As from January 1, 2006, new Civil Procedure Code (“Code”) came into force in Estonia, replacing the former code of 1998.

The new Code makes the procedure regulations more detailed, compared to the former code. The new Code also introduces a number of new possibilities in the civil procedure.

The new Code enables the court and parties to use more written and simplified procedures. No court hearings are required during the preliminary procedures, and the written procedure is allowed even for the whole process (the parties’ consent is required if the claim amount is over 3,200 EUR).

There is also a simplified procedure possible in the matters where the claim amount is less than about 1,270 EUR.

The new Code provides for the special payment order procedure in case of certain contractual monetary claims up to the amount of 6,400 EUR. In case of that procedure, based on the application of the creditor, the court shall make a payment proposal to the debtor within 7 days after filing of the application. If the debtor does not contest the payment proposal within 3 weeks after receipt, the proposal shall become enforceable.

There are also new possibilities in the claim subject. It is now possible to claim fair compensation in case of non-patrimonial damage claims (i.e. the court shall itself determine what amount can be fair under the circumstances). The amount of interest shall not be fixed in the court decision any more, instead the interest amount can be calculated as of the actual enforcement date of the court decision. It is also possible to file the claims which are not yet due and outstanding.

The new Code enables the use of the advanced means of communication in the civil procedure. Among other things, documents with digital signatures are accepted, the court hearing may take place by way of video conference, the witnesses may give testimonies through the video conference and also by phone (upon the consent of the parties and the witness), digital case files are created.

The new Code also includes the regulations of the arbitration procedure (applicable to institutional as well as ad hoc arbitration). According to the Code, arbitration is not allowed in case of residential lease agreements and employment agreements. Courts have the enforcement functions in the arbitration procedure (i.e. securing of claim, enforcement related to procedure and award.

For further information please contact:

Toomas Taube

attorney at law, partner

Law Office Tark & Co

Roosikrantsi 2, 10119 Tallinn

Estonia

tel.:  +372 611 0900

fax:  +372 611 0911

e-mail: toomas.taube@tarkco.ee