The Legal Affairs Committee of the Council of States voted against introducing class action lawsuits into Swiss law last week. SwissHoldings welcomes this clear decision. Instead of a risky system change, the focus should be placed on proven instruments such as mediation and ombudsman procedures. To achieve this, the committee has adopted a corresponding postulate.
SwissHoldings welcomes the decision by the Legal Affairs Committee of the Council of States (LAC-S) not to consider the proposal on collective legal protection (amendment to the Code of Civil Procedure, 21.082). The LAC-S made this decision by a vote of 8 to 5 (see press release). The committee thereby follows the National Council, which already clearly rejected the risk-laden introduction of class action instruments in Switzerland this spring.
The Swiss legal system works
SwissHoldings shares the Legal Affairs Committee’s assessment that the Swiss legal system already has effective instruments available today to help injured parties obtain their rights. In the World Bank’s current ranking on dispute resolution efficiency, Switzerland belongs to the top tier. With the recently completed revision of the Code of Civil Procedure (20.026), access to justice was further improved – for example through lowering cost thresholds and simplifying procedural coordination. Moreover, technological advances, particularly in the field of Legal Tech, open up additional possibilities for enforcing legal claims efficiently and with low barriers to access. Adopting the proposal would have had far-reaching consequences for the Swiss legal system, Switzerland as a business location, and the proven litigation culture. Such a system change is neither necessary nor expedient.
Postulate opens the way for viable solutions
SwissHoldings expressly welcomes postulate 25.3954 of the Legal Affairs Committee of the Council of States, which was adopted by a large majority. This instructs the Federal Council to examine whether existing mediation and ombudsman procedures can represent an appropriate and practical alternative to expanding representative actions, and if necessary, to submit proposals for their targeted strengthening. The committee thereby sends an important signal: instead of a risk-laden system change, proven out-of-court dispute resolution mechanisms should be further developed.
Contact
Denise Laufer | Member of the Executive Committee | +41 (0)76 407 02 48
