The European Procedure on Reduced Value Claims

The European Procedure on Reduced Value Claims

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Maintaining and developing the area of freedom, security and justice is a major objective of theEuropean Community, which guarantees the free movement of persons.As a result of litigations regardingthe applications with a reduced value arising among physical or legal persons, it was felt the need for acommunity legislation that would guarantee identical conditions, both for creditors and debtors throughoutthe entire European Union territory.The European procedure regarding read more the debts recovery of reducedvalue facilitates the access to justice and it is characterized by simplifying and expediting the settling of thetransboundary litigations, reducing costs, the recognition and execution of the court order in a MemberState given in another Member State.

This procedure is available to litigants as an alternative to theprocedures provided by the laws of Member States.The Regulation (EC) no.861/2007 establishing aEuropean procedure regarding the applications with reduced value applies in civil and commercial matters inthe transboundary cases, regardless the nature of the court when the application value, without taking intoaccount the interest, expenditures and other costs, does not exceed 2000 Euro at the time of receiving theapplication form by the competent court.

This procedure does not apply to revenue, customs oradministrative matters or in regard to state responsibility for acts or omissions in exercising the publicauthority, and other matters specifically referred to in the Regulation.A cause is transboundary in naturewhen one of the parties has its habitual residence in a Member State, other than the one where the courtreceives such application.The proper procedure of application resolution for the recovery of debts withreduced value is governed by the rules of procedural law of the Member State in which the proceedings areconducted, and the execution of court of law is made by state legislation in which it takes place.

TheRegulation expressly provides that the court order in this matter can not be, in any form, the subject ofreexamination, in the State member in which its execution is requested.As regards the linguistic regime,the application southwestern aztec rug will be written in the language or in one of the procedure languages of the court; the costsare incurred by the losing party in the application.But the court will not grant the party that won thelawsuit the expenses that were not necessary or the ones that have a disproportionate value in relation tothe application.