Settling Disputes

Establishing a European Small Claims Procedure

This procedure shall be available to Litigants as an alternative to the procedures existing under the laws of the Member States. This Regulation shall apply, in cross-border cases, to civil and commercial matters, whatever the nature of the court or tribunal, where the value of the claim does not exceed Euro2000 at the time when the claim is submitted.

This Regulation is intended to speed up litigation and reduce costs concerning small claims in cross-border cases. Use of the procedure will not be mandatory, but it provides an alternative to other more costly and complex legal procedures. It applies to civil and commercial matters, where the claim (excluding all interest, expenses and disbursements) does not exceed EUR 2000. It does not extend to revenue, customs or administrative matters or the liability of the State for acts and omissions in the exercise of State authority. The claim may be pecuniary or non-pecuniary (e.g. delivery of goods). The Regulation started to apply from 1st January 2009 in all EU member countries

How to use the procedure

The claimant will need to complete Claim Form A (as set out in Annexe 1) and send it by a means of communication acceptable to the Member State in which the procedure is commenced. Member States shall inform the Commission as to what means of communication will be acceptable, and this information will be publicly available. The claim form should be supported by evidence supporting the claim, and be accompanied, where appropriate, by any relevant supporting documents. An administration fee will be payable.

The procedure may seem daunting, but Member States must ensure that the parties can receive practical assistance in completing the forms. This will be particularly valuable to consumers wishing to take advantage of the procedure.

In which language must the claim form be submitted?

It must be submitted in the language, or one of the languages, of the court or tribunal having jurisdiction. This could mean additional costs for the claimant or defendant, but translation costs can be recovered by the successful party. To find out how to determine which Country’s Court has jurisdiction (and therefore which language to use), you can read Council Regulation 44/2001. This regulation also provides information on how to determine where a party is domiciled.

Generally, a person must be sued in the courts of the Member State in which they are domiciled, but there are some exceptions to this rule. For instance, in the case of non-performance of a contract, a claim can be pursued in the courts where the contract should have been performed (i.e. goods or services were to be delivered/provided). If the claim relates to tort, action should take place in the courts where the harmful event occurred. If the company you wish to sue is based in another EU country, but has a branch, agency or establishment in your country, and the dispute relates to their operation in your country, you may be able to make a claim via the Courts in your country even if delivery was to another EU country.

This Regulation offers special protection for consumers who, generally as the weaker party, can often make a claim in their own courts.

Once you’ve determined in which country action will have to be taken, you should be able to find out which court or tribunal has jurisdiction. This information can be obtained by visiting: http://ec.europa.eu/civiljustice/jurisdiction_courts/jurisdiction_courts_gen_en.htm

Cost to use the Procedure

Generally this is a written procedure, although the Court or a party may request oral or witness testimony. If agreed, this should be by the most cost effective means, for example, video conferencing or teleconferencing, if facilities are available.

You’re not obliged to be represented by a lawyer, but if the other party does obtain legal representation, there’s a danger you’ll end up paying for it if you lose. Costs will normally be awarded against the unsuccessful party, and this may include the cost of legal representation. At this point the procedure begins to look more costly than it at first appeared. It is advisable to seek legal advice before taking a claim forward, so as to ensure that you have a strong case. This would also negate the benefits of having a low-cost procedure to some extent, but could avoid unnecessary costs as it lessens the chance of losing.

Length of the procedure

Article 5 of the Regulation sets out time limits for stages of the procedure, but timescales can be extended in exceptional circumstances, if necessary, in order to safeguard the rights of the parties.

Time limits will be subject to Regulation (EEC, Euratom) No 1182/71 of the Council of 3 June 1971 determining the rules applicable to periods, dates and time limits.

Successful claim

A key principle of this Regulation is that the judgement of the court should be recognised and enforceable in another member state. If the claim is successful, the court or tribunal shall issue a certificate concerning the judgement at no extra cost. This certificate can be used to seek enforcement. Enforcement procedures shall be governed by the law of the Member State of enforcement.

Appeal

It will be up to Member States to determine whether an appeal is available and within what time limit an appeal should be lodged. The Commission shall make this information publicly available. Article 18 of the Regulation also lays down minimum standards for review of the judgement.