When a bill remains unpaid, an entire system of claims opens before the holder — but this system has its own strict deadlines and precise rules for computing the sums. Whom to sue, within what time, and for what amount — the Law on Bills answers these questions in advance, and a deadline computed incorrectly destroys the entire claim. Legal.ge's lawyers accompany this process from preparing the statement of claim through enforcement.
When a Claim May Be Brought
The holder of a bill may bring a claim against the endorser, the drawer and other obligated persons upon the arrival of the payment deadline and in case of non-payment. Beyond that, the law grants this right before the deadline in defined situations: where refusal was declared as to acceptance of the whole sum of the bill or part of it; where the debtor's insolvency is doubtful — regardless of whether the bill was accepted by it; where the debtor suspended its payments without court confirmation, or where compulsory enforcement produced no result; and where the insolvency of the drawer of a bill not subject to acceptance is doubtful.
What May Be Claimed
In bringing the claim, the holder may demand: the sum of the unaccepted or unpaid bill, with interest where so provided; interest at six per cent, computed from the payment deadline; the expenses of the protest, of sending notices and other expenses; and lump-sum damages of three per cent of the sum of the bill, computed from the payment deadline. This list is entirely concrete — presenting each sum separately in court, with documentary support, requires precision.
Recourse: the Rights of a Paying Endorser
A person who has paid the bill by way of recourse may demand from earlier endorsers: the entire sum it paid; interest at six per cent of the paid sum, computed from the day of payment; all expenses it incurred; and damages computed under the rule established by law. The paying endorser is also entitled to demand the return of the paid bill with an annotation of payment (a receipt), and after payment may cross out its own indorsement and the subsequent indorsements — thereby protecting itself from the bill's renewed circulation.
The Return Bill (Retraite)
Every person entitled to bring a claim may, absent other agreement, obtain the sum of a return bill (retraite) and draw it upon one of its prior endorsers, payable on presentation, at the place of that person's residence. Such a bill includes, besides the sums defined by law, the sum payable to intermediaries and the state duty on the bill — the value of the bill form. Where the return bill is drawn by an endorser, its sum is determined at the rate of the bill payable on presentation issued at the drawer's place of permanent residence.
When Rights Are Lost
The holder loses its rights against the endorsers, the drawer and other persons who assumed the obligation — except the person who signed the acceptance — where the deadline has passed for presenting a bill payable on presentation, for lodging a protest in case of refusal to accept or pay, or for presenting the bill for payment where the return-without-expenses clause exists. Failure to present the bill for acceptance within the deadline fixed by the drawer likewise releases the drawer, unless the stipulations imply a different intent.
Force Majeure and the Extension of Deadlines
Where due to force majeure it was impossible to present the bill for payment or to draw up the protest within the prescribed period, the period is extended. The holder must notify its endorser of the obstacle and record the notice on the bill or on an annex — with date and signature. After the obstacle ceases, the bill must be presented immediately. If the circumstances continue for more than thirty days after the payment deadline, the claim may be brought without presentation and without protest. It is important that circumstances impeding only the holder personally do not count as force majeure — a personal situation does not extend the deadline.
Limitation Periods
All claims connected with a bill may be brought against the acceptor within three years from the day of the payment deadline. The holder may sue the endorsers and the drawer within one year from the last day of the period fixed for the protest — or, where the return-without-expenses clause exists, within one year from the day of the payment deadline. Endorsers sue each other and the drawer within six months from the day of payment of the bill, or from the day a claim was brought against the endorser. Interruption of the limitation period is possible; suspension is not — and only the person against whom the period was interrupted may rely on the interruption. Legal.ge computes each of these periods against the facts of your case and builds the claim so that no defect can be invoked by the defendant.
Procedural Sequencing: the Protest Before the Claim
In practice, the right to sue is almost always built on the protest procedure: the limitation period against endorsers and the drawer runs precisely from the last day of the period fixed for the protest. The success of the case therefore resolves into two phases — first the timely protest and the cascade of notices, then the claim with each sum computed separately. The situation of partial acceptance deserves particular care: a refusal covering the whole sum or part of it is a ground for bringing the claim, and each such refusal must be documented. Legal.ge manages both phases as one — from the calendar of deadlines to defending the position in court.