Eurp. Order for Payment Procedure

Eurpean Order for payment Procedure

The regulation establishes a European procedure for orders for payment. The procedure simplifies, speeds up and reduces the costs of litigation in cross-border cases concerning uncontested pecuniary claims. The regulation permits the free circulation of European orders for payment throughout European Union (EU) countries by laying down minimum standards, compliance with which renders unnecessary any intermediate proceedings in the EU country of enforcement prior to recognition and enforcement.

Application of the procedure in civil and commercial matters

The European order for payment procedure applies to civil and commercial matters in cross-border cases, whatever the nature of the court or tribunal. A "cross-border case" is one in which at least one of the parties is domiciled or habitually resident in an EU country other than the country of the court hearing the action. The regulation applies to all EU countries except Denmark.

The procedure does not extend to revenue, customs or administrative matters or the liability of a state for acts and omissions in the exercise of state authority ("acta iure imperii").

Serving a European order for payment on a defendant

A European order for payment is served on a defendant in accordance with the national law of the state in which service is to be effected. The regulation sets out minimum procedural standards regarding service either with or without proof of receipt by the defendant.