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Simplified Enforcement of Monetary Claims over EUR 40,000 in the Czech Republic

Czech Republic
18/07/2024
Available languages: CZ
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Introduction 

As of 1 July 2024, there has been a small but significant change in the area of expedited civil judicial procedure in the Czech Republic. Act No. 99/1963 Coll., the Civil Procedure Code, as amended (“ Civil Procedure Code”), has been amended by Act No. 180/2024 Coll., which removes the limit on the maximum amount of a plaintiff’s monetary claim that has been filed with the court, by means of an application for an electronic payment order (“ EPO”). Previously, EPOs could only be used for amounts not exceeding CZK 1 million (approx. EUR 40,000). However, this limit no longer applies, and creditors can now use EPOs to assert monetary claims of any amount.

Advantages of EPOs

  1. Speed and Efficiency: Expedited proceedings accelerate the judicial procedure. When issuing an EPO, the court’s decision is based solely on the statements and evidence presented in the electronic application. The EPO then represents a judicial decision, and if no timely objection is filed by the defendant, it becomes final and enforceable.
     
  2. Financial Benefits: The application for an EPO is associated with a reduced court fee, which amounts to 4% for sums exceeding CZK 20,000 (approx. EUR 800). In contrast, the court fee for standard payment orders or traditional lawsuits for amounts exceeding CZK 20,000 (approx. EUR 800) is 5%.

Impact of the Amendment 

The change in the Civil Procedure Code allows creditors to swiftly and effectively enforce higher monetary claims. Consequently, we anticipate an increase in the number of cases utilizing EPOs. However, this also means that defendants must exercise caution, as they have only 15 days to file an objection against an EPO issued for any amount.

If you are interested in the topic of debt collection and would like to know more, contact your CMS client partner or our CMS litigation expert Jan Ježek.

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