BIAS AND PREDICTABILITY IN JUDICIAL DECISIONS INVOLVING CORPORATE RESTRUCTURING: EVIDENCE FROM SERBIA

• Published in: Anali Pravnog fakulteta u Beogradu Vol. 68; no. 2; pp. 80 - 99
• Main Authors: Radulović, Branko, Radović, Marko
• Format: Journal Article
• Language: English
• Published: Правни факултет Универзитета у Београду 2020; University of Belgrade Faculty of Law; University of Belgrade, Faculty of Law, Belgrade, Serbia
• Subjects: bankruptcy; Civil Law; Commercial Law; judicial bias; pre-arranged reorganization plan; predictability; Judicial bias; Prearranged reorganization plan; Predictability; Bankruptcy
• ISSN: 0003-2565; 2406-2693
• DOI: 10.5937/AnaliPFB2002080R

The paper empirically assesses evidence of bias among bankruptcy judges and predictability of judicial decision making in Serbia. For this purpose, we devised three hypothetical cases that were distributed to judges that preside over bankruptcy cases in Serbia. While the results do not indicate a consistent bias towards either the debtor or the creditor, they show concerning unpredictability of judicial decision making, hence leading to a high level of legal insecurity. Based on responses we observed high heterogeneity among Serbian bankruptcy judges in their interpretation of the bankruptcy laws. This makes allocation of cases to the particular judge a significant determinant for how the debtors and creditors will be treated and how the law will be applied.