Recovering a debt in a cross-border context is often a daunting task. Geographical distance, linguistic and legal differences, and the associated costs often discourage creditors from pursuing their debtors established in another Member State. This observation led the European legislator to create a specific instrument: the European Small Claims Procedure.
This procedure offers both individuals and businesses an effective way of resolving low-value cross-border disputes. It stands out for its simplicity, speed and low cost. Save yourself some time and find out how this European legal tool can meet your needs.
Origin and objectives of the European Small Claims Procedure
The European Small Claims Procedure has its origins in Regulation (EC) No 861/2007 of the European Parliament and of the Council of 11 July 2007. This text forms part of the wider framework of judicial cooperation in civil matters within the European Union, based on Article 81 of the Treaty on the Functioning of the European Union.
The European legislator started from a simple observation: the costs, delays and complications associated with cross-border disputes do not decrease in proportion to the value of the dispute. For a claim of a few thousand euros, the procedural obstacles can make recovery economically irrational. The Regulation therefore aims to "simplify and speed up the settlement of small claims in cross-border disputes and to reduce costs", as stated in Article 1.
This system underwent a significant change with the amending regulation (EU) 2015/2421 of 16 December 2015, which came into force on 14 July 2017. This reform broadened the scope of the procedure and enhanced its effectiveness, in particular through greater use of communication technologies.
The procedure coexists with other European instruments with similar objectives. These include Regulation (EC) No 1896/2006 creating a European order for payment procedure, Regulation (EU) No 1215/2012 ("Brussels Ia") on jurisdiction and the enforcement of judgments, and Regulation (EC) No 805/2004 creating a European Enforcement Order for uncontested claims.
Scope: which disputes are covered?
Three cumulative criteria determine theapplicability and conditions for initiating this European procedure.
Firstly, it relates exclusively to cross-border disputes. The Regulation defines this concept precisely: a dispute is cross-border when at least one of the parties is domiciled or habitually resident in a Member State other than that of the court or tribunal seised. This cross-border nature is assessed on the date on which the claim form is received by the competent court. Subsequent changes of domicile are irrelevant.
Secondly, the procedure applies only to civil and commercial matters, regardless of the nature of the court seised. It expressly excludes several areas:
- Tax, customs and administrative matters
- State liability for acts of public authority
- The status and capacity of natural persons
- Similar matrimonial or property regimes
- Family maintenance obligations
- Wills and inheritance
- Bankruptcy and similar proceedings
- Social security
- Arbitration
- Employment law
- Building leases (except for pecuniary claims)
- Violations of privacy and personality rights
Thirdly, the value of the dispute must not exceed €5,000. The 2015 reform raised this ceiling, which was initially set at €2,000. This amount excludes interest, costs and disbursements, and is assessed at the time the claim is received by the court.
This procedure applies in all EU Member States with the exception of Denmark. Denmark benefits from a derogation in the area of freedom, security and justice. The United Kingdom's exit from the European Union also put an end to the application of the Regulation on its territory.
Fundamental principles of the procedure
Regulation (EC) No 861/2007 introduces a uniform procedure which is superimposed on national legislation without amending it. Its use remains optional for creditors, who retain the option of using existing national procedures. This alternative nature is a major advantage for litigants, who can choose the procedural route best suited to their situation.
"The intermediate procedures necessary for a judgment given in a Member State to be recognised and enforced in the Member State in which the judgment is given shall be laid down in writing. performed in another Member State The "exequatur" requirement is abolished, as specified in Article 1 of the Regulation. This abolition of the exequatur means that the applicant can avoid an additional procedure to have the judgment enforced in another Member State.
Uniformity of procedure is an essential factor in building mutual trust between Member States. The fact that the procedure followed is identical in all Member States justifies this trust and explains the free circulation of the decisions obtained.
Representation by a lawyer or any other legal professional is not compulsory, unlike in many national procedures. Article 10 of the Regulation clearly states this principle, allowing the parties to defend themselves if they so wish. This option contributes significantly to reducing the cost of litigation.
It should be noted, however, that the procedure does not operate in complete autonomy from national law. Article 19 of the Regulation states that the procedure "shall be governed by the procedural law of the Member State in which the procedure is conducted", subject to the specific provisions of the Regulation.
Practical benefits for litigants
The standardisation of documents is one of the major innovations of this procedure. It is based on multilingual standard forms available in all the official languages of the European Union. These forms cover the main stages of the procedure: claim, defendant's response, counterclaim and judgment.
This standardisation has two major advantages. Firstly, it limits the negative effects of multilingualism by making the documents easier to understand for those to whom they are addressed. Secondly, it encourages the use of IT in the procedure, a key factor in simplification in a cross-border context.
The predominantly written nature of the procedure is another considerable advantage. According to Article 5 of the regulations, "the The European Small Claims Procedure is a written procedure. ". The holding of a hearing remains exceptional and only takes place if the court deems it necessary or if one of the parties so requests. Even in such cases, the rules favour the use of remote communication technologies such as videoconferencing.
This predominance of the written word saves the parties costly and time-consuming trips abroad, which are particularly dissuasive for low-value disputes.
The use of communication technologies was considerably strengthened by the 2015 reform. The amended Regulation now provides that written communications between the court and the parties are to be made primarily "by electronic means with acknowledgement of receipt". In France, an order of 1 August 2017 authorised the implementation of an automated processing system known as "e-CODEX" enabling the dematerialised introduction and monitoring of proceedings.
With regard to legal costs, Article 15a of the Regulation, introduced by the 2015 reform, lays down two essential principles. These costs "may not be disproportionate" in relation to the value of the dispute. Nor may they exceed the fees charged for the corresponding simplified national procedures.
To facilitate cross-border payment of these fees, the Regulation requires Member States to provide for at least one of the following remote payment methods: bank transfer, payment by bank card or direct debit from the claimant's account.
The processing time is also a major advantage. The regulation sets out a precise procedural timetable with strict deadlines for each stage. Under optimum conditions, a decision can be obtained in just a few months.
To facilitate the implementation of this procedure, the Member States must ensure that those subject to the law receive practical assistance in filling in the forms. In France, this assistance is provided in particular by the registries of the tribunaux d'instance and tribunaux de commerce, the maisons de justice et du droit (law centres) and free legal advice centres.
The European Small Claims Procedure represents a significant advance in access to the law for small claims in cross-border disputes. Its simplified, faster and less costly nature makes it a valuable tool for both individuals and businesses involved in intra-European trade.
Find out if this procedure is right for you and can save you time and resources, our firm can analyse your case and guide you towards the solution best suited to your needs.
Sources
- Regulation (EC) No 861/2007 of the European Parliament and of the Council of 11 July 2007 establishing a European Small Claims Procedure
- Regulation (EU) 2015/2421 of the European Parliament and of the Council of 16 December 2015 amending Regulation (EC) No 861/2007.
- French Code of Civil Procedure, articles 1382 to 1391
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