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Case law on fixed-sum compensation in the event of payment arrears on periodic invoices

5 June 2023 1 min read

According to a judgment of 4 May 2023 of the Court of Justice of the European Union, where one and the same contract provides for payments of a periodic nature, each of which must be made within a specified period, the minimum fixed sum of EUR 40 provided for in Article 6 of Directive 2011/7/EU on combating late payment in commercial transactions is due, by way of compensation to the creditor for recovery costs, for each instance of late payment. This applies regardless of the amount of the debt due. It also applies in public procurement and allows a contractor whose invoices are unpaid to claim this fixed sum for each unpaid amount, and not just once for the arrears as a whole. (CJEU (Eighth Chamber), judgment of 4 May 2023, ALD Automotive, Case C-78/22)

Gauthier Ervyn ge@resolved.law