The aim of the European order for payment procedure is to facilitate and expedite the proceedings as well as to reduce the costs of the cross-border lawsuits on undisputed monetary claims.
This procedure enables free transfer of European orders for payment across the territories of all EU Member States.
It needs to be pointed out that the procedure of the European order for payment can be applied to cross-border civil and commercial cases. In this context, a cross-border case is a case where the place of residence or the permanent abode of at least one of the parties is situated in the territory of an EU Member State, other than the EU Member State of the court of the case’s cognizance. Therefore, the application of this procedure may prove advantageous when recovering debts by entrepreneurs who maintain business relations with contractors within the territory of the European Union.
However, issuing the European order for payment is inadmissible in the following cases:
- Fiscal cases
- Customs cases
- Administrative cases
- Cases pertaining to the responsibility of the state for acts and omissions in exercising public authority
- Property rights arising from matrimonial relations
- Cases pertaining to bankruptcy, proceedings of liquidation of insolvent companies or other legal entities, conciliatory proceedings, composition agreements and other similar proceedings
- Cases related to social security
- Claims arising from non-contractual obligations, unless they are the subject matter of an agreement between the parties, or if acknowledgement of debt took place, or if they pertain to marked debts arising from co-ownership
The European order for payment is issued solely on the basis of information provided by the plaintiff, not verified by the court. The order becomes executable unless the defendant raises an objection to the court that issued the order. It must be underlined, that the European order for payment that has become executable in the EU Member State where it was issued is likewise recognized and executable in other EU Member States, without any further need for ascertaining its executability and with no opportunity to object its recognition. Therefore, this regulation abolishes the exequatur procedure (acquiring authorization for executing a sentence in a state other than the one it was passed in) which significantly expedites and facilitates the proceedings.
In the first place, CGO Legal law firm thoroughly analyzes if the justified prerequisites for recovering the due debt with the use of the European order for payment have been met.
Once this has been ascertained and the circumstances of the case verified, CGO Legal law firm represents the Client in the proceedings before a competent court as well as once the order has come into force – in the enforcement proceedings. Additionally, CGO Legal law firm provides its services to those Clients, against whom the European order for payment was issued. Consequently, we raise an objection against the European payment order on behalf of the Client and represent them in the further proceedings.