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Please contact either : John C. Abbott jca@silvermansherliker.co.uk or Jonathan W. Dinsdale jwd@silvermansherliker.co.uk
who will be pleased to discuss |
CROSS
BORDER DEBT RECOVERY WITHIN THE EU |
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Cross-border debt recovery within
the EU has become easier.
It has often been said that when pursuing debtors in foreign jurisdictions it is easier to obtain a judgment than to recover the debt. European Enforcement Orders ("EEOs") Procedures and rules have been in place for some time to determine in which country cross-border claims should be brought, but enforcing your judgment gained in one country against a defendant who is in another country could problematic. However, life has been made easier because it is possible to obtain EEOs. The purpose of the EEO is to simplify the process for enforcing judgments and orders in different jurisdictions within the EU. Registration of EEOs' Until now it has been necessary to register a judgment within the court whose jurisdiction enforcement was to take place before it could be enforced. The registration process itself could often be a difficult, lengthy and expensive. It is now possible to obtain an EEO from the court that gave you the judgment and that EEO can be enforced in any other EU jurisdiction without any further registration process being undertaken in the local courts. This will cut out the intermediate process of having to register your judgment locally before enforcement can take place. Therefore, a judgment obtained in England and Wales against say a French defendant can be enforced immediately in France using the enforcement processes available in France. This might include directly instructing a local huissier (bailiff) to recover the judgment debt for you. |
To what can EEOs be applied? EEOs can only be obtained in respect of uncontested claims. The definition of an uncontested claim is wider than might initially be imagined. It would certainly apply to judgements obtained in default, but can also include judgments obtained pursuant to a consent order or a settlement approved by the court, or where the defendant failed to appear or be represented at a hearing. Against whom can EEOs be enforced? EEOs can be enforced against anyone resident in, carrying on business in or having assets in any EU member state (except Denmark). They can also be enforced in Norway, Iceland and Switzerland. For example, a judgment obtained in England against an English defendant can be enforced through an EEO against any assets that the defendant may have in any other EU jurisdiction. Stopping enforcement of an EEO If you receive an EEO you must act immediately if you wish to have it stayed. An application must be made in your home court, but it will be necessary to show that proceedings have actually been taken in the court which issued the EEO to have it set aside, i.e. you will have to make an application in the foreign court first to stay the EEO. This will inevitably mean two separate applications in two different jurisdictions. Conclusion The advent of EEOs should streamline the enforcement process within the EU making it quicker and less expensive to enforce judgments within the EU. Silverman Sherliker LLP has considerable experience in cross-border debt recovery and through our Fidelis network we are able to offer an efficient and costs effective service in relation to cross-border disputes and enforcement. For further information contact John C Abbott, David Hill-Kelly or Jonathan W Dinsdale |
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| SILVERMAN SHERLIKER LLP 7 Bath Place London EC2A 3DR Tel: 020 7749 2700 Fax: 020 7739 4309 Email: mail@silvermansherliker.co.uk www.silvermansherldiker.co.uk Click here to unsubscribe from our newsletter |
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