Table of contents:
Order for payment procedures
1.1 Scope of the procedure
a) Which criteria apply when differentiating small claim disputes?
b) Is there an upper limit regarding the value of the claim?
c) Is the use of that procedure optional or obligatory?
d) Is the procedure available if the defendant lives in another Member State or in a third country?
1. 2 Competent court
1.3. Formal requirements
a) Which criteria apply when differentiating small claim disputes?
b) Do I have to be represented by a lawyer?
c) In how much detail do I have to describe the reason for the claim?
d) Do I have to present written evidence of the claim at issue?
1.4. Rejection of application
1.5. Legal remedies against payment order
1.6. Effect of the defendant’s statement of opposition
1.7. Effect of the plaintiff’s statement of opposition
1.8. Effect of lack of statement of opposition
Small claims procedures
1.1. Existence and meaning of the term "small claim disputes"
a) Which criteria apply when differentiating small claim disputes?
b) Is there an upper limit regarding the value of the claim?
c) Is the procedure obligatory?
d) Can the court or the parties transfer a small claim case from the small claim procedure to the ordinary procedure?
1.2 Jurisdiction
a) Principle of open jurisdiction – taking of evidence
1.3. Stages in small claim procedures
1.4. Possibility to appeal
1.5. Reasons for appeal against judgment and conclusion of proceedings
1.6. Revision
1. Order for payment procedures
1.1. Scope of procedure
Croatian procedural law distinguishes two types of payment orders, provided that in both cases the claim is monetary, i.e. a payment order may not be issued to settle a non-monetary claim.
b) Is there an upper limit regarding the value of the claim?
In payment orders that are not supported by an authentic document, a due claim may not exceed the amount of HRK 5,000 in proceedings before municipal courts and HRK 20,000 before commercial courts.
c) Is the use of that procedure optional or obligatory?
A payment order is a court decision by which the court accepts the plaintiff’s request that the defendant be ordered to make a payment.
When a condemnatory claim relates to a monetary claim supported by credible written evidence, the procedure preceding the assessment of the application’s merit is reduced so a decision is made on the acceptance of the claim, without granting the opportunity to the defendant to make a statement about the allegations and claims of the opposing party.
d) Is the procedure available if the defendant lives in another Member State or in a third country?
A cross-border case is a case in which at least one party has permanent or temporary residence in some other country where the court conducting the proceedings is located.
The relevant moment for determining whether there is a cross-border case is the time when the application for a European order for payment is submitted.
The provisions of the European order for payment procedure will apply to cross-border cases, in accordance with Regulation (EC) No 1896/2006 of the European Parliament and of the Council of 12 December 2006 creating a European order for payment procedure.
1. 2 Competent court
In payment orders that are not supported by an authentic document a due claim may not exceed the amount of HRK 5,000 in proceedings before municipal courts and HRK 20,000 before commercial courts.
1.3. Formal requirements
a No.
b) Do I have to be represented by a lawyer?
No.
c) In how much detail do I have to describe the reason for the claim?
Courts are obliged to issue a payment order supported by an authentic document for a claim proven by the plaintiff by means of credible documents if both general and specific procedural assumptions are fulfilled: it relates to a matured monetary claim, the plaintiff proves the claim by means of a credible document enclosed with the claim in the original or a certified copy thereof.
Payment orders not supported by an authentic document may be issued for claims of smaller value, on the existence of which the plaintiff is not required to provide evidence; therefore such a payment order will be issued if both general and specific procedural assumptions are fulfilled: the defendant is the main debtor, it relates to a matured monetary claim not exceeding HRK 5,000 in the proceedings before municipal courts and HRK 20,000 in the proceedings before commercial courts, the foundation and the amount of debt is given with evidence, on the basis of which correctness of the statements indicated in the claim may be established.
d) Do I have to present written evidence of the claim at issue?
Yes, this is the case with a payment order supported by an authentic document. The plaintiff proves the claim by means of a credible document enclosed with the claim in the original or a certified copy. If the case is brought up before commercial courts, a copy certified by the legal person’s authorized body will suffice.
If yes, which documents are admissible as proof?
The Civil Procedure Act stipulates that the following documents will be deemed credible: public documents, private documents bearing the signature of the debtor authenticated by a competent authority, bills of exchange and cheques with protests and certificates of payment, excerpts from business accounts, invoices and other writings assuming the character of a public document. (Art .446 (2) of the Civil Procedure Act)
1.4. Rejection of application
A single judge or President of the Chamber who issued a payment order without holding a hearing will dismiss a belated, incomplete or inadmissible objection. A payment order is a decision by which a claim may only be accepted.
The court discussing the merits of the objection may render a decision only with regard to whether the payment order will remain in force, completely or in part, or be annulled.
If the court establishes that the claim should be dismissed, it will annul the payment order and then decide on the dismissal of the claim.
1.5. Appeal
The law provides two legal remedies against a payment order: objection and appeal against ruling.
The defendant may challenge a payment order only by means of objection, but in case a payment order is challenged due to the decision on costs, such a decision may be challenged only by means of appeal against ruling.
The defendant may challenge a payment order by means of appeal against ruling. The time limit for lodging an objection is eight days, and in disputes related to bills of exchange and cheques the time limit is three days. An objection is suspensive (if timely lodged, holds the enforcement of the payment order) and remonstrative (a court of first instance holding subject-matter jurisdiction for adjudicating on the claim decides upon it).
1.6. Effect of the defendant’s statement of opposition
If the court establishes that specific assumptions for issuance of a payment order are not fulfilled, the proceedings will be continued. If the defendant objects that there were no specific legal grounds for issuance of the payment order or that there is hindrance to the further course of the proceedings, the court will first decide on this objection.
If it establishes that this objection is well-founded, it will annul the payment order by a ruling, and once the ruling has become legally effective it will begin litigation on the merits when this is appropriate.
If it establishes non-existence of procedural assumptions, the claim will be dismissed. If the court does not allow this objection, it will move on to litigation on the merits of the case, and the court ruling on the rejection will be included in the decision on the merits of the case.
1.7. Effect of the plaintiff's statement of opposition
The plaintiff may withdraw the claim without the agreement of the defendant only up until the lodging of the objection.
If the claim is withdrawn, the court will annul the payment order.
1.8. Effect of lack of statement of opposition
In the payment order, the court will state that the defendant is obliged to settle the claim within eight days (or within three days in disputes relating to cheques and bills of exchange) after the receipt of the payment order, together with the costs established by the court or, within the same time limit, lodge an objection against the payment order.
Small claims procedures
1.1. Existence and meaning of the term "small claim disputes"
a) Which criteria apply when differentiating small claim disputes?
Small claim disputes, defined on the basis of positive and negative criteria, are as follows:
- Disputes relating to monetary claims which do not exceed HRK 10,000 (in the proceedings before commercial courts the amount may not exceed HRK 50,000); the above prescribed amounts refer to the main claim.
- Disputes in which the claim is not related to a monetary claim and the plaintiff has specified in the claim that he or she is willing to accept an amount of money not exceeding HRK 10,000 (HRK 50,000 in the proceedings before commercial courts) instead of the relief requested – this is the case in which the plaintiff, along with the non-monetary condemnatory claim, also puts forward a procedural alternative authorization (facultatis alternativae), thus creating separate grounds for establishing the value of the claim
- Disputes in which the object of the claim is not an amount of money, but delivery of a moveable thing whose value, as specified by the plaintiff in the claim, does not exceed HRK 10,000
According to the above-referenced positive criteria, small claim disputes would refer to the disputes in which condemnatory claims of a particular type and value of the claim are stated.
Negative criteria for determining small claim disputes: immovable property disputes, employment-related disputes and disputes related to trespass will not be considered small claim disputes regardless of the value of the claim.
Small claim procedure will be conducted also with regard to an objection against a payment order, provided that the value of the claim does not exceed HRK 10,000.
This provision expressly establishes the procedure which will be initiated after the lodging of an objection against the payment order issued in a small claim dispute.
The procedure will be conducted after the lodging of the objection against the payment order as a combination of rules on the small claim procedure and the rules on the procedure to be conducted after the lodging of the objection, which will have a functional value.
b) Is there an upper limit regarding the value of the claim?
Disputes in which the object of the claim is not an amount of money but delivery of a moveable thing whose value, as specified by the plaintiff in the claim, does not exceed HRK 10,000.
Small claim procedure will be conducted also with regard to an objection against a payment order, provided that the value of the claim does not exceed HRK 10,000.
c) Application of procedure
The first hearing will be held as prescribed by law and considered a preparatory hearing.
d) Can the court or the parties transfer a small claim case from the small Claim procedure to the ordinary procedure?
Yes they can, in case the plaintiff modifies the claim so the value of the claim exceeds HRK 10,000 the procedure will be brought to an end in accordance with the regular civil procedure.
1.2 Jurisdiction
Procedures in small claim disputes are conducted before lower courts of first instance, unless otherwise specified by this Act. (Article 461 of the Civil Procedure Act)
Since in the Republic of Croatia subject-matter jurisdiction is determined in relation to the value of the claim, only municipal and commercial courts may have subject-matter jurisdiction over small claim disputes.
a) Principle of open jurisdiction –taking of evidence
Until the conclusion of interlocutory proceedings, the court may, when this is deemed purposeful for proper resolution of dispute, draw the parties’ attention to the fact that they are obliged to present all facts and propose evidence which substantiate their claims or which contest the allegations and evidence of the opposing party.
A single judge will, by asking questions or in another purposeful way, ensure that all decisive facts are presented during the preparatory hearing, that the parties' incomplete allegations on important facts are supplemented, that evidence relating to the parties' allegations is designated or supplemented, and, in general, that all clarifications are made that are necessary for the establishment of the relevant facts of the case relevant for making a decision.
1.3 Stages of small claim procedures
Preparation of the main hearing, serving of the claim for answer, beginning of the litigation on merits, main hearing
In small claim procedures the court is obliged to serve on the defendant a summons to answer the claim and state all relevant facts and offer evidence, as well as to warn him or her that the parties may not state new facts and offer new evidence after the conclusion of the interlocutory proceedings.
In the above-referenced summons, served on the plaintiff as well, the court is obliged to schedule a hearing which will be held if the defendant submits an answer to the claim in due time, or a hearing at which a default judgment will be rendered if the defendant fails to submit the answer in due time. A written copy of the judgment will be served on the parties.
In the above summons, regarded as a summons to the hearing, it will be stated that the claim will be deemed withdrawn if the plaintiff fails to appear at the first hearing, that in small claim procedures the provisions on the stay of proceedings do not apply, that all facts and evidence must be put forward by the time the interlocutory proceedings are concluded and, finally, that a judgment may be challenged on the grounds of substantial violation of the civil procedure rules and erroneous application of the substantive law.
At the hearing, that will be held even if the defendant fails to submit an answer to the claim, the court will announce a default judgment even if one or both parties fail to appear. The judgment will be made in writing and served on the parties at the hearing.
In small claim procedures, in cases where any of the parties may lodge an objection, file a motion or take some other procedural action before the defendant begins litigation on merits, the above-referenced procedural actions may be taken until the defendant has finished with answering to the claim at the preparatory hearing.
Objections to the settlement of accounts or objections to the expiry of the statute of limitations may be put forward only until a ruling on the conclusion of interlocutory proceedings has been issued, while other substantive or procedural objections may be put forward after the issuance of such a ruling, but no new facts may be presented and no new evidence may be proposed.
Until the beginning of litigation on merits, the plaintiff may lodge an objection to subject-matter and territorial jurisdiction, demand that procedural costs be paid and withdraw the claim without the agreement of the defendant.
In small claim procedures, the court will conclude interlocutory proceedings by way of a ruling upon termination of the preparatory hearing, if the court deems it possible with regard to all the circumstances of the case.
The court may conclude interlocutory proceedings at the preparatory hearing and hold a main hearing right afterwards, at the same hearing.
The court is obliged to state date and time of the main hearing in the ruling on the conclusion of interlocutory proceedings.
The court will summon the parties, witnesses and expert witnesses to the main hearing.
The content of the minutes in small claim procedures is specific, since the minutes should contain the following:
- The parties' statements of essential importance
- The essential content of the evidence introduced
- Rulings which may be appealed and which were announced at the main hearing
- Indication as to whether the parties were present when the judgement was announced
1.4. Possibility to appeal
In small claim procedures a special appeal may be lodged only against decisions concluding the procedure. This is an exception to the general rule prescribing that the above-referenced legal remedy is always allowed, unless it is expressly stated that no appeal is allowed.
A decision based on merits, by which a procedure is brought to an end, will be deemed any decision on procedural costs related to the final settlement of costs or to a payment order.
A procedural decision by which a procedure in the first instance is brought to an end will be deemed any decision on dismissal of the claim, revision or motion for retrial.
A decision by which a procedure is not concluded may be challenged pursuant to the Civil Procedure Act only by lodging an appeal against the decision by which a procedure is concluded; such decisions may be appealed by lodging an independent appeal.
The above-referenced decisions are not served on the parties but are announced at the hearing, entered into a written copy of the decision and into the minutes, as well.
1.5 Reasons for appeal against judgment and conclusion of proceedings
In small claim procedures an appeal may be lodged only against a judgment and a decision by which a procedure is brought to an end. Other decisions, which may be appealed against pursuant to law, will be challenged only by lodging an appeal against the decision by which a procedure is concluded.
A contradictory judgment or a decision by which a small claim procedure is brought to an end may be challenged only on the grounds of substantial violation of the civil procedure rules and erroneous application of the substantive law.
In small claim disputes the time limit for appeal is eight days, as well as for voluntary settlement of the claim and for submitting a motion to supplement the judgment.
A single judge of a court of second instance will decide on the appeal against a judgment rendered in a small claim dispute.
1.6 Revision
Parties may only file a motion for extraordinary revision on points of law against a second instance judgment, i.e. in cases in which a decision depends on solving a substantive or procedural issue needed to ensure uniform application of law and equal treatment of citizens.
Further information:
Civil Procedure Act (Official Gazette: 53/91, 91/92, 112/99, 88/01, 117/03, 84/08 and 123/08)