Court orders and simplified proceedings

What is happening

A customer has paid for a delivery only in part, the debt is acknowledged in a reconciliation statement and there is nothing to argue about; the money simply is not there or is not being paid. A full trial with hearings seems excessive for the sum, yet leaving the debt makes no sense either.

The company has dozens of similar claims against buyers or tenants. What it needs is a production line: documents prepared in the same way, quick applications, and tracking of deadlines and enforcement for each claim.

The company has received a court order for a debt it has never heard of, or notice that a claim will be heard in simplified proceedings with tight deadlines for a response. In these cases it is easy to get the response wrong, and the consequences follow quickly.

What the law says

• A court order is issued for undisputed money claims backed by documents, without a hearing and without the parties being summoned. The thresholds for court orders and simplified proceedings are set in the Commercial Procedure Code (APK) and the Code of Civil Procedure and change over time, so we check them as at the filing date.
• In the commercial courts the pre-action claim procedure generally applies both before an application for a court order and before a claim heard in simplified proceedings.
• The debtor may object to the court order within ten days of receiving a copy, and the order will then be cancelled; no reasons need be given. The claim must then be brought as an ordinary action.
• In simplified proceedings the court decides the case on the papers without summoning the parties, setting deadlines for the exchange of positions. Under the APK the court moves the case into the ordinary procedure if further facts need to be established, evidence examined, an expert appointed or witnesses heard.
• In the commercial courts a judgment in simplified proceedings is given as an operative part, with reasons produced at a party's request or if an appeal is filed. An appeal against such a judgment under the APK must be lodged within fifteen days.
• A court order is itself an enforcement document and is presented to the bank or the bailiffs under Federal Law No. 229-FZ of 2 October 2007 "On Enforcement Proceedings".

What we do

• We check whether the claim suits a court order or simplified proceedings, and whether that choice would cost time if the debtor decides to contest it.
• We send the claim letter and assemble a document set sufficient for undisputed recovery.
• We prepare the application for a court order or the statement of claim and keep track of the deadlines the court sets for submissions.
• For a stream of similar claims we set up document templates and a case register so that each claim runs its course.
• We present the court order or writ to the debtor's bank or to the bailiffs and monitor enforcement.
• If a court order or simplified claim has been brought against your company, we prepare objections or a defence in time and assess whether to seek transfer to the ordinary procedure.

What we will need from you

• The contract and documents proving your performance: delivery notes, acceptance certificates, universal transfer documents.
• A reconciliation statement, letter of guarantee or other acknowledgement of the debt by the debtor, if available.
• The claim letter with proof it was sent.
• A calculation of the debt and any penalty or interest.
• If the document was issued against you: a copy of the court order or ruling with the date of receipt and the envelope.