Riigikogu adopts Code of Civil Procedure and Code of Enforcement Procedure Implementation Act
16. June 05
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Yesterday, with 73 votes in favour, the Riigikogu adopted the Code of Civil Procedure and the Code of Enforcement Procedure Implementation Act. The codes, which were adopted by the Riigikogu on April 20, will enter into force on <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />1 January 2006, on the date of entry into force of the court reform, which brings all courts under four regions.
The main goal of the Code of Civil Procedure is to make court proceedings of civil matters faster, more effective and less expensive, using new methods of proceedings and electronic means of communication. For instance, as of the entry into force of the Code, actions and other documents may be sent to the courts by e-mail. In the interest of security the electronic document must be digitally signed.
The Code also stipulates the possibility of holding the court session by way of a video conference, which releases the witnesses or representatives from the duty to travel to the court session in another city.
Court proceedings are made more effective and faster through the possibility given to the courts of the first instance to conduct proceedings concerning smaller amounts of money by way of a simplified procedure. For example, the Code provides for the possibility to resolve monetary claims by way of the so-called expedited procedure of the payment order, which helps to resolve various disputes with the minimum involvement of a judge.
In the expedited proceedings of a payment order the petition is submitted on a standard form (in the future, it will be done electronically) and the court will grant the petition for expedited proceedings of the payment claim without verifying whether the claim is substantiated or not. If the debtor has any objections, the proceedings will continue as ordinary proceedings. The expedited payment order proceedings are especially attractive for companies who have a large customer base and have many contractual claims (e.g. power supply, water supply, mobile communication contracts, etc.).
In order to increase the awareness of the importance of participating in court proceedings the Code contains more effective possibilities of making a default judgement. Also the rules of disputing default judgements have been made stricter. This should reduce the number of failures to appear in court without reason.
In addition to the Code of Civil Procedure, the Code of Enforcement Procedure, which specifies the work of bailiffs in greater detail and improves the possibilities of creditors for collection of claims, and also provides debtors with protection for securing their minimum means of substance, will enter into force on the basis of the Implementation Act.
The Code allows for receiving more information about the income of the debtor, because it stipulates the debtor's obligation to give an oath regarding the composition of his or her property. The refusal to give an oath or hiding the property is punishable. The Code also allows for seizing concealed income. For instance, in cases where the debtor has remuneration paid to another person or makes an agreement with the employer to receive a very low pay in a field where the usual pay is much higher.
In order to speed up repayment of debts the new Code contains a provision according to which the debtor must pay only a half of the bailiff's fee upon timely repayment of the debt. Upon seizure of the pay and other income, the new Code (unlike the current legislation) takes into account the size of the debtor's income and the number of dependants. The Code of Enforcement Procedure makes the bailiff's obligation to notify the debtor about a court judgement which has been submitted for execution and about other execution documents and execution proceedings stricter.
Ave Mellik Head of Public Relations Division Ministry of Justice Phone 6208114 Mobile phone 56 637086
