Update (2025): Since this article was first published, a Commercial Court has been established in Malta under the Code of Organisation and Civil Procedure. This opinion piece is retained for archival purposes, reflecting earlier commentary on the topic.
Earlier in 2017, the Ministry for Justice, Culture and Local Government held a public consultation, titled “Setting up of the Civil Court, First Hall, Commercial Section“. The consultation was then concluded in July 2017.
Wide Range of Questions
Consultation questions included whether there should be a commercial section within the civil arm of the Maltese courts. The consultation also asked whether the remit should be limited to the Companies Act or wider.
Feedback Received
The feedback received applauded the initiative of introducing this section. In the past the Maltese courts included a Commercial Court section. The commercial court was eventually discontinued.
However, in the current litigation climate, both the Government and those participating in the consultation felt that the introduction of this section would increase in the efficiency of justice being delivered. Naturally, it was considered imperative that the necessary human and other resources are provided.
During the consultation, the feedback mentioned that matters falling under the Commercial Code should also be included within the scope of this section’s jurisdiction. Others suggested that other laws such as the Trusts and Trustees Act and other codes that deal with matters of a commercial nature (e.g. banks) should also fall under this court’s jurisdiction.
Existing Procedures and the New Court
The court’s general area of competence and procedure are still unclear. Most procedural matters are generally regulated by the Code of Organisation and Civil Procedure. A new court would need to have its own rules of procedure, or somehow be regulated by this Code. The Code regulates the procedure of all the civil courts in Malta.
The use of alternative dispute resolution mechanisms, including pre-trial conferences and/or arbitration or mediation were also considered an efficient means to resolve disputes. They can provide direction in cases that are deemed to be high-risk or that are of a delicate nature.
The consultation respondents further referred to the implementation of online filing and payment of fees. At the time of writing, only physical payment and filing of court cases is possible. This renders the process inconvenient and unwieldy for most professionals and increases crowding in court.
Respondents additionally suggested other legislative amendments to be made alongside the setup of this new commercial court. These amendments would ensure that the new Bill respects the current legal framework.
In late 2017, the Government published its response to the consultation. In the response, the Government stated that, subject to Parliamentary approval, it plans to enact the new legislation in early 2018. The plan is for the new Commercial Section to commence operation in the second quarter of 2018.