The European Bank for Reconstruction and Development (EBRD) wants to help countries develop online courts that improve access to justice and Ukraine is the pilot country.
Access to justice is a widespread problem in post-Soviet countries where the legal system is burdened with large caseloads and offers only limited accessibility due to high costs and lengthy court proceedings.
To simplify access, the EBRD plans to introduce online courts in Ukraine, starting with a trial phase that will focus on small claims — between 5,000 and 10,000 euros — to help small and medium-sized enterprises.
Online courts work similarly to standard courts. But by going online, companies can avoid unnecessary hearings and reduce the bureaucratic burden of filing a claim.
“The Project does not aim to replace humans … as cases would still be considered by judges,” Veronica Bradautanu, Principal Counsel of the EBRD Legal Transition Team, said in a written interview with the Kyiv Post. The online version should only make it “more efficient.”
“Ukraine is the starting jurisdiction because it was found that enforcement of contracts in courts is one of the key issues faced by the Ukrainian private sector,” Bradatanu wrote.
According to the EBRD, 49% of companies in Kyiv report that courts are a major obstacle to their business. Legal costs are often disproportionate to the size of the claim, especially for small claims.
The technology will also help increase the transparency of court proceedings and contribute to the prevention of corruption, according to Bradatanu.
To implement online courts, the EBRD will apply international best practices to the Ukrainian legal environment.
Bradautanu expects implementation to start in mid-to-late April and take about 10 months.
If the pilot project in Ukraine is successful, the EBRD wants to replicate it in countries in which the bank invests, including states in the Western Balkans, Eastern Europe, the Caucasus and Central Asia.
“It is quite remarkable how quickly the bank is able to react to a situation in the real world and in our countries of operations, embracing new ideas and solutions,” she writes.
The introduction of online courts in advanced economies such as Canada and the U.K. has already proven successful and efficient, according to a recent EBRD study.