Cross-border legal disputes — new rules from 2017 under European small claims procedure

SUMMARY OF:

Regulation (EU) 2015/2421 establishing a European small claims procedure and a European order for payment procedure

WHAT IS THE AIM OF THE REGULATION?

It simplifies and broadens the European small claims procedure (ESCP).
It makes the procedure available in more cases, cuts the court fees and promotes the use of electronic communications, such as videoconferencing, and forms of distance payments.

KEY POINTS

Scope

The ESCP can be used for all civil and commercial matters, in any court or tribunal and where more than one EU country is involved. The maximum value of any claim is €5,000.
The possibility of increasing both the scope of claims (e.g. to include remuneration) and the maximum value of a claim will be examined during the first 5 years of the application of these new rules.

Hearings

The procedure is intended to be a written procedure. Oral hearings are only held when it is not possible to give the judgment based on written evidence or where a court or tribunal agrees to a party’s request.
A party summoned to attend an oral hearing may request the use of videoconferencing technology where such facilities are available and where attending in person would be disproportionately costly to the claim.

Forms

The standard claim form must be available at all courts and tribunals where an ESCP can be launched as well as through relevant national websites.
Documents and judgments provided by the court must be sent by post or by electronic means (where this service is available) and where the party to be served has given their consent.
To reduce translation costs, when a court must issue a certificate for the enforcement of a judgment or court settlement in a language other than its own, it must use the standard form for the certificate in the relevant language.

Assistance

Parties are entitled to receive practical assistance in filling out the forms as well as general information on the scope of the ESCP and the competent courts. This information is to be provided free of charge.

Court fees and payment

Court fees must not be disproportionate and must not exceed those for equivalent national simplified court procedures.
EU countries must ensure that court fees can be paid using at least 1 method of distance payment, such as:
- bank transfer;
- credit or debit card;
- direct debit from the claimant’s bank account.

FROM WHEN DOES THE REGULATION APPLY?

It applies from 14 July 2017, except for point (16) of Article 1, amending Article 25 of Regulation (EC) No 861/2007. This covers information to be provided to the European Commission by the EU countries, and applies from 14 January 2017).

BACKGROUND

For more information, see:

‘Small claims’ on the e-Justice website.

MAIN DOCUMENT

Regulation (EU) 2015/2421 of the European Parliament and of the Council of 16 December 2015 amending Regulation (EC) No 861/2007 establishing a European Small Claims Procedure and Regulation (EC) No 1896/2006 creating a European order for payment procedure (OJ L 341, 24.12.2015, pp. 1–13)