EU Small Claims Procedure initiative to benefit SMEs and consumers

The Committee on Legal Affairs (JURI) at the European Parliament voted on the legislative report on the revision of the European Small Claims Procedure earlier today. The report applies to cross-border litigation in civil and commercial matters and it was adopted by a large majority.

“The purpose of this initiative was to make justice across borders more accessible, giving consumers and SMEs in particular a more effective opportunity to seek justice in disputes that involve different Member States,” a statement issued by Nationalist MEP Therese Comodini Cachia read.

“The initiative will simplify the procedure for a larger number of cases through the increase of the threshold of the value of the claim and will reduce costs as well as length of litigation.”

The statement explained that the initiative also proposes improving information for consumers and businesses on the procedure.

“The procedure will see the use of video-conferencing facilities and encourages electronic communication between the court and the parties thereby reducing travel expenses for the parties,” the statement continued.

According to the statement Comodini Cachia supported the initiative, presented several important amendments and suggested changes in order to not only make the procedure more citizen-friendly, but also to give courts greater latitude to decide when a hearing is absolutely necessary. 

“One of the most crucial aims of this initiative was to make justice more accessible so that consumers and SMEs may be better empowered to seek justice for their claims, while at the same time safeguarding parties from any prejudice that could ensue from a fast track procedure,” she said reacting to the adopted report.

Comodini Cachia also proposed an amendment to distinguish between the threshold of the value of the claim where such cases involve individuals rather than companies.

“The adopted initiative would consequently set the threshold of the value of claims instituted against a company at €10,000 and at €5,000 in case of claims against individuals.”

In arguing for this difference in thresholds Comodini Cachia noted that a European procedure ought to take note of the differences in income and minimum wages existing in member states.

She also supported a proposal to reduce the legal costs involved in this procedure, bringing the fees down to a maximum of 5% of the value of the claim from the original proposal of 10%.

 The statement explained that the committee would vote on the draft report and confer a negotiating mandate at this meeting.

“The purpose of the Commission’s initiative is to make various changes to the Small Claims Procedure, which is particularly valuable to citizens and small and medium-sized businesses.”

It continued by pointing out that the aim was to increase the threshold for the Small Claims Procedure, simplifying a larger number of cases.

“Another important part of the proposal aims to encourage electronic communication between the court and the parties in order to accelerate proceedings. The Commission also wants to encourage the holding of hearings by videoconference, thus reducing travel expenses for the parties,” the statement went on.

The statement continues to explain that the draft report is broadly supportive of the aims of the Commission proposal, approving most major changes.

“Other Members have tabled a total of 74 amendments to the draft report, and the rapporteur has prepared a number of compromise amendments,” it added.

It concluded that provided a negotiating mandate is conferred, trilogues will be organised with the Council and the Commission in April or May.