g., that claims can only be brought by consumer associations)?  If so, please summarise those rules.
  4. How frequently are class actions brought in your jurisdiction? Are there any pending changes to your class action rules that are likely to increase the number of claims filed?
  5. Are the procedures for class actions restricted only to certain causes of action/types of claim, e.g., competition claims?  If so, please describe these restrictions.
  6. What types of relief are available, i.e., damages and/or injunctive relief? 
  7. On what basis are damages calculated i.e., compensatory and/or some other basis?
  8. Are punitive or exemplary damages recoverable?
  9. Will domestic law need to be changed to comply with the Representative Action Directive?
  10. Are there special rules for settlement of class actions, e.g., requirement for court approval?
  11. Beyond the existing rules for taking jurisdiction in unitary claims, are there any additional rules on jurisdiction for your class action procedures?  Are there any territorial limitations to who may be members of the class?
  12.  Please describe the “certification” requirements for each of your jurisdiction’s class action procedures, e.g., how similar must the claims be?  Are there any other criteria to be met for the court to approve use of the procedure?
  13. Do you have specialist courts for these procedures?
  14. Are there any special rules for discovery/disclosure for class action procedures that are different to the rules for unitary actions?
  15. Are there any special rules for appeals in class action procedures that are different to the rules for unitary actions?
  16. Can arbitration clauses lawfully contain class action waivers?
  17. Are contingency fee agreements permissible?
  18. What are the rules on cost shifting, i.e., does the losing party ordinarily have to pay the winning party’s costs?  Are adverse costs awards capped?  If so, at what level(s)?
  19. Is litigation funding of class actions permissible?  If so, how prevalent is litigation funding?

1. Do you have a specific procedure or procedures for bringing “opt-in” class actions?  If so, please outline such procedure(s) and their key features.

It should be noted that the legal system of North Macedonia does not stipulate provisions about class actions. However, according to Law on Litigation Procedure, it is possible for multiple persons/entities to act together as claimants in a civil court procedure.

2. Do you have a specific procedure or procedures for bringing “opt-out” class actions?  If so, please outline such procedure(s) and their key features.

No. Please see answer number 1.

3. Are there specific rules on standing for bringing claims under these procedures (e.g., that claims can only be brought by consumer associations)?  If so, please summarise those rules.

According to the Macedonian Customer Protection Law, any authorized body may propose that the State inspectors initiate a court procedure against an entity that breached the Customer Protection Law.

The authorized bodies that may propose such procedure are determined by the government of North Macedonia, on the proposal of the Minister of Economy, and such procedure may be initiated against a sole proprietor / group of traders / chambers / other trade associations from the same economic activity that have acted against the provisions of:

  1. the Customer Protection Law;
  2. the Law on Contracts and Torts; and
  3. rules for misleading market conduct according to Customer Protection Law.

If the conduct of certain traders based in North Macedonia is contrary to the provisions of the Customer Protection Law and/or affects or may affect the position of consumers in a member state of the European Union (EU), the commencement of such procedure may be proposed by an association for protection of consumers from such EU-member-state or some other independent body which according to the regulations of that state is established for protection of the common interests of consumers.

4. How frequently are class actions brought in your jurisdiction? Are there any pending changes to your class action rules that are likely to increase the number of claims filed?

There is no publicly available information on the number of class actions filed in North Macedonia. Also, there is no publicly available information for ongoing procedures in front of first instance courts in North Macedonia.

It should be noted, however, that the Macedonian authorities have prepared a draft of new Law on Litigation Procedure, which includes explicit provisions about class actions. However, this new Law is still a working version of the Law and has not been submitted for adoption to the Assembly yet.

Based on currently available information, we cannot foresee whether there will be an increase in class actions in forthcoming period.

5. Are the procedures for class actions restricted only to certain causes of action/types of claim, e.g., competition claims?  If so, please describe these restrictions.

Please see answer number 3.

6. What types of relief are available, i.e., damages and/or injunctive relief? 

The commencement of the aforementioned procedure does not prevent a person / entity that has suffered damage, to initiate a court procedure for:

  1. compensation of damages;
  2. annulment of concluded contract; and
  3. any other request with which it will exercise its rights as customer according to the Customer Protection Law.

7. On what basis are damages calculated i.e., compensatory and/or some other basis?

The decision on the damages is primarily made by the courts on compensatory basis.

8. Are punitive or exemplary damages recoverable?

Not applicable. Please see answer number 1 and answer number 6.

9. Will domestic law need to be changed to comply with the Representative Action Directive?

It should be noted that North Macedonia is not an EU member state yet. However, the relevant domestic law has been adopted before the adoption of the Representative Action Directive, so it needs to be changed to comply with such Directive.

10. Are there special rules for settlement of class actions, e.g., requirement for court approval?

Please see answer number 1.

11. Beyond the existing rules for taking jurisdiction in unitary claims, are there any additional rules on jurisdiction for your class action procedures?  Are there any territorial limitations to who may be members of the class?

Not applicable. Please see answers number 1 and number 5.

12. Please describe the “certification” requirements for each of your jurisdiction’s class action procedures, e.g., how similar must the claims be?  Are there any other criteria to be met for the court to approve use of the procedure?

Not applicable. Please see answers number 1.

13. Do you have specialist courts for these procedures?

No. The class actions are ruled by relevant Basic Courts in North Macedonia.

14. Are there any special rules for discovery/disclosure for class action procedures that are different to the rules for unitary actions?

There are no special rules that apply to class actions. Please see answer to number 1.

15. Are there any special rules for appeals in class action procedures that are different to the rules for unitary actions?

There are no special rules on appeals for any of the opt-in mechanisms or for Representative Actions. Please see answer to number 1.

16. Can arbitration clauses lawfully contain class action waivers?

Not applicable. Please see answer to number 1.

17. Are contingency fee agreements permissible?

According to the Law on Attorneys, the contingency fee agreements are not permissible in North Macedonia.

18. What are the rules on cost shifting, i.e., does the losing party ordinarily have to pay the winning party’s costs?  Are adverse costs awards capped?  If so, at what level(s)?

Yes, the losing party ordinarily pays the winning party’s costs.

19. Is litigation funding of class actions permissible?  If so, how prevalent is litigation funding?

Not applicable. Please see answer to number 1.

See the Overview of the Representative Actions Directive >>

For more information on European Class Actions, please download our annual report: 

Attachment
European Class Action Report 2023
Download
PDF 5.9 MB
Portrait ofMarija Filipovska
Marija Filipovska Jelčić
Partner
Skopje
Zlatko Kujundjiski