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Italy, officially the “Italian Republic,” is a European country consisting of a peninsula delimited by the Italian Alps and surrounded by several islands. Located in the middle of the Mediterranean Sea and traversed along its length by the Apennines, Italy also comprises two smaller States: the Vatican City and San Marino, each with their own body of laws. With around 60 million inhabitants, Italy is the fourth-most populous member state of the European Union.

The law in Italy has been based on the Roman law model as well as French Napoleonic law; it is currently based on a civil law system as opposed to a common law system. The difference between these two systems is less marked than it appears. In common law, decisions are considered law according to the Stare Decisis principle. It civil law, although decisions might have only persuasive force, most cases are decided with consistent reasoning given the more weight they acquire—this is the phenomenon of Constant Jurisprudence, a way to give “quasi legislative” effects to the Italian pronounces without violating the principle of separation of powers.

The Stare Decisis principle is not followed in Italy because it violates the principle that only the Parliament should make law; therefore, as aforementioned, Italian judgments only take effect between the parties, and lower courts are not bound to precedents established by higher courts. And yet, in practice, a decision of the Italian Supreme Court of Cassazione will be followed by lower courts to the same extent of the English ones, due to the particular function entrusted to the Supreme Court itself. In addition to being the Court of the last instance in civil and penal matters, the Italian Supreme Court has the task of ensuring the observance and uniform interpretation of the law, in order to guarantee equality of treatment to everybody, as well as the unity of the legal system on the whole national territory.

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Due to its central geographic location in Southern Europe and the Mediterranean, Italy has always represented a crucial point for international commerce and a strategic location for cross-border business activities.

The basic rules governing commercial relationship are embodied in the Italian Civil Code which was enacted in 1942, and in many other special laws or statutes.

As a result of Italy’s membership in the European Union and of a number of EU Directives, many parts of the Civil Code have been substantially modified. Italy is part of various international conventions which must be consulted under circumstances, especially in drafting or executing any cross-border contracts.

The Italian civil judicial system is based on the principle of a “two tier justice system”—this essentially allows the re-consideration of a case decided at first instance.

The first instance decision is when a Court considers a case on its merits for the first time. The second tier of the system is the Appeal, a procedure providing a means of challenge to a Court decision or order, requesting a change to the decision made by the court of first instance considered wholly or partially in error. It has the specific effect of preventing the decision from becoming res judicata and permits a re-examination of those points of the dispute which have been challenged in order for the new decision on appeal to substitute the first instance decision. Special Companies Sections at some Ordinary Courts and Courts of Appeal have recently been introduced to rule in intellectual property rights and corporate law cases.

A further decision on the legitimacy of a case is also allowed on appeal to the Court of Cassation. At this final stage, the Court only considers the legality of the proceedings conducted in the lower courts.

The rules governing territorial jurisdiction are inside the Italian Civil Code of Procedure.

QUICK FACTS

POPULATION:
60.36 million

GOVERNMENT:
Democratic Republic

LEGAL SYSTEM:
Civil Law Model

COURT SYSTEM:
Two-tier justice system

Court of Cassation: Supreme Court is entrusted with ensuring uniform interpretation of the law, and also hears appeals from lower courts in certain circumstances.

Court of Appeal: Hears appeals against decisions of first instance courts.

Ordinary Court: First instance court presiding over minor cases not answered by the Justice of the Peace.

Justice of the Peace: First instance court for minor civil and criminal cases.

ECONOMY:
GDP—2.290 trillion
Currency—Euro