When pursuing a debt in the Irish Courts, the amount due decides the appropriate Court and procedure in which to pursue the debt. In Ireland, there is no minimum amount required to start a judicial process. The procedure varies in each Court, but generally starts with a creditor issuing a warning letter to the debtor for the sum due as described in Section 3 below.
District Court Procedure
Where a claim is up to a maximum of €15,000, the procedure is governed by the District Court Rules. District Court proceedings begin by a creditor issuing a Debtor Claim Notice.
The Claim Notice sets out all material facts on which the creditor relies, the specific amount in question, the relief or remedy sought and the place and date when the claim arose.
The Claim Notice must be stamped with the appropriate stamp duty and issued by the District Court. The Notice must be served by registered post or by personal service on an individual. In the case of a registered company, service is to the registered office of the company. If it is not possible to serve the Notice, a creditor may ask the District Court to allow substituted service by another method. If the substituted service fails a creditor may ask the Court to deem the Notice to have been properly served.
If the debtor pays the amount claimed within 10 days of the service court attendance is not required.
If the claim is disputed, the debtor must notify the creditor of their intention to do so within 28 days of receiving the Notice. This is done by serving the creditor with an appearance and defence. The creditor then serves a Notice of Trial on the debtor at least 10 days before the court hearing.
At an oral hearing, the judge considers the arguments from both sides and decides either in favour of the creditor or to dismiss the action. If the judge considers that a debtor cannot pay the amount through no fault of their own, the judge may grant a stay of execution for a period of time, that is a delay in the payment date. The judge may also make an order for payment by instalments.
If a debtor does not indicate their intention to defend the proceedings, there is no hearing; the creditor must file the required documents with the District Court Clerk. The creditor obtains judgment in default and can then enforce it against the debtor.
Circuit Court Procedure
Where a claim is between €15,001 and €75,000, the procedure is governed by the Rules of the Circuit Court. The Circuit Court proceedings begin by a creditor serving an Ordinary Civil Bill.
A Civil Bill must identify the Circuit and County where the defendant resides, or company is registered and in which the proceedings are to issue. The claim being made by the creditor should plead the contract, the breach alleged, and the amount claimed, and demonstrate that the debtor has been asked to pay the outstanding sum and has not done so.
The Civil Bill must be stamped with the appropriate stamp duty and issued by the relevant Circuit Court. The Civil Bill must be served on the debtor by registered post or by personal service within one year of it being issued. In the case of registered company service is to the registered office of the company. An Affidavit of Service /the Statutory Declaration should be sworn by the individual who effected service.
If the claim is to be defended, a debtor must enter an appearance within 10 days of service of the Civil Bill. Where an appearance is not entered on behalf of the debtor, or an appearance is entered but no defence is filed, a creditor may apply to the Court for a judgment in default of appearance against the debtor. Judgment is given if the relevant documents are lodged by the creditor. A 14 day warning letter must be sent to the solicitor acting for the debtor advising them of the intention to apply for judgment.
Once the judgment has been granted, the creditor may then apply for an execution order to enforce the judgment.
High Court Procedure
Where a claim is above €75,000, the procedure is governed by the Rules of the Superiors Courts. High Court proceedings are started by a creditor serving a Summary Summons.
The Summary Summons must state specifically and with all necessary particulars the amount owed, the relief claimed and the grounds thereof.
The Summary Summons must be stamped with the appropriate stamp duty and issued by the High Court. It must be served on the debtor by registered post or by personal service within one year of it being issued. Where the Summary Summons is to be served on a registered company it should be done by registered post or by leaving the Summons at the registered office of the company. There is also the option of bringing an ex-parte application for substituted service as is the case in the District and Circuit Court Procedures. Once served, the defendant has eight days from the date of service of the proceedings to enter an appearance.
Where an appearance is entered, the matter proceeds before the Master of the High Court by way of Notice of Motion seeking liberty to enter final Judgment. The necessary proofs are the Summary Summons, the Appearance, the Notice of Motion (together with proof of service of same), the Grounding Affidavit sworn by the creditor and any Replying Affidavit. The Motion must be served at least four clear days before the date fixed for hearing of the Motion.
The Master may decide to grant liberty to enter Final Judgment. In this case, the creditor must file in the Central Office of the High Court Judgment Papers together with a Judgment in Pursuance Order. Alternatively, if there is a dispute the Master will adjourn the matter to Plenary Hearing in the High Court.
If no appearance is entered, the creditor may seek judgment in default of appearance from the Central Office of the High Court. This judgment is given if the relevant documents are lodged by the creditor.