N E W S R E P O R T V A P L A W J U L Y 2 0 1 5
L I T I G A T I O N
Emergency measures for the application of law 4334/2015
Amendments of the Code of Civil Procedure (law 4335/2015)
The aftermath of the negotiations with the partners was the commitment the Greek Government obtained for the direct enactment and amendment of measures, in performance of the enacted law 4334/2015, whose enactment is a condition for the completion of negotiations for the conclusion of a final agreement with the European Stability Mechanism.
One of the measures the Greek Government had to adopt is the amendment of the existing Code of Civil Procedure, for the purposes of expediting the awarding of justice, the effectiveness of the civil trial and the reduction of the cost of litigation.
The most important changes and innovations included in the law 4335/2015 mainly concern the ordinary procedure in the first-degree trial, the exercise of legal remedies, the legal proceedings and the law on enforcement.
IMPORTANT TO NOTE
• The ultimate goal is the expedition of civil trial.
• Major changes and innovations in the ordinary procedure before the 1st degree Courts and the law on enforcement.
• Restriction of legal remedies in the enforcement procedure.
More specifically, we present the major points of the amendments:
1. Ordinary procedure before the 1st Degree Courts
A standard trial is established, which is primarily based on the written procedure, while hearing before the audience obtains a typical character.
The written procedure evolves based on specific and shortened deadlines.
Following the hearing, a final judgement is issued, based on the details of the file of the brief.
In case the Judge rules that the witness examination before the audience is necessary, repetition of the hearing is ordered.
The VAT/Tax Registration number is obligatorily written on the legal documents, the service reports, the court judgements etc.
The most important changes and innovations included in the Code mainly concern the ordinary procedure in the first-degree trial, the exercise of legal remedies, the legal proceedings and the law on enforcement.
2. Legal Remedies
Provision of a two-year abusive deadline for the lodging of an appeal and a petition for cassation in case the Judgement is not served.
Abolishment of the deadline for the production of pleadings and the introductory legal document in the 1st degree trial.
3. Special Proceedings
Systemization of special proceedings into three (3) categories:
(a) Domestic disputes (marriage, cohabitation, differences between parents and children),
(b) Property disputes,
(c) Issue of orders (payment and delivery of leasehold orders), a category in which the ability to accumulate the petition for stay of proceedings against a payment order is proposed to be included in the same legal document with the petition for the stay of proceedings against the enforcement, when it is expedited by the payment order which is the enforceable title, in order to avoid unnecessary trials and expenses.
All reproaches against the delinquencies of the enforcement procedure are raised in only two stages.
The first stage takes place before the auction and includes all reasons for the invalidity of the procedure. Only the lodging of an appeal will be permitted against the Judgement that will be issued, without suspending the further enforcement procedure (possibility of filing a petition for suspension under conditions).
The second stage takes place after the auction and includes the ability to file for a stay of proceedings for possible delinquencies, which emerged from the date of auction until the preparation and adjudication of the auction report.
The date of auction is obligatorily set seven (7) months from the date the foreclosure is completed and in any case, not after the lapse of eight (8) months from the said date.
The first offer price for the auction of a property is its commercial value, as defined at the date of foreclosure.
The claims of the State under value added tax and other withheld and imputed taxes etc., rank third in the table of general privileges.
Upon the division of the proceeds of auction, a percentage of 10% is applied for the satisfaction of non-privileged (unsecured) claims, a percentage of 65% for the satisfaction of special privileges and a percentage of 25% for the satisfaction of general privileges.
Note: It is pointed out that the above outline of provisions is suggestive and summarizing and aims at providing a quick update in relation to the legal framework. Any subjection of your company to the above provisions and the conditions of this subjection constitute the object of a more complete analysis for which the provision of specialized legal advice is required.
D I S C L A I M E R