I. RECOGNITION AND ENFORCEMENT OF A FOREIGN COURT DECISION (CIVIL AND COMMERCIAL MATTERS)

 

Is it possible to apply for enforcement of a foreign court judgment in Estonia?

Yes, pursuant to article 621 of the Code of Civil Procedure a court decision of a foreign state is subject to enforcement in Estonia only after the decision has been declared to be subject to enforcement by the Estonian court.

Which laws are generally applicable to the enforcement of a foreign court judgment in Estonia?

The law that is applicable to the recognition and enforcement of a foreign court judgment is the Code of Civil Procedure.

Are there any special rules regarding the enforcement of a foreign court judgment in Estonia?

Bilateral international treaties: e.g., Bilateral Convention between Estonia and Ukraine, 17th May 1996 ; Bilateral Convention between Estonia and Russia, 19th March 1995.

Does the European Union have a special procedure to enforce court judgments coming its member states?

Yes.

• Council Regulation (EC) No. 44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

This Regulation applies between all Member States of the European Union, including Denmark which has concluded a parallel agreement to Regulation 44/2001 with the European Community. This agreement entered into force on 1st July 2007. Regulation is applicable for Estonia only for court judgments made after 1st May 2004.

 

Regulation provides that a judgment given in a Member State shall be recognized in the other Member States without any special procedure being required.

 

A judgment given in a Member State and enforceable in that state shall be enforced in another Member State when, on the application of any interested party, it has been declared enforceable there.

• Regulation (EC) No 805/2004 of the European Parliament and of the Council of 21 April 2004 creating a European Enforcement Order for uncontested claims and Council

The Regulation applies between all Member States of the European Union with the exception of Denmark.

 

Absent a dispute over the nature or extent of a debt, it dispenses, under certain conditions, with all intermediary measures in the Member State in which enforcement is sought that have been necessary so far for decisions rendered in another Member State.

 

Those conditions mainly concern the service of documents in the case of judgments by default and try to guarantee that the defendant has voluntarily passed up the opportunity to defend himself. Abolishing exequatur (recognition) enables creditors to obtain quick and efficient enforcement abroad without involving the Member State courts where enforcement is sought in time-consuming and costly formalities.

 

According to Article 20 (Enforcement procedure):

 

"1. Without prejudice to the provisions of this Chapter, the enforcement procedures shall be governed by the law of the Member State of enforcement. A judgment certified as a European Enforcement Order shall be enforced under the same conditions as a judgment handed down in the Member State of enforcement.

2. The creditor shall be required to provide the competent enforcement authorities of the Member State of enforcement with:

(a) a copy of the judgment which satisfies the conditions necessary to establish its authenticity; and

(b) a copy of the European Enforcement Order certificate which satisfies the conditions necessary to establish its authenticity; and

(c) where necessary, a transcription of the European Enforcement Order certificate or a translation thereof into the official language of the Member State of enforcement or, if there are several official languages in that Member State, the official language or one of the official languages of court proceedings of the place where enforcement is sought, in conformity with the law of that Member State, or into another language that the Member State of enforcement has indicated it can accept. Each Member State may indicate the official language or languages of the institutions of the European Community other than its own which it can accept for the completion of the certificate. The translation shall be certified by a person qualified to do so in one of the Member States.

3. No security, bond or deposit, however described, shall be required of a party who in one Member State applies for enforcement of a judgment certified as a European Enforcement Order in another Member State on the ground that he is a foreign national or that he is not domiciled or resident in the Member State of enforcement".

And According to Article 21 (Refusal of enforcement):

 

"1. Enforcement shall, upon application by the debtor, be refused by the competent court in the Member State of enforcement if the judgment certified as a European Enforcement Order is irreconcilable with an earlier judgment given in any Member State or in a third country, provided that:

(a) the earlier judgment involved the same cause of action and was between the same parties; and

(b) the earlier judgment was given in the Member State of enforcement or fulfills the conditions necessary for its recognition in the Member State of enforcement; and

(c) the irreconcilability was not and could not have been raised as an objection in the court proceedings in the Member State of origin.

2. Under no circumstances may the Member State of enforcement review the judgment or its certification as a European Enforcement Order as to their substance".

• Council Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations

The Regulation applies between all Member States of the European Union. Denmark confirmed by a statement to a respective agreement with EU that Denmark would execute provisions of Regulation 4/2009 as far as its provisions partly change provisions of Regulation 44/2001.

 

Regulation 4/2009 came into force on 18th June 2011 and is applicable for all court judgments taken after this date regarding maintenance obligations arising from a family relationship, parentage, marriage or affinity.

• Council Regulation No 2201/2003 of 27 November 2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing Regulation (EC) No 1347/2000

Regulation 2201/2003 is applicable only for court decisions taken after 1st March 2005. This Regulation shall apply, whatever the nature of the court or tribunal, in civil matters relating to divorce, legal separation or marriage annulment, the attribution, exercise, delegation, restriction or termination of parental responsibility.

• Council Regulation No 861/2007 of 11 July 2007 establishing a European Small Claims Procedure
• Council Regulation No 1896/2006 of 12 December 2006 creating a European order for payment procedure

What is the average length of time for this kind of procedure?

Enforcement procedure takes approximately three months for granting the enforcement.

 

 

II. Denial of Recognition and Enforcement of a Foreign Court Judgment: Reasons

Can a Court in Estonia deny recognition and enforcement of a foreign court judgment? What kind of reasons may justify denial?

Yes.

A court decision in a civil matter made by a foreign state other than a Member State of the European Union is subject to recognition in the Republic of Estonia, except in the case where:

1) recognition of the decision would be clearly contrary to the essential principles of Estonian law (public order) and, above all, the fundamental rights and freedoms of persons;

2) the defendant or other debtor was unable to reasonably defend the rights thereof and, above all, if the summons or other document initiating the proceeding was not served on time and in the requisite manner, unless such person had a reasonable opportunity to contest the decision and the person failed to do so within the prescribed term;

3) the decision is in conflict with an earlier decision made in Estonia in the same matter between the same parties or if an action between the same parties has been filed with an Estonian court;

4) the decision is in conflict with a decision of a foreign court in the same matter between the same parties which has been earlier recognised or enforced in Estonia;

5) the decision is in conflict with a decision made in a foreign state in the same matter between the same parties which has not been recognised in Estonia, provided that the earlier court decision of the foreign state is subject to recognition or enforcement in Estonia;

6) the court which made the decision could not make the decision in compliance with the provisions of Estonian law regulating international jurisdiction.

 

A court decision of a foreign state shall be recognised in Estonia only if the decision has entered into force pursuant to the law of the country which made the decision unless, pursuant to law or an international agreement, such decision is subject to recognition and execution as of the time such decision can be enforced in the country of the location of the court which made the decision.

 

Judgments from a country belonging to the EU: a judgment issued by a Member State shall be recognized in the other Member States without any special procedure being required (article 33 Council Regulation (EC) No. 44/2001).

 

According to article 34 Council Regulation (EC) No. 44/2001):

"A judgment shall not be recognized:

1. if such recognition is manifestly contrary to public policy in the Member State in which recognition is sought;

2. where it was given in default of appearance, if the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him to arrange for his defense, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for him to do so;

3. if it is irreconcilable with a judgment given in a dispute between the same parties in the Member State in which recognition is sought;

4. if it is irreconcilable with an earlier judgment given in another Member State or in a third State, involving the same cause of action and between the same parties, provided that the earlier judgment fulfills the conditions necessary for its recognition in the Member State addressed".

Moreover, a judgment shall not be recognized if it conflicts with Sections 3 (Jurisdiction in matters relating to insurance), 4 (Jurisdiction over consumer contracts) or 6 (Exclusive jurisdiction) of Chapter II, or in a case provided for in Article 72, pursuant to article 35.1 of the Council Regulation (EC) No. 44/2001.

What kind of cost and expenses can a claimant expect in this enforcement procedure?

The fees of lawyers depend on the problems that may arise during enforcement, state fee 64 EUR, translation of the documents.

 

 

III. FORMAL REQUIREMENTS

Is there a time limit to apply for enforcement of a foreign court judgment?

Code of Civil Procedure does not establish a time limit for enforcement of a foreign court judgment.

Is it mandatory for the judgment to be a final and definitive court judgment? If NO: Are there any special requirements to provisionally enforce a court judgment which is not final and definitive?

(i) Judgments from a country with which Estonia has an international Treaty: according to the Treaty (article 621 Code of Civil Procedure).

 

(ii) Judgments from a country with which Estonia has no international Treaty: according to article 622 of the Code of Civil Procedure it is not possible to ask for enforcement of a foreign court judgment unless the decision has entered into force pursuant to the law of the country where the decision was made.

 

(iii) Judgments from a country belonging to the EU: a judgment given in a Member State and enforceable in that State shall be enforced in another Member State when, on the application of any interested party, it has been declared enforceable there (Article 38.1 of the Council Regulation (EC) No. 44/2001).

What necessary requirements must the foreign court Judgment fulfill to be recognized and enforced?

(i) Judgments from a country with which Estonia has an international Treaty: according to the Treaty (article 621 Code of Civil Procedure).

(ii) Judgments from a country with which Estonia has no international Treaty: according to article 620 of the Code of Civil Procedure the court judgment must fulfill the following requirements:

a. the foreign court judgment must not contradict the essential principles of Estonian law.
b. the defendant must have had the possibility to reasonably defend his/her rights.
c. the decision must not be in conflict with the earlier decision made in Estonia in the same matter between the same parties.
d. the decision must not be in conflict with a decision of a foreign court in the same matter between the same parties which has been earlier recognized or enforced in Estonia.
e. the decision must be made in compliance with the provisions of Estonian law regulating international jurisdiction.

(iii) Judgments from a country belonging to the EU: "A judgment given in a Member State and enforceable in that State shall be enforced in another Member State when, on the application of any interested party, it has been declared enforceable there". (Article 38.1 of Council Regulation (EC) No. 44/2001).

Is it mandatory to pay Court Fees in Estonia for this kind of application?

Yes, court fee is 64 EUR.

 

 

IV. PROCEDURE

Which Court or courts are competent to decide an enforcement application?

The Court of First Instance.

What information must be contained in the enforcement application of a foreign court judgment?

An application shall indicate:

1) the name of the court to which an application is submitted;

2) the given name, surname, personal identity number (if there is none such, then other identification data) and place of residence of the applicant and defendant, but for a legal person – its name, registration number and location (legal address);

3) the object of the application and the circumstances upon which the application is based;

4) the petition of the applicant to recognize or recognize and execute the adjudication of a foreign court in full or any of its parts;

5) the authorized representative and his or her address if for the conduct of the matter in Estonia a representative has been appointed;

6) a list of the documents appended; and

7) the time of completing the application.

The applicant or his or her representative shall sign the application. If the application has been signed by the representative, to the application shall be appended the authorisation or another document, which certifies the authorisation of the representative to apply to the court with an application.

What documents must be included with/attached to the application to enforce a foreign court judgment?

Judgments from a country with which Estonia has no international Treaty:

The documents listed in Article 622 of the Code of Civil Procedure shall be appended to the application to enforce a foreign court judgment:
1) a copy of the court decision authenticated pursuant to the requirements of the law of the country of the location of the court which made the decision;

2) a document which confirms that an action, summons or other document initiating the proceeding has been served in time on at least one occasion pursuant to the law of such country on the defendant or based on the decision, on another debtor who did not participate in the proceeding;

3) a document which certifies that the decision has entered into force pursuant to the law of the country where the decision was made and has been communicated to the defendant or based on the decision, another debtor;

4) a document concerning the execution of the decision if execution has already been attempted;

5) a document concerning the execution of the decision if the decision has been executed;

6) notarised translations into Estonian of the documents specified above.

Judgments from a country belonging to the EU (Article 53 of the Council Regulation (EC) No. 44/2001):

1) A copy of the judgment which satisfies the conditions necessary to establish its authenticity.

2) The certificate referred to in Article 54 (the court or competent authority of a Member State where a judgment was given shall issue, at the request of any interested party, a certificate using the standard form in Annex V of this Regulation) without prejudice to Article 55 (1. If the certificate referred to in Article 54 is not produced, the court or competent authority may specify a time for its production or accept an equivalent document or, if it considers that it has sufficient information before it, dispense with its production. 2. If the court or competent authority so requires, a translation of the documents shall be produced. The translation shall be certified by a person qualified to do so in one of the Member States).

What are the phases of the procedure to enforce a foreign court judgment?

1. Recognition and enforcement application – recognition does not need special judicial proceedings unless there is dispute regarding the recognition or the person needs the recognition to exercise his or hers rights for any other reason;

2. Recognition;

3. Court decision granting the enforcement;

4. Appeal;

4. Selling the assets subject to enforcement.

E. Opposition of the Defendant

Are there a limited number of reasons for the defendant to oppose to the enforcement of the court judgment? What are those reasons?

The defendant can oppose the enforcement of the foreign court judgment on the reasons described below:

1) recognition of the decision would be clearly contrary to the essential principles of Estonian law (public order) and, above all, the fundamental rights and freedoms of persons;

2) the defendant or other debtor was unable to reasonably defend the rights thereof and, above all, if the summons or other document initiating the proceeding was not served on time and in the requisite manner, unless such person had a reasonable opportunity to contest the decision and the person failed to do so within the prescribed term;

3) the decision is in conflict with an earlier decision made in Estonia in the same matter between the same parties or if an action between the same parties has been filed with an Estonian court;

4) the decision is in conflict with a decision of a foreign court in the same matter between the same parties which has been earlier recognised or enforced in Estonia;

5) the decision is in conflict with a decision made in a foreign state in the same matter between the same parties which has not been recognised in Estonia, provided that the earlier court decision of the foreign state is subject to recognition or enforcement in Estonia;

6) the court which made the decision could not make the decision in compliance with the provisions of Estonian law regulating international jurisdiction.

Is it possible to appeal a court decision to recognize and enforce a foreign court decision?

The claimant and the debtor may file an appeal against a ruling on declaration of enforcement of a court decision of a foreign or a ruling on amendment of a declaration of enforcement of such decision. The term for filing appeals against a ruling shall be one month after the date of service of the ruling or, in the case the ruling is served in a foreign state, two months after the date of service thereof.

Can this appeal suspend the enforcement?

Until the end of the term for filing appeals against a ruling on declaration of enforcement of a decision of a foreign state or the entry into force of a decision made concerning an appeal against the ruling, only the measures prescribed for securing an action may be applied for the compulsory execution of a court decision of a foreign state. The debtor has the right to avoid compulsory execution by providing a security in the amount which entitles the petitioner to request compulsory execution of the decision. However, seized movable may be sold in the course of an enforcement proceeding and the money received from the sale may be deposited with the permission of the court, if the seized property could otherwise be destroyed or its value could significantly decrease or if deposition of the property is unreasonably expensive.

Are there any rules concerning recovery of the judicial costs incurred as a result of the enforcement application?

There are no special rules concerning recovery of the judicial costs incurred as a result of the enforcement application.

 

V. RECOVERY OF THE DEBT

What types of assets are subject to enforcement of the court's judgment?

All movable and immovable property as well as claims and real property rights may be subject to enforcement by court.

The following things can not be seized or sold in the course of enforcement proceedings (article 66 of Code of Enforcement Procedure):

1) the personal effects of a debtor and household effects, kitchenware, bedclothes, beds and other things used for domestic purposes which are essential to satisfy domestic needs, taking account of the amount of the debt;

2) at least one technical device which ensures a debtor use of the right to receive information prescribed in the Constitution of the Republic of Estonia;

3) food products necessary for a debtor and his or her family for one month and heating material necessary for one heating period to heat the dwelling or, if there is no such supply by the time of enforcement and acquisition of the supply is not ensured in any other manner, a sum of money necessary for acquisition of the supply;

4) farming equipment, cattle, fertilizers and agricultural produce of a person engaged in agriculture, which are essential for the debtor to maintain him or her and his or her family until the next harvest;

5) objects essential to continue the economic or professional activities or the employment or service relationship of a natural person;

6) books and other objects used by a debtor or his or her family member in studies or worship activities;

7) accounting records, family records, marriage rings, orders and decorations belonging to a debtor;

8) artificial limbs, spectacles and other medical devices necessary due to a physical disability, which are used by a debtor or his or her family member;

9) objects necessary for a funeral in the family of a debtor;

10) the museum collections of state museums, municipal museums and museums of legal persons in public law and museum objects belonging to the collections, and the museum collections or museum objects of state museums granted for use to a foundation;

11) public records;

12) other things the seizure of which is in conflict with law or good morals.

 

Pursuant to article 131 and 132 of Code of Enforcement Procedure income on which claim for payment can not be made are deemed to be:

1) state family benefits;

2) death grant;

3) social benefits for disabled persons;

4) social benefit within the meaning of the Social Welfare Act;

5) compensation paid for the causing of a bodily injury or health disorder, except compensation for lost income and compensation for non-patrimonial damage;

6) alimony based on law;

7) a health insurance benefit paid by the health insurance fund, except benefits for temporary incapacity for work;

8) additional payments for dangerous work or work which poses a health hazard or difficult working conditions;

9) parental benefit;

10) state pension to the extent provided by law;

11) support on release from prison.

 

Income shall not be seized if it does not exceed the amount of minimum wages prescribed for one month or a corresponding share of income for a week or day.