Japan Legal Update : Digitalization of Civil Court Proceedings other than Civil Litigation by Enactment of Act on Establishment of Related Laws to Promote the Utilization of Information and Communication Technology in Civil Proceedings
| Authors | Masaki Fujita Kanako Watanabe Saki Furuhashi |
|---|---|
| Issue | Mar 13, 2024 |
| Practice Areas | Restructuring/Insolvency and Bankruptcy |
This article was written as of January 2024.
On June 6, 2023, the Act No. 53 of 2023, titled “The Act on Establishment of Related Laws to Promote the Utilization of Information and Communication Technology in Civil Proceedings” (“Act of 2023"), was promulgated. The primary object of this legislation is to expedite and streamline civil court proceedings other than civil litigation, including insolvency proceedings. The Act of 2023 will become fully effective as of a date specified by a government ordinance within 5 years of the promulgation.
1. Historical Context
Over the past few years, Japan has grappled with significant challenges in aligning with international standards related to the digitalization of court proceedings. In May 2022, the Act No. 48 of 2022 ("Act of 2022") was enacted, whereby a comprehensive digitalization of civil litigation procedures involving the resolution of cases through court judgments, was successfully achieved. The Act of 2022 did not deal with the digitalization of other litigation-related procedures, such as civil enforcement, insolvency proceedings and domestic relations proceedings.
2. Digitalization of Various Civil Court Proceedings
The Act of 2023 addresses the digitalization of insolvency proceedings as well as other proceedings. The following are the main items that relate to insolvency proceedings.
2.1. Online Filings and Submissions
Online filings and submissions will be enabled. This includes the online service of documents from the court, creating a mandatory requirement for representatives (such as attorneys and legal professionals) to submit and receive documents online. In bankruptcy proceedings, it will be possible to file a petition for the commencement of bankruptcy proceedings and to file proofs of bankruptcy claims online. The methods of submission will be specified in detail by the Supreme Court rules in due course.
Additionally, bankruptcy trustees are, in principle, obligated to submit applications for approval of the court, statements of approval or rejection of bankruptcy claims, lists of properties, and distribution tables, etc., via the internet. Trustees in rehabilitation and reorganization proceedings are also subject to the same obligations.
2.2. Utilizing Web Conferencing
If the court deems it appropriate, web conferences can be used for major hearing dates of insolvency proceedings, such as creditors’ meetings, investigations, and determinations of claims, in which a debtor, a bankruptcy trustee and creditors may participate in the hearing dates remotely.
2.3. Digitization of Case Records
In principle, case records will be stored in electronic format. The parties involved in the proceedings and third parties demonstrating a prima facie showing of interest will be granted online access to the court's server for inspecting case records.
3. Conclusion
These amendments will be particularly helpful for foreign creditors involved in insolvency proceedings in Japan. Although most documentation still requires the assistance of Japanese attorneys due to the language barrier and the need to understand Japanese laws and practices, these changes will facilitate the submission of documents to the court and will allow for a more convenient review of case records than before.
