2 key provisions for the defendant with a cross-border European Order for Payment

picture shows chess figures
2 key provisions for the defendant with a cross-border European Order for Payment

What to do when a company with foreign shareholding structure, formally registered in Poland, receives a payment order by registered mail from a foreign court in the European Union on the EU form?

The European Order for Payment is – according to the Regulation of the European Parliament and of the Council No. 1896/2006 / EC of 12 December 2006 establishing a European order for payment procedure, Journal of EU L 399/1 of 30.12.2006 (hereinafter: “the Regulation”) – a court order issued (on the form) in cross-border civil and commercial cases (Article 2 (1) sentence 1 of the Regulation) for the purpose of pursuing pecuniary claims for specified amount, which are due at the time of lodging an application for a European order for payment.

After issuing the European Order for Payment, it must be served on the defendant. In the realities of Polish economic transactions, this is done by a foreign registered letter, which an entity registered in Poland receives directly from a foreign court.

Is there any defence against the European order for payment?

Upon delivery of the payment order, there is activated the defendant’s right under Art. 16 of the Regulation. Under this provision, the defendant has 30 days to file the objection to the issuing court (Article 16 (2) of the Regulation).

The objection must be submitted using form F as set out in Annex VI to the Regulation, either on paper or by any other means of communication, including electronic communication, accepted by the issuing Member State and available to the issuing court (Article 16 (4) of the Regulation).

Importantly, in the statement of opposition, the defendant indicates that the defendant is contesting the claim, but the defendant does not have to specify the reasons for his position (Article 16 (3) of the Regulation). However, the objection must be signed (by hand or with a qualified electronic signature or in another form acceptable in the Member State of the issuing court).

What to do if you receive a European Order for Payment in order to defend your rights?

As a result of an effective objection filed by the defendant, the payment order is quashed. In such an event, the proceedings in the case are either terminated (if the plaintiff has expressly requested so) or continue according to the rules governing standard civil proceedings before the competent courts in the issuing Member State (Article 17 (1) and (2) of the Regulation).