European Small Claims Procedure: Legal Analysis of the Commission's Proposal to Remedy Weaknesses in the Current System

Abstract

The number of cross-border consumer transactions, especially those concluded on-line, is steadily growing. However, the individual value of such transactions remains relatively small, with almost half of not exceeding even €100. Such transactions sometimes lead to cross-border disputes of a low monetary value. The European Small Claims Procedure (ESCP), a simplified and accelerated civil procedure, available only in cross-border cases, and for claims of up to €2 000 was introduced in 2008. An optional procedure, it does not replace similar national procedures, but coexists with them. The procedure has so far been rarely used, with an average of approximately 100 applications a year per Member State. Various reasons have been identified, in particular lack of knowledge about the procedure, high costs of translation, absence of clear rules on the service of judgments, and the fact that rules on enforcement have not been unified, but are left to the Member States, undermining the aims of the procedure. In 2013 the Commission proposed to amend the ESCP Regulation with view to increasing its attractiveness. Four key issues are addressed. Firstly, the threshold of a 'small' claim would be raised from €2 000 to €10 000. Secondly, the requirement of a 'cross-border' element would be considerably liberalised. Thirdly, there would be a maximum cap on court fees set at 10% of the value of the claim. Finally, the use of electronic payment methods and communication would be increased.

Keywords: civil procedure, European law