Court proceedings in cross-border trade consumer disputes

It is not often worth the trouble of taking legal action in cross-border consumer disputes because of the relatively low value of the goods or services involved.  If, however, the financial value of the dispute is considerable, and the alternative dispute resolution procedures will not help settle the matter, it is a good idea to refer to the content and cover of any existing insurance policy and see if it is possible to obtain legal assistance and discuss the matter with a lawyer.,

For information on legal proceedings in various Member States, visit the website of the European Judicial Network. There you will find information not only on the competent court and applicable law but also procedural time limits that apply to bringing a case to court.

For hearing disputes in cross-border trade, two mechanisms have been set up in the European area with the aim of simplifying and speeding up the processing of a case and reducing the legal costs incurred by the parties.

  • The purpose of the European small claims procedure is to simplify and speed up proceedings that concern small claims in cross-border matters and to reduce the legal costs incurred by the interested parties. This procedure is available to the interested parties as an alternative to the procedures laid down in national legislation. The procedure is usually written, and the matter is processed with reference to standard forms.

    The European small claims procedure is based on Regulation (EC)No 861/2007  of the European Parliament and of the Council. The Regulation applies in all the Member States of the ERU except for Denmark.

    In what type of cases is the small claims procedure available?

    You can use the European small claims procedure if the value of your claim excluding interest, costs and expenses does not exceed 5000 euros. The Regulation also applies to others than monetary claims. In other words, the basis of the claim may be an object the value of which does not exceed 5000 euros. The procedure is available regardless of whether the claim is contested or uncontested.

    The small claims procedure is not available in all disputes, but it does apply without limitation to consumer matters concerning claims not exceeding 5000 euros.

    How and where can I file my claim?

    The European small claims procedure is initiated by completing standard claim form A and submitting it to the competent court. The claim form A can be found hereThe start of each section to be completed contains instructions for filling in the form, and thus you do not necessarily need a solicitor’s assistance.

    Any evidence submitted in support of the claim must be cited on the claim form, and any proof in support of the case must be attached to it as necessary.

    If you are thinking of initiating a European small claims procedure, you should definitely ensure sure that the opponent is the correct one. Please bear in mind the risks associated with this procedure. If the seller is without means, the procedure will only result in unnecessary costs, as you are unlikely to benefit even if the judgement is favourable to you.

    You must submit the claim form and its attachments to the competent court. As a rule, the procedure must be initiated in a court in the seller’s country. However, consumers usually also have the right to initiate the procedure in a court in their own country. In Finland, the competent court in small claims cases is the Helsinki District Court. Details of competent courts in other countries can be found here.

    For more information on the competent court, call ECC Finland +358 29 505 3090, Mon-Fri 09:00-12:00.

    How much will the procedure cost?

    The party initiating the procedure must pay a processing fee set by the court,which in Finland is 86 euros. You have the right to demand the processing fee from your opponent.

    The procedure may also result in other costs (for example, legal and translation costs), regarding which you can claim compensation.

    The losing party will usually have to pay not only their own but also the opposite party’s legal costs.

    Please remember that if the seller is without means, the procedure will only result in unnecessary costs for you, as you are unlikely to benefit even if the judgement is favourable to you.

    Can I file my claim in Finnish?

    The claim and other documents for the procedure must be submitted in the language of the court that hears the case.

    As regards other evidence, the court may insist that the interested party has a document translated if necessary. An interested party may refuse to accept a document that has not been drawn up in an official language of the recipient Member State or one that the interested party can understand. In this case, the court will inform the other party of the fact that they must provide a translation of the document.

    How will the procedure progress?

    Once the claim form has reached the competent court, a copy of it will be sent to the seller. The company has 30 days to respond and it may act as follows:

    • honour your claim  before a judgement is given, in which case you must inform the court that is hearing the matter of this.
    • make you a proposal for settlement, in which case you can yourself decide whether to accept it or not.
    • contest your claim, in which case you will be sent the company’s reply You will still have an opportunity to give your opinion of the reply, after which the court will issue a judgment in the matter at its discretion.
    • decline to reply within 30 days, in which case the court will request further information from you or issue its judgement directly.

    After this, the court will have 30 days to request further information, take evidence, refer the case for an oral hearing or to give a judgement in the case.

    Are particular steps needed to enforce the judgement?

    In the European small claims procedure, a judgement given in a Member State must be recognised and enforced in another Member State without calling for the judgment to be declared enforceable and without an opportunity to contest its recognition.

    The legislation of the country in which the judgement is enforced will be applied to the enforcement. When calling for enforcement, the interested party must present an official copy of the judgment and an authorised translation of the certificate (form D).

    The competent enforcement authority can be found here.

    The authorities may not demand security, a guarantee or a deposit on the basis that the claimant is a citizen of another state or that he/she is not domiciled or has a place of residence in the Member State enforcing the judgement.

    Can the judgement be appealed?

    Appeals against judgements issued in European small claims procedures are heard under the Member States’ national legislation on legal procedure.

    In Finland, judgments in small claims cases can be appealed before a Court of Appeal. After the Court of Appeal has issued its judgement, you will be given written instructions for lodging an appeal.

  • The purpose of the European order for payment procedure is to simplify and speed up the settlement of cross-border litigation in uncontested cases and to reduce the legal costs incurred by the interested parties. This procedure is available for the interested parties as an alternative to procedures laid down in national legislation. The procedure is usually written, and the matter is processed with reference to standard forms.

    The European order for payment procedure is based on the Regulation of the European Parliament and of the Council (EC) No 1896/2006. This regulation is applied in all European Union Member States except in Denmark.

    In what types of cases is the European order for payment procedure available?

    The order for payment procedure can only be applied to overdue and uncontested monetary claims in cross-border cases. Uncontested claims are claims that are not challenged by the opponent. No upper limit has been set for the value of the claim.

    The order for payment procedure is not available in all disputes, but it applies without limitation to uncontested and overdue consumer cases.

    How and where can I file my claim?

    The European order for payment procedure is initiated by completing standard claim form A and submitting it to the competent court. The claim for can be found here. The start of each section to be completed contains instructions for filling in the form, and thus you do not necessarily need a solicitor’s assistance.

    If you are thinking of initiating a European small claims procedure, you should in particular make sure that the opponent is the correct one. Please bear in mind the risks of this procedure. In the event that the seller is without means, the procedure will only result in unnecessary costs, as you are unlikely to benefit even if the judgement is favourable to you.

    As a rule, the procedure must be initiated in a court in the seller’s country. However, consumers usually also have the right to initiate the procedure in a court in their own country. In Finland, the competent court in order for payment procedures is the Helsinki District Court. Details of competent courts in other countries can be found here.

    How much will the procedure cost?

    The party initiating the procedure must pay a processing fee set by the court, which in Finland is 86 euros. You have the right to demand the processing fee from your opponent.

    The costs increase if the opposite party contests the claim, in which case the procedure continues following the rules on hearing ordinary disputes. The losing party will usually have to pay not only their own but also the opposite party’s legal costs.

    However, you have the right to request that the procedure be discontinued if the opposite party challenges your claim. Please also remember that if the seller is without funds, an order for payment will not be helpful.

    Can I file my claim in Finnish?

    The claim must be filed in the language of the court that is hearing the matter.

    How will the procedure progress?

    Once you have filed the claim form with the Court, it will immediately establish if the claim meets the criteria for admissibility and if it appears justified.

    If the seller has contested the claim within the given time limit, the procedure will continue in the competent courts of the Member State having issued the order following the rules on hearing ordinary disputes, unless you have specifically requested that the procedure be discontinued in this case.

    If the seller has not contested your claim and if you have provided the court with all the necessary information, the court usually has to issue a European order for payment within 30 days of the application being filed. This time limit does not include the time it has taken to complement, correct or amend the application.

    After being informed of it, the opposite party may contest the order for payment within 30 days.

    Are particular steps needed to enforce the judgement?

    An order for payment is enforceable in all Member States excluding Denmark, and it need not be separately declared enforceable.

    The order for payment must be sent to the enforcement authorities of the Member State in which it is intended for enforcement. You will probably have to have the order for payment translated into the language of that Member State. The competent enforcement authority can be found here.