European order for payment
The European order for payment procedure, i.e., the European injunction, is a useful tool to collect receivables from a foreign debtor. The European order for payment procedure is an alternative to that of the legislation of the State of the court having jurisdiction.
Differences between the European injunction and the order for payment in Italy
The European injunction was established in 2008, with Regulation No. 1896/2006, which entered into force on 12/12/2008. The European order for payment is a relatively complex telematic procedure. It applies to all the Member States of the European Union with the exception of Denmark. The EU has sought to provide a simplified tool for claims between parties of EU Member States and to resolve cross-border disputes of civil and commercial nature with a European injunction for foreign debtors.
The conditions for filing a European injunction
- The receivable must be liquid and payable.
- At least one of the parties to the proceedings must be a resident in an EU Member State other than that to which the seised Court belongs.
It is an order for payment in the event of:
- B2B relationships;
- Relationships between companies and consumers;
- Claims arising from non-contractual obligations in the event of a specific agreement between the parties;
- Recognition of a debt and receivables for liquid debts arising from joint ownership of an asset.
The European injunction may not be used in the event of:
- Disputes of a fiscal nature;
- Customs disputes;
- Family property relationships;
- Proceedings relating to the winding-up of insolvent companies;
- Claims arising from non-contractual obligations.
The procedure of the European order for payment to a foreign debtor
The European injunction does not replace that of the individual States but is an alternative instrument. As in the case of an injunction in Italy, the European order for payment procedure becomes res judicata when the debtor does not challenge it in court
Written evidence and true evidence
This is the most important part of the European Order for Payment. The advantage of the European order for payment procedure is that there is no need to attach the written evidence. In the European order for payment procedure, a pro-veritate description is enough to support the claim. An element of extraordinary importance. In fact, to communicate between the courts of the Member States of the European Union in different languages, users are forced to spend hundreds of euros in expenses for costs, notaries, lawyers and translations, including of invoices, whose legal value in the procedure relates only to the amount. The European order for payment procedure does not provide for written evidence to be attached, but only the description of the circumstances that have given rise to the claim. So, it is a very useful tool for enterprises and individuals in Europe grappling with cross-border transactions to recover debts without incurring excessive costs.
Damiani & Damiani International Law Firm Rome
Written evidence in the order for payment in Italy
Written evidence is a prerequisite condition to prove the existence of the claim. In this way, it is possible to obtain an order for payment in Italy that has the value of res judicata.
True evidence in the European order for payment to a foreign debtor
Instead, based on article 7 of the EU regulation establishing the European order for payment procedure, in the claim filed with the Court, the claimant must describe the circumstances invoked as the basis of the claim and must also describe the evidence in support of its application by providing information that is true to the best of his knowledge and belief
Rejection of the application to obtain the European order for payment
In the event of rejection of the application, it is no longer possible to appeal against the decision of the Court. However, it is possible to file the dispute again by choosing between a European order for payment and the national order for payment procedure
Acceptance of the application for the European order for payment
If the Court accepts the application, it issues an order for payment within 30 days of the request and the document becomes enforceable and has legal effect in the Member States of the EU with the exception of Denmark
Opposition of the debtor to the European order for payment
The debtor can lodge a statement of opposition to the European order for payment within 30 days of service of the order. In this case, the proceeding is brought before the competent courts of the Member State of origin in accordance with the rules of ordinary civil procedure