It is no longer news that current personal and commercial relations know no national borders. Consequently, the internationalisation of the legal proceedings resulting from such transnational relations cannot come as a surprise. Given this scenario, it is essential to adapt our tools and behaviour to procedures that were not available up until a few years ago, or that were initially hardly applied.
In this post we briefly explain what the European Order for Payment (EOP) Procedure consists of and how to use it; how it benefits the creditor, but above all, what the risks of this instrument are for the debtor and how to mitigate them.
What is it and how does it work?
The EOP Procedure is applicable in civil and commercial matters (with some exceptions), and it enables creditors to claim due debts, in cases where the parties reside in different countries of the European Union.
The procedure is initiated at the request of the creditor, before the competent court, with the presentation of a standard form, in which the claim must be substantiated, and the amount owed detailed. Once the court receiving the claim examines it and if the admissibility requirements are met, it will issue a European Order for Payment so that the debtor, within 30 days, either fulfils the payment or lodges a statement of opposition.
Opportunities enabled by the EOP Procedure
As is the case with the Spanish internal order for payment procedure (proceso monitorio), if the defendant neither pays nor objects to the EOP within the given time limit, it becomes enforceable automatically. The great advantage of this in the European procedure is that the enforcement is handled by the competent court at the place where enforcement is to take place in accordance with the rules applicable there. Thus, the order for payment is enforced as if it were a domestic judgment, even though it takes place in a different country to that of the plaintiff. In comparison to other international proceedings and/or proceedings with a foreign element, the EOP Procedure is therefore simpler and more efficient.
The second major advantage of this procedure is that, in many cases it is possible to file the claim in the court of the claimant’s jurisdiction, which facilitates the operation greatly.
Threats to be taken into consideration
However, it is precisely this speed or automaticity of enforcement that can put you on the back foot if in the debtor’s position. As mentioned in the previous paragraph, this factor is common to the internal order for payment procedure in Spain. However, it is the foreign element that should, in this case, lead to extreme care being taken to ensure that the deadline does not pass without an opposition to the order being lodged, since this would allow the court to dictate a directly enforceable decision.
Although in principle an EOP should be served in the same way as an ordinary internal legal notice, there is the possibility of receiving types of notices that we are not familiar with, as well as in other languages or in formats that, due ignorance, are sometimes missed because we do not know exactly what they are about. For this reason, it is essential to contact a law professional the moment we receive a notification of any kind or in any language that mentions a debt or legal proceeding, even if, apparently, it does not seem like it could affect us. In this respect, it is also of utmost importance not to reply to such notices, letters or e-mails without professional advice, as certain replies could be considered as a tacit agreement to some of the issues included in the notice.
In conclusion, the EOP Procedure is a very useful tool that can make it easier for a creditor to recover a debt of foreign origin within the EU. However, and for this very reason, it is essential to be attentive to notifications from other countries or in other languages, as the effects of a European Order for Payment can be immediate. It is therefore important to have a team of professionals capable of responding quickly and efficiently to these situations.
At Nalda & Suárez Abogados we are experts in litigation for non-payment, both nationally and internationally. In addition, we have previous and very successful experience in EOP proceedings. If you would like to know more about this subject, do not hesitate to write to us at: info@naldaysuarezabogados.es or call us on 963 31 81 13. We will be delighted to help you.
Post written by: Elena de Nalda Tárrega