01.08.2014
GDV comments

European Commission proposal to amend Regulation on European Small Claims Procedure

The GDV believes that raising the threshold for claims under the European Small Claims Procedure from €2,000 to €10,000 as proposed in Art. 2 para. 1 of the proposal will not promote acceptance of the Procedure or strengthen consumers’ and SME’s rights.

Claims of up to €10,000, representing a large share of total con-sumer and SME litigation, cannot be considered “small claims”. In a cross-border context, such claims will not, as a rule, be restricted to factually and legally simple issues that can be dealt with under simplified procedures.

By severely restricting means of defense in respect of a large share of consumer and SME litigation, the small claims procedure would weaken consumers’ and SME’s legal position by encouraging actions of dubious merit with the potential of financial ruin against them.

Liability insurers are contractually obliged to defend the insured against unfounded claims and rely on a fair and comprehensive system of judicial review enabling the insured’s case to be fully made and heard.

The GDV’s complete comments is available in the download section.

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Regulation establishing a European Small Claims Procedure

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