Civil Cases Involving Small Amounts Will Now Be Resolved Faster

To resolve civil cases involving small amount claims faster, more easily, and at lower cost, some cases will now be resolved through a special proceeding in Mongolia.[1] This special proceeding took effect from October 1, 2024, and apply to the following cases:

• Contract disputes and tort disputes involving amounts up to 20 times the minimum wage, equivalent to up to MNT 15,840,000.[2] Examples include claims relating to a sale and purchase agreement, a gift agreement, utility and service fees, etc.

  
  

Additionally, the following cases, regardless of the claim amount, will also be resolved through the special proceeding:[3]

• Complaints relating to the forfeiture, seizure, evaluation, and foreclosure auction of assets and asset rights for court decision enforcement;

• Claims regarding collateral for enforcing contract obligations;

• Claims for average salary during non-employment periods based on an effective court decision regarding reinstatement.

  
  

However, any disputes involving family matters and inheritance will continue to be resolved through regular proceedings.[4]

Advantages of the Special Proceeding:

1. Under the new amendments, cases resolved through the special proceeding will be handled more quickly than under regular proceedings. Specifically, while cases under regular proceedings are resolved within 60 days,[5] cases under the special proceeding must be resolved within 45 days.[6]

   
   

2. The Supreme Court has issued interpretations regarding claims, responses, and the rights and duties of case participants to clarify issues such as how to correctly define claims and refusals and how to establish factual relationships.[7], [8]

   
   

3. Courts will implement a search procedure when the defendant’s address is uncertain, when the defendant is not operating at the address provided, or when the defendant does not reside at the address identified by the claimant.[9]

   
   

4. If the defendant is not residing at the address verified by the court, the relevant state authority will deliver the claim to the defendant’s email address registered in the state data system at e-mongolia.mn.[10]

   
   

5. If the defendant refuses or avoids receiving the notice letter or the claim, the notice will be deemed received seven days after the email is sent.[11]

   
   

Additionally, starting from January 1, 2025, it is regulated that notice letters regarding claim receipt will be sent exclusively through the national e-mail address mentioned above. Furthermore, from January 1, 2025, circuit courts specializing in summary proceedings for criminal and civil cases will be established and will specifically handle cases under the special proceeding.   

Source:

[1] Draft Law on Amending the Law on Civil Procedure

[2] Article 751.1 of the Law on Civil Procedure

[3] Article 751.2 of the Law on Civil Procedure

[4] Article 751.5 of the Law on Civil Procedure

[5] Article 71.1 of the Law on Civil Procedure

[6] Article 752.2 of the Law on Civil Procedure

[7] Draft Law on Amending the Law on Civil Procedure

[8] Article 753.3 of the Law on Civil Procedure

[9] Article 754.1 of the Law on Civil Procedure

[10] Article 754.2 of the Law on Civil Procedure

[11] Article 754.4 of the Law on Civil Procedure

Disclaimer: This legal information and article are intended for general informational purposes only and have been prepared in accordance with the laws in effect at the time of writing. For legal advice, please consult a professional attorney.