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(SAIL) Project Supporting Accelerated Investment in Sri Lanka (SAIL) Project Assessment of the Caseflow Process in the Commercial High Court of Colombo March 29, 2018 This publication was produced by International Development Group LLC, with subcontractor Chemonics International Inc, for review by the United States Agency for International Development. i USAID SAIL Project Draft Assessment of the Caseflow Process in the Commercial High Court of Colombo– Second Draft Supporting Accelerated Investment in Sri Lanka (SAIL) Project Assessment of the Caseflow Process in the Commercial High Court of Colombo Contract Number: AID-OAA-I-12-00042/AID-383-TO-17-00001 First Draft submitted on January 9, 2018 Resubmitted on March 29, 2018 Submitted by: International Development Group LLC 1100 North Glebe Road, Suite 950 Arlington, VA 22201 Phone: +1 (571) 336-7980 Fax: +1 (571) 336-7998 DISCLAIMER ii The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government USAID SAIL Project Draft Assessment of the Caseflow Process in the Commercial High Court of Colombo– Second Draft Table of Contents Acronyms............................................................................................................................................................................ iv Executive Summary ........................................................................................................................................................... 1 I. Introduction ............................................................................................................................................................... 4 II. Background ................................................................................................................................................................ 5 III. Statutory Basis Of The Commercial High Court Of Colombo ................................................................ 7 A. Commercial High Courts In The Western Province .................................................................................. 8 B. Arbitration Award Enforcement ...................................................................................................................... 9 C. Court Procedure Followed In The Commercial High Court ................................................................. 10 Iv. Approach To Caseflow Management ............................................................................................................ 11 A. Review Of Caseflow Management Before Automation ............................................................................ 11 B. Establishing Caseflow Management ............................................................................................................... 11 C. Time Is Of The Essence .................................................................................................................................... 12 V. Methodology ............................................................................................................................................................ 12 VI. Current Case Flow Process ............................................................................................................................ 13 A. Physical Condition Of Files – Part Of Poor Overall Infrastructure ....................................................... 13 B. Presence Of Information Technology ........................................................................................................... 14 C. Registration Of New Cases ................................................................................................................................ 14 D. Case Acceptance By Judges ............................................................................................................................. 14 E. Service Of Process ............................................................................................................................................. 15 F. Case Management By Judges ........................................................................................................................... 15 G. Communication With Counsel....................................................................................................................... 15 H. Failure To Use Efficient Procedures Already In Place ............................................................................... 15 I. Transcripts And Translations .......................................................................................................................... 15 J. Attorney Payment .............................................................................................................................................. 15 K. Constant Delays By Counsel........................................................................................................................... 16 L. No Continuous Trials ....................................................................................................................................... 16 M. Execution Of Judgment ..................................................................................................................................... 17 N. Cases Can Last A Decade ................................................................................................................................ 18 VII. Summary Of Data On Pending Cases ........................................................................................................... 18 VIII. Civil Procedure Amendments ......................................................................................................................... 20 A. Pre-Trial Hearing................................................................................................................................................ 21 B. Affidavits To Introduce Evidence And Documents ................................................................................... 21 C. Appointment Of A Representative ................................................................................................................ 22 D. Notifications To Counsel ................................................................................................................................. 22 IX. Assessment .......................................................................................................................................................... 22 X. Recommendations .................................................................................................................................................. 22 A. Immediate Short-Term Recommendations - 2018 .................................................................................... 23 B. Intermediate Recommendations 2018-2019 ............................................................................................... 25 C. Long-Term Recommendations - 2020 .......................................................................................................... 27 Annexure I: Members Of The Task Force On Contract ......................................................................................... 28 Annexure II: Action Plan For Improving Sri Lanka's Regulatory Environment In Enforcing Contracts . 29 Annexure III: Key Informant Interviews ..................................................................................................................... 32 Annexure IV: Case Information Summary Sheets ................................................................................................... 33 Annexure V: Reasons For Delay In Case Processing ............................................................................................ 41 Annexure VI: Contents Of Proposed Circulars ....................................................................................................... 44 iii USAID SAIL Project Draft Assessment of the Caseflow Process in the Commercial High Court of Colombo– Second Draft ACRONYMS ADB Asian Development Bank CEPEJ European Commission for the Efficiency of Justice CHC Commercial High Court of Colombo CSI-ROL Civil Society Initiatives to Promote the Rule of Law DB Doing Business JSC Judicial Service Commission JTI Judges’ Training Institute KIIs Key Informant Interviewees OECD Organization for Economic Co-operation and Development Rs. Sri Lankan rupees SAIL Supporting Accelerated Investment in Sri Lanka UNCITRAL United Nations Commission on International Trade Law USAID United States Agency for International Development WB World Bank iv USAID SAIL Project Draft Assessment of the Caseflow Process in the Commercial High Court of Colombo– Second Draft EXECUTIVE SUMMARY This is an assessment of an organization whose goal is the prompt, fair and efficient resolution of commercial disputes. It is not currently meeting that goal. In analyzing what can be done to improve, three insights from the bureaucratic and organizational political science work of James Q. Wilson are relevant. First, organizational goals are not by themselves sufficient to motivate the activity needed to achieve them. Second, organizations are regularly more focused on their maintenance needs than on their goals. Third, much organizational behavior stems more from the constraints the organization faces than from the goals it embraces.1 The Commercial High Court (CHC) faces significant
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