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I am the defendant – I received a European Payment Order – what can I do?

In the previous article, I emphasized that a claimant must consider whether, in the event of an objection by the defendant, the case should continue in ordinary proceedings (or in the European Small Claims Procedure) or if it should be concluded.

A similar situation applies to the defendant upon receiving a European Payment Order – filing an objection merely “because I can” may ultimately result in higher costs in the event of a loss, due to the case being transferred to regular civil proceedings.

It is important to note that the defendant does not receive an attachment indicating whether, in case of an objection, the case will be closed or continued.

I didn’t file an objection within the deadline – what options do I have?

As a rule, if the defendant does not file an objection within the deadline, the court will declare the order enforceable, and the claimant may begin enforcement proceedings.

However, there are exceptions provided for under the Regulation – the defendant may submit an application for a review of the European Payment Order, but such a request will only be effective in exceptional cases, specifically when:

• The order was not served personally to the defendant, i.e., there is no confirmation of receipt by the defendant (e.g., it was served to another adult household member, to building management, or, in the case of a business or legal entity, personally at the defendant’s business premises to an employee);
• The order was not served in time to allow the defendant to prepare a defense, through no fault of their own;
• pThe defendant was prevented from contesting the claim through no fault of their own (e.g., due to force majeure or extraordinary circumstances beyond their control);
• The issuance of the payment order was manifestly incorrect (in light of the Regulation’s requirements or due to other exceptional circumstances).

In each of the situations mentioned above, the defendant must act without delay in order to effectively request a review of the European Payment Order.

Given the broad and vague notion of “other exceptional circumstances,” the possibility of a successful application for review should be assessed individually in each case.

In other words: it’s worth trying – and it’s advisable to seek professional help.

I filed a request for a review of the European Payment Order – what happens next?

• The court will review the application;
• Based on the arguments presented, it will assess its merits, and then:
  • Reject the request if it determines that none of the above-mentioned circumstances apply (in which case, the European Payment Order remains in force), or
  • Annul the European Payment Order (as a result, the order loses its effect), if the court finds that a review is justified based on one of the above circumstances.

The defendant should bear in mind that filing such a request does not suspend the enforceability of the order.

To prevent or limit enforcement proceedings based on an enforceable order, the defendant should file a motion to stay the enforcement proceedings or to limit them to protective measures. Such a motion should be filed with the competent authority (in Poland: the court) of the Member State where the European Payment Order is being enforced.

In summary

The European order for payment procedure – due to the speed of proceedings, relatively low costs, and low degree of formalism – is a worthwhile option for pursuing cross-border claims.

We have many years of experience in pursuing cross-border claims – both in court and out of court – including proceedings for the issuance of European Payment Orders. We represent business entities, debt collection companies, private individuals, and public administration bodies.