Cross-border Debt Recovery Blog
by Marco Sposini
Laywer, Milan Bar Association
Worldwide debt recovery news
The Court of Justice on Article 7(2) of Regulation (EU) No 655/2014
20 April 2023
The Court of Justice of the European Union, by judgment ECLI:EU:C:2023:299, dated 20 April 2023, in Case C-291/21 – in proceedings brought by Starkinvest SRL, seeking enforcement, by means of a European Account Preservation Order, of a judgment ordering penalty payments in the event of breach of the prohibitory order issued against Soft Paris EURL and Soft Paris Parties LTD – ruled that Article 7(2) of Regulation (EU) No 655/2014 establishing a European Account Preservation Order procedure to facilitate cross-border debt recovery in civil and commercial matters must be interpreted as meaning that a judgment that orders a debtor to make a penalty payment in the event of a future breach of a prohibitory order and that therefore does not definitively set the amount of that penalty payment does not constitute a judgment requiring the debtor to pay the creditor’s claim, within the meaning of that provision, such that the creditor who requests a European Account Preservation Order is not exempt from the obligation to provide sufficient evidence to satisfy the court before which an application for that order is brought that he or she is likely to succeed on the substance of his or her claim against the debtor.
The text is available here