Dominican Republic: New Law of Nullity (Cassation) Proceeding before the Supreme Court of Justice
President Abinader promulgates, on January 17, Law number 2-23, which regulates the Nullity Proceeding before the Supreme Court of Justice in civil, commercial, labor, real estate, administrative, and tax matters.
Also, the Plenary of the Supreme Court of Justice, in its extraordinary session number 3-2023, held on February 7, 2023, unanimously approved resolution number 62-2023, which outlines the new procedure for filing the suspension of the execution of appealed judgment in cassation.
All deadlines set by law are business days. The term to appeal against the ordinances in referral and those issued in real estate seizure are ten business days. In all other cases, including labor cases, it is 20 business days.
Decisions can only be appealed based on three parameters: specified matters, the amount discussed in the decision, and objective appeal interest.
The amount is evaluated based on at least 50 minimum wages of the highest in the private sector in all matters except labor. In labor matters, it is at least 20 minimum wages of the highest in the private sector.
The suspensive effect of the appeal is eliminated, except in some cases provided for by law. But the possibility of demanding the suspension of the decision before the president of the correspondent chamber is established.
Deadlines are set for the court to decide:
- Two months’ cases marked as urgent.
- Six months for all other cases.
- The Supreme Court can extend the term by one month if a direct ruling is issued on the merits.
Fines and damages to the party and lawyers could be possible if the appeal is abusive, reckless, or made with bad faith.
Key Action Points for Human Resources and In-house Counsel
In the past, cassation’s appeal was used as a resource to buy time: it could last between one and two years so that the Supreme Court could conclude.
However, now the term will be short. Additionally, due to the amounts and characteristics in labor matters, many cassation appeals will be considered inadmissible and may be ruled in less than a month. Therefore, the verdict will become enforceable immediately.
We consider that, in principle, the cassation appeal will not be useful. Then, the Companies will need to pay the amount of the sentence of the Court of Appeal once it is notified.