What is the European Order for Payment?
This is a kind of court decision, making it possible to collect the claimed liabilities from a foreign contractor.
What advantages are provided by proceedings in case of the European Order for Payment?
This is a simplified and accelerated proceeding, which is also less expensive than the alternative methods of the court-based claiming of liabilities. There is no need to submit a suit to a foreign court of law, proper for the registered address of a debtor, and, consequently, there is no need to take advantage of the services of a lawyer abroad – in most cases, the latter one requires a very high fee. The European Order for Payment is issued upon the basis of the facts quoted by a lender, and if a debtor does not agree with the issued European Order for Payment, he or she may submit a protestation to the Polish court of law, which, due to the need of commissioning this to a lawyer, is frequently not resorted to by debtors.
In what cases can the European Order for Payment be issued?
In all trans-frontier civil and commercial cases, with the exception of:
fiscal, customs or administrative cases,
claims towards a state,
cases relevant to the property rights resulting from marital relationships, last wills and inheritance,
bankruptcies, closing down, agreements concluded in case of the insolvency of companies
claims resulting from extra-contractual commitments, unless, these are the subject-matter of an agreement between the parties, or, unless the debt has been acknowledged, or, unless the refer to marked debts resulting from the common ownership of the property.
A case is regarded as a trans-frontier one when at least one of the parties is domiciled, permanently stays or has their headquarters in the member state, other than the member state in which the court of law hearing the case is situated.
In accordance with Article 60 of the Ordinance of the Council of Europe (of the European Community) no. 44/2001 it is assumed that companies and legal entities are domiciled or situated in the place in which one of the following is situated:
their registered address, or
their main body of management, or
their main branch.
Why is the proceeding in case of the European Order for Payment more rapid?
The sued party is not advised in any manner about the proceedings prior to the actual issuance of the European Order for Payment. The activities of the court of law prior to the issuance of a decision are restricted to the investigation of the suit, which amounts to determining, whether necessary formal conditions of its issuance are met, and, whether it appears to be justifiable.
If all the conditions are met, the court of law as quickly as it is possible, usually within a period of thirty days since submitting the suit, issues the European Order for Payment.
A sued party is entitled to submit a protestation against the European Order for Payment within a deadline of thirty days since serving it upon this party. Submitting a protestation results in the continuation of proceeding before the court of law in the member state in which the European Order for Payment was issued, in accordance with the provisions regulating ordinary civil proceedings.
If no protestation is submitted (which is most frequently the case), the court announces that the European Order for Payment can be executed , by means if which it is recognized and executed in other member states of the European Union without it being necessary to determine that it can be executed overseas and without a possibility of protesting against its being recognized. Such an European Order for Payment may be forwarded to a court collector in a given state of the European Union in order to be executed.
What court fees are to be paid upon submitting a request for the European Order for Payment?
The court fee amounts to 5 % of the value of the subject of the dispute, which means the sum claimed from a debtor. However, in case of obtaining a legal force by the European Order for Payment (in case of not submitting a protestation by a debtor), ¾ of the fee paid to the court is returnable, and ¼ of the fee is immediately awarded from the debtor. In case of submitting a protestation against the European Order for Payment, the whole sum of the fee is awarded from the debtor in case in a sentence.