Does the Proposed European Procedure Enhance the Resolution of Small Claims?

Abstract

This paper evaluates the impact which the proposed European Small Claims Procedure (ESCP) may have on the existing domestic Small Claims Procedures (SCPs), with a specific focus on the Irish, English and Spanish SCPs. Firstly, it reviews the present SCPs which are designed to deal with low cost disputes at a national level. Secondly, it considers the proposal for a regulation establishing a European Small Claims Procedure (ESCP). The proposed ESCP is predominantly a written procedure that deals with claims under 2,000 Euros in value arising in cross-border disputes within the EU. It provides enforcement of contested decisions in any of the Member States without the present need of going through the mutual recognition of judgments. The paper suggests that the ESCP in conjunction with Information Communications Technology tools have the potential to realise more efficient enforcement of consumers' rights. However, the optimal effectiveness of this proposal may be hindered by some of its own restrictions. This article advocates that using the ESCP as an optional procedure for domestic disputes will provide a useful instrument in those European Member States which lack SCPs and it will also remove national limitations where SCPs exist. It also argues that including the recognition procedure for uncontested claims will stop those who would intend to delay the enforcement of decisions. This paper suggests that the current economic limit should be raised given that this procedure may not be the best option for low monetary claims. This paper concludes suggesting that the use of online dispute resolution methods, such as online mediation, is a necessary complements to the ESCP and the existing SCPs.