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European Order for Payment Procedure

EUROPEAN ORDER FOR PAYMENT PROCEDURE

Regulation (EC) No 1896/2006 of the European Parliament and of the Council of 12 December 2006 creating a European order for payment procedure.

The regulation, which will apply from 2008, establishes a European procedure for orders for payment. The procedure simplifies, speeds up and reduces the costs of litigation in cross-border cases concerning uncontested pecuniary claims. The regulation permits the free circulation of European orders for payment throughout European Union (EU) countries by laying down minimum standards, compliance with which renders unnecessary any intermediate proceedings in the EU country of enforcement prior to recognition and enforcement.

Application of the procedure in civil and commercial matters

The European order for payment procedure applies to civil and commercial matters in cross-border cases, whatever the nature of the court or tribunal. A “cross-border case” is one in which at least one of the parties is domiciled or habitually resident in an EU country other than the country of the court hearing the action. The regulation applies to all EU countries except Denmark.

The procedure does not extend to revenue, customs or administrative matters or the liability of a state for acts and omissions in the exercise of state authority.

Also excluded:

  • matrimonial property regimes;
  • bankruptcy;
  • social security;
  • claims arising from non-contractual obligations.

The regulation includes a form, to be used to apply for a European order for payment. A pecuniary claim must be for a specific amount that has fallen due at the time when the application for a European order for payment is submitted.

The jurisdiction of courts is decided using the appropriate EU legislation. If a claim relates to a contract concluded by a consumer for a purpose which can be regarded as being outside his trade or profession, and if the defendant is the consumer, only the courts in the EU country in which the defendant is domiciled have jurisdiction.

The court to which an application for a European order for payment has been made considers whether the applicability conditions have been met (the cross-border nature of the case in civil and commercial matters, the jurisdiction of the court in question, etc.) as soon as possible, and examines the well-foundedness of the claim.

The court informs the applicant of the reasons for which the claim has been rejected. There is no right of appeal if an application is rejected. The rejection of an application does not, however, prevent a claimant from pursuing a claim by means of a new application for a European order for payment or using any other procedure available under the law of an EU country.

David Lorenzo-Spanish Lawyer UK                                       
Spanish Law | Birchall Blackburn
dxlorenzo@birchallblackburn.co.uk
www.birchallblackburn.co.uk                                                                                       www.spanishpropertiesintheuk.co.uk  www.spanishlawintheuk.co.uk

David Lorenzo

David Lorenzo

Spanish Lawyer UK at Birchall Blackburn
David Lorenzo, Spanish Lawyerin UK, member of the Bar of Madrid and based in Manchester, specialized in international issues regarding Spain
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